CBD and Hemp Legal and Regulatory Summary – May 2022 #3 | Kelley Drye & Warren LLP


[author: Jeff Scurry]

Welcome to our weekly roundup of CBD and hemp legal and regulatory news:

Following an earlier warning to Kingdom Harvest of NC in early May, the FDA sent similar letters to Hope Botanicals of Texas, Plantacea of ​​Nev. and Haniel Concepts from Kan. The agency found that there was not enough safety data to show CBD is safe for livestock or pets, or cures diseases in animals.

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A Leafreport study found that just 7% of brands tested all of their products for microbes, pesticides and heavy metals, compared to 6% in 2021. Other key findings from the report include:

  • 20% of the brands reviewed did not conduct purity tests to check for the presence of microbes, pesticides or heavy metals. In 2021, 25% of brands reviewed by Leafreport did not conduct purity testing;
  • 42% of brands test almost all of their products for efficacy (90% to 100% accurate) and share their third-party lab results with consumers – just as they will in 2021;
  • 12% of brands had all of their products within acceptable potency variance limits;
  • 88% of brands that tested their products for efficacy had at least one product test that was above the 10% variance for efficacy, compared to 84% in 2021; and

28% of brands did not test for pesticides at all, 26% did not test for the presence of heavy metals and 24% did not test for microbes.

leaf report

A bill designed to provide permanent protections that would allow state hemp companies to legally market certain cannabis products, including edibles and beverages infused with CBD and other cannabinoids, is awaiting approval from Gov. Tim Walz (D). The large-scale omnibus legislation approved by the House and Senate includes the hemp regulations. The measure would resolve a problem in drafting legislation that arose after the state legislature attempted to amend Minn’s hemp policy. to align with that of the federal government, which legalized the harvest under the 2018 Farm Bill. Products must contain less than the federal limit of 0.3% THC and be limited to a total of 5 mg THC per serving and 50 mg per package.

marijuana moment

NC’s SB 762 is making its way through committees protecting industrial hemp farmers as the USDA Domestic Hemp Production Rule is scheduled to expire at the end of June. There are approximately 1,500 hemp farmers and more than 1,200 processors in NC registered under USDA regulation.

Deadlines coming for hemp producers – ABC News

fox 8

Clothing manufacturer John Anders’ latest product is a shirt made from fabrics made from eucalyptus and hemp fibers. The Minnesota-based designer has been flagged by Facebook and Instagram for blending it with hemp. While Meta’s policy doesn’t provide a clear message about promoting hemp products that are non-consumable, the breadth of the company’s algorithms on Facebook and Instagram has essentially banned any product with the word hemp in it.

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The Bright Ma Innovation Center (BIC) will be a hemp research and innovation center located on 85 acres outside of Orangeburg, SC and will work in partnership with the SC State 1890 Research and Extension Program. The BIC will provide students with the tools to learn how the supply chain impacts the hemp market and receive hands-on training on all aspects of hemp production, including biology, engineering, marketing and economics. Bright Ma Farms plans to invest approximately $30 million in the center, which will be funded through grants and private funds. The BIC is expected to be completed within the next 18 months.


Ferrara meets imitation cannabis again

Ferrara Candy, the maker of Nerds candy and Trolli gummy candy, claims that Akimov intentionally uses very similar packaging to its Nerds and Trolli products and that customers are likely confused by the THC-containing fakes, believing they are made by the candy manufacturer are authorized. Akimov also infused his cannabis products with THC, which is illegal for recreational use in Florida and is considered a crime. Akimov sells at least seven counterfeit THC products under packaging labeled “Errli” and “Trrli” on its website, as well as a counterfeit version of Nerd Ropes, Ferrara says. The company is seeking a permanent injunction preventing Akimov from manufacturing the alleged counterfeits and damages of $2 million for each counterfeit brand per type of goods sold, offered for sale or distributed.

hemp co. says the competitor stole the trademarked “Jars” logo

– Law 360 (sub. req.)

Root Sciences is seeking review of a 2021 U.S. Court of International Trade decision in which the court dismissed the litigation for lack of jurisdiction and said it rested in federal district court instead. The company argues that the CIT’s decision created a legal loophole that would allow CBP to hold goods in a state of procedural limbo. In response, the cannabis extraction company will fight its battle against the CPB’s seizure of imports deemed drug paraphernalia and appeal to federal court.

Law 360 (ancillary requirement)

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