Plaintiffs In Hemp Class Action Lawsuit Hemmed In By Forthcoming FDA Rules

Legal News

Plaintiffs in several proposed class action lawsuits against CBD companies over mislabeling the amount of hemp-derived CBD advertised in various products are currently in legal limbo. That’s because the Food & Drug Administration (FDA) as of yet does not regulate CBD, the non-intoxicating compound in the cannabis plant (which includes both hemp and marijuana). 

But the FDA is expected to issue guidelines sometime in the future. Consequently, as reports, several federal judges have postponed proceedings (“stayed actions” in legal jargon) while awaiting the release of federal rules. Defendants in the proposed lawsuits have sought stays pending FDA regulations by invoking the doctrine of primary jurisdiction. 

But in one proposed class action lawsuit against a CBD company—Just Brands, Inc, the lead plaintiff told a California federal judge that there’s no reason to wait for the FDA’s guidelines because the legality of CBD products isn’t at issue in the suit. Rather, the issue at hand is consumers paying too much for CBD products that have less CBD than advertised. 

Per, the lead plaintiff told the court that at least one federal judge has already agreed in a similar action alleging that CBD products were underfilled. 

“There is no scenario in which the FDA and state regulators will authorize the defendants’ deceptive conduct of failing to provide consumers with the amount of CBD represented on the product labels,” the lead plaintiff said. 

The lead plaintiff alleges that Just Brands, INC. and the other named defendant, SSGI Financial Services, inflate the amount of CBD on the edible and tincture labels, with some containing no CBD at all.

CBD advocates recommend choosing a company only if they have each batch of their cannabis tested by a third party for purity and prominently have lab reports displayed on their website.


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