The growing demand for cannabis or cannabis-derived products is increasing in magnitude and reach. The legalization of CBD products has opened a floodgate of opportunity for both consumers and entrepreneurs.
If you are one of those who wish to join the bandwagon of cbd hemp flowers and CBD-infused products, do not jump into it immediately. Step back and study the industry first, as there are still legal considerations in the lawful marketing of CBD products. This article will teach you how to sell CBD products legally, whether online or in person.
First and foremost, you have to understand that not all cannabis-derived products, including CBD, are allowed to be sold legally. The implementation of the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill) resulted in the removal of hemp from the Controlled Substances Act’s marijuana definition.
This means that cannabis plants, including CBD and derivatives containing no more than 0.3 percent delta-9-tetrahydrocannabinol (THC) by dry weight, are no longer classified as controlled substances under the Controlled Substances Act (CSA).
However, only one CBD product has been approved by the FDA: a prescription drug for treating seizures associated with Dravet syndrome (DS), Lennox Gastaut syndrome (LGS), or tuberous sclerosis complex (TSC) in people one year and older.
Marketing CBD as food or labelling it as a food supplement is illegal. Following the federal regulations, being aware of these restrictions will help you. Aside from federal regulations, state-mandated restrictions vary by state, so it is critical to understand CBD legality in your state.
License to sell CBD products
To sell CBD products lawfully, you must acquire a license to sell CBD products. Aside from the regular business license, CBD sellers are required by law to seek an additional resale license for their CBD products. Issuance of a resale license differs from state to state, so you must conduct your own research about the requirements in your area.
Make sure your supplier is certified by the FDA
Once your license to sell is approved and certified, you are now all set to sell CBD products. The next important thing you need to do is find a certified supplier of high-quality CBD products. Before closing a contract with your supplier, demand documents that show that their product is duly approved and certified by the FDA.
The benefit of selling online is that you will have unlimited access to customers, and you will also be able to sell internationally. However, not all states or countries allow the sale and consumption of cannabis-derived products.
Selling to customers from a state or country that has not legalized CBD may put your business at risk of violating their laws. To avoid this from happening, make a list of states or countries that prohibit CBD in any form before selling it to distant customers.
CBD is a lucrative business if you know how to follow the law. There are privileges and benefits for manufacturers and sellers who are duly recognized by the state to sell CBD. Hence, it pays to abide by the law.