Posted by Alimar Private Label on 4/17/2019 to
Education
CBD* (Cannabidiol) has become a very trendy ingredient and we are receiving emails daily asking if we manufacture private label cosmetics with this ingredient. The answer is:
1. CBD is currently illegal in the state of Ohio, where we are located: while the Agriculture Improvement Act of 2018 (the "Farm Bill") legalized the production of industrial hemp and products derived from hemp, it did not legalize all uses of and products containing hemp derivatives (such as CBD).
"Marijuana products, including CBD (Cannabidiol) oil, can only be dispensed in a licensed Medical Marijuana Control Program dispensary. Those marijuana products will have to comply with the rules and regulations of the program. All products must have a known source, as well as known quantities of active ingredients. Testing procedures will be conducted by testing laboratories licensed by the Ohio Department of Commerce."
2. We feel that CBD is still a risky additive for cosmetics due to the lack of federal oversight: On 2 April 2019, the FDA announced that in light of the growing interest in the development of therapies and other FDA regulated consumer products derived from cannabis and its components including CBD, it would be taking "new steps and actions to advance our consideration of a framework for the lawful marketing of appropriate cannabis and cannabis derived products".
3. New warning letters were issued last week regarding medical claims for CBD in products: This is the first time the FDA and FTC have issued a joint warning letter together, but it's not the first time the agencies have cracked down on unfounded CBD claims.
4. FDA said that it will hold its first public hearing on May 31 to explore how CBD can be used safely in food, supplements and cosmetics: Among other things, the FDA requires a cannabis product (hemp-derived or otherwise) that’s marketed with a claim of therapeutic benefit to be approved by the FDA for its intended use before it may be introduced into interstate commerce.
In short, Alimar Private Label does not intend to offer any products containing CBD unless there is regulation on the federal level, otherwise there will just be a patchwork of state laws to wade through.
- Determining and abiding by the varied laws in each state is too time consuming for a small business like ours. As of January 2019, only 33 out of 50 states had legalized hemp derivatives including CBD in their states. Since the federal government has only opened the door for states to decriminalize hemp derivatives, it is up to each state to pass a Hemp Bill allowing those products to be sold and consumed.
- Current regulations also make interstate transport difficult, as CBD products can still be seized in many states (like Ohio).
- Many banks and credit card processors still will not allow merchants to process or deposit payments that have been received due to the sale of CBD products.
- Insurance providers are wary of companies selling CBD products for many of the reasons listed above and those who will cover CBD rate CBD as high-risk.
If and when our stance on CBD changes, we will inform you via our newsletter and this blog.