Study: Majority of CBD Businesses Are Operating in FDA ‘Gray Area’

By
HeadQuest

More than 90 percent of CBD companies are operating in the “FDA gray area,” meaning that their products don’t have approvals from the Food and Drug Administration (FDA) and have a fair chance of being rejected by the federal agency in the future.

Among the over 2,000 cannabis-related businesses and investment deals tracked by market researcher CB Insights,only four percent of the money is held by companies clearly operating within FDA guidelines. On the other end of the spectrum, an equal share of funding is held by companies clearly violating FDA guidelines.Some companies attempt to get around possible regulatory hurdles by avoiding direct involvement with cannabis while still making a profit from this business.

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