In December 2018, Congress made significant changes to the Farm Bill, which legalizes industrial hemp. It also removes hemp-derived products such as cannabidiol (CBD) from Schedule I status under the Controlled Substances Act. Under the amended Farm Bill, CBD may be cultivated and used for commercial purposes if it does not contain more than 0.3 percent tetrahydrocannabinol on a dry-weight basis.
Nonetheless, whether CBD is in food, dietary supplements or other over-the-counter products, the legality of industrial hemp-based CBD remains uncertain. The following points highlight key areas businesses should consider regarding the current state of CBD:
Federal rules governing CBD’s inclusion in the food, drug and dietary supplement supply are evolving, as are state rules and regulations. It’s important to consider the above areas for any product intended to be sold with CBD.
For further information about the legalities of the newly emerging CBD industry, see McGuireWoods’ June 17 alert, “Investing in a CBD Business: Five Regulatory Concerns.” If you have questions regarding the regulation or marketing of CBD, please contact one of the authors of this alert or your regular McGuireWoods attorney.