CBD Regulations to Keep an Eye On
CBD Regulations to Keep an Eye On
Takeaway: There are many obstacles for CBD businesses who want to become legitimate, but there is a bright future ahead.
Running a business is not easy. This is especially true for CBD and hemp businesses. While hemp laws are loosening up, the stigma surrounding cannabis users still persists, making it hard for business owners to advertise as they would like to. I know what you're thinking — you can't believe that people should be judged based on their personal choices! But unfortunately, society can be cruel, but this article is not about how to overcome prejudice. We already know how to do that — by improving society and changing the way people think. Our aim here is to provide tips on how you can make your CBD business more successful, no matter how many difficulties you're confronted with.
The legal status of cannabidiol (CBD) is in a gray area across the nation. Its classification as a controlled substance comes from the source of the plant, which for many CBD products is industrial hemp. By legalizing marijuana, some states have indirectly legalized CBD, whether that was their intention or not. However, CBD legislation is constantly changing, so it's possible that when you read this article at a future date after changes have been made, you might find that we have come a long way since its writing.
While there are currently multiple pieces of legislation being discussed at the federal level, including bills that would permit states to implement medical or recreational marijuana programs or both. There are other bills as well that have been proposed to de-schedule or decriminalize marijuana completely (Marijuana Opportunity Reinvestment and Expungement Act). Many questions remain about how each law will impact businesses selling cannabidiol (CBD) products in the United States. While some CBD products do fall under the Controlled Substances Act, an increasing number of hemp-derived CBD products (which contain less than 0.3 percent THC and can be sold nationwide) are being shipped from retailers around the country making their way into the hands of consumers who may not yet be fully aware of the laws and regulations restricting CBD sales.
For any CBD company in the U.S., staying on top of the constantly-changing state regulations for CBD products is of the utmost importance. While many states have legalized the use of hemp-derived CBD within their borders, other states still have laws that prohibit businesses from selling CBD products—even in states where the state's own law defines "hemp" as a legal substance. It's critical that CBD business owners stay up-to-date with these ever-changing rules and regulations to avoid any regulatory hurdles.
Health Claims and Benefits
The US Food and Drug Administration (FDA) has sent several warning letters to CBD companies for making unsupported health claims. And even though the current law states that CBD can be sold as a food supplement, you'll want to keep away from making any medical claims in your advertising when selling CBD products in the United States. This is important because it can mean the difference between falling into regulatory pitfalls and landing on the safe side of the law.
The FDA is asking the general public to report potentially "illegal, dangerous" health benefit claims made by CBD product manufacturers while advertising their products. The agency clarified that it's a violation of the Federal Food, Drug, and Cosmetic Act to misleadingly describe an unapproved new or old drug in such a way that conveys the impression that it is safe for use for conditions other than what has been approved by the FDA.
The Federal Trade Commission (FTC) recently settled with two CBD companies over claims that their products could treat a variety of medical conditions. The settlements follow several warning letters the FTC sent to CBD businesses in 2019 over unsubstantiated health claims in advertisements and on product labeling. As the industry continues to grow, it is clear that the FTC will continue to scrutinize CBD companies' health claims.
It is important for CBD businesses to be aware of these ever-changing guidelines for health claims when advertising their products online. The most recent settlements provide an outline of what is allowed, as well as potential consequences for making unsubstantiated health claims about CBD products.
Advertising Your CBD Business
One of the best ways to build a brand is through search engine optimization, or SEO. It's important to get a firm grasp on SEO if you want to make sure your business is relevant in today's marketplace. Unfortunately, SEO is not easy. What does that mean for you? It means you're going to have to work hard if you want your business to beat out the competition.
Search engine optimization (SEO) is a process of modifying your content and website in order to help search engines like Google find it. This increases the number of people that can view your website, which leads to an improved conversion rate. There are many tactics and methods for SEO, but they all fall into one of two categories: on-page or off-page. Off-page SEO includes link building, social media marketing, quality content creation and reputation management. On-page means you can refer to title tags, meta descriptions, headings, alt tags for images within the content, development of user-generated content and comments within the content.
Social Media Marketing
Social media ads are a powerful tool for businesses to increase brand awareness and boost sales. However, in the fast-paced world of social media, ads can be posted that violate federal regulations. That's because the FDA is still trying to catch up with decades of hurriedly written legislation. According to The New York Times, the last major piece of consumer protection legislation on advertising was passed in 1938. Even though it wasn't originally intended to regulate social ads, this law (the Federal Food, Drug and Cosmetics Act) has kept the FDA backed into a corner as new regulations automatically fall under its purview.
Social media has changed the way CBD businesses advertise, making it easier to reach customers than ever before. As a result, CBD business owners need to stay up to date on social media guidelines for advertising their products. While it's true that more and more people are becoming interested in CBD, it's also true that many social media platforms like Facebook and Instagram still have CBD-related policies that are somewhat restrictive. As a CBD business owner, it's essential that you know the rules surrounding CBD advertising on social media. These social platforms have strict guidelines for what advertisers can and cannot say or show, so be on your toes and know what goes.
Here are some of the main points to keep in mind for each platform:
Facebook: Facebook allows ads for products made from industrial hemp, but not for those containing THC. However, there are other restrictions as well, such as age-gating your ads and not using images of people or animals.
Twitter: Twitter allows ads related to the sale of hemp products, as long as they don't mention CBD directly. You can also run ads discussing medical cannabis, but only in certain Canadian markets.
Instagram: Instagram allows ads for non-ingestible hemp products like body care and cosmetics. They do not allow any ads that mention the recreational use of cannabis or CBD's medical benefits.
No one can take away from the amazing benefits that CBD has to offer. But if you're running a business, you'll want to make sure your actions are above-board. Navigating laws and regulations surrounding hemp products is a lot easier when you have expert help navigating the stormy waters of hemp regulations. Redde Payments can help get you on the right track so that you can focus on what matters most--growing your business! Relax and let the experts take the wheel, contact Redde Payments to find out more today!