How Your CBD Business Can Keep Up With Regulatory Changes
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Table of Contents
How Your CBD Business Can Keep Up With Regulatory Changes
Table of Contents
Summary
Introduction
CBD: An Exciting Compound
CBD Laws and Regulations
How to Keep Up With Regulatory Changes
Final Thoughts
Frequently Asked Questions (FAQs)
References
Summary
Understanding CBD regulations is a complex exercise, but it is also necessary. Failure to follow applicable CBD regulations can put yourself and your business in jeopardy. This article considers CBD regulations within the EU and the UK and several ways to keep apprised of existing and changing regulations. This includes consulting the relevant regulatory authority, consulting a CBD specialist—such as Always Pure Organics—for advice and keeping up-to-date with informative industry news pages.
Introduction
Cannabidiol, also known as CBD, has become vastly popular in recent years. Indeed, the CBD market size was valued at USD 2.8 billion in 2020 and is predicted to reach an impressive USD 3.5 billion by the close of 2021. Furthermore, it is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. This increased demand is partially down to a rise in demand for health and wellness products, the potential benefits of CBD that are finally coming to light and the death of long-standing stigma.
As a result, there is an increased interest in the CBD businesses as investors try to tap into this profitable market. Unfortunately, strict regulations have somewhat limited the growth of the CBD market. However, as this exciting compound gains acceptance worldwide, new rules and reforms are coming into place, such as changes to the legal THC limit in CBD products and cannabidiol’s legal classification.
Your responsibility is to ensure that you are apprised of any regulation changes and ensure compliance. Failing which, you could end up in serious legal trouble. Complying with the various regulations, challenges and paperwork that go hand in hand with running a CBD business can be onerous. This article will teach you how to stay in the know, so you can be confident that everything is above board in your business.
CBD: An Exciting Compound
Cannabidiol (CBD) is a chemical compound found in the Cannabis sativa plant. There are at least 113 other cannabinoids that have been isolated from this plant. The most famous of all the compounds is tetrahydrocannabinol, more commonly known as THC, which is well-known for causing a “high”. Unfortunately, this familial connection between CBD and THC has attached a stigma to CBD, even though it does not have the same effect as THC. However, as research progresses, so does public opinion as CBD’s significant differences to THC and its potential benefits are brought to light.
CBD’s beginnings were in the early 1940s when it was first discovered and isolated from the Cannabis plant by acclaimed chemist Roger Adams. It may be surprising that the compound has been known for such a long time, yet little progress has been made, and so little has been invested in studying it. This is partly down to its association with THC, an illegal compound in many countries and strictly limited in others. However, as CBD is more talked about in mainstream media and more research is being undertaken, its popularity is slowly increasing.
One of the primary benefits of CBD is that it is believed to help users support and sustain a healthy lifestyle, maintain homeostasis and improve overall wellbeing. Other potential advantages to consuming CBD are yet to be fully established. Very few prescriptions of CBD has been legally approved, one such prescription includes Epidiolex, which combats certain forms of epilepsy. As you can see, there is still a long way to go in terms of CBD research, but the results collated so far have proved very encouraging.
CBD Laws and Regulations
The legality of CBD is location dependent. However, regardless of where you are in the world, CBD regulations are likely difficult to unpack. For example, CBD is legal in the UK but must not exceed the UK legal limit of THC. Furthermore, the Misuse of Drugs Act means that each product package must contain no more than 1mg of THC, illegal components must not be easily recoverable, and it must not be marketed/designed in such a way as to promote the illegal component. This is vital for a CBD business and its employees to know that their products comply with the law or risk severe consequences, including a lengthy prison sentence.
There are also several aspects to consider when it comes to legal compliance. It is not as simple as checking whether CBD is legal in your country. It is also vital that you are aware of all related regulations such as those regarding plant cultivation, flower bud legality and THC limits, so you can be confident that the entire CBD process culminating in your product is legal.
It is also crucial to know the laws so that any alterations in regulation can be pounced upon and used to help expand your business. A prime example of this is the change in the THC limit by the European Parliament. In October 2020, it voted to increase the permitted THC level (for industrial hemp) from 0.2% to 0.3%. This was hailed as a landmark move by the CBD industry as it further eased restrictions.
