Last week the U.S. Federal Trade Commission sent more warning letters to companies over claims it alleges have been made relating to cannabidiol (CBD).

This warning shot across the bows follows a round of letters sent in March this year by the FTC and U.S. Food and Drug Administration (FDA).

While not naming the targets in this latest batch, the FTC said the companies involved had advertised CBD products claiming they treat or cure various conditions, including Alzheimer’s disease, MS, colitis and cancer. Not all companies claimed therapeutic benefit for the same diseases or conditions.

The letters warn the recipients to review all claims – including those in published consumer reviews of products – to ensure they are backed by “competent and reliable scientific” evidence. It warns failure to do so could violate the FTC Act and may result in legal action; including orders to refund the money of purchasers.

The letters give the recipients 15 days to follow up with the FTC to let the Commission know what remedial actions have been taken.

Aside from this and the March letters, the FTC hasn’t had a lot to say on the cannabidiol situation in the USA. A search of “cannabidiol” on its website reveals just three entries – and all related to the letters.

The FTC is a bipartisan federal agency tasked with protecting U.S. consumers and promoting competition.

With regard to the FDA and cannabidiol, it’s a very different situation – but it’s charged with the heavy responsibility of protecting public health by ensuring the safety, efficacy, and security of products for human consumption. On the issue of cannabidiol, the FDA has had plenty to say.

But this doesn’t mean the FDA is hating on CBD. In fact, the FDA’s Principal Associate Commissioner for Policy – Office of Policy, Lowell Schiller, JD, recently stated the Administration is “excited” about cannabidiol’s potential. However, it is being very cautious.

So far the FDA has only approved one cannabidiol drug for human use and only with specific conditions – the incredibly costly Epidiolex for the treatment of symptoms associated with Lennox-Gastaut syndrome and Dravet syndrome.

Find out how Emerald Scientific is bringing together analytical scientists to advance cannabis scienc

As the regulatory framework for the cannabis testing industry evolves, there is a growing need to bring together analytical scientists working in this field to help implement quality standards, as well as provide a unified approach to the advancement of cannabis science.

One company dedicated to the cause is Emerald Scientific. Co-founded by Wes Burk and Ken Snoke in 2013, Emerald Scientific is a California-based distributor of quality scientific equipment, supplies and reference materials exclusively for the cannabis industry. The company also offers proficiency testing for cannabis laboratories - The Emerald Test™ - and is the organizer of the Emerald Conference – a technical scientific meeting which highlights discovery science and technologies advancing cannabis science, from cultivation to pre-clinical research. 

In this interview, SelectScience speaks to Wes Burk, President of Emerald Scientific, to learn more about the impact of The Emerald Test™, the latest technologies advancing cannabis science, and for a sneak preview of what to expect from the Emerald Conference 2020.

Why is it so important to set testing benchmarks for cannabis testing?

WB: One of the biggest reasons is that we in this space tend to all be champions of the plant and its potential. On this path to legitimizing the plant and its use, we all have a responsibility to bring good science to the mix, and that includes creating a scenario for predictability and dependability when it comes to its use and results. So, the better the analytical segment in the industry does, the more reliable the products that are created based on that information, and the more positive experiences and exposure we can have in the press. We feel like supporting good science in the industry is a very strong way of advocating the evolution of legitimacy for the plant in general.

How has the Emerald Test impacted the cannabis testing industry? 

WB: As the regulatory framework evolves in the cannabis industry, as well as the accreditation segment, proficiency testing is required. Back in 2014 when we developed the test, no one was offering proficiency testing for the cannabis industry. In delivering that service, we really expedited the labs' capacity to stay in regulatory compliance and to achieve accreditation that many of the labs sought in the space.

How does the varied state-to-state legislation affect the way the testing works?

WB: That is still a very challenging paradigm. The scientific community in most other industries generally follow a federal course of regulation, and that doesn't exist for cannabis. One example is that from state to state, there are requirements for different analytes within a testing class – pesticides, for example. California has a very different list of required analytes to test for pesticides versus Oregon, versus Washington. That creates a challenge because an organization like Emerald Scientific, who is trying to provide certified reference material or standards for these tests, is challenged with — rather than having one standard off-the-shelf blend that meets the federal regulatory guidelines — having to attempt to compile specific products for each of the state requirements across each of the required product testing categories. 

