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How to watch out for CBD scams

But first, check out the following list of producers we think are trustworthy:

  • Royal CBD
  • Gold Bee
  • Endoca
  • Kiara Naturals
  • Nordic Oil

CBD scam No. 1: Free trial sample

Get a free bottle of CBD! All you have to pay is the shipping cost!

Sounds like a great offer... but it's almost always a scam.

Many people fall for it because it seems like an honest attempt to gain brand loyalty. CBD is also expensive. A bottle can cost upwards of five grand depending on the size and strength of the oil. This can make it hard to resist a "free" oil sample just to get started. Some companies offer samples of their products - but these samples are never free. It's basically just a smaller bottle of regular CBD oil that you can purchase at a lower price - but you're still paying for the oils. True, there can be exceptions to this, but they are very rare.

There is a key difference between a "free sample" and paid CBD samples from reputable brands. Virtually any offer with a "free trial for a small shipping fee" is a scam and should be avoided at all costs. 

 

How does this scam work?

When you register, you enter your name, shipping address and everything else in the usual way. CBD oil is discounted to 0,- CZK and you only need to pay a small shipping fee (for example 50 CZK) with a credit or debit card. If you check the fine print at the end, the terms and conditions contain a section where you agree to pay 1.000,- CZK per month by credit or debit card unless you cancel your subscription within a few days (trial period). As you may have guessed, cancelling the trial is not an easy task.

These scams are designed to keep your "membership" valid for as long as possible (and you have been paying and paying). Many victims of this scam say they signed up to get a free trial, but there was no way to contact the company to cancel their subscription. They had no way to cancel the contract on the website or through emails, and they received no response from the company even after repeated attempts. An unpleasant bonus to the worries that have arisen is that the CBD oil you receive in the mail is almost always a completely low-quality substance.

You get 100mg of CBD in a 500ml bottle or something made from hemp seed completely free of active CBD. You can expect these oils to be made from very low quality hemp, which can be full of chemical additives and contaminants. These products are definitely not worth the 1,000 crowns you end up paying. 

 

What to do if you fall for this scam?

First of all, calm down, you are far from the first, probably not even the last, to be fooled. You really are not alone and there are ways to solve the problem. If you got caught, gave the company your credit card information, and a month or two after that the company started charging you, you must first try to contact the company directly. Try calling the company a few times, send emails, or try other methods of communication.

  • Be firm with them and let them know that you are requesting an immediate non-refund on your credit card.
  • Apply for a "chargeback" through your bank or credit card company and contact the police. If the money is not refunded, follow the steps above. You can ask your bank or credit card company for a 'chargeback'. It may take some time, but if it was really a scam, you should get your money back in a few weeks or months.
  • It is also advisable to block/cancel the credit card once everything is resolved or once you have received money from the fraudulent company. You can then order a new credit card with a new number.

CBD scam No. 2: fake brands

This is the most blatant model of CBD fraud. The fake product carries the name and brand of an established company to confuse people who then purchase products from their website instead of the original. They usually target people who accidentally misspell the name of a brand they heard from a friend or someone else. Most companies using this model are completely bogus and will simply charge your credit card every month until you cancel it. Other companies will deliver CBD oil as promised, but it is usually of very poor quality or instead contains inactive hemp oil suitable for the kitchen at most. 

How does this scam work?

Scams of this type exploit the trust built up by what we might call the "host" (original) brand. In order for the scam to work, the name of the counterfeit must resemble the name of the host brand. Customers search for the name of the genuine brand and are mistakenly taken to the fraudulent company's website. The web address of the fraudulent brand is usually very similar.

For example, we found sites that were parasitic on the popularity Royal CBD using names like "Royall CBD", "Royale CBD" or "Royal Blend CBD". Many high-level CBD brands are dealing with scams operating in this way. When you first land on these fake sites, everything seems fine. You can add products to your cart (usually) and go through the checkout process. A week later, when your CBD oil doesn't arrive, you start to realize you've been scammed. You can try to reach out to the company that sold you the oil, but you won't be successful. In our experience, the success rate of such attempts is 0%. Most of these companies use an automated program that takes you on an endless loop, returning you to the main menu each time you select an option. 

How to detect a fake company?

Identifying fake brands is not easy - especially for those that try to look like some of the more established companies. The best way to do this is to type the company name into Google and check the first three results for the official company. If the brand doesn't appear at all or the index is dominated by low-quality review sites instead of the real company, it's probably a fake brand. Here are some of the other ways to tell the difference between a legitimate company and a fake one. 

1. Check the URL (website address)

Many fake companies try to imitate other brands. They use different variations of the target company's name to confuse people into mistaking them for the original brand. You may come across extra letters, hyphens or separate root domains from the .com standard (.com, .de, .net, .in or others). If you're looking for a specific company, Google the name and double-check the first three listings. 