Producing high-CBD strains generally leads to an inadvertent increase in THC, so many producers could not grow high-yield varieties. With the limit increased, this barrier is removed, and manufacturers can develop higher concentrated CBD products while remaining legally compliant. Therefore, knowing current law reforms is beneficial as it is crucial for CBD businesses. You can take advantage of these changes and use them to increase your bottom line.
How to Keep Up With Regulatory Changes
So, what are the best ways to keep your business up to date with the latest regulatory changes and reforms in the world of CBD? This section provides you with top tips to ensure your CBD business is above board and well-informed.
Consult With an Industry Specialist
Perhaps the easiest way to be apprised of regulatory changes is to consult an industry specialist. It saves you from scouring the internet for information and trying to decipher complex, complicated documents written in legal jargon. A specialist can inform you of what regulations your CBD business needs to adhere to.
Always Pure Organics offers this helpful service. As specialists in hemp and CBD, we provide valuable advice regarding this ever-expanding industry. All you need to do is get in touch with your questions and concerns.
Monitor Updates From Your Relevant Regulatory Agency
Another great way to check for changes to the law is to check the information provided by the regulatory agency covering your territory. Let’s look at what organisations need to stay on your radar in the UK or the EU.
The UK
When it comes to checking regulations for your CBD business, it is important to consult the relevant authority. It’s important to remember that the legislation you need to check depends on the type of CBD products you sell. For example, CBD ingestibles versus CBD cosmetics.
- Healthcare CBD products:
If you run a CBD business selling products under the health category, you need to consult the Medicines and Healthcare products Regulatory Agency (MHRA).
- Consumable CBD:
If you sell ingestible CBD products, such as gummies or coffee, you should refer to the Food Standards Agency (FSA), which offers helpful information and guidance. Note that CBD was classed as a Novel Food relatively recently, so you will need to apply for product authorisation.
- CBD Cosmetics:
If your business sells cosmetic products containing CBD, you will need the Cosmetic, Toiletry and Perfumery Association (CTPA). Read the guidelines carefully and gain familiarity with specific requirements, such as providing a Cosmetic Product Safety Report (CPSR).
- Vaping Products:
Refer to the General Product Safety Directive (GPSD) for CBD vape products. However, this directive originates from the European Commission (EC) and is applied differently. It may be worth perusing the UK government website for more guidance.
The EU
Suppose you are in a country that is part of the European Union (EU). In that case, generally, you need to refer to the European Commission (EC), which is responsible for legislative proposals and the implementation of the European Parliament and Council of the EU. However, again, it is not this simple. Even if your country is in the EU, countries can individually opt-out of EU policies, so they are not obliged to put specific policies or legislation clauses into force.
A prime example of this is the THC limit in the EU. In October 2020, the European Parliament increased the legal THC limit for industrial hemp from 0.2% to 0.3%. However, despite this, the THC limit is 0.2% in Germany. Therefore, it is sensible to consult the EU laws and regulations and those of your country.
Like the UK, CBD in the EU is subject to different regulations depending on the product’s nature or composition. Below we list organisations that assist with EU regulations:
- Healthcare CBD Products:
A business supplying CBD products under the ‘health’ category will need to look at the European Medicines Agency (EMA) website.
- Consumable CBD:
Since early 2019, consumable CBD has been included in the Novel Food Catalogue (like the UK). Authorisation must be obtained before CBD products can be placed on the EU market.
- CBD Cosmetics:
To find out the latest policies on CBD cosmetics within the EU, check out CosIng, an EC database on cosmetic substances and ingredients contained within.
- Vaping Products:
These CBD products are regulated under the EU General Product Safety Directive (GPSD).
As you can see, the road is far from straightforward. It can take a long time to work out exactly what laws and regulations you need to follow to be compliant. For this reason, we recommend either consulting a specialist for advice or perhaps following our News page, detailed in our next point.
