Two Companies Face Potential Class Action Over CBD

Two companies selling cannabidiol (CBD)—Charlotte’s Web Holdings and Infinite Products Co.—face proposed consumer class suits filed in California, Bloomberg Law reports, noting that the suits allege that the companies improperly market products containing CBD.

News of the suits came on December 2, just days after the U.S. Food and Drug Administration (FDA) announced that warning letters were issued to 15 companies for illegally selling products containing cannabidiol (CBD) in ways that violate the Federal Food, Drug, and Cosmetic Act (FD&C Act). Infinite Product Company LLLP, DBA as Infinite CBD, was among the companies to receive letters. More on the FDA’s actions here.

Related: FDA Issues CBD Warning Letters; Comments on GRAS

According to Bloomberg Law, the suits allege that the two companies do not comply with federal regulations. Details of the filings with links to the suits can be found here.

Charlotte’s Web issued a press release with comments on the potential class action: “On December 1st, Charlotte’s Web Holdings, Inc., the market leader in hemp-derived CBD products, became aware of a yet-to-be served class-action suit having been filed in the Northern District of California that alleges that the Company’s products are mislabeled as dietary supplements. The Company believes that its products are accurately labeled and that the claims are without merit. The Company intends to vigorously defend itself against any such suits.”

Infinite CBD sent the following statement to WholeFoods Magazine: “At this time, Infinite CBD has not been legally served with the complaint in question. Therefore, we have no comment until we are able to review the complaint in its entirety as well as advise counsel. We want the public to know that we take this matter very seriously and will address the complaint once additional information is provided to us.”

Related: FDA Discusses Legality CBD at CRN Conference
NJ Senate Passes Resolution Asking Congress for Safe CBD Legislation
FDA and Media Turn Attention to CBD; Industry Reacts From SSW

This article will be updated as more information becomes available.