CBD Payment Processors: Which One Should I Use?November 30, 2021
CBD Business Opportunities for the Year 2022December 8, 2021
It’s completely understandable that you might be wondering “are CBD oil businesses a scam?” However, we’re here to set your mind at ease. Not all CBD businesses are scams, and we’re going to tell you why. We’re also going to show you how you can easily recognise untrustworthy suppliers from the get-go.
When the CBD industry first started in the UK, it was akin to the Wild West. There were few regulations in place for the production of CBD-infused items. Equally, there were few advertising restrictions, and brands were making unfounded claims about their products left, right, and centre. Brands were free to put as much (or as little) CBD in their products as they wanted. Equally, they were free to make unsubstantiated claims to entice consumers, however unethical these claims were.
Luckily, things have changed for the better in recent years. Authorities have put a regulatory framework in place to protect consumers. Farmers must agree to audits, and they must comply with certain growing conditions. Manufacturers must have each of their products tested for safety and quality before obtaining a legally required Novel Foods validation certificate.
In addition, there are legal restrictions in place for advertising CBD. Brands can no longer make misleading claims about their products. All of these regulations, amongst others, make it extremely difficult for CBD wholesalers and retailers to con consumers.
How Can You Tell if CBD Oil Is Legit?
Not only do the above-mentioned regulations protect consumers, but they also make it much easier to recognise reputable businesses. If you’re wondering “are CBD oil businesses a scam?”, the following aspects should help identify which suppliers are trustworthy and which are not.
The Biggest Tell-Tale Sign is Transparency
Although it’s not a legal requirement to have your products tested in third-party laboratories, many reputable manufacturers choose to do so. When they do, they receive a Certificate of Analysis (COA) from the testing facility. This is an unbiased report, outlining the cannabinoid profile and potency. Whether you are considering opting for wholesale CBD or white-label CBD products for your business, the COA should be readily available for you to view.
If a supplier is reluctant to share COAs with you, it is not a good sign. They may not have invested in third-party testing, meaning that they’re not committed to transparency and quality assurance. Alternatively, they have opted for independent testing, but they don’t want to share the results. The results may not be in line with the cannabinoid profiles or potencies that they have advertised on their products.
Many suppliers/retailers are not forthcoming with this information because their products are made using hemp seed oil. Hemp seed oil is extracted solely from hemp seeds, which contain little to no CBD. Therefore, consumers will not experience the benefits associated with the cannabinoid.
So, are CBD oil businesses a scam? If they’re not forthcoming with information about their products, it’s likely that they are.
What Should You Look For on a COA?
If the product is advertised as a full-spectrum extract, the COA should show a range of cannabinoids, such as CBC, CBG, CBD, and trace amounts of THC. Broad-spectrum extracts should also show a range of cannabinoids, but they should not contain any THC. In contrast, COAs for CBD isolates should only show the presence of CBD and no other cannabinoids.
Certificates should be up to date, and they should include the batch number of the product, and the contact information for the testing facility.
Seed to Sale Traceability
We recommend working with suppliers that offer you seed to sale traceability. This means you can conduct in-depth research into where the extract has come from. You should consider the following:
- How much experience do the growers they have?
- Where are they located?
- Do they follow organic farming principles?
Equally, you can look into extraction methods used and whether processing facilities are audited. This traceability will also allow you to look into manufacturing facilities, ensuring they operate in accordance with best practice principles.
Seed to sale traceability is important to show that you’re purchasing authentic CBD oil rather than synthetic alternatives. Are CBD oil businesses a scam if they don’t provide seed to sale traceability? Not necessarily, however, we recommend requesting this information to ensure you’re getting a premium quality product.
Does CBD Do Anything?
Between anecdotal evidence, online testimonials, and brands making unsubstantiated claims about their products to entice customers, there have been a plethora of claims made about the benefits of CBD. But, are they real? Exaggerated claims and the lack of clarity can leave many people wondering “are CBD oil businesses a scam?” So, how can one tell the difference between unfounded claims and potential benefits?
The reality is that our understanding of the cannabinoid is limited at the moment, largely because it was illegal for so long. However, since legalities have changed, university research teams and pharmaceutical companies have dedicated time and funds to learn more about CBD. Although research is limited at the moment, there are some pre-clinical and clinical studies that can provide us with some insight, making it easier to differentiate dubious claims from realistic expectations.
In 2017, the World Health Organisation (WHO) published a review of CBD, based on data collected from pre-clinical and limited clinical studies that have been published. According to this report, the cannabinoid does not pose a threat to our health, nor is there a risk that it could become addictive.
