A recent lawsuit claims that Diamond CBD has “significantly lower” amounts of CBD than advertised. We wonder how many other CBD and THC companies are cheating customers.
With your help we hope to find out.
Since Congress passed the Agriculture Improvement Act of 2018, federal law now permits the production of hemp. Once the feds legalized hemp, the CBD floodgates were open. As long as hemp has a THC concentration less than 0.3%, the feds don’t care.
CBD is commercially derived from hemp. With little regulation, the CBD revolution has become the new Wild West of the supplement industry. Marketers are making all sorts claims about the health benefits of CBD. Unfortunately, many companies are also misrepresenting the content of their products. Some have impermissible quantities of THC, others have far less CBD than advertised. And that is why we are looking for CBD and THC whistleblowers, insiders at legal marijuana and CBD companies that are misrepresenting the quality of their products.
Diamond CBD Sued for Deceptive Advertising
Florida resident Kathryn Parker brought a class action lawsuit against Diamond CBD and its parent companies PotNetwork Holdings and First Capital Venture. She claims Diamond is selling its CBD products “with a significantly lower amount of CBD than represented and are therefore cheating every consumer who buys the Products…”
Parker claims that she purchased a bottle of CBD oil manufactured by Diamond. The oil claimed to contain 550 mg per fluid ounce of CBD when actually it contained less.
Many states including Florida have regulations requiring accurate labels on CBD products. The Florida statute says, “[h]emp extract may only be distributed and sold in the state if the product… [i]s distributed or sold in packaging that includes… [a] scannable barcode or quick response code linked to the certificate of analysis of the hemp extract by an independent testing laboratory.”
She says she was harmed because the oil she purchased didn’t have the CBD it claimed on the packaging. We don’t know if she was really harmed or not but false advertising is against the law. [The FDA recently took action against one of the largest marijuana companies for claiming its CBD product cured cancer, Alzheimer’s disease, opioid withdrawal, pain and even pet anxiety. We will leave that battle to the FDA and states.]
Parker also says Diamond’s advertising claims violate the Florida Deceptive and Unfair Trade Practices Act and similar laws in most states.
In a separate CBD mislabeling lawsuit, other consumers claim that JustCBD Liquid Honey Tincture claims it contains 100mg CBD. However, an independent lab test showed it contained less than half that amount. The company’s Apple Rings Gummies reportedly contained 250 mg CBD per jar, but independent testing of the gummies failed to detect any CBD at all.
Seeking Pot Company and CBD Whistleblowers
The case against Diamond involves CBD. We are investigating other companies that may misrepresent the quantity of CBD oil in their products. We are also investigating companies that have impermissible levels of THC. We have reports that some people have failed drug tests because of THC found in some CBD products.
Pursuing a case against a pot company for mislabeled THC levels is a bit more difficult. The federal courts will hear CBD cases but have not been eager to hear THC cases even in states where marijuana sales are legal or decriminalized. And since most class actions wind up in federal court, those prosecuting such claims face unique challenges.
Mahany Law is a national boutique law firm on the forefront of protecting consumers from dangerous products and drugs. Many regulators and healthcare professionals are concerned about the wild (and unsubstantiated) claims made by some retailers of CBD. That these companies would lie on the concentration of CBD in their products is even worse. That is where you can help. In order to protect the public, we need a THC and CBD whistleblowers; people working in the cannabis industry with knowledge of adulterated products.
We will leave it to the FDA and the states to regulate CBD. But misrepresenting the concentration of CBD in any product is against the law. Period.
We are also interested in pursuing a case against companies that misrepresent the quantity of THC in their products where those products are legally sold. (There may be some hurdles but we are willing to try.)
We wish to speak with insiders at CBD or cannabis companies that have information about under potent or adulterated THC or CBD products. We wish to hear from people who have information about mislabeling, adulteration or underpotency of either THC or CBD products.
Insiders at these companies are in the best position to know when mislabeling takes place. We are already investigating a claim that a Colorado company is mixing shake and other byproducts into some of its edible products. What makes this practice problematic is that the company is basing its THC lab testing on products containing no byproducts. What the consumer purchases therefore has a lower THC level.
Worried about being exposed? We are happy to keep your identity confidential. Our only goal is to protect the public and expose fraud, not the whistleblowers.
We can be reached online, by email or by phone at 202-800-9791. All inquiries are protected by the attorney – client privilege and kept confidentiality. Cases accepted anywhere in the United States.