CBD and Hemp Legal and Regulatory Roundup – October 2021 #2

Kelley Drye & Warren LLP

Welcome to our weekly roundup of CBD and hemp-related legal and regulatory news:


NDIs place CBD future in doubt

The standoff between the dietary supplement industry and the FDA on the question of CBD continues, however the FDA’s rejection of two new dietary ingredient (NDI) notifications for full-spectrum hemp extracts from Charlotte’s Web and Irwin Naturals has led to some frustration. “I think the objections to the NDI notifications are the clearest signal that we have to date that Congress is going to have to solve this problem,” says Steve Mister, president and CEO of the Council for Responsible Nutrition. “It is abundantly clear from the objection letters that FDA is going to kick this can down the road and wait for Congress.” However, adds Klee Irwin, CEO of Irwin Naturals, failed NDI notifications are not necessarily negative. “Although we disagree with FDA’s response, in reflecting on the process we do continue to be of the mindset that interaction with FDA and other regulatory agencies is a net positive activity, as the future of the industry, including the sale of hemp-derived products, will need regulatory agencies and the committed members of the industry to work together to make sure consumers are getting safe and effective products.” Nutritional Outlook

Curaleaf faces third suit over CBD drops containing high levels of THC

Another complaint was filed in Ore. federal court against Curaleaf over claims it failed to properly warn consumers that its CBD drops contained high levels of THC. Michael Lopez, Amy Cantu and Susan Lopez-Henri filed suit against the company, alleging they all purchased and consumed “Select CBD Drops” in Ore., which were marked and labeled as containing CBD, but in reality, contained THC. The plaintiffs are claiming negligence on the part of Curaleaf since it created “tainted” CBD drops, failed to exercise quality control standards of its products and failed to include warning labels in any of its advertisements. After ingesting the drops, one of the plaintiffs, who is 79 years old, was taken to an ER “out of concerns he was having a stroke,” the complaint states. This is the third suit Curaleaf has faced in Ore. over its CBD drops within the last month. Law 360 (sub. req.)


Calif. Gov. signs AB 45, allowing for smokable hemp, sale of CBD-infused foods, drinks

Calif. Gov. Gavin Newsom (D) signed a bill (AB 45) that stands to expand the state’s hemp industry by legalizing retail sales of a wide range of consumable products derived from the plant. Until now, the lack of explicit regulations inhibited the hemp market, stakeholders say. Adoption of the bill means non-intoxicating CBD can be sold as dietary supplements and as ingredients in food and beverages. Marijuana Moment


Ore. regulator recommends lawmakers extend cannabis grow license pause until 2024

In 2019, Ore. lawmakers voted to halt issuing additional recreational marijuana licenses for two years, citing overproduction that caused wholesale prices to fall sharply. The statutory moratorium put in place expires in 2022, and the Oregon Liquor and Cannabis Commission is recommending lawmakers continue the moratorium until 2024. MJ Biz Daily

GOP Pa. state senator will file bill to legalize marijuana

Sen. Mike Regan (R), who chairs a committee with jurisdiction over law enforcement issues and is a former federal law enforcement agent said he will be filing a bill to legalize marijuana in Pa., and he’s asking his colleagues to join him. He characterized legalization as “inevitable” and is circulating a cosponsorship memo to build support for the forthcoming measure. Marijuana Moment

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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