By: Nabil Rodriguez*, J.D, Stuart Knight, Esq. & Jessica Wasserman, Esq.
Opening their doors at 6 a.m. to a line of roughly 30 individuals and 10 cars anxiously waiting in the drive-through, today Carl’s Jr. became the first national food chain to sell a hemp-derived CBD burger. For the price of $4.20, people from around the country traveled to Denver for this momentous occasion.
Not only has Carl’s Jr. been serving individuals traveling to Denver for this opportunity, but the store is receiving calls from neighboring state citizens hoping to make the drive to the Denver before supplies run out. To try and keep up with demand, Carl’s Jr. is restricting sales to individuals age 18 and over with a valid form of ID and limits 2 burgers per customer. As told by the on-site public relations marketing team, the store is selling roughly 100 CBD burgers per hour and has enough CBD infused Santa Fe sauce for about 1,000 burgers.
The Carl’s Jr. location has gained national attention with reporters from CNN and Leafly (to name a few) recording footage and speaking to customers about the experience. So far, the general consensus has been a resounding customer approval and satisfaction.
As a cannabis law group, we must address the elephant in the room: “is this legal?”
The simple answer: “It’s complicated.”
The 2018 Farm Bill removed hemp-derived CBD from the list of controlled substances, but at a national level, the FDA has not yet established a regulatory pathway for clearing hemp-derived CBD as a food ingredient. Food ingredients such as CBD must be shown to be sage according to an FDA process referred to as “Generally Recognized as Safe” (“GRAS”) where companies compile peer-reviewed scientific testing to show safety, followed by expert panel review. No such study has been conducted for CBD as a food ingredient. At the state level, Colorado Department of Public Health & Environment has previously indicated that “all parts of the industrial hemp plant is allowed as a food ingredient in Colorado.”
Although the legal landscape may not be too clear because of conflicting policy, one thing is certain. The burger was a success and we feel great having the opportunity to try one.
The FDA is hosting a stakeholder hearing on May 31, 2019 to begin the process of setting national safety requirements for hemp-derived CBD and hopefully receive input addressing issues of state and federal departmental conflict, among other issuers. If you would like to learn more about how to participate, please reach out to your Greenspoon Marder attorney. Once again, Happy 4/20.
*Nabil Rodriguez is not an attorney
About Greenspoon Marder Greenspoon Marder LLP is a full-service law firm with over 225 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.
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