Three well-known CBD companies were sued by a consumer in the United States District Court for the Western District of New York after he allegedly tested positive for CBD after he used Die X CBD Tincture, and was terminated for the positive test. The product had advertised itself as having “0.00 percent THC.”
He further alleged that after he was terminated, he ordered additional quantities of the product and had it lab tested to determine if it actually contained THC, and that the lab test showed positive. He also alleged that by actually containing THC, the company was misleading the public and engaged in false advertising. His complaint raised claims for deceptive business practices, fraudulent inducement and RICO, among other claims. The full amended complaint can be read here.
The case proceeded to summary judgment, in which the court found in favor of defendants and dismissed several of the plaintiffs’ claims. The only two surviving claims were for RICO and fraudulent inducement.