Consumers File Two Class Action Lawsuits in California Against CBD Companies

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On Nov. 27, 2019, a group of consumers in California filed a class action lawsuit against Infinite Product Company, LLC, which is a Colorado-based company that manufactures, markets, and sells cannabidiol (CBD) products throughout the United States. The suit, filed in the United States District Court for the Central District of California, alleges that the Infinite Product Company engaged in illegal conduct consisting of marketing and selling unapproved and misbranded drugs, adulterated human food, unapproved animal drugs, and adulterated animal foods. The complaint offers several examples of the Infinite Product Company marketing their products as treatments for a variety of ailments, which may violate the federal Food, Drug and Cosmetic Act. For example, the company allegedly marketed its products for itch relief, pain relief, and the treatment of eczema, psoriasis, inflammation, arthritis, muscle injury, hepatitis C, autism, Tourette syndrome, cancer, substance use disorder, Parkinson’s disease, and Alzheimer’s disease. The complaint also alleges that the Infinite Product Company violated state unfair trade practice, false advertising, and deceptive business practice laws, in addition to breaching express warranties and the implied warranty of merchantability. The plaintiffs petitioned the court to halt the Infinite Product Company’s marketing and sale of CBD products and to award the members of the plaintiff class monetary damages.

Additionally, on Nov. 30, 2019, a group of consumers filed a second class action lawsuit against Charlotte’s Web Holdings, Inc., which is also a Colorado-based company that manufactures, markets, and sells CBD products throughout the United States. The suit, filed in the United States District Court for the Northern District of California, alleges that Charlotte’s Web Holdings engaged in illegal conduct consisting of mislabeling products as dietary supplements. The complaint for this lawsuit alleges that Charlotte’s Web Holdings either illegally labeled their products as dietary supplements or contained CBD as a dietary ingredient. The complaint also alleges that Charlotte’s Web Holdings violated state unfair competition and false advertising laws, in addition to breaching express warranties and the implied warranty of merchantability. The plaintiffs petitioned the court to halt Charlotte’s Web Holdings from marketing and selling their products and to award the members of the plaintiff class monetary damages.

Aimed Alliance encourages consumers to be wary of CBD products that are marketed for the treatment of medical conditions and CBD products that are labeled as dietary supplements. Accordingly, we urge the FDA to act swiftly to create a regulatory pathway for these products to ensure that they are consistently and accurately marketed and labeled so that consumers can be confident in the products they are purchasing.

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