CannaCraft, a marijuana company found in California, has agreed to pay $300k to settle a lawsuit that was filed by Sonoma County Authorities. In this lawsuit, the authorities claimed CannaCraft had allegedly made false claims that some of its products could offer health benefits to the user.
As per press statements from the District Attorney’s office of Sonoma County, the agency brought the civil lawsuit in Monterey County Superior Court. The Civil Suit was over claims that CannaCraft made on one of its websites, which marketed the products under one of the company’s brands called Care By Design.
On this website, CannaCraft had advertised to their potential clients that its CBD products can:
- Change gene expression
- Remove beta amyloid plaque from brain cells, which is a major sign for Alzheimer’s disease.
The website had claims that several scientific and clinical studies had proved that CBD can help treat many other conditions, including chronic pain, anxiety, cancer, diabetes, rheumatoid arthritis, sleep disorders/ insomnia, PTSD, cardiovascular disease, neurological ailments, epilepsy, and antibiotic resistant infections.
However, the DA of Sonoma County refuted these claims. According to the office, there is not enough competent and reliable scientific evidence to support these claims.
CannaCraft agreed to pay $250k in civil penalties, $25k in restitution, and another $25k that will cover the lawsuit’s costs. However, the company is yet to disclose to any liability in the settlement. If the payments are late, the penalties could rise beyond $500k.
As per the agreement from this civil suit, CannaCraft will be bound by an injunction for the next ten years.
Kial Long, the vice president of corporate communications at CannaCraft, assured the customers that Care by Design is totally committed to their safety. This assurance was issued in a long statement that Kial Long emailed to MJBizDaily.