Check the Latest News on the Always Pure Organics Blog
Always Pure Organics offers specialist advice and information and posts articles on the latest news in the world of CBD. This includes reports on CBD markets in various countries, current and new regulations, how to stay compliant, and tips for helping your business thrive. This is a fantastic way to stay informed on the global CBD situation as it changes and gets the most out of your business. If reform is heading our way, you will be one of the first to know. Go to our News page to browse our latest articles on the CBD industry.
Final Thoughts
When running a CBD business, understanding the regulations that apply to your product can be challenging. It is necessary to stay abreast of legal changes and foresee reforms, as failure to comply can lead to severe consequences for your business.
Always Pure Organics offers specialist guidance to help you understand the various applicable laws. Furthermore, we maintain an up-to-date News page regarding all things CBD. We highly recommend utilising these services to potentially save you hours of frustration and keep you in the know, allowing you to get your business truly up and running while ensuring compliance.
Frequently Asked Questions (FAQs)
What is CBD?
Cannabidiol or CBD is a chemical compound derived from the Cannabis sativa plant. It is considered a natural supplement that may promote a feeling of equilibrium and improve general wellbeing.
Is CBD legal?
The legality of CBD depends on where you are in the world. In the EU, CBD is legal as long as it respects the THC limit. However, limitations and laws can differ in individual countries within the EU as they can opt-out of legislation, so do consult your country’s regulations. In the UK, CBD is also legal as long as the legal limit of THC is observed.
What is the THC limit in the EU and the UK?
The THC limit recently increased for industrial hemp in the EU from 0.2% to 0.3%. However, regulations can differ, so check your own country’s policies. The legal THC limit is 0.2% for hemp plants and 1mg per container for finished products in the UK.
What are regulations?
Regulations are rules laid out by authorities that must be complied with and closely adhered to, or else you run the risk of strong punishment for law-breaking.
Why are regulations necessary for the CBD industry?
Regulation is essential in the world of CBD, as with any other industry, because it helps ensure the safety and quality of CBD products. This is vital for both CBD businesses and consumers. Essentially, regulations mean that CBD products are subject to a certain level of oversight.
Why are regulations around CBD changing?
There have been several reforms in recent years regarding CBD. This is because CBD is starting to be viewed in a new light due to increased research and/or public awareness. Regulations sometimes need to be altered to accommodate new scientific standpoints. An example of this is when CBD was removed from the “narcotics” category in the UK at the end of 2020 due to a highly publicised case involving Kanavape.
Do all CBD compositions and products have to follow regulations?
Yes. Whether you sell CBD consumables such as gummies or chocolate or whether you sell CBD topical skin cream, there will be regulations, and they always need to be followed.
How do I know what regulations to follow?
The regulations you need to follow depend on the country you are residing in and the composition of the CBD product(s) your business produces.
What are the best ways to keep updated with regulatory changes?
There are several ways to keep updated with regulatory changes. Firstly, you can consult the relevant regulatory authority’s website for new and existing information. Alternatively, you could request specialist advice from a hemp and CBD expert, such as Always Pure Organics, saving you the trouble of scouring the internet for help. Furthermore, APO has a News page to help you stay on top of industry news.
How can Always Pure Organics help my business?
Always Pure Organics is a specialist manufacturer and distributor of cannabis-based products. Moreover, we offer support and assistance to CBD businesses. This includes expert advice for any questions you may have regarding regulations and which ones your business needs to be aware of. We are here to maximise your success and get you the support you need for your business to thrive.
References
Cannabidiol Market Growth Analysis Report, 2021-2028 (grandviewresearch.com)
Tetrahydrocannabinol – an overview | ScienceDirect Topics
Microsoft Word – PR_Vote on CAP_THC.docx (eiha.org)
FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD) | FDA
Medicines and Healthcare products Regulatory Agency – GOV.UK (www.gov.uk)
Homepage | Food Standards Agency
Cannabis, Cannabis Extracts and CBD in Cosmetic Products (ctpa.org.uk)
Product safety advice for businesses – GOV.UK (www.gov.uk)
Cosmetic ingredient database (europa.eu)
European Medicines Agency | (europa.eu)
Availability and conditions for CBD sales on the EU single market (europa.eu)
EUR-Lex – 32001L0095 – EN (europa.eu)
Table of Contents
How Your CBD Business Can Keep Up With Regulatory Changes
Table of Contents
Summary
Introduction
CBD: An Exciting Compound
CBD Laws and Regulations
How to Keep Up With Regulatory Changes
Final Thoughts
Frequently Asked Questions (FAQs)
References
Summary
Understanding CBD regulations is a complex exercise, but it is also necessary. Failure to follow applicable CBD regulations can put yourself and your business in jeopardy. This article considers CBD regulations within the EU and the UK and several ways to keep apprised of existing and changing regulations. This includes consulting the relevant regulatory authority, consulting a CBD specialist—such as Always Pure Organics—for advice and keeping up-to-date with informative industry news pages.
