Website Compliance: Hemp, Delta-8 & CBD Underwriting Compliance

If you offer products containing cannabidiol (CBD), be aware of constantly changing state laws, sponsoring bank underwriting requirements, FDA and FTC regulations pertaining to the sale, approved marketing practices, shipping and delivery related best practices.  KJ Proweb will audit, make content corrections deemed necessary, add policy statements and publish a website certain to pass an underwriter’s checklist for merchant account approval.


Our Scope of Work

Age Verification Gate - Integrated Into the Target Website and Activated.

An age gate is an electronic protection measure to restrict access to persons under the legal age of 21.

Age verification systems demonstrate to the government that a company took steps to prevent minors from accessing their products.
Many states require CBD, hemp and cannabis sellers to have an age-gate if selling online.

View the official FDA website and requirement on page 6. *Click here.

Removal of Unsubstantiated Medical Claims Or Health Benefit Statements

The merchant's website must not contain any unsubstantiated medical statements alleging that CBD is an effective treatment against any disease, ailment, or poor health condition.

As part of the underwriting process we inspect website content for unsubstantiated medical claims. If prohibited content is discovered it will be removed or changed to ensure compliance with Federal Trade Commission (FTC) mandates and bank underwriting guidelines.

Links to clinical students, academic research, are acceptable.

Published Laboratory Certificates of Analysis

Independent laboratory issued Certificates of Analysis for each batch of CBD, Delta-8/9, or kratom product sold must be published on the website.

KJ Proweb will accomplish this task by producing a searchable COA database with an accompanying menu in the footer area of the website.

The merchant is responsible for providing KJ Proweb with legible copies of COAs in the form of .PDF files.

Suggested Use vs Recommended Dosage

Delta-8/9 and hemp-derived CBD are not by legal definition, "dietary supplements" and are not classified as such. Merchant Services Providers (MSPs) and their sponsoring bank require that medical terminology be removed and replaced when giving consumers instructions on how to use the products.

The term, "recommended dosage' must be removed and replaced alternative verbiage.

KJ Proweb will replace medical terminal with bank approved verbiage. For example; "This product is non-toxic, contains no psychoactive substances, does not cause a euphoric high due to the low THC content, and is safe for humans or pets if ingested."

DELTA-8 is Illegal in 14 US States (April 2022)

Alaska, Colorado, Delaware, Idaho, Iowa, Montana, New York, Nevada, North Dakota, Rhode Island, Vermont, Virginia, Utah, and Washington.

DELTA-8 is LEGAL in 31 US States (April 2022)

Delta-8 is currently legal in 31 states: Alabama, Arkansas, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, West Virginia, Wisconsin, Wyoming, and in Washington D.C.

In Connecticut and Michigan Delta-8 falls under the same legal guidelines as recreational cannabis.

In the following states the laws are unclear and pending change: Arizona, Alabama, California, Mississippi, Illinois, Oklahoma and Oregon.

Published Policy Statements

Prior to applying for a merchant account and credit card processing, the following pages must be published to your website;

- Terms of Use Policy
- Privacy Policy
- Refunds & Returns Policy
- Shipping & Delivery Policy
- FDA Disclaimer Statement

Prohibited Sale & Shipment to Certain States

KJ Proweb will ensure that your shopping cart restricts the sales of any Delta-8/9 or CBD edibles from being sold or shipped to states where prohibited by law. Our web development team handles website compliance issues in this regard.

Four states have banned the sale of hemp/CBD products in any form: Idaho, Iowa, Nebraska, and North Dakota. *Subject to change.
Additionally, certain states have banned the sale of CBD edibles whereby CBD gummies and other edibles cannot be shipped to the states of Maine, New York, North Carolina, and Ohio. Your website shopping cart must prevent consumers in those states from ordering product.

KJ Proweb™ is the primary point-of-contact between the merchant selling and the payment processor. Therefore, it is the responsibility of KJ Proweb to ensure that applicants in need of payment processing satisfy bank underwriting suitability guidelines for approval.

A member of the KJ Proweb staff will thoroughly inspect a website for non-compliant issues, make the necessary corrections and assist in speeding up the approval process.

Merchant Responsibilities

On an ongoing basis, payment processors monitor a merchant’s website for changes to terminology and products sold, health claims and do mystery shopping to ensure compliance.

It is your responsibility that your company complies with all requirements of Federal law, including FDA regulations. That requirement extends beyond your company website to your social media sites, affiliate sites, testimonials, blog posts, and articles posted on your site. You must constantly monitor all of those to ensure that no health claims are made directly by the company, by your customers, or in articles posted. As you identify those items you must remove them immediately.