The bad news for CBD sellers is that the city’s Department of Health, following the lead of the Food and Drug Administration, still considers CBD a drug, and bans the sale of supplements, foods or drinks that contain it. The city agency has warned restaurants that it will start receiving fines this month if they don’t comply with the rule.
But Ghattas said it was not clear that the ban on CBD sales applies to retailers.
“We are not a restaurant, we are not a bar, we’re not a cafe,” he said. “The Department of Health governs those places. So we are waiting for them to tell us, ‘Hey, you are now governed by the Department of Health because you are selling CBD products.’ We’re happy to comply. We just don’t know yet.”
The city agency acknowledges that it does not regulate most retailers, but insists that CBD must not be sold in food or drink, or be advertised as a dietary supplement.
Correction: Before joining the Square pilot program, Come Back Daily used a high-risk, high fee credit card processor. That fact was misstated in CBD sellers get help, which ran online Oct. 3, 2019.