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Reef Industries, Inc.

Agreed to an FTC consent order over allegedly unsupported claims that CBD can treat Alzheimer's and arthritis

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According to Federal Trade Commission, Dec 17, 2020 · Read the source · +1 more

Where
California, United States
First reported
Last checked

Resolved or closed

The source lists this matter as resolved or closed. The entry stays public so the record remains available.

Summary

Reef Industries, Inc., a California company that the FTC says did business as Reefcbd[.]com and Reef Wellness, was named with affiliates Cannatera, Inc. and AndHemp, Ltd. in the FTC's December 2020 CBD sweep, Operation CBDeceit. According to the FTC, the companies had sold CBD products directly to consumers through their website and Twitter accounts since at least January 2019, claiming the products could prevent, cure or mitigate conditions such as Alzheimer's disease, arthritis, autoimmune disease and irritable bowel syndrome, and that science proved it. The FTC alleged these claims were false or unsubstantiated. The respondents settled through an administrative consent order finalized on March 5, 2021, which bars disease claims without human clinical testing, requires scientific support for other health claims and required an $85,000 payment to the FTC, the largest amount in the sweep. The matter is listed as closed.

What the source found

  • The FTC alleged claims that CBD products could prevent, cure or mitigate Alzheimer's disease, arthritis, autoimmune disease and irritable bowel syndrome.
  • The FTC also alleged false claims that these benefits were scientifically proven.
  • The consent order bars disease claims without human clinical testing.
  • The respondents were required to pay $85,000 to the FTC.

Products named

  • CBD products

Timeline

  1. FTC announces administrative complaint and proposed consent order

  2. FTC approves final decision and order; case closed

Sources

  1. Regulator
  2. Regulator

    Federal Trade Commission · Mar 5, 2021

    Reef Industries, In the Matter of

Wording on this page follows the sources. Found an error? See the corrections process in our editorial policy.

Status notes

Settled through an administrative consent order in 2021; the FTC lists the case as closed. The order's restrictions on health claims remain in force. Current trading status of the business was not verified.

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