Farm Bill Compliance & Legal Disclaimer
Last Updated: November 6, 2024
1. Federal Hemp Farming Act (2018 Farm Bill)
Overview
The Hemp Farming Act of 2018 (Title X of the Agriculture Improvement Act) legalized hemp production in the United States and removed hemp and hemp-derived products from Schedule I controlled substances under the Controlled Substances Act.
Definition of Hemp
Under the Farm Bill, "hemp" is defined as the plant Cannabis sativa L. and any part of that plant, including seeds and all derivatives, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis.
ERG Supplements Compliance
Our bulk hemp CBD isolate complies with this definition:
- THC Content: Non-detectable by HPLC analysis (<0.03% delta-9 THC)
- Verification: All batches tested by third-party laboratories
- Documentation: Certificate of Analysis (COA) provided with every shipment
- Starting Material: Derived from USA-grown, compliant hemp
2. Federal Legal Status
Legality of Hemp CBD
Hemp-derived CBD is legal at the federal level under the 2018 Farm Bill in the following circumstances:
- THC content does not exceed 0.3% on a dry weight basis
- Product is derived from legally cultivated hemp
- Possession and use complies with all applicable federal regulations
- Use does not violate state or local law
NOT a Dietary Supplement or Drug
IMPORTANT: CBD isolate sold by ERG Supplements is a raw material intended for commercial manufacturing only. It is NOT:
- FDA-approved as a dietary supplement
- Approved as a pharmaceutical drug
- Labeled or marketed for any health benefit
- Intended for human consumption without further processing and compliance
Customers are responsible for all formulation, testing, regulatory compliance, and consumer claims.
3. State Law Variations
State-by-State Differences
While hemp is federally legal, state laws vary significantly. Some states prohibit CBD entirely, while others regulate it as a supplement or food ingredient.
Your Responsibility
Before purchasing and using our products, you must:
- Verify hemp and CBD legality in your state(s)
- Check local municipal and county regulations
- Verify the legality of your intended end product
- Comply with all state licensing and testing requirements
- Obtain all necessary permits and certifications
ERG Supplements cannot provide legal advice regarding state-specific compliance. We recommend consulting with a lawyer experienced in hemp and CBD regulations in your jurisdiction.
4. FDA Regulations & Drug Claims
FDA Authority
The Food and Drug Administration (FDA) has broad authority over CBD, including:
- FDA approved drug with CBD: Epidiolex (for seizure disorders)
- CBD cannot be added to food, beverages, or dietary supplements under federal law
- Unlawful health/disease claims are prohibited
- Marketing CBD as a treatment for any condition is illegal
No Health Claims
Our products make NO health claims and should not be marketed as:
- Treating any disease or medical condition
- Providing any health benefit
- Diagnosing, curing, or preventing any disease
- Affecting the structure or function of the body (without FDA approval)
Violations of these restrictions may result in FDA warning letters, product seizure, or criminal prosecution.
5. Testing & Verification Requirements
COA Documentation
ERG Supplements provides comprehensive Certificate of Analysis (COA) with each batch that includes:
- Cannabinoid Profile (HPLC): CBD, delta-9 THC, delta-8 THC, and other cannabinoids
- Heavy Metals Testing (ICP-MS): Compliance with limits for cadmium, lead, mercury, arsenic
- Microbial Testing (USP <2021>): E. coli, Salmonella, Aspergillus mold detection
- Residual Solvents: Verification of solvent-free production
- Terpene Profile: Identification and quantification of terpenes
- Lab Credentials: Third-party testing verification
Your Testing Responsibility
You are responsible for:
- Conducting your own testing to verify specifications
- Testing for compliance with your state/local regulations
- Maintaining documentation for regulatory inspection
- Retesting product if stored >24 months
6. Manufacturing & Formulation Compliance
Manufacturing Standards
ERG Supplements products are produced following high manufacturing standards with rigorous quality management systems.
