Selling Hemp and CBD Online? Read this First!

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hemp cbd online sales shopify

We
recently
received
a
request
from
a
client
to
advise
them
on

Shopify’s
guidance

on
selling
CBD
products
on
its
platform.
Specifically,
the
first
paragraph
of
the
guidance
states
that
“[y]ou
should
consult
with
an
attorney
to
determine
how
and
where
you’re
able
to
sell
your
product.”
And
that’s
exactly
what
the
client
did

reached
out
and
wanted
to
know
exactly
how
and
where
they
could
sell
their
various
products.

But,
as
our
regular
readers
are
well
aware,
there
isn’t
always
a
clear
answer
to
that
question.
Unfortunately,
that
does
not
mean
that
sellers
of
these
types
of
products
should
just
wing
it,
given
the
proliferation
of
CBD
online
and
in
retail
stores.
That
type
of
strategy
could
land
you
in
hot
water,
with
your
accounts
shut
down,
or
your
funds
seized
by
your
payment
processor
(as
has
happened
to
clients
of
ours).
Shopify’s
policy
explicitly
states:

Shopify
can’t
provide
advice
on
what
and
where
merchants
can
sell,
but
we
recommend
that
merchants
review
and
monitor
federal,
state,
and
local
laws,
as
well
as
monitor
updates
from
the
Food
and
Drug
Administration
(FDA).
The

FDA
site

has
helpful
guidance
on
products
that
contain
hemp
and/or
CBD
in
the
United
States.”

Shopify
also
requires
all
users
to
complete
an
Attestation
for
the
Sale
of
Hemp
and
Hemp-Derived
Products,
for
which
it
again
urges
users
to
consult
with
an
attorney
for
legal
guidance.
Here
is
a
sampling
of
the
statements
that
Shopify
requires
all
sellers
of
hemp
and
CBD
to
confirm:

  1. I
    confirm
    that
    my
    Shopify
    store
    operates
    from
    a
    state
    where
    the
    listing
    and
    sale
    of
    hemp
    and
    hemp-derived
    products
    is
    permitted
    by
    applicable
    state
    and
    local
    law.
  2. I
    confirm
    that
    all
    hemp
    and
    hemp-derived
    products
    listed
    or
    sold
    on
    my
    Shopify
    store
    contain
    not
    more
    than
    0.3%
    tetrahydrocannabinol
    (THC)
    concentration
    on
    a
    dry
    weight
    basis
    or
    such
    lower
    percentage
    as
    required
    by
    applicable
    state
    and
    local
    law.
  3. I
    confirm
    that
    no
    hemp
    or
    hemp-derived
    products
    listed
    or
    sold
    on
    my
    Shopify
    store
    are
    marketed
    as
    having
    any
    medicinal,
    disease-related
    or
    therapeutic
    benefit
    unless
    such
    claims
    have
    been
    approved
    by
    the
    Food
    and
    Drug
    Administration
    (FDA).
  4. I
    confirm
    that
    all
    hemp
    and
    hemp-derived
    products
    listed
    or
    sold
    on
    my
    Shopify
    store
    have
    been
    sourced,
    processed,
    tested,
    labeled
    and
    marketed
    in
    compliance
    with
    all
    applicable
    federal,
    state
    and
    local
    laws.
  5. I
    confirm
    that,
    if
    any
    hemp
    and/or
    hemp-derived
    products
    listed
    or
    sold
    on
    my
    Shopify
    store
    are
    intended
    for
    human
    or
    animal
    consumption
    via
    ingestion
    (including
    but
    not
    limited
    to
    food,
    food
    additive,
    beverage,
    dietary
    supplement,
    etc.):


(a)

these
products
are
permitted
by
applicable
state
law,
and
they
comply
with
all
applicable
state
and
local
requirements
(including
all
labelling,
manufacturing
and
testing
standards);


(b)

I
have
all
applicable
state
and
local
licenses,
approvals
and
certifications
required
to
sell
these
products.

  1. 6.
    I
    confirm
    the
    following:


(a)

all
hemp
and
hemp-derived
products
listed
or
sold
on
my
Shopify
store
comply
with
all
specific
restrictions,
license(s)
and/or
other
standards
applicable
to
the
specific
hemp-derived
product
being
sold;


(b)

all
hemp
and
hemp-derived
products
listed
or
sold
on
my
Shopify
store
are
legal
in
every
jurisdiction
into
which
they
are
sold
(including
jurisdictions
outside
the
US
as
applicable);


(c)

any
marketing
claims
associated
with
all
hemp
and
hemp-derived
products
listed
or
sold
on
my
Shopify
store
are
permitted
by
the
FDA
for
that
specific
product
category
(e.g.
cosmetics,
dietary
supplements,
etc.)
and
are
true,
accurate,
and
do
not
contain
any
false
or
misleading
statements;


(d)

I
will
notify
Shopify
in
writing
of
any
class
action
demand
letter
or
FDA
or
Federal
Trade
Commission
(FTC)
enforcement
action
commenced
against
my
business
including
any
warning
letters
or
other
related
correspondence
within
ten
days
of
receipt;


(e)

no
hemp
or
hemp-derived
products
listed
or
sold
on
my
Shopify
store
have
been
the
subject
of
a
recall
or
safety
alert
from
an
applicable
regulatory
authority.
In
the
event
of
such
a
recall
or
safety
alert,
I
will
notify
Shopify
in
writing
within
48
hours
of
receipt
and
will
immediately
remove
the
applicable
product(s)
from
my
Shopify
store
and
stop
fulfilling,
processing
or
receiving
orders
for
such
product(s);


(f)

if
my
Shopify
store
lists
or
is
selling
hemp
seeds,
the
seeds
are
not
capable
of
germination;


(g)

no
hemp
or
hemp-derived
products
listed
or
sold
on
my
Shopify
store
contain
any
substances
in
Schedules
I

V
of
the
Controlled
Substances
Act;


(h)

if
requested
by
Shopify
at
any
time,
I
will
provide
further
confirmation
or
documentation
to
ensure
that
each
of
my
Shopify
store,
business,
hemp
and/or
hemp-derived
products
are
in
compliance
with
all
applicable
laws,
regulations
and
requirements;
and


(i)

I
acknowledge
and
agree
that
Shopify
may
at
any
time
suspend
or
terminate
my
account
if
I
do
not
respond
expeditiously
to
Shopify’s
requests
for
confirmation
or
documentation
or
other
communications,
or
if
Shopify
determines
in
its
sole
discretion
that
it
is
necessary
in
order
to
comply
with
any
applicable
law.

These
guidelines
are
about
as
robust
as
can
be,
and
any
retailer
would
be
taking
a
huge
risk
by
selling
products
that
do
not
align
with
Shopify’s
guidelines.
We

highly
recommend

to
all
of
our
hemp
and
CBD
clients
that
they
have
a
solid
grasp
of
the
current
state
of
the
law
in
every
jurisdiction
in
which
they
sell,
and
that
they
have
a
plan
in
place
for
keeping
abreast
of
changes
to
those
laws
(because
they’re
changing
on
nearly
a
weekly
basis).
Our
firm
offers
these
types
of
compliance
and
legal
monitoring
services
for
hemp
and
CBD,
and
echoes
Shopify’s
recommendation
that
all
hemp
and
CBD
retailers
consult
with
an
attorney
to
make
sure
they
can
complete
the
required
attestation
in
good
faith.

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