Italy to Be Investigated By EU Commission Over Proposed CBD and Hemp Ban

The European Commission has launched an investigation into Italy after its recent proposal to ban CBD and hemp flowers on complaints that the action may violate EU regulations, including laws on free movement of goods and fair competition. Italy’s proposed ban, if enacted, could severely impact the CBD and hemp flower markets and bring about potential economic and legal consequences.

The European Commission has launched an investigation into recent measures taken by the Italian government to halt the trade of CBD and hemp flowers.

This move follows a series of complaints from stakeholders who believe Italy may be violating EU regulations.

The decision, driven by Italy’s far-right government, has raised significant concerns, particularly given the role Italy plays as a key center in the European market for industrial hemp and CBD-based products.

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Italy’s Decision to Ban CBD and Hemp Flowers

The Italian government, led by Prime Minister Giorgia Meloni, has proposed a two-part strategy aimed at eliminating EU-legal hemp flowers, which contain cannabinoids like CBD.

Industrial hemp flowers, while non-psychoactive, are used to produce CBD and are also sold in Italy as “cannabis light,” a product popular with consumers seeking the benefits of cannabinoids without psychoactive effects.

The current controversy stems from an amendment to the 2023 Security Law, which would impose a total ban on the sale of hemp flowers. This amendment was passed by the Chamber of Deputies of Italy in September 2024 and is now under review by the Italian Senate. If approved, it could effectively dismantle the CBD and hemp flower market in Italy by cutting off the primary source of these products.

In addition to this legislative measure, a decree implemented on August 5, 2024, and suspended in September, had already attempted to classify CBD as a narcotic substance, effectively banning any CBD-containing products intended for internal consumption. Many producers and retailers in the hemp industry are struggling to navigate an increasingly restrictive legal environment.

Legal and Economic Implications For Italy

One of the primary arguments against the efforts in Italy is that they contradict the European Union’s (EU) laws on the free movement of goods and competition. Canapa Sativa Italia, a trade group representing the hemp industry, has filed an official complaint with the European Commission (EC), arguing that the actions of Italy violate the EU’s Common Agricultural Policy and threaten fair competition within the European market.

To add to the complexity, the Court of Justice of the European Union (CJEU) ruled in 2021 that hemp extracts, including leaves and flowers, should not be classified as narcotics. The CJEU ruling emphasized that these extracts, including CBD, are legal and marketable within the EU.

This decision led the European Commission to conclude that CBD could not be treated as a narcotic substance. As a result, many EU member states, including France and Italy, have revised their national legislation to align with this ruling.

If the proposed ban in Italy is enacted, it could have significant consequences for various industries that rely on CBD-based products. In particular, the market for dietary supplements, herbal medicines, and potentially even cosmetics would be severely impacted.

In 2021, however, the inclusion of CBD in Cosing, the European database for cosmetic formulations, was approved, signaling that the ingredient is safe and legal for use in cosmetics. The proposed legislation raises concerns that the CBD cosmetics sector could also face restrictions, despite these legal protections. France, for its part, is also trying to classify CBD as a reproductive toxin and ban it from cosmetics.

European Commission’s Response to Italy

The European Commission’s investigation into Italy is being closely watched by stakeholders in the hemp and CBD industries.

Valentina Palmisano, an Italian member of the European Parliament, expressed satisfaction with the Commission’s engagement on the issue. According to Palmisano, the amendment equates cannabis light with illegal drugs, an approach she considers fundamentally flawed. Palmisano stressed that the amendment contradicts the CJEU’s 2021 ruling and opposes EU regulations that support the trade and production of legal hemp flowers and CBD products.

The Commission’s investigation will take into account the complaints lodged by numerous Italian actors who claim the government’s actions could harm the EU’s hemp industry as a whole. If the investigation concludes that the proposed ban in Italy is contrary to EU law, it could prevent the implementation of these restrictive measures and protect the Italian and European CBD markets from further disruption.

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