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Visa & MasterCard Requirements & Federal Government Policy

Updated: April 10, 2022

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. 

The Federal Trade Commission (FTC) strictly prohibits CBD sellers from publishing unsupported or unsubstantiated health benefit statements in their advertising and marketing. 

delta8 market

Online sellers of federally regulated hemp products or kratom are 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.”

 

before you buy kratom2

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

There must be a clearly visible statement on the website checkout page informing buyers that the sale of CBD edibles is prohibited restricted in their state.

Currently, Delta-8 THC is Banned or Restricted in 17 US States.

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

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.

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.

Is Kratom legal in your state in 2022?

AlabamaBannedBanned in 2016, May- Schedule I drug
AlaskaLegalNo pending legislative action.
ArizonaLegal

Arizona HB2601 “Amending sections 36-795, 36-795.01, 36-795.02 and 36-795.o3, Arizona Revised Statutes; relating to kratom products”Regulating

Introduced: 1/27/2022
StatusIn Government Committee. Work session 2/7/2022, Hearing 2/9/2022.
Summary: Arizona passed a Kratom Consumer Protection Act bill in 2019. HB2601 would amend this bill, throwing out the terminology of “Dealer” to define kratom vendors, and instead define vendors in terms of either PROCESSOR which “means a person that sells, prepares, manufactures, distributes, wholesales or maintains kratom products or that advertises, represents or holds itself out as selling, preparing or maintaining kratom products”, or RETAILER which means a person that sells or distributes kratom products or that advertises, represents or holds itself out as selling or maintaining kratom products.”

ArkansasBannedBanned in 2016, February- added to the list of controlled substances using AR code§ 5-4-201 (a)(1)(A)(i).
CaliforniaLegalBanned in San Diego in 2016, June by ordinance 20657
ColoradoLegal

No pending legislative action.

Colorado SB22-120 “Regulation Of Kratom Processors”
Regulating

Introduced: 2/3/2022
Status: In Finance Committee
Summary: From the Colorado General Assembly:

Effective January 1, 2023, the bill requires that, prior to selling or offering for sale any kratom product, each kratom processor must register with the department of revenue (department) and disclose certain information regarding each of the kratom processor’s kratom products.

The bill also:
– Establishes the minimum requirements for kratom products;
– Prohibits the sale of kratom products to individuals under 18 years of age;
– Requires a kratom processor to notify the department within 7 days after being notified that an adverse effect report was made with the federal food and drug administration regarding any of the kratom processor’s kratom products; and
– Authorizes the department to investigate adverse effect reports to determine whether a kratom processor has violated any of the standards specified in the bill.

ConnecticutLegalNo pending legislative action
DelawareLegalNo pending legislative action
FloridaLegalBanned in Sarasota County by HB183 in 2016
GeorgiaLegalThe decision of ban lifted by efforts of Kratom advocates
HawaiiLegal

No pending legislative action.

Hawaii HB2356 and SB3307 “Kratom Consumer Protection Act”
Regulating

Note: These two bills from Hawaii’s House and Senate are identical – introduced and referred to the same committees on the same date
Introduced: 1/26/2022
Status: Referred to 3 committees on 1/28/2022: Judiciary and Hawaiian Affairs, Consumer Protection and Commerce, Health Human Services and Homelessness.

Summary: Vendor as written in these bills is an all-encompassing term for anyone from importer to retailer. HB2356/SB3307 would ban the sale of adulterated and contaminated kratom and products with 7-HMG greater than 2%.

Vendors would be prohibited from sales to those under 18. Label requirements include ingredients list, that the sale is prohibited to minors, amount of MTG and 7-HMG, vendor name and address, suggested use, and precautionary statements. Vendors are also subject to lab test by request.

IdahoLegalNo pending legislative action
IllinoisLegal to adultsLegislation HB5526 passed in 2014 which bans the sale to minors
IndianaBannedSB0305-Kratom labeled as a synthetic controlled substance
IowaLegalLegislation HB640/ HF 2335 that meant to criminalize Kratom was not passed in 2014
KansasLegalNo pending legislative action
KentuckyLegalSB136 could have banned it but the bill wasn’t passed.
LouisianaLegalNo pending legislative action
MaineLegalNo pending legislative action
MarylandLegalNo pending legislative action
MassachusettsLegalNo pending legislative action
MichiganLegalLegislation HB 5707 not passed
MinnesotaLegalLegislation HB 5707 not passed
MissouriLegalNo pending legislative action
MississippiLegal

No pending legislative action.

Mississippi HB681. “Add Kratom to Schedule I of the Uniform Controlled Substances Act”
BANNING

Introduced: 1/17/2022
Status: Passed House, transmitted to Senate as of 2/4/2022
Summary: After two similar bills died in committee, HB681 which would make kratom illegal in Mississippi passed the House. It’s now in the state Senate. Years of propaganda from a well-funded campaign by law enforcement officials led to the formation of this bill. Several towns and counties in Mississippi have already enacted bans. The act specifically names mitragynine and 7-hydroxymitragynine on the controlled substances list.

MontanaLegalNo pending legislative action
NebraskaLegalNo pending legislative action
NevadaLegalNo pending legislative action
New HampshireLegal to adultsLegislation SB540 bans the use of Kratom in minors
New JerseyLegalAB 4431 Legislation introduced in 2015 but not implemented as yet
New MexicoLegalNo pending legislative action
New YorkLegalLegislations including A231, A8670, S6345 and A9068 introduced on January 5th, 2017 but they are not passed yet. These legislations can ban the sale and distribution of Kratom.
North CarolinaLegalSB830 introduced but not passed
North DakotaLegalNo pending legislative action
OhioLegalNo pending legislative action
OklahomaLegalHB2666 not passed in 2014
OregonLegalSB518 introduced. Further research to be done
PennsylvaniaLegalNo pending legislative action
Rhode IslandBannedcontrolled substance
South CarolinaLegalNo pending legislative action
South DakotaLegalNo pending legislative action
TennesseeBannedBy Pub. Ch. No. 161- controlled substance
TexasLegalNo pending legislative action
UtahLegalNo pending legislative action
VermontBannedBy Title 18 V.S.A. § 4205 labeling Kratom as a regulated drug
VirginiaLegalNo pending legislative action
WashingtonLegalNo pending legislative action
West VirginiaLegalNo pending legislative action
WisconsinBannedKratom labeled as Schedule I drug by Wis. Stat. § 961.14
WyomingLegalNo pending legislative action

Source: Kratom Science online. February 2022

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