Consumer Alert
The FTC won’t demand money, threaten you, or promise you a prize
By
Alvaro Puig
Consumer Education Specialist
July 5, 2023
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Scammers want to gain your trust. That’s why they keep pretending to work for government agencies, including the Federal Trade Commission. They might use the names of real FTC employees, but the stories they tell are a bunch of lies.
Scammers have a long list of tall tales they tell. They might say you won a prize (you didn’t) and must pay to collect it (you don’t). Or that there’s a virus on your computer or an issue with one of your accounts (there isn’t).
The scammers’ stories change, but here’s what won’t.
- The FTC will never call you to demand money.
- The FTC will never threaten you with arrest.
- The FTC will never promise you a prize.
Anyone who does is a scammer. Report them to the FTC at ReportFraud.ftc.gov.
So how might the real FTC communicate with you?
If you reported something to the FTC and provided an email address, you’ll get an email with advice about how to recover and protect yourself.
If you’re getting a refund or payment from an FTC case, you’ll get it by check, prepaid debit card, or PayPal. The payment or claim form will tell you more about the case and why you’re getting money. To see a list of FTC cases that resulted in refunds, the name of the company sending payments, and a phone number to call with questions, go to ftc.gov/refunds.
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Consumer Alert
Government warns sellers of edible cannabis: Stop using packaging that mimics foods popular with kids
By
Colleen Tressler
Division of Consumer and Business Education, FTC
July 5, 2023
When sellers of edible cannabis products use packaging that mimics popular kids snacks and candy, it can be a recipe for significant health effects on kids — and unsuspecting adults. Edible cannabis like gummies, cookies, candies, and chips have cannabis that’s derived from marijuana or hemp. Some of these foods have Delta-8 THC, which is a part of cannabis that causes psychoactive and intoxicating effects ― and can have significant health effects on both adults and children. Check out the packages below. Would your kids know that eating these items could hurt them or maybe even send them to the hospital?
Today, the FTC and FDA are sending warning letters to certain sellers of edible cannabis products that are using packaging that imitates foods or beverages popular with children.
Here are two examples.
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The letters tell sellers to immediately stop marketing edible Delta-8 THC products that imitate conventional foods using advertising or packaging that is likely to be appealing to young children.
Calls to poison control centers about accidental cannabis ingestion have increased, especially in states where cannabis is legal. Younger children are especially at risk, and the FDA recommends keeping Delta-8 THC products out of reach of children and pets. If you, or someone in your household, uses edible cannabis products:
- Keep cannabis edibles separate from other foods in the original packaging.
- Child-proof cabinets and drawers when storing these products, just as you would household cleaning and laundry items.
- Completely close the packaging after each use, and immediately store it in a safe location away from children.
- Talk to family and friends about keeping a safe environment for kids.
To learn more, read 5 Things to Know about Delta-8 Tetrahydrocannabinol – Delta-8 THC | FDA
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For Release
FTC Sends Cease and Desist Letters with FDA to Companies Selling Edible Products Containing Delta-8 THC in Packaging Nearly Identical to Food Children Eat
Commission demands firms immediately change unfair and deceptive packaging
July 5, 2023
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As part of its ongoing monitoring of health-related advertising claims, the Federal Trade Commission today sent cease and desist letters – jointly with the U.S. Food and Drug Administration (FDA) – to six companies currently marketing edible products containing Delta-8 tetrahydrocannabinol (THC) in packaging that is almost identical to many snacks and candy children eat, including Doritos tortilla chips, Cheetos cheese-flavored snacks, and Nerds candy.
“Marketing edible THC products that can be easily mistaken by children for regular foods is reckless and illegal,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Companies must ensure that their products are marketed safely and responsibly, especially when it comes to protecting the well-being of children.”
“Children are more vulnerable than adults to the effects of THC, with many who have been sickened and even hospitalized after eating ‘edibles’ containing it. That’s why we’re issuing warnings to several companies selling copycat food products containing delta-8 THC, which can be easily mistaken for popular foods that are appealing to children and can make it easy for a young child to ingest in very high doses without realizing it,” said Janet Woodcock, M.D., Principal Deputy Commissioner, FDA.
The agencies sent letters to the following companies: 1) Delta Munchies LLC (Los Angeles, California); 2) Exclusive Hemp Farms (Gilroy, California) and Etienne-DuBois, LLC/Oshipt (Henrico, Virginia); 3) North Carolina Hemp Exchange, LLC, dba NC Hemp Shoppe (Raleigh, North Carolina; 4) Dr. Smoke, LLC, aka Dr. S, LLC (Kansas City, Missouri); 5) Nikte’s Wholesale, LLC(Albuquerque, New Mexico); and 6) The Haunted Vapor Room (Franklin, New Jersey).
According to the letters, after reviewing online marketing for Delta-8 THC products sold by the six companies, the FTC has determined that their advertising may violate Section 5 of the FTC Act, which prohibits unfair or deceptive acts in or affecting commerce, including practices that present unwarranted health or safety risks. The letters stress that preventing practices that present such risks, particularly to children, is one of the Commission’s highest priorities, and that imitating non-THC-containing food products that children consume is misleading.
The companies’ Delta-8 THC products mimic a range of food that appeal to children. Dr. Smoke, LLC, for example, sells THC-infused “Doritos” that are marketed in packaging that is nearly the same as that of Doritos Nacho Cheese Flavored Tortilla Chips (see graphic), including using the same red background, the use of the Doritos name and triangle logo, and the depiction of two tortilla chips in the same position. In addition, Dr. Smoke’s THC-infused “Cheetos” are sold in packaging that is nearly identical to that of Cheetos Crunchy Flamin’ Hot Cheese Flavored Snacks, right down to the use of the Chester Cheetah mascot.
