Oregon to Issue Guidance on Illegal Sale of CBD Infused Alcohol

The Oregon Liquor Control Commission will issue guidance to the alcohol beverage industry about the enforcement risk of selling CBD infused alcohol. At the OLCC’s monthly meeting, the state regulator discussed the industry’s confusion around the sale of CBD infused alcoholic beverages following the passage of the 2018 Farm Bill. The state will soon notify the industry that the state believes that it is currently illegal to sell CBD infused alcohol under federal law.

Oregon currently permits the intrastate sale of CBD infused products. However, increased federal scrutiny by the FDA around the sale of CBD products has caused Oregon to focus its attention on CBD alcohol. As an enforcement agency, the regulator may bring enforcement actions against businesses that manufacture or sell CBD infused alcohol.

OLCC staff informed the Commission that it expects the FDA to take two or three years to adopt rules for CBD products. The staff also noted that the Alcohol and Tobacco Tax and Trade Bureau (TTB) is in the process of updating its guidance for CBD infused alcohol, during which time, it will not approve formulas for any alcoholic beverage that contains CBD or THC. The TTB’s approval of a formula is required for alcoholic beverage that contain CBD prior to sale. Until TTB provides guidance, the CBD infused alcoholic beverage market will be stalled.