A company accused of falsely labelling and marketing synthetic substances that mimic the effects of marijuana described its business as selling natural health food products. They also said that they did not participate in any ineligible operations such as packaging and manufacturing.
It was found that the synthetic substance they sold was not a natural product and they repackaged the chemicals and labelled the product with false labelling information. This was held to be a material misrepresentation and a Georgia USA court rescinded their insurance policy.
(Maryland Casualty Co. V Thomas Malone Jr. et al.)