European Commission opens investigation into Italy's ban on CBD and hemp flowers

The European Commission has launched an investigation into recent measures taken by the Italian government to put an end to the trade in CBD and hemp flowers.

This action follows a series of complaints filed by stakeholders who believe that the measures taken by Italy could violate EU regulations.

This decision, driven by Italy's far-right government, has raised serious concerns, especially since Italy is a key player in the European market for industrial hemp and CBD products.

Italy's Decision to Ban CBD and Hemp Flowers

The Italian government, led by the Prime Minister Giorgia Meloni, proposes a two-part strategy aimed at eliminating legal hemp flowers in the EU that contain cannabinoids such as CBD.

Industrial hemp flowers, although non-psychoactive, are used to produce CBD and are also marketed in Italy under the name «cannabis light,» a product that appeals to consumers seeking the benefits of cannabinoids without the psychoactive effects.

The current controversy stems from an amendment to the the 2023 Security Act which would impose a total ban on the sale of hemp flowers. This amendment was adopted by the Italian Chamber of Deputies in September 2024 and must now be reviewed by the Italian Senate. If the amendment is approved, it could effectively dismantle the CBD and hemp flower market in Italy by cutting off the main source of these products.

In addition to this legislative measure, a decree that took effect on August 5, 2024, and suspended in September has already attempted to classify the CBD as a narcotic substance, effectively banning any CBD-containing product intended for internal consumption. Many producers and retailers in the hemp industry are therefore finding it difficult to navigate an increasingly restrictive legal environment.

Legal and Economic Implications

One of the main arguments against Italy's efforts is that they contradict the laws of the European Union (EU) on the free movement of goods and competition. Canapa Sativa Italia, a trade group representing the hemp industry, filed an official complaint with the European Commission (EC) on the grounds that Italy’s actions violate the the EU's Common Agricultural Policy and threaten fair competition in the European market.

To add to the complexity of the situation, the Court of Justice of the European Union (CJEU) a already ruled in 2021 that extracts of hemp, including leaves and flowers, were not to be classified as narcotics. The CJEU's decision stresses that these extracts, including the CBD, are legal and marketable within the EU.

This ruling led the European Commission à consider that CBD could not be treated as a narcotic substance. As a result, many EU member states, including France and Italy, have amended their national legislation to bring it into line with this decision.

The current proposal for a ban in Italy, if adopted, could have significant consequences for various industries that depend on CBD products. In particular, the market for dietary supplements, and herbal medicines and maybe even some cosmetics would be severely affected.

However, in 2021, the inclusion of the CBD in Cosing, the European database for cosmetic formulations, has been approved, indicating that the ingredient is safe and legal for use in cosmetic products. The proposed legislation raises concerns that the CBD-based cosmetics sector may also be subject to restrictions, despite these legal protections. France is no exception in this regard, as it is currently attempting to to have CBD classified as a reproductive toxin and ban it from cosmetics.

Response from the European Commission

The European Commission's investigation is being closely monitored by stakeholders in the industries in the hemp and CBD.

Valentina Palmisano, an Italian member of the European Parliament, expressed her satisfaction with the Commission’s commitment to this issue. According to Ms. Palmisano, the amendment equates “cannabis light” with illegal drugs, an approach she considers fundamentally flawed. Ms. Palmisano emphasized that this amendment runs counter to the 2021 CJEU ruling and conflicts with EU regulations that support the trade and production of hemp flowers legal and CBD-based products.

The Commission's investigation will take into account complaints filed by numerous Italian stakeholders who claim that the government's actions could harm the’the EU hemp industry as a whole. If the investigation concludes that the ban proposed by Italy violates European law, it could prevent the implementation of these restrictive measures and protect the markets Italian and European from CBD against other disruptions.