Three warning letters have been sent to CBD companies from the Food and Drug Administration (FDA). This is not the first time that the Agency has issued warnings to companies for making unsubstantiated health claims; 15 companies also felt the heat in November of last year. However, it is the first time that CBD companies have been grilled for claiming that the cannabis-derived compound could cure the COVID-19 strain of coronavirus.

The COVID-19 claims were made by Indigo Naturals, Native Roots and CBD Online Store, with letters being sent from the FDA on Monday, April 6 and Wednesday, April 8. If the companies fail to stop making claims, they will be at risk of facing legal action, injunction and/or seizure, says the Agency.

Based on the details of the FDA’s warning letters, each of the companies has been selling unapproved and misbranded CBD products that “misleadingly represent them as safe and/or effective for the treatment or prevention of COVID-19.” This means that their actions were in violation of the Federal Food, Drug and Cosmetic Act.

U.S. attorneys asked to target fraudsters who are capitalizing on COVID-19

Back in March, attorneys operating in the United States were requested by U.S. Attorney General William Barr to prioritize COVID-19 related fraud cases; primarily the investigation and prosecution of individuals/businesses suspected of wrongly telling prospective customers that CBD can be used to relieve Coronavirus symptoms.

Indigo Naturals – a CBD company based in Carmel-By-The-Sea, California – claimed that the non-psychoactive cannabinoid possesses “both antibacterial and antiviral effects” and could potentially be an “anti-viral agent for Coronavirus.” These unsubstantiated health claims were cited by the FDA in their letter to the company.

Native Roots – a Wisconsin-headquartered hemp and CBD products store –– was warned for claiming that a particular strain of the plant could “speed up” recovery from the Coronavirus. Additionally, the company is guilty of trying to lure in new customers by telling them that their range of infused soaps are capable of boosting the immune system to rid the body of COVID-19.

Then there’s the La Hills, California-based CBD Online Store, which allegedly made statements claming that the “powerful anti-inflammatory effects of CBD” could relieve lung issues caused COVID-19.

Cannabis businesses are doing well amid COVID-19 pandemic 

Various sectors have endured stress and revenue slumps since the Coronavirus health crisis erupted at the beginning of this year. However, cannabis businesses haven’t suffered too badly. Numerous dispensaries in legal States have started offering curbside pickup and delivery services, meaning that nobody has to go without their favorite plant. 

As firms rethink their supply chains, states are postponing legalization voting initiatives and cultivators/processors are gearing up for post-pandemic real estate prices. Companies that received warning letters must now abide by the FDA’s instructions in order to continue business operations.