News

A lack of federal regulation and a complex mix of state laws have made selling products with the cannabis-derived ingredients may not be worth the headache. This is a short summary addressing the lack of federal regulation and the mishmash of state laws around selling products featuring cannabis-derived ingredients: The Regulatory Landscape for Cannabis-Derived Products The regulatory environment for cannabis-derived products in the United States is complex and fragmented. A few key points: The 2018 Farm Bill removed hemp (defined as cannabis with less than 0.3% THC) from the federal Controlled Substances Act, effectively legalizing hemp-derived CBD at the federal level. However, cannabis-derived products with more than 0.3% THC remain federally illegal under the Controlled Substances Act. The FDA has authority to regulate cannabis and cannabis-derived compounds as drugs, but has struggled to create a comprehensive regulatory framework for these products. In the absence of clear federal regulations, states have taken different approaches, leading to a "mishmash of state laws" around the sale and marketing of cannabis-derived products. For example, California recently passed a law explicitly legalizing the sale of CBD products as dietary supplements and food/beverage ingredients, while other states maintain stricter restrictions. The lack of federal oversight and the varying state regulations have made it challenging for companies to navigate the regulatory landscape, often making it "not worth the headache" to sell these products. In summary, the complex and fragmented regulatory environment, with federal law clashing with a patchwork of state laws, has created significant uncertainty and obstacles for businesses looking to sell cannabis-derived products. Clearer and more consistent federal regulations would likely be needed to provide a more stable environment for these products. Based on the search results, here is a summary of the legal implications of selling cannabis-derived products: The Complex Regulatory Landscape The 2018 Farm Bill removed hemp (cannabis with <0.3% THC) from the federal Controlled Substances Act, effectively legalizing hemp-derived CBD at the federal level. However, cannabis-derived products with more than 0.3% THC remain federally illegal under the Controlled Substances Act. The FDA has authority to regulate cannabis and cannabis-derived compounds as drugs, but has struggled to create a comprehensive regulatory framework. In the absence of clear federal regulations, states have taken different approaches, leading to a "mishmash of state laws" around the sale and marketing of cannabis-derived products. Key Legal Implications Businesses selling cannabis-derived products must comply with both federal laws (e.g. the Federal Food, Drug, and Cosmetic Act) and the varying state regulations. This creates significant compliance challenges. It is generally prohibited to introduce into interstate commerce any food (including animal food/feed) to which THC or CBD has been added, unless the FDA has issued a regulation approving the use of the substance in food. Penalties for non-compliance can include civil fines up to $10,000 per violation in some states. Businesses must be careful with marketing claims, as using terms like "organic", "gluten-free", "vegan", or "kosher" without proper certification can result in violations. Overall, the complex and fragmented regulatory environment has made…