Potential Claims CBD Manufacturers May Face and How To Limit Liability

CBD Claims / Friday, June 19th, 2020

CBD manufacturers face certain risks that other businesses do not. Research into the types of CBD claims shows these are the most troublesome areas to watch.

Claims Relating to Advertising and Labeling

The FDA does not allow companies to make claims about nutritional supplements or therapeutics that have not been shown effective through its testing processes. Making health claims on your packaging and in advertisements increases your liability for false advertising and unsubstantiated product claims.

Claims Relating to Medical Use

Increased medical use of CBD products can leave you open to liability if someone is harmed while using your products. Medical malpractice claims and lawsuits seeking damages for any harm caused by side effects of CBD products will likely be on the rise as more people use it therapeutically.

Claims for Poor Business Practices or Faulty Products

Safe manufacturing processes can go a long way to limiting these types of CBD claims, They include those for mislabeled products, harmful ingredients, and dangerous or faulty packaging.

How To Manage Risk and Reduce Liability Resulting From CBD Claims

There are some things you can do to guard yourself against the types of CBD claims that are most prevalent. These include:

  • Always carry the appropriate insurance for the cannabis industry
  • Do not make false or medical claims about your products
  • Use informational labeling to warn of potential side effects or product interactions
  • Institute quality control standards to avoid faulty products, mislabeling or excessive THC levels

Being proactive, adopting good business practices and ensuring you have coverage in place to handle any claims can help you succeed in the cannabis industry.