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As 2020 drew to a close and Congress scrambled reach a deal to continue funding the federal government, tucked in amidst the 2124 pages of the 2021 Appropriations Bill is a new power for the FTC: civil penalty authority for deceptive COVID-related acts and practices. Titled the COVID-19 Consumer Protection Act (see page 2094 here), the law states as follows:
(b) For the duration of a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) as a result of confirmed cases of the 2019 novel coronavirus (COVID–19), including any renewal thereof, it shall be unlawful for any person, partnership, or corporation to engage in a deceptive act or practice in or affecting commerce in violation of section 5(a) of the Federal Trade Commission Act (15 U.S.C.45(a)) that is associated with
Editorial credit: Felix Lipov / Shutterstock.com According to a Federal Trade Commission official, settlements in a law enforcement sweep against CBD marketers send a clear message to the growing sector: Don’t make spurious health claims that are unsupported by medical science.
A handful of marketers of CBD products have agreed to each pay tens of thousands of dollars to the Federal Trade Commission after they were charged with making deceptive claims.
Dubbed “Operation CBDeceit,” the sweep of actions against six sellers of CBD-containing products highlights “the first law enforcement crackdown on deceptive claims” in the CBD market, according to the government agency in a Dec. 17 news release. The sweep also reflects the FTC’s ongoing efforts to protect consumers from deceptive, false and misleading health claims in advertisements on websites and via social media.
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