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Two rulings in the UK regarding advertising cannabidiol (CBD) brands to children have underlined the challenges and risks that small businesses face in navigating fast-evolving regulatory environments.
Last month, the UK’s Advertising Standards Authority (ASA) ruled against advertising campaigns run by two CBD brands. The ASA found that, in both cases, the brands were had run “misleading” promotional campaigns.
Sian Phillips, executive director of the Cannabis Trade Association (CTA), noted that “small companies will sometimes fall foul of marketing guidelines because there is no one to pull them up on their campaigns before placing them online”.
The first case involved a website for the CBD product retailer Excite For Life, which included a drop-down menu entitled “CBD For Children”.
In a summary of its ruling, the ASA noted that the UK’s Food Standards Agency (FSA) guidance stated that it does not recommend CBD for people in vulnerable groups, including children under the age of 18.
“We concluded that the claims were therefore misleading,” said the ASA.
It also found the claim that CBD was a “safe and natural way to help balance the wellbeing of your child” breached the Code of Non-broadcast Advertising and Direct and Promotional Marketing (CAP Code).
In the second case, a website for the CBD product retailer CBD Life UK included two webpages that discussed the suitability of CBD food products for children. Again, the ASA challenged the claims about CBD suitability for under-18s, as well the stated maximum consumption levels.
The ASA noted that the FSA’s guidance on not recommending CBD for people in vulnerable groups, including children under the age of 18, was “not a new or amended position; it had been the case since the FSA had first issued guidance about the consumption of CBD in 2020”.
The CBD market has exploded in the UK. A 2021 report commissioned by the Association for the Cannabinoid Industry found the UK’s CBD market to be valued at £690 million, up from £314 million since 2019.
The Association noted that “sales of CBD soared in the UK at the height of the pandemic and the size of the consumer cannabinoid sector is now impossible to ignore”.
This growth has led to lots of new players and startups entering this innovation space – but also increased regulation. For example, in 2021, the FSA announced a requirement for any consumable CBD product coming on to the market after 13 February 2020 to complete a novel foods application.
All of this has created regulatory obligations that small players need to be aware of. The cannabis industry has reacted to the ASA rulings with caution, stressing the need for more industry guidance and support.
In a letter to its members last week, the CTA stated that it was “committed to helping you navigate the evolving regulatory landscape with confidence”.
It also told members that the CTA would “continuously monitor rulings from the ASA and other regulatory bodies, ensuring that our members stay ahead of the curve”.
“We’re committed to helping you navigate the evolving regulatory landscape with confidence, and pride ourselves on providing informed, timely updates to ensure your business complies with all relevant standards,” it said.
“With increasing requirements to stay ‘off the radar’ of regulators, it’s crucial that your marketing strategies are fully compliant.”
Similarly, Cannabis Industry Council CEO Mike Morgan-Giles said: “Navigating the advertising and marketing regulations can be tricky for businesses in the cannabis industry.”
To help the industry navigate the situation, the Cannabis Industry Council has published guidance, entitled Promoting cannabis: Current rules and regulations.
As a consequence of the ASA’s ruling, Excite for Life cannot display the advert again.
In its ruling, ASA said it told the company “not to make claims that CBD was suitable or safe for consumption by children, or that the recommended maximum consumption of CBD per day for adults was 70 mg. We also told them not to make general health claims unless they were accompanied by a specific authorised health claim”.
Similarly, CBD Life UK has been instructed not to air its ad again. ASA reiterated the need to ensure that “claims relating to the suitability of CBD consumption for different groups, and about recommended daily CBD consumption limits, was always in line with FSA guidance”.
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