Kannaway is a direct selling company that sells CBD and wellness products. In 2022, the Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that Kannaway discontinue certain health-related product performance claims made on social media platforms by Kannaway salesforce members.
Background
The DSSRC is a non-profit organization that monitors and enforces ethical advertising and marketing standards in the direct selling industry. The DSSRC challenged Kannaway’s claims that its products were effective against a variety of health conditions, including cancer, Alzheimer’s disease, and Parkinson’s disease. Kannaway did not provide substantiation for these claims, so the DSSRC requested that Kannaway immediately remove all social media posts indicating that its products are effective against these conditions.
Status of the Lawsuit
The DSSRC’s recommendation is not legally binding, but Kannaway has agreed to comply with the DSSRC’s decision. Kannaway has removed the challenged social media posts and has updated its policies and procedures to prevent its salesforce members from making unsubstantiated health claims.
Implications of the Lawsuit
The DSSRC’s recommendation is a reminder that direct selling companies are responsible for the claims that are made about their products, even if those claims are made by independent sales representatives. Companies should carefully review their marketing materials and social media presence to ensure that all claims are accurate and supported by evidence.
Conclusion
The Kannaway lawsuit is a reminder of the importance of consumer protection in the direct selling industry. The DSSRC plays an important role in ensuring that direct selling companies are making fair and accurate claims about their products.
FAQs
Q: What is the DSSRC?
A: The DSSRC is a non-profit organization that monitors and enforces ethical advertising and marketing standards in the direct selling industry.
Q: What are the implications of the Kannaway lawsuit?
A: The Kannaway lawsuit is a reminder that direct selling companies are responsible for the claims that are made about their products, even if those claims are made by independent sales representatives. Companies should carefully review their marketing materials and social media presence to ensure that all claims are accurate and supported by evidence.
Q: What should I do if I see a direct selling company making unsubstantiated health claims?
A: If you see a direct selling company making unsubstantiated health claims, you can report the company to the DSSRC. The DSSRC will investigate the claims and take appropriate action.
Q: Is Kannaway a legitimate company?
A: Yes, Kannaway is a legitimate company. Kannaway is a subsidiary of Medical Marijuana, Inc., which is a publicly traded company. Kannaway’s products are sold through a network of independent sales representatives.
Q: Is Kannaway’s CBD safe?
A: Kannaway’s CBD is generally safe for most people. However, it is important to talk to your doctor before taking any CBD products, especially if you have any underlying health conditions or are taking any medications.
Q: Should I buy Kannaway products?
A: Whether or not you should buy Kannaway products is a personal decision. It is important to do your own research and decide whether or not Kannaway’s products are right for you.
References
- DSSRC Recommends Kannaway Discontinue Health-Related Claims: https://bbbprograms.org/media-center/dd/dssrc-kannaway
- Case #91-2022: Monitoring Inquiry – Kannaway, LLC: https://bbbprograms.org/programs/all-programs/dssrc/ccd/case-91-2022-kannaway
- Medical Marijuana, Inc. Subsidiary Kannaway® Wins High Administrative Court Case to Legally Import CBD Oil in Finland: https://finance.yahoo.com/news/medical-marijuana-inc-subsidiary-kannaway-130000044.html
- Exhibit 10.8 Settlement Agreement by and between TYG Solutions Corp. and Medical Marijuana, Inc.: https://www.sec.gov/Archives/edgar/data/1615999/000107878218001466/s1a1_ex10z8.htm#:~:text=iv.,v.
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