State Regulations Create Chaos in the CBD Market

State Regulations Create Chaos in the CBD Market

A Patchwork of Laws Disrupts Commerce

The hemp-derived CBD industry is facing significant challenges as state governments across the U.S. impose a confusing array of regulations. Retailers and suppliers are struggling to navigate these ever-shifting legal landscapes, which often feel like a game of Whac-A-Mole. Jonathan Miller, general counsel at the U.S. Hemp Roundtable, explains, “We have some states that pop up and try to ban products, while others are doing very proactive and valuable regulation, and there’s no coordination.”

The 2018 Farm Bill: A Double-Edged Sword

The 2018 U.S. Farm Bill was a pivotal moment for the hemp industry, as it allowed for the production of hemp and removed it from the Controlled Substances Act, provided it contains 0.3% or less THC. This legislative change opened the floodgates for a variety of CBD-infused foods and supplements. However, while the FDA approved one hemp-based product, Epidiolex, for seizure treatment, it has yet to establish comprehensive regulations for CBD products. The agency continues to emphasize the need for more research into CBD’s health impacts, while also cracking down on misleading claims from sellers.

California’s New Restrictions: A Tough Blow

California has taken a drastic step by effectively banning the sale of hemp-based products. Governor Gavin Newsom recently issued emergency regulations prohibiting the sale of any hemp-derived food, beverage, or dietary supplement that contains detectable amounts of THC. These regulations, set to remain in place through March, also raise the minimum age for purchasing hemp products to 21 and limit servings to five per package. The California Department of Public Health argues that these measures are necessary to protect children from the potential harms of THC consumption.

Industry Pushback: Lawsuits and Legislative Efforts

The U.S. Hemp Roundtable is not taking these restrictions lightly. They have filed a lawsuit against California’s emergency regulations, although a state court has denied their request for a temporary restraining order. Miller stated, “We’re doing everything we can to try to make sure that what’s currently a complete ban on all hemp products, even non-intoxicating CBD products, is overturned.”

Retailers Feeling the Pressure

Retailers are scrambling to adapt to the new California regulations. Celia LoBuono González, co-owner of Other Avenues Grocery Cooperative in San Francisco, shared how the restrictions have severely impacted their sales. “We basically had to pull most of our products, including our fastest sellers,” she lamented. The limits on THC content and package sizes mean that many consumers are left without their preferred options, leading to frustration among both retailers and customers.

Challenges for CBD Suppliers

Suppliers are also feeling the sting of California’s new rules. Jim Higdon, co-founder of Cornbread Hemp, expressed frustration over the limitations that could hinder access to what he describes as a vital market. “California is a great market,” he noted, adding that many consumers prefer to buy CBD products from smaller natural retailers rather than dispensaries. The recent regulations could also impact their ability to participate in industry events like the Natural Products Expo West, further limiting their market reach.

Looking Ahead: A Call for Federal Standards

With the chaos in state regulations, many in the industry are calling for a unified federal framework to regulate hemp products. The U.S. Hemp Roundtable supports the Cannabinoid Safety and Regulation Act, which aims to establish clear guidelines for the sale of hemp products, including age restrictions and quality controls. However, some industry leaders are advocating for a higher THC threshold to allow for more flexibility in product offerings.

Conclusion: A Need for Clarity in the Hemp Industry

The current state of the hemp CBD market is fraught with uncertainty, as various states continue to impose their own regulations. Retailers and suppliers are left scrambling, and many consumers are feeling the impact of these changes. As the industry looks to the future, there is a growing consensus that a cohesive federal approach is necessary to ensure the sustainable growth of the hemp market while protecting consumers.

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