The Federal Trade Commission (FTC) announced in a press release issued on Wednesday that they would be returning funding to consumers across the country who purchased cannabidiol that was marketed in a deceptive manner by Kushly Industries LLC.
The funds that are being returned to 576 consumers total almost $21,000, meaning that each consumer will be receiving an average refund of $36. The refund will come in the form of a check in the mail or a PayPal payment, which the consumers must cash by November 22, 2022, and September 23, 2022, respectively.
The refunds come after a complaint that was filed against Kushly Industries and their CEO, Cody Alt, in March of 2021. The initial complaint alleged that Kushly and Alt “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.” In order to substantiate these false claims further, the defendant falsely claimed that scientific studies or research had been conducted and proven that the product was effective in treating, mitigating, or curing certain diseases.
In 2021 alone, the FTC was able to procure more than $472 million in refunds across the country. However, a recent Supreme Court decision ruled that the FTC lacks the authority to seek monetary relief in federal court, which hinders the FTC’s ability to continue securing refunds for consumers.
