2025 sees the National Advertising Division (NAD), the Children’s Advertising Review Unit (CARU), and the Federal Trade Commission (FTC) uniting for the most assertive oversight yet of hemp-CBD and THC advertising. As novel product types—especially fast-acting, nano, and microdose cannabinoid offerings—gain traction, regulators are raising the bar on evidence, disclosure, and child-protection requirements in marketing.
The NAD and Its Expanding Role in Cannabinoid Advertising Oversight
The National Advertising Division (NAD), under the BBB National Programs, is the primary U.S. advertising industry self-regulatory body. Historically, its focus has been on consumer goods—but 2025 marks a notable expansion into closely scrutinizing claims in emerging wellness verticals, especially those containing cannabinoids like CBD and THC.
While the NAD can’t fine companies or force compliance, its decisions carry real weight, often triggering FTC investigations or leading to public compliance failures that can damage brand reputations. When claims are found unsupported, NAD refers cases to the FTC or FDA, as seen in recent more aggressive referral patterns (see recent NAD decision summaries).
Top Enforcement Targets for NAD and CARU in 2025
CBD and THC brands increasingly tout “fast absorption,” “nano-delivery,” or “microdose mood support.” In 2025, NAD/CARU are scrutinizing:
- Performance claims like faster onset, all-day relief, or enhanced bioavailability.
- Mood, hangover, and sleep-related benefit statements.
- Disclosures such as “results may vary” or “based on user surveys” do not cure the need for robust scientific evidence.
Only "competent and reliable scientific evidence"—ideally gold-standard clinical trials matching the exact product type and dose—will suffice (FTC guidance). Marketers can expect swift NAD challenges if claims outpace published science, especially as nano and microdose formats proliferate.
2. Youth-Appeal and Kid-Attracting Marketing
CARU (Children’s Advertising Review Unit) and the FTC have prioritized:
- Packaging and ads featuring cartoons, candy themes, or bright colors.
- Naming or artwork suggestive of snacks, sodas, ice creams, and other child-associated objects.
- Social content or influencer collaborations seen as reaching under-21 audiences.
States often require age-gating and robust age verification for sales, but in 2025, even products lawfully restricted to adults are being flagged for unintentional youth appeal (see compliance discussion). Brands must err on the side of caution in creative development and consider how a regulator or competitor might perceive the total marketing mix.
3. Influencer Campaigns and Endorsements
Social influencers, customer reviews, and testimonials are now central to cannabinoid campaigns. Under the updated FTC Endorsement Guides (2024-2025):
- Brands are liable for unsubstantiated product claims by influencers, even if they didn’t approve every word (FTC Endorsements overview).
- Material connections (payment, free products, affiliate status) must always be disclosed—omissions are a top FTC enforcement priority.
- Reviews must be genuine and not selectively suppressed or manipulated.
NAD is increasingly referring influencer-related cases to the FTC, especially when performance claims breach substantiation requirements or fail to include appropriate disclosures.
How NAD Action Can Lead to FTC Investigations
The NAD’s self-regulatory process is not just advisory. When an advertiser fails to comply, the NAD refers the case to the [FTC] or FDA, as occurred in high-profile decisions against supplement and beverage companies this year. This is especially true for:
- Unsubstantiated efficacy, safety, or performance claims.
- Endorsements and influencer content lacking clear, upfront disclosures.
- Marketing with undue child appeal.
Once at the FTC, brands may face:
- Formal investigations, consent orders, and monetary penalties;
- Compelled corrective advertising;
- Long-term reputation damage and distributor/retail reluctance to carry the SKU.
Substantiation and Compliance: What Evidence Will Suffice?
Per FTC and NAD direction, health-related claims (e.g., relief, “feel it fast,” sleep, mood, anti-hangover effects) must be:
- Supported by tests, analyses, or studies conducted and reviewed by relevant scientific experts;
- Peer-reviewed and generally accepted as valid in the field;
- Tied to the actual product formula and dose advertised—not mere ingredient studies or user surveys.
For novel delivery methods (fast-acting, nano, microdose), animal studies, unrelated product references, or in vitro research are not sufficient. Brands must develop or source contemporary human data or modify claims to reflect what is actually proven.
Even if your product is restricted to those 21+, regulators may challenge:
- Cartoon mascots or animated characters
- Bright, playful packaging mimicking snack foods or candies
- Verbiage implying fun, play, or child-favored flavors
Regulators look at the total impression your marketing creates—not only actual sales to kids. For multi-state and online businesses, the safest course is to avoid childlike visual cues altogether.
Influencer Best Practices and the Endorsement Guides
The new FTC Endorsement Guides clarify:
- Advertisers must oversee third-party claims—if an influencer, affiliate, or reviewer makes unsubstantiated claims, the brand is responsible.
- Disclosure must be clear, prominent, and upfront—not buried in hashtags or small print.
- Use contracts that instruct influencers on compliance and monitor posts before and after launch.
If the NAD or FTC finds influencers overstating product benefits, omitting paid relationships, or creating kid-appealing content, brands will be held accountable, regardless of age-targeting or intent.
Q4 Substantiation and Compliance Checklist for Campaigns
To protect your business as NAD, CARU, and the FTC ramp up enforcement against cannabinoid products in late 2025, follow this pre-campaign review checklist:
Substantiation File
- Keep a central file with all studies, lab results, expert opinions, and clinical trial summaries supporting each current claim
- Ensure the evidence directly matches your formula, dose, and product type
- Document periodic reviews for ongoing campaigns
Claims Vetting
- Scrub ad copy and influencer messaging for words like “fast-acting,” “instant,” “microdose effects,” “relief,” or any health outcome not 100% supported by your evidence base
- Eliminate or heavily qualify statements suggesting unique absorption, hangover reduction, or sleep benefits unless you have strong, recent data
- Avoid “results may vary” as a shield—this does not remedy unsubstantiated claims
Influencer and Endorsement Controls
- Use contracts that require pre-approval of claims and ongoing monitoring
- Supply compliant message guidelines and FTC-required disclosure language
- Monitor influencer and affiliate output in real time, documenting actions if noncompliance is discovered
Packaging and Creative Review
- Avoid all cartoon mascots, childlike visuals, “candy” cues, and mimicry of snacks or sodas
- Review all product labels and online storefronts for accidental youth appeal cues
- Document policy decisions and rationale for all creative that “pushes the edge”
Age-Gating and Access Controls
- Apply strict age-verification for online content and purchases—even if not mandated in every state
- Regularly test systems for efficacy and update in response to NAD/CARU and state AG guidance
Disclosure and Transparency
- Ensure every ad, review, and influencer post clearly and conspicuously discloses material connections
- Keep a log of disclosures used and compliance reviews conducted
Practical Takeaways for 2025
- Regulatory scrutiny of CBD and THC marketing is intensifying across claim types and delivery formats—especially for performance and health-related statements.
- Fast-acting, microdose, nano, and mood/hangover benefit claims are especially high risk and require robust, product-specific substantiation.
- Youth-appealing content is a lightning rod for NAD, CARU, and FTC action—avoid it completely, regardless of product age restrictions.
- Influencer and review campaigns must be tightly controlled to avoid vicarious liability for noncompliance.
Stay proactive: Set up substantiation files, vet claims, and monitor all creative and promotional partners—don’t wait for a regulator or competitor challenge to expose gaps.
Let CannabisRegulations.ai support your Q4 campaign audits and substantiation strategy. Stay compliant, avoid reputational and enforcement risks, and unlock new opportunities with real-time regulatory intelligence.
