02/28/2019: CBD: Legal advice in the growth market

According to Dr. Späth & Partner Rechtsanwälten mbB with offices in Berlin and Hamburg, more and more companies want to position themselves in the growth market CBD, cannabidiol, in Germany.

This is no wonder, because this non-psychoactive component of cannabis is partly legally available as a nutritional supplement and is also partly said to have a healing effect, e.g. on diseases such as pain, arthritis, as a mood enhancer, etc.

In the USA, where according to media reports about 7% of US-Americans already use CBD, various stars swear by the miracle substance CBD and according to an analysis up to 2025 a market potential of up to 16 billion dollars is attributed to it.

High growth rates can also be expected in Germany and even the DM drugstore has now added non- prescription CBD capsules to its range.

Also the Berliner Morgenpost had reported in a report from 08.02.2019 with the heading “miracle cure CBD” that the market is growing rapidly.

It should also be taken into account that the requirements for trading with CBD are sometimes easier
to fulfil than for trading with medical cannabis (which has been legalised since 2017).

However, interested companies wishing to enter the growth market CBD should always check the legal admissibility in individual cases, because otherwise nasty surprises can also threaten the CBD market:

It must always be checked on a case-by-case basis whether the CBD product in question is a food, dietary supplement, drug or cosmetic, etc.

According to media reports, the police in Berlin had confiscated hemp from a Kreuzberg company that had sold its goods, especially CBD flowers, in several Berlin “Spätis”.

The company is accused of a violation of the Narcotics Law, among other things the authority refers to a criminal judgment of the OLG Hamm from the year 2016. In fact, the OLG Hamm with criminal judgment of 21.06.2016 with the Az. 4 RVs 51/16 had issued a criminal judgment against a dealer. In the worst case, not only the destruction of the goods, but also considerable criminal consequences threaten in the event of incorrect treatment.

Various legal provisions must be observed under certain circumstances, such as the Product Safety Act, the Tobacco Products Act, the Cosmetics Ordinance, etc., the EU Novel Food Regulation must also be taken into account under certain circumstances, the correct “labelling” of the products must also be observed, and with health claims the appropriate caution must be observed and it must always be checked in each individual case whether they are permissible.

Interested companies who want to trade with CDB must therefore comply with the legal requirements in order to be on the safe legal side and not experience any nasty surprises.

Companies from Germany and abroad, but also investors wishing to become active in the CBD sector, are welcome to contact Dr. Späth & Partner Rechtsanwälte mbB.

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