Austria bans CBD in food and cosmetic products

As elsewhere in Europe, the Austrian CBD industry has developed on a legal limbo. Its trade is not officially authorized or regulated, but neither is it illegal. This situation is increasingly alarming the health authorities in the countries concerned. In Austria, the CBD trade has flourished with no legal constraints other than the 0.3% THC limit in the finished product. At least until early December, when the Federal Ministry of Labour, Social Affairs and Health ordered all companies marketing CBD products as dietary supplements or cosmetics to halt sales.

A legal interpretation

«In order to counteract the unauthorized marketing of these products, the BMASGK issued a ruling earlier this week that the trade in these foods and cosmetics is absolutely not permitted,» we read. in the December 12 press release. To justify this ban, the Ministry relies on european regulations on «novel foods». Cannabidiol is explicitly included in the list of novel foods, which means that EU members have the power to restrict its marketing and sale through national legislation.

While CBD advocates have often looked to European law for support in marketing CBD products - as is the case in France, where the debate revolves around the 0.2% limit - Austria has found a way to oppose the development of this industry. However, CBD's status as a «novel food» only applies to its use as an ingredient, i.e. in food and cosmetic products in dosages that would not represent that of the original plant. As Austrian cannabis law only sanctions its psychotropic aspect, CBD is in theory legal, and this recent ban does not concern CBD flowers or CBD oils in aromatherapy.

A blow for Austrian retailers

The news came as a surprise. Sofie Sagmeister, CEO of Magu-CBD, explains to Marijuana Business Daily We have a whole range of merchandise and packaging materials that became obsolete overnight, costing us a loss of 40,000 euros“. Manufacturers selling CBD food and cosmetic products had to sell off or destroy their stocks. Aida, a popular coffee and pastry chain based in Vienna, announced on social networks that»it would sell the rest of its stock for free rather than destroy them. She also announced her intention to protest against the measure. selling nicotine brownies, a way of underlining the absurdity of this ban.

However, some in the industry, such as Sofie Sagmeister, recognize the need to regulate the CBD market: “Of course we see the need to regulate CBD, particularly with regard to youth and consumer protection as well as quality standards that have long been lacking.».

The legal uncertainty surrounding CBD allows some unscrupulous companies to engage in misleading advertising, an issue that is currently being debated in Spain following a study by the Spanish Observatory of Medical Cannabis, which shows that some CBD products contain only traces of it. However, some see it simply as a deterrent: Stefan Wolyniec, CEO of the Austrian Cannabis Association, explains that an application for a license to sell a product considered «novel food» can result in costs of up to 500,000 euros.

A measure that raises questions

NEOS Liberal Party announced its opposition to the measure and that it intended to uncover the «real reasons behind this ban, which is adversely affecting a large number of companies in the sector». ORF, the public media estimates that around 250 CBD stores supply thousands of consumers and generate a combined annual income of 150 million euros. What's more, as Austria's medical cannabis program is currently limited to Dronabinol and Sativex, many patients buy from these stores. Following the Ministry's announcement, Sofie Sagmeister explains that «many customers came to buy large stocks of CBD oils». Two of her oils «were out of stock by Wednesday [December 19]», even though she had stocked up for Christmas.

Customers and retailers alike are questioning the sense of this approach, which forces patients to smoke CBD or buy oils sold under the label of aromatherapy (whose composition may be dubious), while driving away legitimate businesses that do not wish to indulge in this make-up. It's true that the status of CBD is controversial on a grand scale.

In the United States, where hemp has just been legalized, In the United States, the FDA has maintained its ban on marketing in cosmetics and food products, but this measure is temporary while regulations are prepared. In Austria, on the other hand, the government has not announced any forthcoming regulations, and seems simply to want to prevent the development of this sector. For Viennese toxicologist Rainer SchmidIt [the ban] has only one purpose: to practice drug policy under the guise of food safety«.