Depending on who you ask, CBD oil can be a miracle cure, a snake-oil placebo, or something vague in between. This poorly regulated industry, which has boomed over the last three years, is a minefield for newcomers. Considering that manufacturers are unauthorized to make medical claims, how can one CBD oil cost $50, while another of the same volume costs $390? And are premium CBD oils justified for being so expensive?



Dani Gordon: CBD stands for cannabidiol. That's the chemical name for one of the chemicals in the cannabis plant. The CBD oil that you're seeing on shelves that consumers can buy without a prescription is actually from low-THC, the stuff that makes you high, varieties of the cannabis plant.

Narrator: CBD is a new and rapidly growing phenomenon, with sales tripling in the last three years. But the line between what consumers are using it for and what manufacturers can say to attract them is increasingly blurred. Gordon: It can be used for a variety of purposes, things like inflammation, anxiety, stress, and it can also be used just to support general wellness.

Now, the differentiating criteria between a medicine and a supplement is you cannot make a claim that it treats or cures a specific medically diagnosed disease. And that's really important for companies to understand, because they can get their products pulled off the shelves, and they can also potentially sometimes unintentionally mislead consumers. 

Narrator: But in the age of anxiety, it's no surprise that CBD has become a hot ticket for manufacturers, who infuse all sorts of products with cannabidiol, shrewdly tapping into its perceived wellness benefits and bumping up the price of otherwise standard items, like gummies, sportswear, tampons, and even dog treats. 

But how do we assess the value of CBD oil, which is actually produced in two different ways? Gordon: A full- or broad-spectrum product is made from the whole plant extract. They take the flower and they process it, and they come up with an extract that not only has CBD, but it has other plant chemicals, other cannabinoids, other terpenoids, other things in the plant that work together in this, what's called this herbal synergy, this entourage effect. 

And what you get is greater than the sum of its parts. Narrator: But some manufacturers process the extract even further into CBD isolate, a substance devoid of all other plant chemicals and labeled as "pure CBD." But this isolate, which often features in expensive products, is generally considered to be less effective and cheaper to make. 

Gordon: Some brands and some companies will put CBD isolate into a product and then brand it as a premium product, even though the cost of actually making it, because the cost of the isolate, is quite a lot lower than the cost of a full- or broad-spectrum CBD.


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