Published September 27, 2026, at 4:24 p.m. CDT · Business & Industry / Federal Enforcement
A payment-processing case with a CBD connection: A federal court entered a $12 million judgment and permanent restrictions against Humboldt Merchant Services on September 11. The FTC's billing allegations included online CBD-related purchases. This catch-up report covers that entered order, not a new action today. FTC case record.
What happened
The Eastern District of Michigan entered the agreed order against 5967 Ventures, LLC, doing business as Humboldt Merchant Services, in case 2:26-cv-13303. The signed September 11 order supersedes the September 8 proposed settlement. Humboldt neither admits nor denies the complaint's allegations, apart from the jurisdictional facts specified in the order. Entered order, pages 1–2 and 40.
The CBD connection appears in paragraph 118 of the FTC's complaint: consumers allegedly received unauthorized charges after ordering purported health or cosmetic products online, including CBD-related products. These are allegations, and the complaint does not establish the hemp origin or legal status of every product involved. Complaint, pages 50–51.
What changes for merchants
The order prohibits Humboldt and the other people bound by it from credit-card laundering and processing for specified risky merchants. It also requires screening and monitoring of defined clients. The additional screening category covers exclusively online merchants that offer negative-option billing, have no prior credit-card processing history, or were formed within a year before applying. Order, definition F and sections I–IV.
For Texas hemp retailers, manufacturers, distributors and online sellers using Humboldt, the practical issue is payment-account screening. Businesses should be ready to accurately document ownership, websites, advertising and billing practices if requested under these requirements. These are obligations imposed through this particular order; it does not establish an industry-wide CBD payment ban or change Texas hemp product rules. Scope and screening requirements, pages 14–23.
Consumer implications and next steps
For shoppers, the complaint is a reminder to examine unexpected recurring charges following online purchases. It does not show that every CBD seller or every Humboldt merchant engaged in misconduct. FTC allegations, paragraphs 118–119.
The judgment requires $12 million in monetary relief, with payment due within seven days of entry. CLOUDWIRE has not verified payment or a consumer-refund timetable. The FTC lists the case as closed; the court retains authority to enforce the order. Watch the official case page for any refund or compliance announcements. Order, sections VII and XIII · FTC case updates.
This article is provided for general informational purposes only. It does not constitute legal advice and does not determine whether a particular product, transaction, inventory decision, or business practice complies with federal, state, or local law.
