Challenges for CBD merchants
The popularity of CBD has increased a lot over the past decade. CBD is used as a treatment and a preventative measure by many people around the globe. Although CBD has gained massive popularity and is used by hundreds of thousands, if not millions, of people daily there are major challenges for CBD merchants.
What is CBD?
CBD is the abbreviation for the cannabinoid cannabidiol. CBD just one of over 200 cannabinoids found in hemp and cannabis sativa. Although CBD is a cannabinoid found in cannabis sativa it is not psychoactive. THC is the psychoactive cannabinoid found in cannabis. CBD has many medical applications, helping with anxiety, inflammation, pain management and it even has anti-inflammatory properties.
CBD has also entered testing for treatment of chronic conditions such as epilepsy, PTSD, fibromyalgia, endometriosis, Parkinson’s, and Multiple Sclerosis. But CBD is not only used by people who already have health issues. CBD is also used by many people as a preventative measure and is taken daily as a supplement, like a multi-vitamin.
Challenges for CBD merchants
Because CBD is still undergoing testing, many of the medical conditions that it has been claimed to treat has not been verified by the FDA (Food and Drug Administration) and as such falls into a category known as pseudo-pharmaceuticals. Pseudo-pharmaceuticals are not approved prescription drugs but claim to have benefits like prescription drugs.
Because of the constant threat of changing regulations and legality surrounding CBD-products, it considered high-risk business in terms of credit card processors. In the united states, CBD is still classified as a Schedule I Drug. On 30 April 2018, the ninth US Circuit Court rejected a petition by the HIA (Hemp Industries Association) to change the classification of CBD in the US. This has threatened the business for CBD businesses in the United States and leaves CBD in the same drug schedule as heroin and cocaine.
Thus far CBD products could be marketed legally with Facebook ads, Instagram ads, and even Google Ads. Obviously, the classification of CBD currently might threaten the ability for CBD businesses to market their products.
Is CBD legal?
Yes. As things currently stand CBD is legal in many US states as well as many other countries around the world. In South Africa, for instance, the sale of CBD is legal, as long as the product contains only CBD or levels of THC lower than 0.1%. CBD is also legal in the United Kingdom because it’s not considered a controlled substance. Because CBD can treat so many chronic ailments the demand for it has increased tenfold. California and Colorado are just two of the US states that allow CBD.
To make the whole process of having a CBD business easier for yourself, just make sure to not label your CBD products with any unsubstantiated health claims. Any health claims that have not been verified by the FDA will fall under the unsubstantiated health claims category. Although there is preliminary evidence that CBD treats various chronic conditions, it would bode well for your business to rather not make unsubstantiated health claims to avoid any challenges as a CBD merchant.
