Questions arise about selling CBD-infused foods

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What is CDB oil and what does it do? CBD is a legal, non-psychoactive chemical compound from the cannabis plant. It is different from THC, which is illegal in New York.

"It also affects serotonin and dopamine receptors," Dr. Vincent Pedre, the medical director of Pedre Integrative Health, said. "And by doing that it has other more wide effects like lowering anxiety."

C.J. Holm, the owner of Fat Cat Kitchen in Union Square, insists that her CBD-infused food items were selling like hot cakes.

"They were our bestselling items. My CBD chocolate chip cookie has been my No. 1-selling item for the last two months," she said. "We sell more of them than coffee."

But then last Friday, officials from the city's Health Department set aside about $1,000 worth of her CBD edibles, including CBD-infused honey and baked goods, during a routine inspection. They sealed the products in her own plastic bag with a note that says "Embargoed."

C.J. claims she hasn't gotten many answers and has no idea when or if she'll be able to sell the products again. She said she called the Health Department three times.

"I finally got a gentleman on the phone who said federally it's legal but it's not allowed to be used as a food additive," she said. "I pointed out to him that there are thousands of businesses across the country, dozens if not hundreds in New York City that are selling edible CBD items."

CBD-infused food and drinks have been popping up at businesses across the city.

Kathy Diamant, who lives on the Upper East Side, comes to the shop often for tea with CBD-infused honey. She said she suffers from stress and insomnia.

"I found that CBD is very helpful with just calming me down, relaxing me and it's natural," she said. "It just works better than anything I've tried."

Fox 5 reached out the Health Department for some clarity. A spokesperson said the agency would get back to us but it never did.