In addition, experts believe that results so far suggest we may be able to use CBD to treat neurodegenerative conditions, inflammatory conditions, and some autoimmune diseases. However, we will need far more research before we can develop suitable medications for these conditions.
How Does it Work, According to Science?
Scientists discovered CB1 and CB2 receptors in the mid-1980s. Shortly after, they also discovered that these receptors are linked to each other to form a cell-signalling system that spans the entire human body. They found that the system functions as endogenous neurotransmitters (endocannabinoids) bind to the receptors, thus it became known as the endocannabinoid system (ECS).
This system is directly linked to the peripheral and central nervous system, and research suggests it is responsible for maintaining homeostasis, a state of balance, within the body.
To maintain balance within the body, keeping us healthy and safe, the ECS triggers the release of certain hormones, each of which elicits different responses, thus determining how we function. Some of the functions that the ECS can influence are:
- Sleep cycle
- Immune response
- Pain perception
- Body temperature
- Stress levels
Where Does CBD Come In?
The British Journal of Pharmacology published a study in 2010, stating that their research suggests that cannabinoids, like CBD, work in a similar way to endocannabinoids, which naturally occur in the human body. Therefore, it stands to reason that introducing external cannabinoids into the body may influence these functions. It is for this reason that experts believe that CBD can help:
- Support a healthy sleep cycle
- Reduce swelling, redness, and inflammation
- Relieve pain
- Regulate moods
- Reduce stress
- Support overall health and wellness
Recent studies have supported the above-mentioned benefits, but we will need more in-depth information before we can conclusively say what illnesses and conditions CBD can help treat. Up until recently, the vast majority of studies have involved animal participants, and whilst they yielded mostly positive results, we will need more human trials before we can understand the full potential of the cannabinoid.
There are many ongoing clinical trials that are sure to shed some light on the potential benefits of the plant extract. Some of these ongoing studies are investigating the effects of CBD on psychiatric disorders, chronic pain, and neurodegenerative conditions.
As of 2021, the FDA has approved one CBD-based medication – Epidiolex. This medication has been developed to help reduce symptoms associated with Lennox-Gastaut Syndrome, Dravet Syndrome, and Tuberous Sclerosis.
So, are CBD oil businesses a scam if they claim their products will cure illnesses or medical conditions? It is highly likely. Even if the business is legitimate, we recommend avoiding them, as making such claims is unethical and unfair to consumers.
Is CBD Worth It?
High quality, natural CBD oil yields an array of potential benefits, and we are constantly learning more about the cannabinoid as time goes on, due to ongoing research. Premium, organic CBD oils may be more expensive to purchase because they are packed with natural plant ingredients, but these are the oils that are more likely to yield positive results for your consumers.
In contrast, cheaper products are more likely to be made using substandard extracts, or hemp seed oil. Therefore, your customers will not experience the results they were hoping for.
In Conclusion, Are CBD Oil Businesses a Scam?
If you are considering getting involved in the CBD industry by starting your own business, but you cannot help but wonder “are CBD oil businesses a scam?”, we hope we have put your mind at ease. As a stricter regulatory framework comes into place, it is much harder for brands to sell substandard products or make bogus claims. In addition, it makes it much easier to recognise reputable suppliers.
Transparency is key when it comes to differentiating scam businesses to legitimate and reliable suppliers within the CBD sphere. We suggest avoiding suppliers that are reluctant to share vital information, such as seed to sale traceability or Certificates of Analysis. Your supplier should also have validated certificates for each product, as well as proof that products are adhering to UK legal requirements.
We have a lot to learn about CBD. Luckily, now that legalities have changed, we can allocate time and funding to investigative research so we can learn more about its potential uses. According to the information available to us at the moment, we believe that cannabinoids, like CBD, can help support a healthy ECS, helping to maintain balance within the body. However, we will need to learn more before we start using the plant extract to treat medical conditions and illnesses.
So, are CBD oil businesses a scam? No, they are not. However, some suppliers are less trustworthy than others. We recommend researching potential suppliers thoroughly to make sure that they are fully compliant with regulations and you’re getting the best possible products for your business.
Want to Discuss Cannmed Products in More Detail?
Here at Cannmed, we are dedicated to transparency and quality assurance. Thus, in-house technicians rigorously test our products. In addition, we opt for third-party testing. We offer seed to sale traceability for all of our products, in addition to COAs and validated Novel Foods certificates.
You may also like to read: Cannabis Hemp Business: Sell CBD in 9 Simple Steps