CBD provider to pay $363,000 for false advertising claims

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Summary

As a member of the California Food, Drug and Medical Device Task Force, the SCDAO and CannaCraft reached a settlement in the consumer protection false advertising action. Earlier suggestions by CannaCraft that its CBD products could be therapeutic for health conditions ranging from sleep disorders to rheumatoid arthritis means the company is now on the hook for US$300,000 ($363,000) in penalties. In 2018, the SCDAO obtained a stipulated judgment of US$510,281 ($617,440) against the company “for environmental law violations related to its storage, handling and disposal of hazardous materials in its manufacturing process.” In Canada, the Cannabis Act and the Cannabis Regulations specify prohibitions related to the promotion of cannabis, cannabis accessories and services related to cannabis, notes information from the federal government. Additionally, CannaCraft agreed to be bound by an injunction for 10 years, the statement notes. In opting to settle, Judge Thomas W. Wills reported Sonoma County-based CannaCraft will pay US$250,000 ($302,500) in civil penalties, US$25,000 ($30,250) in cy pres (as near as possible) restitution and US$25,000 ($30,250) in investigative costs.

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Earlier suggestions by CannaCraft that its CBD products could be therapeutic for health conditions ranging from sleep disorders to rheumatoid arthritis means the company is now on the hook for US$300,000 ($363,000) in penalties.

A civil action filed in Monterey County Superior Court alleged the licensed cultivator and manufacturer of cannabis products made representations regarding the efficacy of its Care By Design products on its website, notes a statement from the Sonoma Country District Attorney’s Office (SCDAO).

But the district attorney...

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