Class Action Cases against CBD Companies hit Roadblock

As manufacturers have begun to produce more significant quantities of CBD products, so have class-action lawsuits filed against these companies risen in prominence. Most of them claim that the products were falsely advertised and claimed false health benefits, although in some cases, the lawsuits try to claim that the product contained greater in the legal minimum of THC.

However, in recent months high-level federal courts have stopped most of these lawsuits dead in their tracks. Proponents of the CBD industry welcome this much-needed relief.


A Brief History Of Class Action Cases Against The CBD Industry

The CBD industry is intimately related to the growth and production of hemp. It is primarily derived from the plant temp, defined as a marijuana plant containing lower than 0.3% THC by weight.


In recent years, it has only been at the growth and production of hemp to isolate the CBD compounds that have been legal. Ever since the passage of the 2018 legislation that legalized this trade, several high-level class-action lawsuits filed against companies in the industry. Now it looks like the tides are changing with federal courts beginning to take the side of those in the CBD industry.


Snyder v. Green Roads of Florida

This case was put on hold until the federal government has evaluated new rules. Until the Food and Drug Administration released revised regulations regarding these products’ marketing, they have determined they cannot issue a ruling on these cases. This was the first high-level class-action lawsuit that was put on hold due to the recent legislation passage, but many others have followed suit.


Pfister v. Charlotte’s Web Holdings, Inc.

This case was thrown out of the courts because of a lack of regulatory direction from the FDA. It was initially filed against companies under the primary jurisdiction doctrine.


This is excellent news for people proponents of the industry because this gives them much needed relief from legal pressure being exerted by well-funded forces. The battle has been long and hard for people to get here, but we are here now.

Potter v. Diamond CBD

The most recent high-level case that was put on hold proceeded similarly to the previous case discussed. The case was according to the primary jurisdiction doctrine.


The significant difference is that the judge decided to state that despite the FDA’s lack of clear regulatory guidelines, he believes it is sufficient to say that things will not change enough for the case to have legal standing.


The Future of The CBD Industry

Now you can go to the store and get CBD Oil for Dogs and CBD topical cream for yourself. Thankfully it is easier than ever before for people who want to participate in the hemp trade to join legally. This has led to a proliferation of products and a price war amongst other effects on the industry. All of them seem to be beneficial for consumers.


Final Thoughts Regarding Class Action Cases in The CBD Industry

It looks like the daily show of class-action lawsuits may finally have been put on hold for people that have been holding off entering the CBD industry for that reason. Recent cases have seen federal judges decide in favor of proponents of the CBD industry. This is looking more and more like the precedent.