Your Manufacturing Responsibility
If using our CBD isolate in products for sale, you must:
- Comply with FDA Current Good Manufacturing Practice (cGMP) regulations (21 CFR Part 11)
- Register your facility with the FDA
- Maintain detailed batch records and testing documentation
- Implement quality control procedures
- Conduct stability testing for shelf life claims
- Comply with all applicable FDA labeling requirements
7. International Compliance
International Legality
Hemp and CBD legality varies dramatically by country:
- EU: Hemp with <0.2% THC is legal; CBD market heavily regulated
- Canada: CBD is controlled; sales to specific licensed entities only
- Australia: CBD requires prescription; not available over-the-counter
- Most other countries: CBD is prohibited or heavily restricted
International Purchaser Responsibility
International customers must:
- Verify hemp and CBD legality in their country
- Obtain necessary import permits
- Comply with customs regulations
- Assume all risk related to import legality
ERG Supplements is not responsible for customs seizure, import violations, or legal consequences in your country.
8. Banking & Financial Compliance
Financial Institution Concerns
While hemp-derived CBD is federally legal, many banks have been cautious due to:
- Historical confusion with marijuana (illegal in some states)
- FinCEN guidance on marijuana-related businesses
- State-level regulatory variation
- Compliance and risk management concerns
ERG Supplements Bank Compliance
We maintain relationships with FDIC-insured banks and payment processors by:
- Maintaining detailed documentation of Farm Bill compliance
- Providing comprehensive COA and testing documentation
- Conducting customer KYC (Know-Your-Customer) verification
- Maintaining compliance with AML (Anti-Money Laundering) regulations
- Regularly updating documentation and disclosures
- Cooperating with financial institutions' compliance reviews
Your Banking Responsibility
You are responsible for:
- Maintaining compliance with your bank's policies
- Providing documentation to your financial institution if requested
- Ensuring your business practices comply with banking standards
9. Third-Party Claims & Liability
Consumer Liability
You assume full liability for:
- Consumer claims or adverse events related to products you create
- Regulatory enforcement or FDA action against your products
- Product liability and personal injury claims
- False or misleading marketing claims
- Failure to obtain required licenses and permits
Indemnification
You agree to indemnify and hold harmless ERG Supplements from any claims arising from your use of our products or your failure to comply with applicable law.
10. Future Regulatory Changes
Regulatory Uncertainty
Hemp and CBD regulations continue to evolve:
- FDA may issue more restrictive guidance on CBD
- States may change existing hemp regulations
- International laws continue to develop
- Banking regulations may shift
Our Commitment
ERG Supplements commits to:
- Monitoring regulatory changes and industry guidance
- Maintaining compliance with evolving regulations
- Updating this disclaimer as regulations change
- Communicating material changes to customers
11. Resources & References
Federal Legislation
- Hemp Farming Act of 2018 (Public Law 115-334)
- DEA Final Rule on Hemp Compliance (85 FR 82325)
FDA Guidance
- FDA & Cannabis: What You Need to Know
- FDA Regulatory Pathways for CBD
State Regulations
Check your state agriculture department, health department, and attorney general's office for current hemp and CBD regulations.
12. Acknowledgment & Acceptance
By purchasing from ERG Supplements, you acknowledge and accept that:
- You have read and understand this disclaimer
- You understand the federal and state legal status of hemp and CBD
- You are responsible for verifying legality in your jurisdiction
- You will comply with all applicable federal, state, and local laws
- You assume all legal and financial responsibility for your use of the products
- You will not make unauthorized health or medical claims
- You understand the risks and regulations associated with hemp and CBD
13. Questions & Compliance Support
For questions about this disclaimer, compliance documentation, or regulatory guidance:
- Email: compliance@ergsupplements.com
- Phone: +1 (917) 683-2699
- Request: Detailed COA and compliance documentation
Note: We cannot provide legal advice. Please consult with an attorney regarding your specific compliance obligations.