CORPORATE CANNABIS
Ep. 6 Smoke Screen: The Dark Ugly Underside of Corporate Cannabis #TooFastTooHard This is a regular series of articles intended to be chapters in a compilation story book of lessons to learn from Corporate Cannabis. Names have been changed to protect the guilty (and the innocent).
gummies from the company’s website, which purported that each product contained anywhere from 150 mg to 550 mg of CBD. The suit claims the actual amount in at least one of those products was far less, although it does not explain how the actual amount was determined.
Edibles Magazine™ Issue 62
Episode 6 in the Smoke Screen is about a big CBD company that has fallen flat Due to the fact that the FDA was on its face. investigating them, and the fact that they’re a public company, the SEC They went public on the American (Securities Exchange Commission) who exchanges early on, and raised plenty regulates the stock market, started of investor money to make themselves investigating them. successful quick, fast and hard. The SEC tipped off the FBI and their They advertised everywhere, became corporate offices were raided. Now they the leader in white labeling and private can’t pay their bills and are trying to labeling, gaining the attention of keep their white labeling business alive, everyone, including the FDA. but the market is flooded, and their reputation is destroyed. The FDA started looking into them because of their product claims and They’re still attending conventions and marketing claims that their products cold calling distributors, but they’re “helped” or “cured” diseases on their using an alias for the company name website. They were one of the few while pretending not to be connected, companies that got a letter from the FDA despite having the same sales reps, demanding they stop making claims. phone number and physical address.
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Then they were on the receiving end of a class action false advertising lawsuit with the class representative claiming that the products did not have the amount of CBD they said they have in them. The suit alleges the company misrepresented the amount of CBD in their products. The lawsuit says the plaintiff purchased $119.97 worth of CBD
The moral of the story is: The bigger they are the harder they fall. We are still in a new, almost experimental market. CBD companies may not realize that regulation on the horizon. The bigger you are, the more of a target you become. Don’t be the one they make an example of.
EdiblesList.com I EdiblesMagazine.com