2. Does the payment page look suspicious?

Have you ever noticed that most of the checkouts in e-shops look the same?

This is deliberate.

Processing credit card information requires a lot of high-tech to prevent people from intercepting and stealing your sensitive information. As a result, many companies use the same tools to manage the online payment process. These tools contain smart measures that prevent fraudsters from using their services. To get around these measures, fraudsters must use obscure overseas credit card companies to charge your credit card. The payment process with these companies usually looks strange compared to what you are used to.

One of the easiest ways to find out is to look at the URL when it's time to pay for your order. If the URL changes to something completely different, you've probably hit a scam and you shouldn't enter your credit card information. Legitimate companies will not use a separate web address for their payment gateway. One of the most common payment page URLs for scammers is tamiasherbtincture.com. These scammers have a large network of sites that redirect customers to this site at the time of payment. Additionally, if the company you are attempting to purchase from ONLY accepts bitcoins or other cryptocurrencies, or asks you to send a check in the mail, you should promptly terminate your purchase. There is probably a reason why the company cannot accept credit cards. 

3. Does the whole website look professional?

Reputable CBD companies have not gotten to where they are by being lazy. Most of them spend huge sums on keeping their websites in top notch condition. That means high-resolution photos, writing text without typos or grammatical errors, and a clean user interface. Many fraudulent companies use low quality websites to get rid of their fake CBD oil. These sites are full of poorly written text, low-resolution photos, and an interface that is poorly designed and difficult to navigate. 

4. Verify your site at dtest.cz

The Dtest.cz website provides information about websites. After entering the address of the site, you will find not only information about the domain holder, but also a summary of visitor ratings and information about the security of the site. 

CBD scam No. 3: Unrealistic offer

Some companies perpetrate online oil scams by making false claims about the quality, efficacy or benefits of their products. While it can be disputed that this is an actual scam, we consider this to be a scam as well because they use dishonest methods to sell the product.

The most common form of this marketing tactic is the use of unrealistic claims about the health benefits of their products, or claims of 100% absorption or a special secret extraction process that is better than what everyone else is doing. Any claims that sound unrealistic or too good to be true are probably false. You should never trust a company that claims its product has 100% absorption or the ability to cure diseases like cancer or diabetes. That is simply a lie.

In fact, these claims are illegal in most countries. The most common form of this scam is that fraudsters use misleading marketing terms to make it appear that their products contain more CBD than they actually do. The problem is that the CBD industry is very new, so regulators have yet to keep up with all the new issues in the industry. 

Dates on which you should pay attention

There are a few terms that should strongly warn you if a company does not back them up.

  • "Our CBD oil has a 100% absorption rate" - This is simply not possible, no CBD product has 100% absorption (yes, including nano CBD oils).
  • "Made from organic hemp" - Although there are companies selling organic hemp, some of them are lying. If a company is truly organic, they should have certificates to prove their claims.
  • "CBD can cure cancer" - CBD does not cure cancer. It only works as a supportive agent in its treatment. It is even illegal to claim otherwise.
  • "Our CBD is 100% natural" - The use of the word natural is not regulated. You can add it to anything. Many products that use it certainly cannot be considered "natural" - some even use harmful synthetic ingredients.
  • "The purest CBD in the world" - What does that even mean? Pure CBD is very common (see CBD isolates). The claim that CBD is purer than all others is a lie.
  • "No side effects" - Nothing is completely side-effect free and this is also true for CBD. Even if the side effects of taking CBD are very mild and for some people completely unnoticeable, a seller promising a product with absolutely no side effects is simply lying.

CBD scam No. 4: Multi-level marketing (Ponzi scheme)

Multi-level marketing (MLM) - also known as network marketing - has been around for a long time. No matter what an MLM worker may tell you, for the most part it is a scam. MLM companies exist in all industries, including CBD production.

 

How does this scam work?

MLM company reps try to sell oil to their social media contacts and try to recruit new reps to sell to lower ranking members of the pyramid. Although these may be legitimate businesses, most of them can be considered pyramid schemes. Fraudulent MLM companies grow by recruiting new reps who are forced to buy expensive merchandise for themselves (with the idea that they will later sell it to others on their social network).

Others force new reps to undergo expensive training programs and product familiarization courses to become certified to sell products. The goal of these companies is to make money on the actual registration and purchase of inventory or starter kits by brand representatives and not by actual customers. People go into this business mostly because the company will translate to them a lot of evidence of people who have achieved financial freedom by selling oils through their personal networks.

But the reality is usually quite different.

