Skip to content

This Piece of Legislation Redefined Hemp for an Entire Nation

The 2018 Farm Bill redefined the legal definition for hemp, and with that change unearthed a nationwide market for hemp-derived CBD products. Learn more about the Farm Bill, explore the current regulatory landscape for hemp and CBD products, and then download LegitScript’s CBD Compliance Resource Guide.

The 2018 Farm Bill Redefined Hemp Products at the Federal Level

The 2018 Farm Bill legalized the growth and manufacture of hemp and its byproducts, including CBD, at the federal level. The bill redefined hemp as cannabis with a THC concentration of 0.3% or less on a dry weight basis, effectively removing it from the Controlled Substances Act, and transforming it into an agricultural commodity. This legislation marked a milestone in the path toward the wider acceptance and use of hemp and CBD products in the United States.

This Is What the Current Regulatory Landscape Looks Like

The regulatory landscape for CBD has significantly shifted since the 2018 Farm Bill was passed. The Food and Drug Administration (FDA), among other agencies, plays a pivotal role in regulating products derived from hemp, such as CBD products. Businesses are required to uphold product safety standards, ensure accuracy in product labeling, and verify the authenticity of marketing claims to adhere to the stringent standards set by federal authorities.

Who Regulates CBD?

Several regulatory bodies contribute to the governance of the CBD industry. Prominent among these are the FDA, the US Department of Agriculture (USDA), and the Federal Trade Commission (FTC).

These agencies have issued specific regulations that businesses dealing with CBD must comply with. The FDA, for instance, is entrusted with the responsibility of reviewing and approving CBD products that are intended for medicinal use or those that affect the body's structure or function.

Download LegitScript’s CBD Compliance Resource Guide for a Comprehensive Breakdown

Are you a CBD manufacturer or retailer curious about how to remain compliant with local and federal laws? Download LegitScript’s CBD Compliance Resource Guide for a comprehensive and detailed breakdown of how to maintain compliance with regulatory bodies across jurisdictions.

LegitScript’s CBD Certification Ensures Your Compliance — And Unlocks Access to New Customers

It's essential for businesses operating within the CBD industry today to stay informed about the laws impacting them to ensure they remain compliant. LegitScript’s CBD Certification supports businesses in maintaining continued compliance through active monitoring — and unlocks advertising on Google and select Meta platforms. Continued compliance with all regulatory requirements is essential for CBD businesses to build trust with consumers, establish credibility, and maintain long-term success in the market.

Create an account to start the application process today.

Smelting words into a specialty since 2020, Thea Le Fevre specializes in B2B SaaS Content Marketing. Take a deep dive into her work for up-to-date industry news surrounding issues in payments risk & compliance, trust & safety, regulatory compliance, and more.

Recent Blog Articles

ai abuse

AI Abuse Among the Top Payments Risks for 2025

The risk and compliance space for payment processing and e-commerce is dynamic. LegitScript uses its monitoring data and regulatory expertise to track trends across the commercial internet, and we compile and share our findings in our biennial high-risk trends guide. Learn more about AI abuse, one o...
counterfeit goods

Understanding the Coded Terminology of Counterfeit Goods in E-commerce

Illicit counterfeit sales are a multi-trillion-dollar scourge on the global marketplace - and hiding in plain sight. While getting duped by fake products is an increasingly frustrating reality for nearly 70% of online shoppers, a recent study found that over half of consumers knowingly bought counte...
What You Need to Know About The Australian Government’s Scams Prevention Framework.

What You Need to Know About The Australian Government’s Scams Prevention Framework

In 2023, bad actors stole 2.7 billion from consumers - and the Australian government acted quickly to propose protections. "The Scams Prevention Framework [...] is an economy-wide reform to protect the Australian community from scams. It recognises that a whole-of-ecosystem approach is required to r...
merchant risk solution

How a Third-party Merchant Risk Monitoring Solution Can Help

According to LegitScript's latest Benchmarking Report, 81% of survey participants use a merchant monitoring service provider (MMSP) to mitigate risk. And that number is growing year over year. Third-party merchant risk monitoring solutions vary but LegitScript Merchant Risk Solutions leverage regula...