First, it was Just CBD and Hemp Bombs, now its Diamond CBD being sued in a class-action lawsuit. We have mentioned in the past that Diamond CBD has been selling CBD products with synthetic compounds for the past 2.5 years. Time has finally caught up with the brand.
Experts say a recent class-action lawsuit filed in Florida signals a growing need for more stringent regulation and enforcement of the hemp and CBD industries in the state. The suit alleges the Fort Lauderdale company Diamond CBD and the Denver-based First Capital Venture Co. misrepresented the amount of CBD in their products.
The lawsuit, filed September 27 by Miamian Kathryn Potter, says Potter purchased $119.97 worth of CBD gummies from Diamond CBD’s website, which purported that each product contained anywhere from 150 mg to 550 mg of CBD. The suit claims the actual amount in at least one of those products was far less, although it does not explain how the actual amount was determined.
“[T]he CBD industry has quickly become a billion-dollar-plus industry,” the lawsuit states. “Unfortunately, as is often the case with emerging industries subject to minimal regulation, the CBD market is ripe for exploitation by unscrupulous businesses, and it has been compared to the ‘Wild West.'”
How does the Diamond CBD class-action lawsuit impact our community?
Potter’s attorneys declined to comment on the pending litigation when reached by New Times this week. Diamond CBD, First Capital Venture, and their parent company, PotNetwork Holdings, did not respond to messages seeking comment.
Erin Smith Aebel, a Tampa-based health lawyer, often represents companies looking to enter the growing CBD and hemp industries. She says recent regulation at the state and federal levels has the industry in flux — and the class-action lawsuit shows much more work needs to be done.
“It’s kind of a big fad right now, but, eventually, I think it’s going to be regulated and it’s going to calm down,” Aebel says. “But, yes, if you’re in the business of selling this stuff, you need to be very careful about the accuracy of your claims.”
Further, Aebel says CBD companies offering infused food products could find themselves facing sanctions from the Food and Drug Administration.
Have you been affected by a CBD brand that sells you a product with less cannabinoid content that what is reported on the label? Send a message to share your story to see if you might have a case.