America’s booming CBD market received a cold splash of reality this week when the US Food and Drug Administration (FDA) issued a letter to Curaleaf, a major US cannabis and CBD brand, warning that some of its product marketing violates the Federal Food, Drug, and Cosmetic Act.

Reaction from vendors and investors was swift and harsh. Within 24 hours the national drug store chain CVS announced it would remove some Curaleaf CBD products from its shelves. Shares of Curaleaf stock fell 8% in a day.

All that happened because of a single warning letter—not a product recall, a tainted batch, or an expose on 60 Minutes. It’s worth noting that the FDA did not warn that Curaleaf’s products themselves were illegal. Rather, it was the way in which Curaleaf marketed the products.

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