A simple testimonial on the health benefits of your CBD product can get you in trouble with the authorities if you are not complying with their rules. In December 2020, the US Federal Trade Commission (FTC) issued monetary sanctions ranging from $20,000 to $85,000 to five CBD companies for advertising CBD products with false medical claims.
To avoid such situations, be mindful of what you put on your CBD product labels, cannabis dispensary website, social media platforms, and print materials. Here are five things to consider when advertising CBD products.
Research CBD and the Growing Target Market
CBD vs. THC. CBD (cannabidiol) is a non-intoxicating chemical compound found in cannabis well-known for its anti-inflammatory properties and its ability to improve sleep and reduce anxiety. With such benefits, more and more consumers have been using CBD products.
Do note that CBD does not cause the ‘high.’ It’s the cannabinoid called Tetrahydrocannabinol (THC) that has the psychoactive effect. As instructed by the Food and Drug Administration (FDA), THC content in CBD products must not exceed 0.3%.
What’s making waves in the CBD industry? There’s a large variety of CBD products out there in the market — they can be:
- edible (teas, spreads, pills, capsules, etc.);
- topical (cream, salve, lotion, etc.);
- vaporizers and;
- oils & tinctures.
Know what type of CBD products your target audience is buying. CBD edibles and topicals are ubiquitous in states where they are legal. Vaping, meanwhile, has the most potent effect, but its effect on lung tissues is still questionable at this point.
The second most potent variety, and also a popular choice, is CBD oil. With the right dosage, the effects show up within minutes.
If you’re planning to enter the lucrative CBD oil market, then pay attention to the trends. In 2019, there’s a noticeable surge of full-spectrum CBD oil for sale in cannabis dispensaries. According to a report from Grand View Research, it boasted a share of 73.5% among other product types.
Have a Compliance Checklist
Being a cannabis retail owner or manufacturer can be daunting. Advertising CBD continues to be a controversial topic, so get updated not just with federal laws, but also the state laws. These are all you need to know so far:
- Federal – Though commercial hemp plant cultivation has become legal through the 2018 Farm Bill, the FDA is very strict with regulating CBD products that are in the market. They are making sure that none in the CBD industry are violating the Federal Food, Drug, and Cosmetic Act (FD&C Act) to not put consumers at risk. The FTC has a similar mandate, besides promoting (healthy and legal) competition in the CBD market.
- State – Every US state varies with the laws they impose on CBD selling and consumption. Some states are very particular in the extraction method, aside from maintaining the federally permitted THC (tetrahydrocannabinol) level. In an updated list from ProCon.org, there are 14 states which have their CBD-related laws in place. Check if your state has specific regulations.
Keep all licenses and permits up to date. We already know that when opening a cannabis dispensary, getting a business permit, registering with the local authorities, and getting food licenses is the initial step. And once you have secured those, compliance is (again) your around-the-clock job.
No one wants to pay for large penalties and get their permits stripped off, so a compliance checklist can help you not miss anything important regarding CBD regulations. Once you tick off everything from it — the permits and licenses — you’re good to go!
Label Products Correctly
Just like any consumer product, CBD products must strictly follow the labeling and packaging guidelines stated in FDA’s FD&C Act. The product label must have the following information:
- The identity statement, which indicates what the product is;
- The net weight statement, which states the product weight information;
- The ingredients list, which indicates every active ingredient and its content percentage;
- The manufacturer’s name and address, which is placed in case if customers need more information; and
- Standard and FDA-imposed warning statements.
CBD products must not have deceptive health claims. According to a study conducted by the FDA, 86% of 78 CBD companies violated the FDA’s compliance packaging requirements for CBD products.
Certain CBD companies, for example, have put misleading claims on their products and have already received warning letters from the agency, together with the FTC. CBD and CBD-infused products do not cure cancer and even other ailments.
Ensure Your Cannabis Retail Website is Educational
To maintain your network of customers and to continue attracting an audience, you must establish business credibility. Yes, great rapport and excellent service are vital. However, dabbling in the fast-growing industry of CBD where compliance with laws and regulations is critical, you need to give the science-based information they need upfront. No fluffs.
All your cannabis and CBD-related posts are monitored on social media. Every platform differs in how they oversee CBD-related advertisements. Better devise some effective and compliant retail social media strategies when advertising CBD products.
If they found you violating rules, your post might get removed, and if down on one’s luck, your account might get suspended. You can also opt for influencer marketing and affiliate marketing tactics to approach more social media users, but make sure that their content advertising CBD is steering away from deceptive health claims before they publicize.
Just always remember to remain compliant and not mislead the consumer market. Being transparent with all the product information, research, and facts will make your brand the one-stop-shop for CBD products of the cannabis community in the long run.
Last Updated on June 4, 2021 by ADCANN