So, you have created an innovative, high-quality CBD product and you’re ready to bring it to the market. After testing for safety and compliance, you’re now ready to create the label. You’ve put together a list of profound benefits, but are unsure of what you can say and what you cannot say.
Of course, you want your product’s unique selling points out there so it stands out from your competitors, but you also need to make sure you’re in compliance with regulations. As the CBD industry continues to experience rapid growth, banks have begun to enforce increasingly stricter policies when it comes to CBD health claims. If you’re not sure what your limits are, these tips will help you:
Don’t Make Health Claims
Now, even soft claims are being heavily regulated. If you’re trying to partner with a bank or payment gateway provider, they will quickly reject your application if they see health claims about your CBD product (e.g. claims to eliminate wrinkles, prevents diseases, improve brain health, etc.). If you make any claims that your product helps relieve, cure or improve a specific illness or condition, you’ll run into trouble.
Don’t Recommend a Product to Substitute
It’s also important to never recommend a product substitute or augment pharmaceutical therapies. Even if there is truth to the statement – people are using CBD in place of a pharmaceutical drug for conditions – you can not recommend your CBD product in this way. Doing so will lead to a warning letter from the FDA or FTC. You will then be required to rectify the issue to avoid further legal action.
Don’t Overlook Your CBD Website Requirements
Before they provide payment processing services, a bank or other provider will test out buying your product. If your site is not fully operational, pages are missing, and the experience is not complete, you will be told to spend some time updating your site. (It’s okay if your checkout page is temporary or a test page. Banks understand you need an account to complete a purchase.)
Do Include Terms Related to Temporary Emotions
So, what words can you use? It is acceptable to use words related to temporary emotions or states. You just have to avoid implying that your product can be used for disease prevention or treatment; this will ensure customers never feel misled or overpromised. Use words like, “support”, “eases”, “targets”, etc.
Do Use Cosmetic Claims
As far as cosmetic claims, it’s okay to make cosmetic claims about beautifying the outer appearance. Cosmetic claims for CBD products do not have to be pr-approved or post-approved by the FDA. Again, as long as there are no claims that could be misleading. You can say things like, “improves, “balances”, “smoothes”, “helps”, etc.
Where to find CBD Payment Processing Services
If your business is struggling to get your new CBD products out there due to a lack of payment processing services, consider what partnering with a high risk specialist can do. With Emerchantbroker, you can easily and quickly secure CBD payment processing services – in as little as 24 hours. CBD merchants benefit from working with a provider with years of experience and gain access to a full suite of services.
EMB will get you approved today for a low or high risk merchant account at the most competitive rates.