Most people who go to work for an MLM company end up losing their money. Sometimes thousands of crowns, while people at the very top of the pyramid make huge sums. The products that these companies sell are usually not of good quality and it can be extremely difficult to get customers to buy the products repeatedly. These companies rarely do any market research and spend most of their time convincing reps to spend their money on stockpiling products. They rarely offer the option of buying back products in case you decide to leave the company later. These companies are also known for their poor internal communication, relentless pressure on new reps to buy product inventory and/or pay for training packages. 

How to spot an MLM company with CBD

You will usually discover an MLM the moment someone in your network either offers you to buy CBD oil directly or offers you a "chance to start selling CBD oil and get rich quick". They will usually contact you via Facebook, Twitter, Instagram or other social media platforms. Classic MLM marketing approaches start by asking for "help to start their business", or by sending ridiculous claims of therapeutic effects for all sorts of diseases that CBD oil can "cure". They will also usually invite you to coffee or lunch so they can convince you in person of the amazing qualities of their CBD oil.

 

 The key features of MLM companies include:

  • They usually sell poor quality products
  • They usually make unrealistic claims about the health benefits of their products
  • They'll try to get you to register as a brand representative for that company

What to do if you get stuck in an MLM network?

As with the scams mentioned above, the first thing to remember is to try not to be too hard on yourself. The vast majority of people who join MLMs lose money. That's just how the scheme works. While you can leave at any time, most MLM victims say that leaving was difficult because of the pressure from the aforementioned management. They will try to use the same tactics that brought you to MLM in the first place to keep you going - usually promising huge returns if you just try a little harder.

The best way to leave is to do it secretly. Start winding down your business and do NOT buy any more goods. Avoid email or contact with the company until you are 100% ready to quit. Expect them to try their best to keep you. They may say things like "if you are committed and take it seriously enough, you can't fail". Don't get lured in again.

  • Remember, the vast majority of people in MLM lose money
  • As soon as you're ready, cut off all contact with the company
  • Block phone numbers associated with the company
  • Leave the Facebook groups associated with MLM
  • Unfollow your MLM friends on social media
  • Leave chat groups associated with MLM
  • Cancel credit cards that the company keeps track of (to avoid fraudulent cancellation fees or group charges)
  • Never - I repeat - NEVER buy anything from the company again

Once you leave the company, you may want to reach out to old friends who may be avoiding you due to the fact that you bothered them so many times in the past with offers when you first started as a brand representative. You may have cut people off or blocked them for not "supporting" your new business. Whatever the case, it's often worth contacting people in your area and getting back together with them. Everyone makes mistakes, it's normal and if necessary try to correct them. 

CBD scam No. 5: CBD ala D-Day

This scam is similar to the shell company scams, but it has now taken on such proportions abroad that it deserves its own section. The D-Day show was similar to a relatively well-known investor show abroad, in which entrepreneurs tried to raise money for their company or business idea from a group of investors. There are other versions of this show, such as Shark Tank (American version), Dragon's Den (Canadian and British versions), and The Tigers of Money (Japanese version). Before we look at the scam in more detail, let's face it, there was NEVER a CBD company mentioned in any episode of D-Day, Shark Tank or The Tigers of Money. The only exception is the UK version of Dragon's Den, where such a company was featured in one of the episodes. 

How does this scam work?

Aside from using popular TV shows as a way for these companies to boost their "reputation", the basis still remains the same as with free trial samples or fake companies. In some of these scams, names similar to existing CBD brands are used to confuse potential buyers into believing they are buying from a well-known company, while others are obviously fake.

The scammers around CBD are now using the D-Day show as a way to give the impression that their project is an "upcoming" new CBD brand that will grow over the next few years. Edited screenshots from various episodes of D-Day and other versions of the show are commonly used with altered products replacing CBD oils. 

Bottom line:

CBD has never been featured on any episode of D-Day in the Czech Republic. If you come across a company claiming its products were featured on the show or using images from the show, be sure to check the information. Chances are the company you are looking at is a scam. 

Conclusion

There are so many scammers around CBD these days that it's no wonder many customers are skeptical about buying CBD vials. CBD is expensive, so it's easy for companies to trick people who aren't familiar with CBD with unrealistic claims or "free promo packages." Plus, thanks to the huge amount of money in the CBD industry, the MLM community has caught on as well. There are dozens of well-known MLM companies operating around CBD. It is very likely that hundreds of MLM companies around the world have their representatives just on this industry to make a fortune for members at the very top of MLM.

Always approach a CBD product with caution. Ask for third-party test results and certificates for claims of organic products. We strongly recommend reading reviews posted on independent websites to get an idea of a company's credibility before you buy.

 

 

Author: Canatura

PHOTO: Shutterstock

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