With marijuana’s popularity growing by the day, plenty of companies have thrown their hats into the cannabis space for a taste of that sweet cannabis profit. But thanks to the industry’s complex regulatory landscape, some of them have adopted unscrupulous marketing, advertising and labeling practices, leading to several warnings from federal authorities.
For any cannabis business that would like to build a recognizable brand while staying out of the authorities’ radar, complying with the established rules is crucial. This is especially true when it comes to labeling marijuana-infused products, which still have a murky regulatory landscape and require careful execution.
The first thing you should do is to pick your product category. Based on guidance by the FDA’s Code of Federal Regulations (“CFR”), which provides labeling requirements for different classes of consumer-packaged goods, you can classify your product into categories such as foods, beverages, cosmetic products and dietary supplements.
Finding your product category is crucial as that indicates which CFRs you should follow, and you can do this with the help of Guidance for Industry: Food Labeling Guide, Cosmetics Labeling Guide, and Dietary Supplement Labeling Guide. Once you have chosen an appropriate product category, it’s time to look at state-specific regulations.
Although plenty of states now have hemp and cannabis markets, they each have different policies. What is legal in one state could be illegal in another, so it is essential that you study your state’s cannabis regulations before you slap a label on your products. For instance, Colorado allows sellers to package marijuana-infused drinks in clear packages while California does not. If you plan on operating in more than one state, you will have to study each state’s cannabis policies and label products meant for different markets based on their specific requirements.
Speaking of cannabis policies, do not make any health claims on your packaging. With the cannabis/hemp industry as underregulated as it is, the FDA has not yet released official labeling guidelines for cannabis products. However, the agency draws the line against making unsubstantiated medical claims on the packaging. The FDA has even issued several warning letters to companies making claims of relieving pain and inflammation, preventing arthritis, reducing anxiety, and treating opioid addiction. Even if you are marketing your product within the health and wellness segment, it would be in your best interests to avoid making any health claims.
As per your product’s Code of Federal Regulations, you will have to include certain things on your labelling. These include an identity statement, net quantity of contents, ingredient listing, allergen statement, nutritional facts panel (for food and beverages), distribution statement, storage requirements and dosage per serving.
For companies such as BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE: 7BC) that operate within the beverages and supplements segments, mastering a variety of applicable regulations is an art they have mastered in order to grow and thrive.
NOTE TO INVESTORS: The latest news and updates relating to BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE: 7BC) are available in the company’s newsroom at http://cnw.fm/BVNNF
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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