Not so long ago CBD existed in a legal gray area that kept many people away from the industry. Today, thanks to the 2018 Farm Bill and the dozens of new laws and regulations that have followed its signing, CBD has become a booming industry that almost anyone can break into.
In this article we’ll answer some of the most common questions surrounding the sale and legality of CBD. These are the questions that we hear every day from people like you, who want to start a CBD business.
Want to know how to sell CBD? Asking yourself the following questions is the perfect place to start. Choose your starting place by clicking on the section you wish to view!
- What is the current legal standing of CBD?
- What restrictions do I need to know about?
- How do I get CBD for my business?
- How do I remain FDA compliant while selling CBD?
- Is CBD legal in all states?
- Do any states have specific laws regarding CBD?
What is the Current Legal Standing of CBD?
With the passing of the 2018 Farm Bill, CBD became functionally legal for sale and consumption so long as it adheres to a few specific restrictions. The most notable restrictions at the federal level are that all CBD products must be hemp-derived, as opposed to cannabis-derived, and contain less than 0.3% THC.
Depending on the state where your business is located, the laws regarding CBD may be slightly stricter or significantly more relaxed than those laid out by the federal government.
What Restrictions Do I Need to Know About?
In addition to the primary restrictions of THC content and CBD source, there are a few other restrictions that require your attention. The first is that CBD cannot be referred to as a dietary supplement, as there are strict rules surrounding what constitutes a recognized supplement.
The second, more important restriction is that it is prohibited to state that CBD cures, treats, or diagnoses any illness or ailment. While this may sound highly limiting, it actually protects you, your customers, and the CBD industry at large. There is nothing prohibiting you from recommending a CBD product to a customer who is experiencing an ailment such as pain, anxiety, or sleep deprivation. You are even allowed to state that your products are intended to help alleviate those ailments when used alongside more traditional treatments, but you cannot promise that they will solve them.
Even this regulation may change in the near future. There are already numerous studies taking place to determine how effectively CBD treats certain maladies, and the first CBD-based pharmaceutical has been approved by the FDA. The information revealed by these studies will help us all to better understand the positive effects of CBD and more effectively serve our customers.
How Do I Get CBD for my Business?
If you plan to sell CBD directly to consumers, you need to find a distribution partner. A wholesale CBD distributor sells CBD products, such as concentrates, or tinctures, in bulk at a discounted wholesale price. Most wholesale distributors have an application process or vendor form, which they use to determine whether or not they will partner with a potential customer.
How Do I Remain FDA Compliant While Selling CBD?
In addition to following the restrictions noted in this article, there are plenty of ways to ensure you remain compliant with the rules laid out by the FDA. The most effective way to remain FDA compliant is to work with a reputable distributor. As a retailer, you must be able to trust that your distribution partner is ethically and legally sourcing your CBD products.
To help you identify a reputable wholesale CBD distributor, refer to the following blog posts, each of which explores the wholesale distributor selection process in greater detail.
Is CBD Legal in All States?
Yes, but it isn’t quite that simple. Nearly every state adheres to the minimum standards laid out by the federal government in the 2018 Farm Bill, which allows for the sale of hemp-derived CBD products containing less than 0.3% THC. Many states have more relaxed laws, such as California and Washington, which allow for the sale of cannabis-derived CBD products at specific retail locations. However, there are states like Idaho which have extremely restrictive laws surrounding CBD products.
Do Any States Have Specific Laws Regarding CBD?
Yes, each state has its own set of laws regarding the regulation and sale of CBD products within its borders. For instance, after the 2018 Farm Bill passed, Idaho required that all CBD products sold in the state adhere to a 0% THC limit instead of the federal government’s 0.3% THC limit. This rule limits the types of products that can be sold, as some products will always have a trace amount of THC.
Certain states also have specific labeling laws. Even CBD-friendly states like California require special labeling stating that CBD is not capable of treating, curing, or diagnosing any illness or ailment. California’s Proposition 65 also requires that any CBD products that contain ingredients known to cause cancer or reproductive harm state that fact on their packaging.
With 50 states to sort through, it can be challenging for online retailers to remain compliant with the regulations of each state. To help retailers as they navigate state-specific regulations, we’ve identified the states with unique labeling laws and have detailed how to adhere to those labeling requirements.
Start Selling CBD Legally Today!
Now that you know how to sell CBD products legally, it’s the perfect time to get your CBD business up and running. At US Hemp Wholesale, we work hard to stay on top of the latest rules and regulations, and publicly share our findings to ensure that the CBD industry remains informed and compliant with state and local governments. This expertise and dedication to the CBD industry informs how we work with our clients every day. That’s why we only stock pure, hemp-derived CBD products that are lab-tested for purity and always adhere to the latest and strictest regulations.
If a CBD business venture is in your future, contact us to see how we can help you sell top of the line CBD products easily and legally!