CBD Regulations Confuse Suppliers And Consumers


CBD regulations in the U.S. have confused suppliers as well as consumers with the Food & Drug Administration (FDA) issuing warning letters to some CBD marketers for possible violations of the Federal Food, Drug & Cosmetic Act. In a Consumer Update, the FDA said CBD cannot now be labeled a dietary supplement. But under CBD regulation issues under review by Congress that could change in the future.

CBD Regulation Issues

Lawmakers wish to provide growers and processors — as well as retailers and consumers — more guidance on CBD regulation issues. To that end, legislators seek to have the FDA permit CBD products to be recategorized as dietary supplements. That would help end the confusion and help define how the agency will regulate CBD in the future.

CBD retailers, suppliers and growers appear to welcome the legislation, which would take place in the Agriculture Committee of Congress. More defined regulations would follow, but it represents a start after the FDA hearings on the subject last year.

Warning Letters

The FDA sent 15 warning letters to the illegal CBD sellers which have violated the act. There are so many different regulations, this is an industry crying out for clear rules on what is and isn’t legal. CBD regulation issues appear more clearly defined in Canada where CBD is legal nationally under license. Canada’s provinces legalize CBD individually for growing, processing and retailing. The process is simple to understand for industry participants.

California is the largest state for CBD sales in the U.S. and now it is proposing to centralize all cannabis regulations, monitoring and tax collecting centrally in one governmental entity. That would make it easier for state budgeting, but also for growers, processors, markets and consumers about the dos and don’ts of CBD. CBD regulation issues would be more clear cut in California and the centralization trend could spread to other states.

One result of the confusion in the U.S. over CBD regulation issues is that CBD stock investors are seeing a higher profile in the media for CBD. For example, stockmarketpress.com features coverage of stocks such as CBD Unlimited, Inc. (OTC PINK: EDXC)), Aurora Cannabis Inc. (NYSE:ACB) (TSX: ACB), Supreme Cannabis Co. (OTC: SPRWF), The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF), OrganiGram Holdings Inc. (NASDAQ: OGI) and Canopy Growth Corp. (NYSE: CGC).


The legislation would be  a bi-partisan effort by lawmakers on behalf of  the hemp and CBD industries to proceed with marketing efforts. Additionally, the legislation proposed asked for a USDA study on establishing and operating a hemp testing program. The study would also evaluate the costs for  required reporting. Canada’s nationwide licensing and regulations could offer a blueprint of how such a program would work in the U.S.

Source: Stock Market Press

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