FTC targets another CBD marketer for unsubstantiated disease claims

By Hank Schultz

- Last updated on GMT

©Getty Images - serggn
©Getty Images - serggn

Related tags CBD and Hemp Ftc Federal trade commission

A marketer of CBD products has agreed in a Federal Trade Commission administrative proceeding to cease making unsubstantiated disease treatment claims and pay more than $30,000 in consumer redress.

The case brought against Arizona-based Kushly Industries LLC (Kushly) and the company’s sole officer Cody Alt is the seventh such enforcement brought by FTC against a CBD/hemp firm, according to Daniel Kaufman acting director of the FTC’s Bureau of Consumer Protection.

“There may be some benefits of CBD, but there’s no proof that it can treat the serious health conditions in Kushly’s advertising, such as Parkinson’s, multiple sclerosis, or cancer,”​ Kaufman said.

In addition to the above conditions, Kushly and Alt are alleged to have claimed CBD products could also effectively treat skin conditions like acne and psoriasis as well as hypertension.

Kushly markets a range of CBD products including oils, topical products and gummies.

Seventh action against a CBD firm

The action against Kushly is the first since FTC targeted six CBD firms in December in an enforcement action the Commission dubbed CBDeceit​.  More than $246,000 in fines were levied in those cases.

The proposed administrative order with Alt prevents him or his from making any representations about the health benefits, efficacy, safety or side effect about any covered product, including CBD products, unless the representations are true at the time they are made, are not misleading, and they have and rely upon competent and reliable scientific evidence to support the claims. It also requires them to secure and preserve any human clinical tests or studies they use to substantiate these health claims.

Alt is also constrained from claiming that his company’s products are clinically proven to treat, alleviate, or cure or that scientific evidence exists to back up such claims: chronic pain, multiple sclerosis, anxiety, depression, cancer, sleep disorders, hypertension, Parkinson’s disease, Alzheimer’s disease, acne, psoriasis, and eczema.

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