Introduction
Cannabidiol, also known as CBD, has become vastly popular in recent years. Indeed, the CBD market size was valued at USD 2.8 billion in 2020 and is predicted to reach an impressive USD 3.5 billion by the close of 2021. Furthermore, it is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. This increased demand is partially down to a rise in demand for health and wellness products, the potential benefits of CBD that are finally coming to light and the death of long-standing stigma.
As a result, there is an increased interest in the CBD businesses as investors try to tap into this profitable market. Unfortunately, strict regulations have somewhat limited the growth of the CBD market. However, as this exciting compound gains acceptance worldwide, new rules and reforms are coming into place, such as changes to the legal THC limit in CBD products and cannabidiol’s legal classification.
Your responsibility is to ensure that you are apprised of any regulation changes and ensure compliance. Failing which, you could end up in serious legal trouble. Complying with the various regulations, challenges and paperwork that go hand in hand with running a CBD business can be onerous. This article will teach you how to stay in the know, so you can be confident that everything is above board in your business.
CBD: An Exciting Compound
Cannabidiol (CBD) is a chemical compound found in the Cannabis sativa plant. There are at least 113 other cannabinoids that have been isolated from this plant. The most famous of all the compounds is tetrahydrocannabinol, more commonly known as THC, which is well-known for causing a “high”. Unfortunately, this familial connection between CBD and THC has attached a stigma to CBD, even though it does not have the same effect as THC. However, as research progresses, so does public opinion as CBD’s significant differences to THC and its potential benefits are brought to light.
CBD’s beginnings were in the early 1940s when it was first discovered and isolated from the Cannabis plant by acclaimed chemist Roger Adams. It may be surprising that the compound has been known for such a long time, yet little progress has been made, and so little has been invested in studying it. This is partly down to its association with THC, an illegal compound in many countries and strictly limited in others. However, as CBD is more talked about in mainstream media and more research is being undertaken, its popularity is slowly increasing.
One of the primary benefits of CBD is that it is believed to help users support and sustain a healthy lifestyle, maintain homeostasis and improve overall wellbeing. Other potential advantages to consuming CBD are yet to be fully established. Very few prescriptions of CBD has been legally approved, one such prescription includes Epidiolex, which combats certain forms of epilepsy. As you can see, there is still a long way to go in terms of CBD research, but the results collated so far have proved very encouraging.
CBD Laws and Regulations
The legality of CBD is location dependent. However, regardless of where you are in the world, CBD regulations are likely difficult to unpack. For example, CBD is legal in the UK but must not exceed the UK legal limit of THC. Furthermore, the Misuse of Drugs Act means that each product package must contain no more than 1mg of THC, illegal components must not be easily recoverable, and it must not be marketed/designed in such a way as to promote the illegal component. This is vital for a CBD business and its employees to know that their products comply with the law or risk severe consequences, including a lengthy prison sentence.
There are also several aspects to consider when it comes to legal compliance. It is not as simple as checking whether CBD is legal in your country. It is also vital that you are aware of all related regulations such as those regarding plant cultivation, flower bud legality and THC limits, so you can be confident that the entire CBD process culminating in your product is legal.
It is also crucial to know the laws so that any alterations in regulation can be pounced upon and used to help expand your business. A prime example of this is the change in the THC limit by the European Parliament. In October 2020, it voted to increase the permitted THC level (for industrial hemp) from 0.2% to 0.3%. This was hailed as a landmark move by the CBD industry as it further eased restrictions.
