The Federal Trade Commission announced that it reached a settlement with Kushly Industries, resolving allegations that the company made deceptive claims that its CBD products could effectively treat or cure a variety of health conditions.
This is the seventh case that the FTC has brought against marketers of CBD products. In the FTC's "Business Blog," Senior Attorney Lesley Fair wrote that this case "demonstrates the FTC’s ongoing commitment to challenging misrepresentations that a product is effective for preventing or treating serious conditions."
The FTC alleged that Kushly made false or unsubstantiated claims that the company's gummies, ointments, and other products with CBD could treat ailments such as acne, psoriasis, cancer, and multiple sclerosis. The FTC pointed to claims such as:
- "It can treat neurological disorders such as . . . multiple sclerosis";
- "CBD has the capacity to lower blood pressure"; and
- "Being an anti-inflammatory substance, CBD is being used to treat acne, psoriasis, and other skin irritations."
As part of the announcement of the settlement, Daniel Kaufman, Acting Director of the FTC's Bureau of Consumer Protection, said, “This is the seventh case we’ve brought against CBD sellers who should know better than to make unsupported health claims for their products. 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.”
In addition to prohibiting the company from making false health claims in the future, the settlement also requires Kushly to pay more than $30,000 of restitution to consumers.
"This is the seventh case we’ve brought against CBD sellers who should know better than to make unsupported health claims for their products" -- Daniel Kaufman, Acting Director, FTC Bureau of Consumer Protection