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Dr. Smoke THC-infused Doritos
Another company, The Haunted Vapor Room, sells Delta-8 THC products called Rope 500mg Delta-8 Nerds Candy and Medicated Dope Rope Bites (see graphic) that closely resemble Nerds Rope candy, with both comprising multi-colored crunchy candies attached to a gummy rope, and packaging for the former using what appears to be the Nerds candy mascot.
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The Haunted Vapor Room, Dope Rope Bites
A third company, Delta Munchies, LLC, markets Delta-8 THC gummies that look like conventional gummy candies that are often consumed by children (see graphic). The brightly colored packaging includes images of the products in fruity and sour flavors that the FTC contends enhance their appeal to children and increases the likelihood that they will mistakenly eat them, thinking they are traditional gummy candies.
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Delta Munchies LLC, Delta-8 THC gummies
In the letters, the FTC demands the companies stop marketing edible Delta-8 THC products that imitate conventional foods using advertising or packaging that is likely to appeal to young children. The FTC also strongly encourages the sellers to review all of their marketing and product packaging for similar edible THC products, and to take swift action and steps to protect consumers, especially young children, from these products.
Finally, the FTC has asked each company to contact agency staff within 15 days to detail the specific actions it has taken to address the Commission’s concerns. The primary staff attorney on this matter is Christine DeLorme in the FTC’s Bureau of Consumer Protection.
Prior Joint FTC/FDA Letters
In March 2019, the FTC and FDA issued similar joint letters to three sellers of cannabidiol (CBD), a chemical compound derived from the cannabis plant. The agencies sent a second round of letters to three additional CBD sellers in September 2019, warning them that that it is illegal to advertise that a product can prevent, treat, or cure human disease without competent and reliable scientific evidence to support such claims.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Business Blog
THC edibles that look like snacks popular with kids? FTC and FDA have something to say about that.
By
Lesley Fair
July 5, 2023
We’ve seen a lot of products in our day, but six companies that just received joint FTC-FDA cease and desist letters have earned a place in our “What The Heck Were They Thinking?” Pantheon. What did they do to merit that dubious distinction? According to the two agencies, the companies currently market edibles containing Delta-8 THC (yeah, that THC) with packaging and advertising that mimic the look of candy and snack brands popular with children.
First, a little basic chemistry. Delta-8 THC is a component of cannabis with similar psychoactive and intoxicating effects as Delta-9 THC – the substance responsible for the high people get from cannabis. In June 2022, FDA issued a warning about the health risks to children of ingesting foods containing THC. FDA’s concern isn’t hypothetical, with numerous poison control calls and adverse event reports stemming from kids’ eating THC-laced products by accident. Some of the reports specifically mentioned that the edible was a copycat of a brand-name food.
Speaking of copycats, let’s be clear: The major national brands whose foods have been imitated by the products cited in the cease and desist letters have absolutely nothing to do with the sale of the lookalikes. But a picture being worth a thousand words and all, take a look at just a few examples to see what has the FTC and FDA so concerned about these THC products. Do they bear a strong resemblance to snack foods popular with kids, including Cheetos, Double Stuf Oreos, Jolly Rancher Gummies, and Sour Patch candies? That’s central to the FDA-FTC concerns.
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You’ll want to read the letters for details about why FDA views these products as “adulterated human foods.” FDA has given the companies 15 working days to notify them in writing “of the specific steps you have taken to address any violations.”
The FTC approaches the issue from Section 5’s prohibition on unfairness and deception, including “practices that present unwarranted health or safety risks.” Here’s how FTC staff described its concern:
Children are at particular risk for mistakenly ingesting edible THC products imitating traditional foods because they are more likely to focus on similarities of product appearance and packaging, and less likely to notice or be able to comprehend labeling text. . . . Given the significant number of adverse events reported in connection with ingestion of edible products containing THC, advertising and packaging your in a manner that is likely to be particularly appealing to young children could present an unwarranted risk to health and safety.
The FTC has directed the companies to “immediately cease marketing edible Delta-8 THC products that imitate conventional foods using advertising or packaging that is likely to be appealing to young children.” The letters give the companies 15 days to explain the specific actions they’ve taken to address these issues.
The letters went to:
- Delta Munchies LLC (Los Angeles, California);
- Exclusive Hemp Farms (Gilroy, California) and Etienne-DuBois, LLC/Oshipt (Henrico, Virginia);
- North Carolina Hemp Exchange (Raleigh, North Carolina);
- Dr. Smoke, LLC (Kansas City, Missouri);
- Nikte’s Wholesale, LLC (Albuquerque, New Mexico); and
- The Haunted Vapor Room (Franklin, New Jersey).
The message to other companies should be apparent.
First, consumer health and safety is paramount, especially when it comes to kids.
Second, newcomers to the cannabis industry, let us introduce you to the Federal Trade Commission Act and the Federal Food, Drug, and Cosmetic Act. Your product sector may be new, but you must conduct your business within established laws designed to protect the public from deceptive marketing practices and adulterated foods.
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For Release
Statement of FTC Chair Lina M. Khan on Announcement of Nominees to the Federal Trade Commission
July 3, 2023
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Federal Trade Commission Chair Lina M. Khan issued the following statement regarding nominees to the Commission announced by the White House today:
“I congratulate Andrew Ferguson and Melissa Holyoak on their nominations to serve on the Federal Trade Commission. Each would bring key skills, experiences, and expertise to the Commission as we work to promote fair competition and protect Americans from unfair or deceptive practices. The Commission operates best at full strength, and I look forward to working with them to fulfill the important mandate Congress has given us.”
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov. Follow the FTC on social media, read our blogs and subscribe to press releases for the latest FTC news and resources.
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