The Supreme Court will soon hear arguments in a case that could reshape the legal landscape around CBD products.
Douglas Horn, a former truck driver, claims he lost his job after failing a drug test due to a CBD product that allegedly contained THC, despite being marketed as THC-free.
Horn took the CBD in 2012 to manage chronic pain. When a routine drug test flagged THC in his system, it cost him his job.
Skeptical of the product’s labeling, Horn sent a sample to a lab, which confirmed the presence of THC.
He then filed a lawsuit against Medical Marijuana Inc. under the Racketeer Influenced and Corrupt Organizations Act (RICO), a law typically used to combat organized crime but also applicable in cases of fraud.
The company contends that Horn’s claim falls under personal injury law, which would exclude it from RICO’s reach.
A district court initially agreed with the company, but an appeals court ruled in Horn’s favor, setting the stage for this pivotal Supreme Court decision.
The case has wider implications for RICO’s application in consumer fraud cases involving CBD and other wellness products.
“While the injury may seem personal, if it affects someone’s livelihood, as it did with Mr. Horn, it opens the door to RICO,” said Brian Wolfman of Georgetown Law’s Appellate Courts Immersion Clinic.
The court’s ruling could change how consumers seek justice when wellness products fall short of their claims.
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