CBD Oil Products Seller Settles COVID-19, Cancer Cure False Ad Claims With FTC

The Federal Trade Commission (FTC) has reached a settlement with a CBD oil products seller, ending allegations that the company falsely advertised its products. The FTC had taken issue with the company’s advertisements that its vitamin C and herbal extract supplements were an effective COVID-19 treatment, and its claims that three CBD products could treat cancer. These efforts are part of both the FTC’s focused attempt to crack down on sellers peddling fake coronavirus cures, as well as an effort to scrutinize advertising in the cannabinoid industry. 

Whole Leaf Organics’ alleged attempt to profit from the coronavirus pandemic was unfortunately not unique. The FTC has investigated multiple alleged instances of companies touting a cure or an unapproved preventative measure. However, Whole Leaf is the first to allegedly have faced a lawsuit brought by the U.S Food and Drug Administration (FDA) over the issue. The Washington Post explains that the federal government has taken action by sending warning letters to other sellers suspected of peddling fake coronavirus cures.

However, Whole Leaf Organics has been on the FTC’s radar since last year. In November 2019, the FDA sent a warning to the company to stop falsely advertising its CBD oil products. The company did not change its advertisements. 

Now, the settlement that was recently reached kills two birds with one stone, ending the government’s claims around falsely advertised COVID-19 and cancer cures. 

Per the terms of the recent deal, the company has agreed to change its marketing for certain supplements. The company will no longer state that the products can prevent or cure COVID-19. Previously, the company touted that the supplements were the “perfect way to strengthen your immunity against pathogens like ‘COVID-19.” The company allegedly advertised the products not just as supplements, but as “antiviral wellness boosters.”

Whole Leaf Organics will also now change its labeling of three CBD oil products, eliminating cancer treatment advertisements. According to the FTC, the company had advertised the supplements as a good way to treat cancer, citing that they are “effective at reducing inflammation and minimizing the way cancer cells manipulate neighbor cells.” Allegedly, these constituted unapproved drug claims, and were not backed up by evidence or research. 

Now, the company has agreed to remove the cancer treatment claims from the advertisements for their CBD oil products. 

Is the FDA Working to Limit False Cure Claims?

Amidst the current concern over COVID-19 scams, the federal government is still attempting to regulate advertisements within the blooming cannabinoid industry. The FDA has allegedly cracked down on false advertisements saying that CBD could cure a range of ailments, including opioid addiction.

While the FDA has approved only one CBD-based prescription drug, this reportedly has not stopped sellers from trying to make claims of treatments, cures, and prevention capabilities that are not approved by the FDA.

In April, the FDA sent warning letters to two CBD sellers, telling them that it is unlawful for them to allegedly market their products as opioid-addiction treatments. According to the FDA, CBD has not been shown through research to treat opioid addiction.

The two companies that received the warning letters were BIOTA Biosciences and Homero Corp., which does business as Natures CBD Oil Distribution. The two companies made slightly different claims regarding alleged opioid addiction treatment. According to the FDA, BIOTA advertises its CBD products as an alternative to opioids, and that they give “instant relief for patients that are symptomatic of inflammatory autoimmune diseases.” Allegedly, Homero goes so far as to say that its CBD products are “effective in the treatment and eradication of opiate use,” a stark contrast to the FDA’s insistence that this is not the case.

The CBD industry is still relatively young, and still grapples with gaps in regulation. The federal government’s recent Farm Bill has attempted to address this, and states have attempted to regulate still further, where the federal law reportedly lacked specificity, explains the New York Post.

The Whole Leaf Organics False Advertising COVID-19, Cancer Treatment Lawsuit is Case No. 2:20-cv-03775, in the U.S. District Court for the Central District of California.

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