Kratom, a Southeast Asian botanical derived from the leaves of the Mitragyna speciosa tree, has traditionally been used for its stimulant and pain-relieving properties. Kratom has gained significant traction in the U.S. market, and despite its growing popularity, it remains unregulated at the federal level, leaving individual states to impose their own laws on its sale, distribution, and use. This lack of uniformity creates compliance challenges for businesses looking to manufacture, wholesale, or retail kratom and kratom-derived products.
Kratom Industry Appeal
The growing popularity of kratom in the wellness and alternative medicine markets makes it an appealing product for businesses selling to those who are seeking its potential benefits. With its legal status in many areas, businesses can capitalize on demand through online sales and specialty shops. The potential for profit, combined with the ability to market kratom as a natural supplement, adds to its business appeal. However, the appeal of the evolving landscape for this controversial botanical includes regulatory uncertainties.
Kratom's Federal Legal Status: A Regulatory Grey Zone
Kratom is not classified as a controlled substance under the U.S. federal Controlled Substances Act. However, the Food and Drug Administration (FDA) and the Drug Enforcement Administration (DEA) have long sought to classify kratom as a Schedule I substance, arguing that its main alkaloids (mitragynine and 7-hydroxymitragynine) have opioid-like effects and potential abuse risks.
In 2016, the DEA proposed a federal ban, but after public backlash and congressional pushback, the Department of Health and Human Services (HHS) recommended against scheduling kratom. To date, kratom remains unregulated federally, leaving regulation to individual states.
State-by-State Breakdown: Where Kratom is Banned or Regulated
Some states have banned kratom entirely, while others have implemented regulatory guidelines to promote product safety. Additionally, in some states where kratom is legal statewide, individual counties or cities have enacted local bans.
Note that several states have recently introduced kratom-related legislation while not yet enacted. [1]
States That Have Outright Banned Kratom
The following states classify kratom as a controlled substance and prohibit its sale, possession, or distribution:
- Alabama (2016) – Banned mitragynine and 7-hydroxymitragynine as Schedule I substances.
- Arkansas (2016) – Listed kratom as a controlled substance.
- Indiana (2014) – Incorrectly classified kratom as a synthetic drug.
- Rhode Island (2017) – Kratom is banned statewide, though decriminalization efforts are underway.
- Vermont (2016) – Banned kratom but currently reviewing possible decriminalization.
- Wisconsin (2014) – Listed kratom as a Schedule I synthetic cannabinoid.
States with Kratom Regulations & Consumer Protection Laws
Rather than banning kratom outright, some states, like Arizona, have enacted the “Kratom Consumer Protection Act” (KCPA) or similar statutes to ensure safe sales and labeling. The regulations typically include:
- Age restrictions (usually 18 or 21+).
- Mandatory product labeling (must list mitragynine & 7-hydroxymitragynine content).
- Bans of synthetic or adulterated kratom.
- Regulatory oversight & licensing for vendors.
The following states have enacted KCPA regulations:
- Arizona (2019) – Prohibits sales to minors and mandates proper labeling.
- Florida (2023) – Under the Florida Kratom Consumer Protection Act, sales to individuals under 21 are prohibited, but Sarasota County prohibits its sale.
- Georgia (2019) – Requires product purity standards and safety warnings.
- Kentucky (2024) — Prohibits sales to minors and adulterations, and mandates proper labeling.
- Minnesota (2023) – Prohibits the sale of kratom to minors under 18.
- Nevada (2019) – Kratom is legal but sales to minors are restricted.
- South Dakota (2025)
- Tennessee (2024) – While kratom products are regulated, the natural, botanical plant itself remains legal.
- Texas (2023) – The Texas Kratom Consumer Health and Safety Protection Act prohibits sales to minors and mandates proper purity standards and labeling.
- Utah (2019) – Requires state registration and product testing.
- West Virginia (2023) — Penalizes selling kratom without a permit, selling contaminated kratom products, and selling to minors.
States with Local Bans Despite Statewide Legality
In some states where kratom is legal statewide, individual counties or cities have implemented local bans, including:
- California – Kratom is legal but banned in San Diego and Oceanside.
- Colorado – While legal statewide, Denver prohibits the sale of kratom for human consumption. Other localities like Parker Town and Monument Town also ban kratom sales.
- Florida – While legal statewide for adults 21+, Sarasota County bans it entirely.
- Illinois – The cities of Jerseyville and Alton have banned kratom.
- Mississippi – Multiple cities and counties, including the City of Oxford and Union County, banned kratom.
- New Hampshire – Legal statewide but banned in Franklin.
- Oregon: Kratom is legal for individuals over 21. Manufacturers and retailers must disclose kratom as an ingredient in their products.
Potential Legal Pitfalls for Kratom Businesses
If you're looking to enter the kratom industry, awareness of legal risks is critical. Here are some common pitfalls to avoid:
Failure to Obtain Proper Licensing & Compliance
Some states require annual registration and licensing for kratom vendors, particularly those enacting KCPA regulations (e.g., Utah, Georgia, and Ohio (pending SB 103)). Before launching your business, ensure compliance with state and local licensing laws.
Non-Compliant Labeling & Adulteration Issues
Many states require kratom products to be free from contaminants and synthetic substances. Failing to meet these standards can result in product recalls, legal action from regulators, and/or loss of business license. Use third-party lab testing to verify kratom purity and ensure labels clearly list alkaloid content.
Marketing Missteps & Unverified Health Claims
The FDA prohibits marketing kratom as a treatment for medical conditions. Businesses that falsely claim kratom can treat pain, anxiety, or opioid withdrawal risk FDA warning letters, potential product seizures, and/or civil penalties. Keep product marketing fact-based and compliant with FDA regulations.
Lack of Age Verification Controls
States with age restrictions (18+ or 21+) require vendors to enforce strict ID verification policies. Selling to underage individuals could result in fines and penalties, revocation of business licenses, and/or civil liability risks. Implement digital age verification for online sales and facilitate compliance training for staff.
The Future of Kratom Regulation
As public awareness and legislative scrutiny increase, businesses should expect:
- More state consumer protection laws (e.g., age restrictions, purity standards, labeling requirements).
- Potential FDA oversight if kratom is classified under federal drug regulations.
- Growing pressure from advocacy groups to implement standardized national regulations.
For now, the kratom industry remains a viable business opportunity, but compliance is key. Staying informed of state and local regulations will help ensure long-term business success. Kratom presents a promising but highly regulated market. Entrepreneurs willing to navigate complex state laws, comply with regulations, and prioritize consumer safety can successfully operate in this evolving industry.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.