Law360 (May 10, 2021, 4:11 PM EDT) — Cannabis company Cannacraft agreed to pay more than $500,000 in penalties to settle charges brought by a California consumer protection task force accusing it of improperly marketing CBD products as treatments for cancer, Alzheimer’s disease and more.
The settlement, approved by a state court judge on May 5, orders Cannacraft to pay at least $250,000 in civil penalties, $25,000 in cy pres restitution and $25,000 in investigative costs, according to court records. If Cannacraft misses a payment, it could be required to pay another $250,000, the settlement says.
The settlement draws attention to another potential source of regulatory action for cannabis…
