CBD oils are giving cannabis manufacturers the type of positive recognition they seek to stabilize their image and assert their importance as an industry. The concern is with regulations varying from state-to-state; there is considerable risk of exposure in three areas for legitimate businesses. Insurance claims have the potential to wipe out business owners, due to a lack of uniform guidelines within the industry.
3 Risk Factors to Consider
- Malpractice: CBD products used for medicinal purposes are subject to strict regulations. Manufacturers who make claims that CBD can cure diseases to sell products leave the industry vulnerable to costly insurance claims.
- State law issues: States may allow the manufacture of CBD products with higher psychoactive properties than are permitted by federal regulations. This variance between state laws and federal requirements can result in lawsuits where products are produced despite being prohibited by law. The lack of uniform guidelines and oversight is troubling for manufacturers wanting to follow the rules and meet expectations.
- False marketing: Manufacturers are attempting to promote the legitimate benefits of CBD products while tamping down deceptive advertising. Some business owners are heralding CBD as a medical cure, capitalizing on recent successes for profit. These dishonest tactics subject many cannabis business owners to the risk of lawsuits for fraudulent CBD claims.
Cannabis manufacturers are getting important recognition as businesses that provide essential products for health and well-being. The next steps will be working to pass clear and uniform regulatory guidelines, so businesses that operate responsibly won’t have to fear unnecessary insurance claim risks.