Connect with us

Business

Canadian cannabis industry reckons with inflated THC label claims

Published

on

Potency testing on store-bought cannabis flower by a Canadian laboratory has found THC levels significantly lower than the labeled value, sparking an industrywide conversation about how to address inaccurate THC claims.

Rob O’Brien, CEO and chief science officer of Kelowna, British Columbia-based licensed cannabis testing laboratory Supra Research and Development, shared the findings from his Canadian potency tests online.

O’Brien tested 46 different cannabis flower products, grown by 21 producers, in a variety of package sizes purchased from several different stores in B.C.

THC values for all 46 samples were lower than the labels claimed, ranging from 9% to 48% less THC than the label stated.

O’Brien’s findings come as the issue of inflated THC values has also been raised in the U.S. regulated cannabis industry, shining a spotlight on laboratories amid allegations that some labs report inaccurate levels of THC on behalf of the marijuana producers who hire them to test products.

O’Brien, for his part, has not revealed the names of the products he tested or the companies that produced them.

“I’m trying to help the industry, not to shame it,” he told MJBizDaily.

“But the problem is that the emperor has no clothes in this situation.

“And if we (aren’t) honest about that, everybody gets hurt worse in the end.”

O’Brien said he shared his results with Health Canada as well as B.C.’s provincial cannabis wholesaler.

Health Canada confirmed to MJBizDaily that it has received the report and said that “all issues and complaints brought to the department’s attention are taken seriously.”

“As Health Canada is in the process of reviewing the report, the department is not in a position to comment at this time,” a Health Canada spokesperson said in a statement.

THC inflation rumors

Labeled THC values in Canada have come under heightened scrutiny in recent years.

The metric is thought to be one of the key drivers behind purchases by cannabis consumers.

O’Brien told MJBizDaily he was motivated to buy cannabis, test the THC levels and share his results after hearing “a lot of talk that the THC values were inflated.”

“And this is damaging, not only to just consumer confidence, but (it) also undermines the quality of the Canadian cannabis industry,” he said.

Exaggerated THC values have been observed in the U.S. cannabis industry as well, with some state regulators cracking down on laboratories that inflate THC levels.

THC inflation has become an issue in ArkansasFloridaMichigan and Nevada.

The practice has sparked allegations that some cannabis companies go “lab shopping,” seeking out testing facilities with “a reputation for being easy to work with.”

In Canada, cannabis regulations specify an acceptable THC deviation limit of up to 15% from labeled THC values for marijuana extracts and topicals.

For edibles, THC values can deviate from the label by 15%-25%, depending on the potency of the edible. (Less potent edibles can have a higher level of deviation.)

For dried cannabis flower, however, the regulations “do not set out variability limits with respect to the amount of THC or CBD,” Health Canada confirmed.

“There is no variability limit for dried cannabis because, unlike cannabis extracts or edible cannabis products, dried cannabis is heterogeneous, which means that the amount of THC and CBD varies between different parts of the plant as well as between different plants within a lot or batch,” a Health Canada spokesperson told MJBizDaily.

What explains THC discrepancies?

O’Brien stressed that his testing doesn’t explain exactly why the actual THC values in the cannabis he tested were so different from the labeled values.

Still, he has a few hypotheses.

O’Brien said he has heard secondhand talk that some cannabis processors – who package marijuana products on behalf of cultivators without their own processing license – insist that those cultivators use specific labs for potency testing.

Rumor has it that those laboratories agree to issue certificates of analysis (COAs) showing guaranteed THC levels.

“And if (the laboratories are) willing to do that, they get the business,” O’Brien said.

“And if they’re not, if you’re going to do it accurately, well, that could be a problem.”

Jodi McDonald, president of licensed cannabis testing laboratory Keystone Labs in Edmonton, Alberta, said the lab has lost business as some cannabis testing clients have sought results showing certain levels of THC.

“In the early days, I would say, it didn’t really come up,” McDonald said.

“But in the last few years, it’s been more the conversation that we have with clients than usual.

“Honestly, we lost a lot of market share, because while we had a validated method that we trusted and have faith in, the clients couldn’t move product based on data that came from our lab.”

Another possibility that could explain the inaccurate THC values on labels, said Supra’s O’Brien, is that cultivators are finding “ways to game the system” by sending the most potent cannabis samples from a given batch for testing.

“If you’re sending top buds, and maybe you’re de-stemming those top buds before you send it to the lab, yeah, you’re going to get a higher COA,” he said.

“And if you’re using that one COA on every one of your packaged products, the smaller (packages) don’t have the 2-gram buds that have the high THC content – they have 0.3-, 0.4-gram buds.

“Those things are not going to be at the same level as the premium buds.”

Canadian cannabis production regulations potentially allow a single sample of marijuana to represent a large batch in lab testing.

The rules require THC and CBD testing “on a representative sample of each lot or batch of cannabis,” but they don’t specify the size of a “lot or batch,” Health Canada confirmed to MJBizDaily.

“It can be a football field-sized batch,” Keystone Labs’ McDonald said.

“However, the producing company defines a ‘batch’ is up to them.”

How to rectify the issue of THC inflation

Solving Canada’s apparent THC inflation problem could require action by multiple industry players.

Clearly, cannabis growers, processors and testing laboratories play a role.

Supra’s O’Brien believes provincial cannabis wholesalers – which are government-owned, in most cases – also need to be accountable for the marijuana they distribute.

The wholesalers, he added, are “also partially responsible for why we have this problem, because they’re now not buying product unless it hits certain thresholds of THC.”

Those THC requirements could incentivize growers to present lab results showing high THC content.

O’Brien also called for “better guidance from Health Canada,” the federal agency that regulates cannabis production.

Keystone Labs’ McDonald doubts the cannabis industry will regulate itself.

“There’s too much pressure for searching for higher THC values,” she said.

“So my belief is that it needs to come from the regulatory authority.

“But that change won’t come unless there’s consumer pressure to make a change.”

Source: https://mjbizdaily.com/canadian-cannabis-industry-reckons-with-inflated-thc-label-claims/

Business

New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

Published

on

New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.

The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.

Golden Roots operates the The Cannabis Revolution Dispensary.

The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.

The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.

Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.

After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.

In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.

The company requested a hearing, which the regulator scheduled for Sept. 1.

At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.

Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.

Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.

The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:

Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.

Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/

Continue Reading

Business

Marijuana companies suing US attorney general in federal prohibition challenge

Published

on

Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.

According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”

Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.

The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”

The companies want the case to go before the U.S. Supreme Court.

They hired prominent law firm Boies Schiller Flexner to represent them.

The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.

Similar challenges to the federal Controlled Substances Act (CSA) have failed.

One such challenge led to a landmark Supreme Court decision in 2005.

In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.

In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.

Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.

“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.

“Moreover, the facts on which those precedents are based are no longer true.”

Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”

While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.

“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

Continue Reading

Business

Alabama to make another attempt Dec. 1 to award medical cannabis licenses

Published

on

Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.

The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).

Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.

Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.

That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.

Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.

Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.

A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.

Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/

Continue Reading

Trending

Copyright © 2022 420 Reports Marijuana News & Information Website | Reefer News | Cannabis News