What's wrong with CBD businesses?

[jonathanjohnson100]

I had a meeting with someone running many CBD shops.
His business seems to be exciting and has tons of potential.
He's got 11 shops he runs around the UK.

PROBLEM: he always has money withheld or frozen by banks.
He has problems with card processing - when he is allowed an account they charge an amazing 10.5% on transactions.

Everything he sells is 100% legal.
I've searched and there are loooads of other CBD businesses trading online.

The guy said he's not allowed to advertise on the internet - banned everywhere.

Just wanted to know if anyone else had knowledge.
I'm seriously thinking of entering this business area and selling.

I'm scratching my head and can't see why he should have so many problems?

 

[fisicx]

It's because of perception. Banks consider it a high risk as do advertisers. Unlikely to change anytime soon.

 

[jonathanjohnson100]

@fisicx thanks for the reply.
I just wanted to check it wasn't illegal in anyway before I considered entering into business.
I checked amazon: there are maybe 100's of sellers selling cbd oil and gummies.

 

[japancool]

And all of them seem to want to spam forums regularly.

 

[JEREMY HAWKE]

Cant he trade as a vitamin retailer ?

 

[Deleted member 335660]

My wife was a drug addiction specialist and we have been approached to sell CBD products. She refuses.

Her point is that people make claims to their health benefit but there is no research she can find that supports it.

We sell essential oils and even Facebook will not let us advertise them, even though they are natural. Cannabis has addictive properties and so are highly regulated.

You say the business seems exciting and has a lot of potential, however, it has lots of issues too, which is why people are little wary.

 

[Paul Norman]

It is legal.

It is not yet accepted as being real - it is categorised as unproven in its benefits, and high risk.

Whether that is right, or not, is not relevant. The banks, and the payment processing people, have the controlling hand here.

 

[UKSBD]

People selling CBD type products are not supposed to mention any health benefits in their advertising.

They do of course, so it's simpler for Facebook and the like to just have outright bans on advertising rather than trying to moderate adverts.

 

[Scalloway]

I just had a chance to listen to this programme from Radio 4's File on Four. It turns out that CBD is the number one product for online scams at the moment. As part of the scam the scammer needs to set up a merchant account.

BBC Radio 4 - File on 4 Investigates, Subscription Scams

The billion dollar subscription scam industry.

www.bbc.co.uk

 

[Picture Bute]

People selling CBD type products are not supposed to mention any health benefits in their advertising.

They do of course, so it's simpler for Facebook and the like to just have outright bans on advertising rather than trying to moderate adverts.

Wot UKSBD said....

You can legally sell and advertise it as long as you don't imply health benefits, but that doesn't mean your service providers will let you.

In a previous shop of mine (a kind of a 'we sell everything' shop in a seaside town), I started stocking it alongside other things like e liquids etc. One morning, my SumUp machine stopped working. When I phoned them, they said because I was advertising 'drug paraphernalia' on my website and Facebook pages. When we got down to the nitty gritty of it, it was the CBD oil that did it. No amount of discussion about high street chains (like Holland & Barrett) selling it made the slightest bit of difference. Account closed, end of story.

 

[Deleted member 335660]

People selling CBD type products are not supposed to mention any health benefits in their advertising.

They do of course, so it's simpler for Facebook and the like to just have outright bans on advertising rather than trying to moderate adverts.

Yes, they even turned down a natural soap we sell.

 

[UKSBD]

Program on radio4 now - https://www.bbc.co.uk/sounds/play/live:bbc_radio_fourfm

(probably be on iplayer soon if finished)

edit: more here https://www.bbc.co.uk/programmes/m0014p99

 

[jonathanjohnson100]

Guys
Thanks for all the replies.
I'm not out off.
I'm going to give it a go.
But reading those links given.

 

[Dinky]

I saw a great documentary on this subject (sorry forget the name) detailing the leading e cigarette supplier in the USA targeting school children, marketing it as the new 'cool' must have gadget and it worked massively, but the government finally cracked down on it. Perhaps the UK gov took there lead from that to prevent same issues here.

 

[jonathanjohnson100]

@Dinky I don't think CBD products fall into the same bracket. CBD gives no highs.

I would never condone selling something like an ecigarrete to kids.

I would never consider selling CBD if it was illegal in anyway.

One thing... I asked a friend. He said: you've missed the boat! The CBD craze was a few years ago. I had no idea about CBD - all I knew was that it CBD oil was approved, but people were still finding it impossible to buy.
Any thoughts on this anyone?

 

[Dinky]

Apologies I thought CBD was directly related, although after a quick google for a better understanding, I found that vaping CBD oil is a popular tread too. So again as it's linked to vaping, perhaps this is one of the contributing why it's frowned upon, giving that vaping itself has come under more scrutiny in recent years.

 

[Matt.smith.TP]

I may mirroring what others say, But it's found s high risk, It's allowed and legal but Banks don't seem to want to attach their brand to this just yet

 

[Paul Norman]

As an aside, you can buy CBD products in that bastion of upright behaviour, Holland and Barret.

And you can pay for it at the till, with your cards, just like the mung beans.

 

[UKSBD]

As an aside, you can buy CBD products in that bastion of upright behaviour, Holland and Barret.

And you can pay for it at the till, with your cards, just like the mung beans.

I would think their marketing copy is inspected very carefully

Where as the 1000's of Online set ups try to get away with whatever they can

 

[Mark T Jones]

And you can pay for it at the till, with your cards, just like the mung beans.

I'd have expected mung bean to pay cash

 

[Bob Morgan]

Central Business District of where, exactly?

 

[azahrast]

I can see a few potential reasons why this person might be having difficulties with their business. Firstly, it's possible that the CBD products they are selling are not actually 100% legal.

 

[Picture Bute]

I can see a few potential reasons why this person might be having difficulties with their business. Firstly, it's possible that the CBD products they are selling are not actually 100% legal.

Any evidence to back that up, other than a complete lack of understanding of the subject in general ?