Arizona CBD maker fined $30,000 for deceptive marketing

Arizona CBD maker Kushly Industries and its owner have agreed to pay more than $30,000 for false marketing claims.

The agreement posted Monday by the Federal Trade Commission says that Kushly, based in Scottsdale, made extensive health claims about its tinctures, softgels, topicals and edibles, claiming that CBD could treat everything from PTSD and multiple sclerosis to acne.

Many of the claims came in the form of blog posts, including one touting Kushly’s CBD gummies under the headline “Eat Away Chronic Pain.”

Kushly’s complaint also included some marketing claims about THC.

In a 2019 blog post titled “Cannabis Health Benefits For Women,” the product maker said that “the THC content of cannabis helps to minimize the endometriosis pain as it activates the production of dopamine in the body.”

Kushly owner and CEO Cody Alt was also named in the settlement. The exact fine is $30,583.14, the amount the agency determined that consumers spent on Kushly’s mis-marketed products. The money will be refunded to customers.

“This is the seventh case we’ve brought against CBD sellers who should know better than to make unsupported health claims for their products,” Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection, said in a statement.

The Kushly fine comes six months after the FTC, an independent government agency charged with consumer protection, issued its first fines for improper CBD marketing claims.