A warning about the quality of cannabidiol (CBD) oil and possible ingestion risks by a state agency in Alaska is a sign of times to come. The State Department of Law expressed concern about CBD oil as a product that is currently unregulated. With much CBD oil sourced from China, where food fraud is a huge issue, CBD shopping is currently a ‘buyer beware’ situation for investors.
Alaska’s State Department of Law expressed concern about CBD oil as a product that is currently unregulated. State-level regulation is still on the way, so consumers have to be proactive in their choices.
With so much CBD oil from China, where food fraud is a huge issue, CBD shopping is currently a ‘buyer beware’ situation. Businesses providing CBD products should take Alaska’s concern as a warning sign of the need to find a high-level source. Also should share sourcing information with consumers.
Concern over CBD product quality
Alaska’s State Department of Law issued a warning that CBD products are “being widely sold throughout Alaska, but are unregulated and untested in the state at this time.” The department expressed its concern that “due to their lack of traceability, many of these products are of unknown origin.”
The problem is that regulations regarding CBD are still emerging. Alaska has plans for the Department of Natural Resources Division of Agriculture to regulate industrial hemp. But the program is in a “bootstrapping process” and no suppliers have state registration.
Plans are on the way but currently in Alaska, as in many parts of the U.S. where CBD products are legal, regulation is still emerging with marijuana receiving more attention to date.
As Executive Director of the Alaska Marijuana Association, Cary Carrigan, points out, consumers often have limited information about CBD products. This situation “creates a real kind of wild west.” Carrigan also claims that China is the “largest producer of CBD on the planet,” which is concerning for anyone following news about food fraud in that nation.
A safety warning signals business opportunities.
Chinese food fraud led to business opportunities for European producers. So, issues with sourcing CBD from China point to the strong branding potential for CBD producers in the U.S. and Canada. In addition, transparency regarding production methods and quality assurance are important not only for consumer safety but for branding strength.
When one looks at a U.S. company like White Label Liquid (OTCMKTS:WLAB) which provides white labeling service for CBD products, one can see a better process of quality assurance that can support branding.
Other products and services White Label offers
Thanks to its state-of-the-art facilities, the company can provide businesses with everything they need to launch. White Label Liquid’s developers and engineers are experts when it comes to developing a diverse lineup of products. All they need is two weeks to complete CBD products with a distinct flavor, labels, and packaging.
Aside from CBD products, White Label Liquid can also produce e-liquids. Besides, the company can help budding enterprises come up with a plausible marketing direction in terms of supply.
Other companies focused on CBD products
Now, large Canadian companies like Aurora Cannabis (NYSE:ACB) are eyeing the likelihood that CBD will be legal in the U.S. at the federal level before long. So, smaller U.S. companies focused on CBD products will need to make sure their own production processes are well-documented. Whether in-house or through third-party suppliers such as White Label Liquid.
Consumers will increasingly learn how to ask the right questions and regulators will be assuring the answers. So, legalization will also be creating an environment in which CBD products will have to display their pedigree.
(Featured Image by Sam Doucette)
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