A cannabis review site dedicated to impartial product research recently published a handy article that takes a broad look at the CBD industry as a whole. Oracle, the site behind the research, analyzed a small pool of 196 companies, including Extract Labs. There are well over 1,500 brands in the crowded market today. But most of the major long-running companies are included on the list, providing a good look at established businesses. 

Surprisingly, the industry is doing better than we all may have thought. 

If you’re in the business or a cannabis connoisseur, you’ve likely come across some version of this ubiquitous warning: “CBD is unregulated, and you should proceed with caution.” There is plenty of truth to this; it’s important to be an informed consumer. But the oft-repeated sentiment creates an image of mustached con men maliciously covering a skull and crossbones on a tincture bottle with a CBD label. Oracle’s analysis shows the industry isn’t as nefarious as the common warning suggests. 

“What surprised me about these findings is how it paints a different view of the cannabis industry than what we’re told in the media,” Ali Mans Cornwell, the author who evaluated the research, said in an email. “Despite being largely unregulated with much more to be done, the CBD industry still maintains a certain level of safety, transparency, and integrity.” 

Cornwell discovered over 90 percent of brands third-party-test their extractions and provide certificates of analysis detailing what’s in a product batch. This is a big win for the industry as a whole. It means that most brands are letting customers know what’s in their products and ensuring extractions are free of harmful contaminants. 

“Just look at the percentage of companies third-party testing their products, publishing their hemp sources, being transparent with their extraction methods, and obtaining USDA Organic certifications,” he said. “All of this is indicative of an industry so aware of its current reputation that it’s taking appropriate steps to ensure standards are met.” 

Far fewer were certified organic, only 4 percent, but that doesn’t mean only 4 percent adhere to organic standards. The USDA is a government entity. Since the FDA has not produced federal guidelines for producing and manufacturing hemp products, it is difficult to obtain the official stamp.  

“Be under no illusion, though. Way more needs to be done, whether it be through educational resources, tougher federal and state-level regulation, or simply getting consumers to make better decisions when shopping for CBD products,” Cornwell said. 

With marijuana, in particular, some labs have been caught inflating THC content. There have been issues of over and under-labeling in the CBD business as well. 

“The CBD industry certainly isn’t in the clear yet, but this analysis shows it’s doing way better than most expected it to,” he said.