Producing high-CBD strains generally leads to an inadvertent increase in THC, so many producers could not grow high-yield varieties. With the limit increased, this barrier is removed, and manufacturers can develop higher concentrated CBD products while remaining legally compliant. Therefore, knowing current law reforms is beneficial as it is crucial for CBD businesses. You can take advantage of these changes and use them to increase your bottom line.
How to Keep Up With Regulatory Changes
So, what are the best ways to keep your business up to date with the latest regulatory changes and reforms in the world of CBD? This section provides you with top tips to ensure your CBD business is above board and well-informed.
Consult With an Industry Specialist
Perhaps the easiest way to be apprised of regulatory changes is to consult an industry specialist. It saves you from scouring the internet for information and trying to decipher complex, complicated documents written in legal jargon. A specialist can inform you of what regulations your CBD business needs to adhere to.
Always Pure Organics offers this helpful service. As specialists in hemp and CBD, we provide valuable advice regarding this ever-expanding industry. All you need to do is get in touch with your questions and concerns.
Monitor Updates From Your Relevant Regulatory Agency
Another great way to check for changes to the law is to check the information provided by the regulatory agency covering your territory. Let’s look at what organisations need to stay on your radar in the UK or the EU.
The UK
When it comes to checking regulations for your CBD business, it is important to consult the relevant authority. It’s important to remember that the legislation you need to check depends on the type of CBD products you sell. For example, CBD ingestibles versus CBD cosmetics.
- Healthcare CBD products:
If you run a CBD business selling products under the health category, you need to consult the Medicines and Healthcare products Regulatory Agency (MHRA).
- Consumable CBD:
If you sell ingestible CBD products, such as gummies or coffee, you should refer to the Food Standards Agency (FSA), which offers helpful information and guidance. Note that CBD was classed as a Novel Food relatively recently, so you will need to apply for product authorisation.
- CBD Cosmetics:
If your business sells cosmetic products containing CBD, you will need the Cosmetic, Toiletry and Perfumery Association (CTPA). Read the guidelines carefully and gain familiarity with specific requirements, such as providing a Cosmetic Product Safety Report (CPSR).
- Vaping Products:
Refer to the General Product Safety Directive (GPSD) for CBD vape products. However, this directive originates from the European Commission (EC) and is applied differently. It may be worth perusing the UK government website for more guidance.
The EU
Suppose you are in a country that is part of the European Union (EU). In that case, generally, you need to refer to the European Commission (EC), which is responsible for legislative proposals and the implementation of the European Parliament and Council of the EU. However, again, it is not this simple. Even if your country is in the EU, countries can individually opt-out of EU policies, so they are not obliged to put specific policies or legislation clauses into force.
A prime example of this is the THC limit in the EU. In October 2020, the European Parliament increased the legal THC limit for industrial hemp from 0.2% to 0.3%. However, despite this, the THC limit is 0.2% in Germany. Therefore, it is sensible to consult the EU laws and regulations and those of your country.
Like the UK, CBD in the EU is subject to different regulations depending on the product’s nature or composition. Below we list organisations that assist with EU regulations:
- Healthcare CBD Products:
A business supplying CBD products under the ‘health’ category will need to look at the European Medicines Agency (EMA) website.
- Consumable CBD:
Since early 2019, consumable CBD has been included in the Novel Food Catalogue (like the UK). Authorisation must be obtained before CBD products can be placed on the EU market.
- CBD Cosmetics:
To find out the latest policies on CBD cosmetics within the EU, check out CosIng, an EC database on cosmetic substances and ingredients contained within.
- Vaping Products:
These CBD products are regulated under the EU General Product Safety Directive (GPSD).
As you can see, the road is far from straightforward. It can take a long time to work out exactly what laws and regulations you need to follow to be compliant. For this reason, we recommend either consulting a specialist for advice or perhaps following our News page, detailed in our next point.
