Tuesday, October 30, 2018

MLM Genre Analysis: CBD products have HUGE risks not understood by participants

Some of the more recent MLMs have latched onto CBD, or cannabidiol as their next big thing, and several companies have started selling products based on CBD oil for topical and other uses. However, what those people failed to consider is CBD is NOT legal in all 50 states. That's right, holding CBD oil in certain states can get you arrested for drug possession, which can RUIN YOUR LIFE!

Fact: DEA considers CBD oil as a schedule I controlled substance, with ONE exception

DEA considers CBD oil "marijuana extract" and remains on schedule I (same as cocaine and heroin). DEA has allowed a specific formulation, containing less than 0.1% THC, and approved by the FDA, to be reclassified Schedule V. This happened in October 2018.

This is often misquoted by CBD advocates as "DEA legalized CBD" when nothing of the sort took place.

With that said, DEA has bigger fish to fry, like the opioid epidemic. But it's illegal. And if your state law enforcement wants to bust you, it can, as a man in Indiana found out. He was arrested for possessing CBD oil and prosecutors chose not to charge him because the state legislature made CBD legal AFTER his arrest.

Fact: Quoting the 2014 Farm Bill Will NOT automatically save you

Some CBD advocates claim that 2014 Farm Bill made CBD oil 50-state legal. However, this is again, creative misquoting. First, the bill has expired as of 30-SEP-2018 (though a bill extended the deadline to December 2018). Second, the bill actually says that only CBD oil sourced from a special state pilot hemp research program are legal. And only 19 states out of 50 have such state-licensed hemp growing programs. Unless your CBD oil or product is sourced from a licensed hemp producing state, it may not be legal.

There is a bill pending in Congress called Hemp Farming Act of 2018 which should legalize hemp farming across all 50 states, which will also likely legalize CBD oil with less than 0.3% THC.

Fact: Just because you can ORDER CBD oil across state lines doesn't make it legal

According to Michael Brubeck, CEO of Centuria Natural Foods, and the largest processor and supplier of CBD hemp oil in the country, "Well (shipping of CBD oil), it's tolerated. It's not being enforced. It is absolutely illegal, esp. according to attorneys of the USDA, DOJ, DEA, and FDA.", as quoted by Vice.


To market CBD based product in your state, you have to

1) make sure it's LEGAL in your state,

2) make sure it CAME from a legal state, and

3) make sure it's made from hemp SOURCED from a legal state.

Yet most CBD MLM participants cannot confirm any of these three requirements.

Which means they are breaking the law.

1 comment:

  1. Sorry, but you didn't provide any useful discussion about CBD and its legal status in the US.