8.6. Regulatory considerations in marketing

Understanding compliance with local, national, and international regulations

The regulatory environment for hemp is influenced by a variety of factors, including its historical association with psychoactive cannabis varieties, its use in diverse industries, and the evolving legal status worldwide. Here’s how businesses can understand and adapt to these regulatory frameworks:

a. Local regulations:

Zoning Laws: Hemp cultivation and production often face strict zoning regulations that can also affect where products can be advertised and sold.

Licensing Requirements: Many localities require specific licenses to grow, process, or sell hemp products, impacting how businesses can operate and market themselves.

Marketing Restrictions: Local laws may restrict how hemp products can be marketed, particularly in terms of health claims and product placement.

b. National regulations on hemp in Europe

European Union General Regulations

In the European Union, industrial hemp legally must contain less than 0.2% THC. This limit is under review, with potential increases to align with more liberal standards, such as those in the U.S. The European Industrial Hemp Association (EIHA) advocates for member states to adopt consistent regulations to facilitate easier trade and standardisation across the market.

• Italy

Italy has seen fluctuating regulations around hemp. As of the latest rulings, cultivation of hemp is allowed for agricultural purposes, and the limit for THC is set at 0.2%, aligning with EU standards. Hemp-derived products are also legal, provided they stick to the THC limits. However, the marketing of hemp for "free psychotropic effects" is prohibited, impacting how CBD products can be promoted.

• Germany

Germany aligns with EU regulations, permitting hemp cultivation if the THC content is less than 0.2%. The German market for CBD products is growing, but marketers must be cautious about health claims, which are strictly regulated. The Federal Institute for Drugs and Medical Devices (BfArM) requires that any health claims made about CBD products must be proven and approved.

• Bulgaria

Bulgaria is one of the first European countries to allow the free sale of CBD products, setting a precedent within the EU. It permits the sale of hemp-derived products, including CBD, as long as the THC content does not exceed 0.2%. This has opened up opportunities for developing a broad range of CBD products within the country.

• Greece

In Greece, hemp cultivation is legal for varieties listed in the EU’s Common Catalogue of Varieties of Agricultural Plant Species. These varieties must naturally have a THC content of less than 0.2%. CBD products are also legal, but they must not be marketed as medicine without appropriate authorisation.

• Lithuania

Lithuania allows the cultivation of hemp for industrial purposes, specifically for fibre and seeds, under the condition that THC levels do not exceed 0.2%. The use of hemp for CBD extraction is also permitted, aligning with general EU regulations, but products are subject to strict regulation when marketed for consumption.

• Czech Republic

The Czech Republic has one of the more liberal hemp policies in the EU. It allows for the cultivation of hemp and sale of hemp-derived products, including CBD, as long as the THC content is below 0.3%, slightly higher than the general EU limit. This liberal stance supports a vibrant local market for hemp products.

• Belgium

Belgium has strict regulations for hemp-derived CBD products. While the cultivation of hemp is allowed for fibre and seeds with THC content below 0.2%, the sale of CBD for oral consumption is currently prohibited. However, CBD can be sold as a cosmetic or external use product.