“Respondents must not make, or assist others in making, expressly or by implication, any representation that such Covered Product effectively treats, mitigates, or cures diseases or health conditions including: sleep disorders, including insomnia and narcolepsy; headaches; psychiatric disorders, including depression, bipolar disorder, general anxiety disorder, panic disorder, obsessive-compulsive disorder and social anxiety disorder; post-traumatic stress disorder, psychosis, and anorexia nervosa; cancer; multiple sclerosis; chronic drowsiness; Parkinson’s disease; hypertension; Alzheimer’s disease; acne, psoriasis, eczema; arthritis; muscle spasms; pain resulting from endometriosis; and dysmenorrhea”

💡 This comprehensive list shows the extensive range of serious diseases Kushly falsely claimed their products could treat without scientific evidence.

“For purposes of this Provision, competent and reliable scientific evidence must consist of human clinical testing of the Covered Product, or of an Essentially Equivalent Product, that is sufficient in quality and quantity based on standards generally accepted by experts in the relevant disease, condition, or function to which the representation relates, when considered in light of the entire body of relevant and reliable scientific evidence, to substantiate that the representation is true. Such testing must be: (1) randomized, double-blind, and placebo-controlled; and (2) conducted by researchers qualified by training and experience to conduct such testing.”

💡 The Order specifies the rigorous scientific standards Kushly failed to meet before making disease-treatment claims to consumers.

“Respondent Cody Alt is the owner, chief executive officer, and manager of Kushly. Individually or in concert with others, he controls or had the authority to control, or participated in the acts and practices alleged in this complaint.”

💡 This establishes personal liability for the CEO who directed the company’s deceptive marketing strategy.

“Respondents must not misrepresent, in any manner, expressly or by implication: that any Covered Product is clinically proven to: treat, alleviate, or cure chronic pain, multiple sclerosis, anxiety, depression, cancer, sleep disorders, hypertension, Parkinson’s disease, Alzheimer’s disease, acne, psoriasis, and eczema”

💡 The Order specifically prohibits false claims that products are clinically proven when no such clinical proof exists.

“Respondents must not misrepresent the existence, contents, validity, results, conclusions, or interpretations of any test, study, or other research.”

💡 This prohibition addresses Kushly’s practice of pointing to non-existent or distorted studies to support their health claims.

“The FTC says we do not have scientific evidence that our CBD products can treat or cure diseases and health conditions… The FTC says studies do not prove that our CBD products treat or cure any of the diseases and health conditions listed above.”

💡 Kushly must explicitly tell customers that the FTC found their disease-treatment claims were not supported by scientific evidence.

“CBD products could be dangerous if you take them with other medicines or at a high dose. They also could interfere with other medications you’re taking or treatments you’re getting. Talk to your doctor before you use CBD products.”

💡 The required customer notification reveals safety risks Kushly failed to adequately disclose while marketing products as disease treatments.

“The Consent Agreement includes: 1) statements by Respondents that they neither admit nor deny any of the allegations in the Complaint, except as specifically stated in this Decision and Order, and that only for purposes of this action, they admit the facts necessary to establish jurisdiction”

💡 Despite serious public health violations, the settlement allows the company to avoid acknowledging wrongdoing.

“Respondents must pay to the Commission $30,583.14, which Respondents stipulate their undersigned counsel holds in escrow for no purpose other than payment to the Commission.”

💡 The financial penalty may be substantially less than profits generated during 15 months of deceptive marketing to consumers nationwide.

“Respondents must identify all consumers who purchased Kushly Industries LLC’s CBD Products from May 26, 2019 through August 27, 2020. Such eligible customers, and their contact information, must be identified to the extent such information is in Respondents’ possession, custody or control, including from third parties such as resellers”

💡 The 15-month violation period shows how long the company made false claims before facing enforcement, affecting a large customer base.

“For 10 years after the issuance date of this Order, each Respondent must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change… Within 10 days of receipt of a written request from a representative of the Commission, each Respondent must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury, and produce records for inspection and copying.”

💡 The monitoring system places ongoing burden on the resource-limited FTC rather than creating automatic penalties for violations.

“Nothing in this Order prohibits Respondents, or Respondents’ officers, agents, employees, and attorneys, or all other persons in active concert or participation with any of them, from: For any drug, making a representation that is approved in labeling for such drug under any tentative final or final monograph promulgated by the Food and Drug Administration”

💡 Despite serious violations, Kushly can continue operating in the CBD industry as long as they comply with substantiation requirements.