Bank underwriters will inspect the merchant’s website to ensure strict compliance with major card brand policies relevant to the sale of hemp-derived CBD products—additionally, the US Food and Drug Administration (FDA), and the Federal Trade Commission (FTC) works in conjunction with the FDA, focuses on enforcing regulations against false or misleading advertising.
Here’s a checklist of website compliance items.
Both agencies have issued warning letters to CBD companies that violate these guidelines, emphasizing the need for sound scientific evidence to support any health-related claims.
FDA DISCLOSURE STATEMENT – Must be published in the footer section of a website. Sample content is provided below.
The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure, or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from health care practitioners.
Please consult your healthcare professional about potential interactions or other possible complications before using these products. The Federal Food, Drug, and Cosmetic Act requires this notice.
SERVICE DISCLAIMER & LIABILITY WAIVER:
Under no circumstances does the submission of an application for a merchant account, payment of bank imposed fees (if any) or any other fees guarantee approval and issuance of a merchant account. By submitting this application, the merchant/business owner agrees and promises to hold ISO/sales agent harmless to the extent that the ISO/sales agent shall not be held financially responsible nor liable for any costs, fees, business expenses or any losses if an application for a merchant account is declined by sponsoring banks.
INDEMNIFICATION & WAIVER OF RISK & LIABILITY
Merchant/Applicant agrees to indemnify, defend, and hold harmless KJ Proweb, its officers, directors, agents, employees, and suppliers from and against any lawsuit, claim, liability, loss, penalty or other expense (including attorneys’ fees and cost of defense) they may suffer or incur as a result of (i) a bank, ISO/MSPs inability to deliver merchant processing services as described in an Enrollment Application for Service. This indemnification and waiver of liability include, but is not limited to (ii) unforeseen actions by a federal government agency that may place hemp-derived CBD products into a high risk or ‘prohibited category by major card brands, thus making it impossible to receive traditional merchant processing for the same. If you, the merchant/applicant do not agree with nor accept this Indemnification and Waiver of Liability in its entirety, do not apply for service.
