FTC Crackdown on Kushly Industries Marketing Claims

Updated: Aug 4, 2021

There is no escape for companies making serious disease claims. The FTC is cracking down on claims made on blogs and social media including Tik Tok.

There are four primary lessons to be learned from this FTC action.

  1. Blogs can be looked at as marketing.

  2. Claims on social media are under increased scrutiny.

  3. Clinically proven statements are high-risk and must be substantiated.

  4. Disease claims are high-risk.

So Why Did The FTC Choose This Company?

An FTC official once told me their enforcement actions are a shot across the bow as a warning to the entire industry. This is a clear Marketer Beware Signal as hundreds of CBD companies are still making similar claims. Here is my analysis of the FTC action against six CBD companies in December.

The FDA or FTC looks at the 30,000-foot view of an entire website and socials. One claim may not attract a letter or enforcement action, but a disease claim in a video, a claim hashtag on socials, and a testimonial claim can elevate your risk. The authorities piece them all together for one big picture of non-compliance. They like to make examples out of companies not following rules, especially in areas they want to highlight which is what we see in this complaint.