This is the second time that the FTC has disciplined the CBD industry, says Smith, whose agency reprimanded a California company in April for making false claims about CBD's prevention or treatment of COVID-19. This is the first time that the FTC has put the bite on multiple businesses at once, though; five of those companies paid between $20,000 and $85,000 in penalities.
"We are not saying CBD products cannot provide some benefit to some CBD consumers, [but] the same rules of the road apply to CBD products as all dietary health products and supplements," Smith said during a press conference announcing the operation. "Some companies claimed that their CBD products were more effective than prescription medication for that condition. ... That proof simply doesn't exist, and there can be serious life consequences that grasp at the hope."