When it comes to health and wellness, people want to believe that the next miracle product might be the one that fixes what ails them.
CBD, which is legal in most states as long as it’s derived from hemp, has been a product many Americans have turned to despite their being little research as to its effectiveness.
“CBD products are in high demand worldwide, with many people seeking alternative treatments for medical conditions or general health and well-being benefits,” according to a research paper from Science Direct.
Demand, however, is not scientific proof that a product works.
“The use of CBD products often relies on self-medication and lacks sufficient scientific evidence. Improved communication between patients and healthcare professionals is needed to ensure informed decisions and address potential interactions with other medications. Scientific evidence on CBD is currently limited,” the data shows.
Pure Science Lab has been a leader in the CBD space, but market conditions and debt have forced the company to file for Chapter 11 bankruptcy, according to documents filed on Pacer Monitor.
CBD’s effectiveness remains an open question
Hemp, unlike THC or marijuana, has been legalized.
“In 2018, the U.S. Congress passed and signed into law the Agriculture Improvement Act. This law removed hemp from the federal Controlled Substances Act, effectively legalizing CBD if it comes from hemp. However, a few states have not removed hemp from their state’s-controlled substances acts, so legality of CBD products differs across states,” according to the Centers for Disease Control (CDC).
And while there’s not a lot of data showing CBD sales data, the market does appear to be growing.
“Annual retail sales of herbal dietary supplements in the United States totaled an estimated $15.551 billion in 2023, according to the nonprofit American Botanical Council’s (ABC’s) 2023 Herb Market Report. US consumers spent an additional $533 million on these products in 2023 compared to 2022 — a 4.4% increase in annual sales,” according to a press release from the American Botanical Council.
SPINS’ 2024 Natural Products Industry Trends report describes CBD as having moved into a maturation phase after peak growth, with slower expansion in mainstream retail channels.”
“Today, while the market has yet to return to pre-Covid rates, the category is alive and well. CBD has earned its spot in the medicine cabinet with the ability to support multiple need states that American’s are looking for: sleep, anxiety, and pain support,” SPINS shared.
CBD has been used by a relatively large amount of Americans.
“An estimated 10.5% of the US population reports using cannabidiol (CBD), a chemical compound extracted from cannabis that does not have psychoactive effects, for therapeutic purposes,” according to a JAMA Network review titled “Therapeutic Use of Cannabis and Cannabinoids.
The study questions the medical value of CBD.
“Evidence is insufficient for the use of cannabis or cannabinoids for most medical indications. Clear guidance from clinicians is essential to support safe, evidence-based decision-making. Clinicians should weigh benefits against risks when engaging patients in informed discussions about cannabis or cannabinoid use,” it added.
Pure Science Lab files Chapter 11 bankruptcy
Founded in 2014, Pure Science Lab has been a leader in the CBD space.
“Pure Science Lab provides premium, independent third party lab-tested cannabinoid formulations. From tinctures to teas, chocolates to creams, and softgels to sweets for you and your pet,” the company shared on its website.
The company claims its products help with pain management, sleep, and mental health.
The Food and Drug Administration (FDA), however, has made it clear that work needs to be done to verify any claims of the benefits of CBD.
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“There’s not enough evidence about CBD to confirm that it’s safe for use in foods or as a dietary supplement, FDA Deputy Commissioner Dr. Janet Woodcock said in a statement reported by the Associated Press.
“For example, we have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm,” she said.
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Pure Science Lab Chapter 11 bankruptcy facts:
- Filed: April 3, 2026
- Court: U.S. Bankruptcy Court for the Southern District of Florida
- Case number: 0:26-bk-14210
- Business: CBD manufacturer and retailer based in Pompano Beach, Florida
- Assets: $50,001 to $100,000
- Liabilities: $1 million to $10 million
- Total debt: More than $1 million reported
- Filing type: Chapter 11 (reorganization)
- Key issue: Company cited industry headwinds, including regulatory pressure on hemp/CBD products
- Industry context: The CBD sector is facing tightening regulations and inconsistent federal oversight. The market has become increasingly competitive and fragmented (industry-wide trend).
Source: PacerMonitor
“Pure Science Lab is authorized to continue operating its business during the bankruptcy proceedings,” according to a document signed by bankruptcy judge Peter D. Russin, South Florida Business Journal reported.
It’s unclear what led to the bankruptcy filing.
Chad Van Horn, an attorney representing Pure Science, did not immediately provide a comment, to South Florida Business Journal.
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