Yesterday we focused on the legality of running marijuana ads. Today it’s CBD Oils. So, what are CBD Oils and can you run ads to promote the sale of them? That question was answered by broadcast attorney Frank Montero at the Radio Ink Hispanic Radio Conference in Miami this week.
CBD oil can be derived from marijuana, but it can also be made using hemp. Hemp is a variety of cannabis with significantly less tetrahydrocannabinol (“THC”), a psychoactive ingredient, than marijuana. In the U.S., hemp is defined as containing a THC concentration of no more than 0.3 percent on a dry-weight basis.
According to attorney Frank Montero, the federal government essentially legalized industrial hemp and CBD oils, but the law requires the establishment of a regulatory framework that is not yet in place. So once this happens in your state, the federal government should be fine with it being sold at the state level, as long as the states regulate those sales. And, as long as the products are legitimate hemp-based CBD oils. They cannot have the chemical THC in them, which is the chemical that gets people high.
However, that doesn’t mean you should be running ads to promote CBD oils quite yet. The states must have regulatory procedures in place with the Department of Agriculture to clear the way for retail sale of CBD oils. If you run ads for someone who does not have a state license to sell the products, you are breaking the law. So, Montero suggests you check with your state, or state broadcast association, and ask the retailer to show you a valid state license to sell the products. Hemp remains illegal under state law in a number of states.
In addition, because marijuana remains illegal federally, broadcasters will need to take precautions not to run advertising for CBD oil derived from marijuana, as opposed to hemp. Also, CBD oil proponents often advocate the health benefits of their product, but health claims in advertising are closely scrutinized by the Federal Trade Commission and, to some extent, the Food and Drug Administration. If broadcasters run CBD oil advertising that makes health or medical claims, they should make sure there is evidence to support those claims. Still, Montero says the downside comparative risk of a CBD oil ad compared with a marijuana ad is probably not at as great.
For more information, check out Frank Montero’s blog post on the issue HERE.