Check the Latest News on the Always Pure Organics Blog
Always Pure Organics offers specialist advice and information and posts articles on the latest news in the world of CBD. This includes reports on CBD markets in various countries, current and new regulations, how to stay compliant, and tips for helping your business thrive. This is a fantastic way to stay informed on the global CBD situation as it changes and gets the most out of your business. If reform is heading our way, you will be one of the first to know. Go to our News page to browse our latest articles on the CBD industry.
Final Thoughts
When running a CBD business, understanding the regulations that apply to your product can be challenging. It is necessary to stay abreast of legal changes and foresee reforms, as failure to comply can lead to severe consequences for your business.
Always Pure Organics offers specialist guidance to help you understand the various applicable laws. Furthermore, we maintain an up-to-date News page regarding all things CBD. We highly recommend utilising these services to potentially save you hours of frustration and keep you in the know, allowing you to get your business truly up and running while ensuring compliance.
Frequently Asked Questions (FAQs)
What is CBD?
Cannabidiol or CBD is a chemical compound derived from the Cannabis sativa plant. It is considered a natural supplement that may promote a feeling of equilibrium and improve general wellbeing.
Is CBD legal?
The legality of CBD depends on where you are in the world. In the EU, CBD is legal as long as it respects the THC limit. However, limitations and laws can differ in individual countries within the EU as they can opt-out of legislation, so do consult your country’s regulations. In the UK, CBD is also legal as long as the legal limit of THC is observed.
What is the THC limit in the EU and the UK?
The THC limit recently increased for industrial hemp in the EU from 0.2% to 0.3%. However, regulations can differ, so check your own country’s policies. The legal THC limit is 0.2% for hemp plants and 1mg per container for finished products in the UK.
What are regulations?
Regulations are rules laid out by authorities that must be complied with and closely adhered to, or else you run the risk of strong punishment for law-breaking.
Why are regulations necessary for the CBD industry?
Regulation is essential in the world of CBD, as with any other industry, because it helps ensure the safety and quality of CBD products. This is vital for both CBD businesses and consumers. Essentially, regulations mean that CBD products are subject to a certain level of oversight.
Why are regulations around CBD changing?
There have been several reforms in recent years regarding CBD. This is because CBD is starting to be viewed in a new light due to increased research and/or public awareness. Regulations sometimes need to be altered to accommodate new scientific standpoints. An example of this is when CBD was removed from the “narcotics” category in the UK at the end of 2020 due to a highly publicised case involving Kanavape.
Do all CBD compositions and products have to follow regulations?
Yes. Whether you sell CBD consumables such as gummies or chocolate or whether you sell CBD topical skin cream, there will be regulations, and they always need to be followed.
How do I know what regulations to follow?
The regulations you need to follow depend on the country you are residing in and the composition of the CBD product(s) your business produces.
What are the best ways to keep updated with regulatory changes?
There are several ways to keep updated with regulatory changes. Firstly, you can consult the relevant regulatory authority’s website for new and existing information. Alternatively, you could request specialist advice from a hemp and CBD expert, such as Always Pure Organics, saving you the trouble of scouring the internet for help. Furthermore, APO has a News page to help you stay on top of industry news.
How can Always Pure Organics help my business?
Always Pure Organics is a specialist manufacturer and distributor of cannabis-based products. Moreover, we offer support and assistance to CBD businesses. This includes expert advice for any questions you may have regarding regulations and which ones your business needs to be aware of. We are here to maximise your success and get you the support you need for your business to thrive.
References
Cannabidiol Market Growth Analysis Report, 2021-2028 (grandviewresearch.com)
Tetrahydrocannabinol – an overview | ScienceDirect Topics
Microsoft Word – PR_Vote on CAP_THC.docx (eiha.org)
FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD) | FDA
Medicines and Healthcare products Regulatory Agency – GOV.UK (www.gov.uk)
Homepage | Food Standards Agency
Cannabis, Cannabis Extracts and CBD in Cosmetic Products (ctpa.org.uk)
Product safety advice for businesses – GOV.UK (www.gov.uk)
Cosmetic ingredient database (europa.eu)
European Medicines Agency | (europa.eu)
Availability and conditions for CBD sales on the EU single market (europa.eu)
EUR-Lex – 32001L0095 – EN (europa.eu)
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