“CBD market is currently the Wild West,” says GMA chief amid overhaul demands

04 Nov 2019 --- Amid a market boom in cannabidiol (CBD) products, new research by the Grocery Manufacturers Association (GMA) has shown increased consumer confusion over what CBD is, what it does and whether it is safe. One in three Americans uses CBD, the study says and 76 percent of CBD users assumes that products are subject to federal regulations and safety oversight. The multi-billion-dollar CBD industry operates within a “disjointed, patchwork system of state regulations,” the research underscores and calls for federal agencies to implement a “uniform regulatory framework.”

“It is the role of federal agencies to ensure a safe and transparent consumer marketplace – but the CBD market is currently the Wild West,” says Geoff Freeman, GMA President and CEO. “Without a uniform federal regulatory framework in place, consumers lack the basic information they need to make informed decisions about CBD. GMA will build a broad-based coalition and lead an aggressive campaign to protect consumers by advancing regulatory clarity.”

The hazy regulatory environment within the CBD space is causing much confusion in both the industry and among consumers. The US Food and Drug Administration (FDA) has recognized the significant public interest in cannabis and its derived compounds and is working on answering these questions through ongoing efforts including feedback from a recent FDA hearing and information and data gathering through a public docket.

The 2018 Farm Bill removed hemp from the definition of marijuana in the Controlled Substances Act and has caused a lot of new CBD-based, product development. CBD products are still subject to the same laws and requirements as FDA-regulated products that contain any other substance. The federal agency is focusing its attention on monitoring products making health claims that are virtually unsubstantiated. Other than that, there is no regulation that mandates a significant intervention on CBD products.

It is the role of federal agencies to ensure a safe and transparent consumer marketplace.So far, one prescription drug product to treat rare, severe forms of epilepsy has been cleared by the agency but the FDA has not approved any other CBD products. Moreover, there is very limited available information on CBD, including its effects on the body.

Confusion over CBD-based product safety
Despite the above, the market is seeing rampant CBD product releases. The research also showed that upon learning the hazy regulatory environment surrounding CBD, 82 percent percent of US respondents expressed alarm, 67 percent of whom say they are “extremely” or “very” concerned. Another 84 percent are worried about the varying regulations that could result from the current state-by-state patchwork system.

The GMA survey also revealed that six in ten US respondents are familiar with CBD, but confusion is rampant. Four in ten Americans (39 percent) incorrectly believe CBD is just another name for marijuana and more than half mistakenly think it can get you “high.” Despite clear confusion, two-thirds (66 percent) say they believe it is safe.

Survey respondents use CBD for a variety of different reasons – most commonly for pain management (52 percent), stress or anxiety reduction (50 percent) and sleep issues (43 percent). In addition, despite the lack of reliable research, testing or uniform regulatory oversight, 21 percent report using CBD to alleviate cancer symptoms or treat the effects of a neurological disorder. However, as mentioned above, CBD has only been approved by the FDA for use in the treatment of epilepsy, concerning one particular release so far.

“CBD is a case study in the federal government’s struggle to keep pace with consumer demand,” says Dr. Betsy Booren, GMA’s Senior Vice President, Regulatory and Technical Affairs. “Industry and consumers alike need government to determine safety and provide regulatory clarity. Until this occurs, the most trusted, experienced and highly regulated brands cannot enter the market.”

In the survey, eight out of ten survey respondents (79 percent) were found to believe that CBD products should be regulated at the federal level. Over the coming months, GMA’s advocacy campaign will urge the FDA to move quickly to establish uniform federal regulations overseeing CBD products, the organization notes.

Seventy percent of respondents also indicated that they would be more confident in the safety of CBD products if they were manufactured by large, well-known brands. Those consumers believe well-known brands have more safety controls in place (55 percent), employ higher manufacturing standards (54 percent), would be more cautious to avoid brand damage (53 percent) and have more experience in making high-quality, consistent products (53 percent).

Streamlining the regulatory route to CBD products has been an industry demand since the moment the Farm Bill passed last year. Many major industry players have even announced NPD that will be launched after regulations are clarified. The space is also seeing a lot of movement from an investment angle. The GMA campaign may be an effort to push the government and its instruments towards clear guidelines in CBD use.

By Kristiana Lalou