Collaboration between testing laboratories is key to advancing the field of cannabis science. Image © epicstockmedia 123rf.com

Tell us about the history of the Emerald Conference

WB: Our first conference was in 2014, in San Francisco. It became very clear that there were a lot of bright minds in cannabis science that were becoming rather frustrated due to isolation - they found themselves practicing all alone and without viable avenues for collaboration. The Emerald Conference was the first time that these scientists, a lot of them analytical scientists, had a forum where they could come together and collaborate. 

We feel like there was a turning of the corner at that point — up until then, there was a pretty aggressive attitude about the science being conducted in the space and we feel like the Emerald Conference was the launching point for a shift towards a more collaborative spirit in the analytical sciences in cannabis. We embraced that philosophy and really have tried to continue to build the conference around that core value of collaboration. 

We feel like the Emerald Conference champions cutting-edge technology and science and offers scientists in the space a venue where they can not only collaborate, but really keep their finger on the pulse of the latest in terms of tech, trends, research, and clinical work.

What are the key themes for the Emerald Conference 2020?

WB: Evolution is a big theme for the conference. By that, we mean to highlight how things have changed in the industry over the past five to eight years — we went from a place where just performing simple potency tests was wrought with challenges, to now, where the industry is radically more sophisticated. We also see lots of scientists coming together and working on projects, and that's really accelerating the evolution of science in the space. 

What are some of the latest innovations in the cannabis testing industry that you expect to see highlighted at the conference?

WB: One technology that we've been watching for several years that we think is finally getting close to market-ready is point-of-use analytics – equipment for testing, for example, in a hemp field. The science has been a little bit slow in getting there, but we think that's one area that we're going to see some really exciting products brought to market in the next six to 12 months. 

In general, we’re also seeing a nice spike in clinical and preclinical work. So, we think that the science is going to start to become more reliable. There's also a move away from strain name nomenclature, and there are lots of vehicles that are becoming viable to do a better job in predictability of outcome - and that's an extraordinarily exciting place to be, and frankly, long overdue.

Finally, what are you most excited about in the cannabis testing industry right now?

WB: I think that for cannabis in general, the rapid adoption of hemp, and therefore the exposure to the common consumer to CBD, is really a momentum changer. I think ultimately, that is probably about the most exciting thing that's going on in the industry right now, and I think it will really expedite the evolution towards federal adoption of both hemp and, more broadly, cannabis.

Leading e-commerce platform Shopify Inc. (NYSE:SHOP)(TSX:SHOP) has finally opened its internet doors to hemp-derived Cannabidiol or CBD. The company announced new features on its platform to help U.S. merchants sell these products online or in brick-and-mortar retail locations, as long as that state permits such sales.

“Shopify has unmatched expertise in emerging industries, along with the resources merchants need to be successful in the fast-growing market of hemp-derived CBD products in the U.S.,” said Harley Finkelstein, Chief Operating Officer, Shopify. “Shopify’s reliable technology and extensive partner network means that businesses can ride the wave of demand for these products and give consumers more choice.”

Shopify mentioned two CBD companies in the press release. Josie Maran and Cannuka will be able to sell hemp-derived CBD products as a result of the new features.. “This is an exciting time for the CBD skincare industry. Consumers are eager to connect with us and try our Skin Dope products. Until recently, we didn’t have a simple solution to manage and sell our CBD Oil and Hemp Seed Oil assortment online,” said Roger Wason, Director of eCommerce for Josie Maran Cosmetics. “Shopify has helped us focus more on our relationships with our consumers and growing our business.”

Pixel Union is a company that has been working with CBD merchants and note don its website that even though Shopify has now opened its doors, that doesn’t mean the payment systems are all available as well. “Shopify merchants still cannot use Shopify payment gateways, however, the e-commerce leader has partnered with Authorize.net, DigiPay, and eMerchant Brokers to provide seamless payment gateways for merchants to use.”

“In the last decade, e-commerce has grown 15% every year, yet it only represents 10% of total retail sales in the US. Pair that with legal CBD related products in the US being valued at $14.7 billion in 2019 and access to a proven platform like Shopify, I’m predicting unprecedented growth in 2020. We look forward to working alongside Shopify in helping merchants sell more,” says Pixel Union CEO, Ben Moore.