A company selling cannabidiol oil has suspended sales in Canada after a CBC news investigation revealed its product is illegal.
HempWorx, a Las Vegas-based multi-level marketing company sold the oil through a network of Canadian affiliates.
The product was popular in the alternative medicine world because many believe CBD oil — which does not get you high like regular pot — has wide-ranging health benefits.
CBD is a controlled substance
But CBD is a controlled substance like marijuana, which is illegal without a prescription. And HempWorx CBD oil is not authorized for sale in Canada, according to Health Canada.
On Friday, the company sent out an email to affiliates announcing it was “temporarily suspending HempWorx from sale in Canada until licensing has been awarded by Health Canada.”
Multiple messages to HempWorx were not returned. In April, one of its Winnipeg-based affiliates told CBC News that its sale is “100 per cent legal.”
It is not clear what type of licensing the company was seeking from the health regulator but the email said it made the application nine months ago.
‘Not-so-great news’ for sellers
The company acknowledged the problems this could cause for its Canadian affiliates who were building their HempWorx businesses.
“This may be not-so-great news, and we are committed to making things right for you,” the email said. “Canadians will not get purged from the system for not meeting active order requirements.”
The company told affiliates the shut-down to the Canadian market was “due to the increasing demand to bring HempWorx products to Canada and our commitment to compliance.”
Got a tip for the CBC News I-Team? Email [email protected] or call the confidential tip line at 204-788-3744.