What Federal Agencies Regulate CBD Manufacturing Practices?
The rapid expansion of the CBD market over the past decade has brought increased scrutiny from federal agencies tasked with ensuring product safety, accurate labeling, and lawful manufacturing practices. Although CBD is widely available nationwide, the federal regulatory environment remains complex. Multiple agencies oversee different aspects of production, testing, transportation, and marketing, creating a layered framework that CBD manufacturers must navigate. Understanding which agencies regulate which components is essential for compliance and consumer trust.
The Food and Drug Administration (FDA)
The FDA plays the most significant federal role in CBD oversight. While the 2018 Farm Bill legalized hemp-derived CBD containing no more than 0.3% THC, it did not remove the FDA’s authority over CBD as an ingredient in food, beverages, or dietary supplements. The agency enforces current Good Manufacturing Practices (cGMPs) that apply to dietary supplements and food products, ensuring CBD manufacturers follow strict quality-control standards. These include sanitation requirements, ingredient verification, facility inspections, and accurate labeling. The FDA also regulates CBD products making therapeutic claims, reserving drug-status designation for products approved through formal clinical trials.
The U.S. Department of Agriculture (USDA)
The USDA oversees hemp cultivation rather than the extraction or manufacturing of finished CBD goods. Through its national hemp production program, the agency regulates licensing, THC testing protocols, crop disposal rules, and compliance audits for hemp growers. Because manufacturing begins with raw plant material, USDA oversight indirectly influences CBD production. Manufacturers must ensure they source hemp from USDA-compliant growers, as non-compliant crops can trigger enforcement actions and invalidate batches of extracted CBD.
The Drug Enforcement Administration (DEA)
The DEA’s authority mainly concerns controlled substances and THC thresholds. Although hemp-derived CBD is legal, any product or intermediate extract that exceeds 0.3% delta-9 THC on a dry-weight basis is considered marijuana under the Controlled Substances Act. Manufacturers must monitor THC levels throughout extraction, refinement, and formulation to avoid crossing into DEA jurisdiction. The DEA also plays a role during transport of biomass and extracts, especially when samples or concentrates temporarily exceed legal THC limits before final dilution.
The Federal Trade Commission (FTC)
The FTC regulates how CBD products are advertised and marketed to consumers. Claims about health benefits, therapeutic effects, or disease treatment must be truthful, substantiated, and not misleading. The FTC regularly issues warnings and pursues enforcement actions against CBD companies making unproven claims or engaging in deceptive marketing. For manufacturers, transparent communication and evidence-based advertising are key to avoiding penalties.
The Environmental Protection Agency (EPA)
The EPA’s involvement focuses on pesticides used during hemp cultivation. Since CBD products are consumed or applied to the body, only EPA-approved pesticides may be used on certified hemp crops. Manufacturers who vertically integrate or source hemp from farms must ensure compliance with pesticide regulations to prevent contamination and ensure consumer safety.
The U.S. Customs and Border Protection (CBP)
For CBD products crossing U.S. borders, CBP enforces federal rules on imports and exports. Documentation must verify THC compliance, legal sourcing, and proper declarations. CBP may seize improperly labeled or non-compliant shipments, making regulatory knowledge crucial for brands with international supply chains.
Together, these agencies create a multilayered regulatory landscape that shapes how CBD products are grown, extracted, formulated, labeled, marketed, and distributed. For manufacturers, ongoing compliance is not just a legal requirement—it is fundamental to building consumer trust in an evolving industry.