State Law, Visa & MasterCard Requirements, FDA, Federal Trade Commission & DEA Policy

Updated: September 10, 2021

Prior to launching an e-commerce store with the intent to sell CBD products, Delta-8/9 or Kratom, it’s important to remain aware of state laws and federal guidelines.

Unsubstantiated Health Claims are Strictly Prohibited.

The Federal Trade Commission (FTC) strictly prohibits CBD sellers from publishing unsupported or unsubstantiated health benefit statements in their advertising and marketing. In other words, the seller is not allowed to publish any statements suggesting that CBD may be effective at treating serious health conditions, including cancer, heart disease, hypertension, Alzheimer’s disease, and others.”

Source: FTC Website. Publication – December 17, 2020. FTC sends warning letters to companies advertising their CBD-infused products as treatments for serious diseases, including cancer, Alzheimer’s, and multiple sclerosis, Sept. 10, 2019, available at: https://www.ftc.gov/news-events/press-releases/2019/09/ftc-sends-warning-letters-companiesadvertising-their-cbdinfused.

States Where CBD Edibles are Banned.

This restriction includes; gummies, candies, and all CBD-infused chewable foods.

*Updated September 2021:

Maine
New York
North Carolina
Ohio

An online seller should include a clearly visible statement on the shopping cart page OR checkout page drop-down selection menu informing the buyer that the sale of CBD Edibles is should restrict the sale and shipment of that product is restricted in their state.

The same disclosure statement can be placed on the website footer page.

Currently, Delta-8 THC is Banned or Restricted in 18 US States.

Alaska
Arizona
Arkansas
Colorado
Connecticut
Delaware
Kentucky
Idaho
Iowa
Michigan
Mississippi
Montana
New York
North Dakota
Rhode Island
Utah
Vermont
…and Washington.

Kratom is Prohibited by Visa and MasterCard.

Visa and MasterCard will not support transactions involving the sale of kratom. For that reason, will not offer merchant accounts to kratom sellers.

If a traditional payment processor discovers a merchant violating Visa and MasterCard policy, that merchant account will be terminated the merchant will be placed on the ‘Match List’.

Source; https://www.legitscript.com/?p=9076

Kratom is banned in several US states or considered “illegal” in others. These states include; Rhode Island, Arkansas, Vermont, Indiana, Tennessee, and Wisconsin.

Furthermore, there are municipalities within states that have banned the sale or distribution of kratom; Sarasota Florida, a couple of municipalities in Colorado, San Diego California, several counties and cities in Mississippi, Franklin New Hampshire, and Jerseyville Illinois.

Canada has banned the sale of Kratom for human consumption, but Kratom is not illegal in Canada. When sold in Canada, Kratom is labeled as not for human consumption.
Kratom is listed as a Drug of Concern by the Drug Enforcement Administration and has been identified by the FDA as having deadly risks.

Learn more about this substance by getting our free Kratom FAQ Guide. Again, these legal facts must be understood.

Other Legal Restrictions and Prohibitions

Updated: September 2021.

U.S. States Where CBD Is Still Illegal (regardless of the 2018 US Farm Bill)

Idaho
Iowa
Nebraska
North Dakota.
Kansas – No products intended for human consumption. This includes; CBD vape cartridges, hemp flower, hemp pre-rolls, CBD-infused teas, etc.

Extremely restrictive state law. For industrial uses only.

- - Washington D.C.: the District of Columbia classifies all extracts from cannabis as hashish, a term which was not included in the legalization initiatives. This means CBD possession could be charged as possession of hashish, which would have serious consequences, including significant jail time.

*Source: Buscher Law Firm. Experts in cannabis, hemp and CBD. https://is.gd/tZlOSx

Indiana Prohibited: Smokable CBD flower.
Kentucky Prohibited: Hemp cigarettes; hemp cigars; chew, dip, smokeless material consisting of hemp leaf material or hemp floral material; and hemp leaf material or floral material teas.
New Hampshire: Guideline issued by the New Hampshire Liquor Commission in 2018 and revised in June 2019 states that Hemp-CBD may not be added to foods or alcohol products in New Hampshire.
Texas: The sale and marketing of Hemp CBD foods and cosmetics is allowed so long as these products meet specific testing and labeling requirements. However, the definition of “consumable hemp product” does not include smokable products. HB 1325 expressly prohibits the processing and manufacture of products “containing hemp for smoking.” “Smoking” is defined as “burning or igniting a substance and inhaling the smoke or heating a substance and inhaling the resulting vapor or aerosol.”
Vermont: CBD cannot be combined with meat or dairy; maple syrup has its own rules.

Website Compliance Checklist

Cannot sell or ship to states where CBD is banned/illegal
Cannot sell or ship CBD-infused foods or beverages, including gummies, to states that have banned CBD edibles
Cannot label or market a product as a dietary supplement
Cannot use the following terms in describing a product: “prevent”, “diagnose”, “mitigate”, “treat”, or “cure”
Testimonials may not use the terms above
Customer Service Contact must be clearly displayed
Refund Policy must be clearly displayed
Customer must opt-in for recurring / subscription orders; opt-out is not ok
Privacy Policy must be clearly displayed.

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