The Federal Trade Commission (FTC) is returning thousands of dollars to customers of an Arizona cannabidiol (CBD) brand.
On Wednesday, the FTC revealed that it is sending payments to 576 customers nationwide who bought products from Scottsdale-based Kushly Industries LLC.
According to the FTC, the payments, which total nearly $21,000, are the penalty for Kushly making false or unsubstantiated claims about its CBD products.
Each customer will receive an average of $36.
The refund payments stem from an FTC complaint from earlier this year.
“The FTC’s March 2021 complaint against Kushly and the company’s CEO, Cody Alt, alleged that they made false or unsubstantiated claims that their CBD products could effectively treat or cure a host of conditions—from common ailments, like acne and psoriasis, to more serious diseases, including cancer and multiple sclerosis,” states an FTC press release. “The complaint also alleged that the company falsely claimed that scientific studies or research had proven CBD products effectively treat, mitigate, or cure diseases, including hypertension, Parkinson’s disease, and Alzheimer’s disease.”
According to FTC’s Bureau of Consumer Protection Acting Director Daniel Kaufman, the complaint against Kushly is the seventh one brought against CBD sellers.
Kaufman says CBD may have medicinal benefits, but sellers should know better than to make unsubstantiated claims.
The FTC says the 576 Kushly customers will receive a PayPal payment or a check, which they must cash before November 22, 2022.
Customers must claim their PayPal payment by September 23, 2022.
The FTC says recipients with questions should contact Analytics Inc., the refund administrator, at 1-866-461-4332.