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Opinion: Why aren’t your cannabis customers paying you?

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California cannabis companies’ recent attempts to recoup substantial debts have many in the industry asking: How did this credit crisis happen, and how can my company prevent similar issues?

The problem with extending credit is that unless you evaluate the credit worthiness of a company you are extending credit to, you may be taking an unreasonable risk.

One issue is that most cannabis companies that are extending credit do not have a formal “accounts receivable” or “credit” department to help manage the order-to-cash process.

delinquent cannabis accounts, Opinion: Why aren’t your cannabis customers paying you?
Sam Fensterstock

These facilities exist to ensure that customers are held to their credit terms and that payments are collected in a timely manner.

Not having these controls is probably the biggest mistake a cannabis company can make.

If you are extending credit, you must have a process in place to manage and ensure consistent cash flow to meet your company’s operating needs.

Here are four things that you need to consider if you want to extend credit and get paid for your products and services:

1. Hire an accounts receivable/credit manager

If you are going to extend credit, you need to hire a credit manager to oversee the credit-granting process, including developing and consistently applying the company’s credit policy, as well as managing and collecting the accounts receivable and the dispute-resolution process.

Periodically, the credit and collections manager will also review the credit status of existing customers and be responsible for evaluating the creditworthiness of potential customers.

The net result: increased sales, fewer bad debts, and a better bottom line.

2. Implement a credit application and credit-approval process

A credit application is a contract between buyer and seller. It provides basic information about your customer’s business and is one of the primary tools available for protecting your company and controlling credit risk.

Even customers who pay COD (cash on delivery) should fill out a credit application.

Securing a credit application does not guarantee payment, but it is one of the more significant documents to assist in making good credit decisions and collecting past-due accounts receivable and collection fees.

One of the biggest challenges to the cannabis market is making good credit decisions.

In the traditional B2B market, sellers have the luxury of access to credit data on both public and private companies through leading credit bureaus like Dun & Bradstreet, Experian and Creditsafe.

While none of these providers have cannabis-specific data, many are now gathering data about the cannabis market and have trade lines, UCC (Uniform Commercial Code), lawsuits and tax lien data available.

The No. 1 reason a small business fails is not paying taxes, and the leading credit bureaus all have monitoring and alert services to track this information.

3. Implement a collection strategy

In the traditional B2B trade credit world, if a customer has Net-30 payment terms, and they have not paid by day 31, they are considered past due and delinquent.

Mainstream companies have collection strategies detailing how to deal with customers that are past due and severely past due.

If you are extending Net-30 terms, when a customer is 90 days past due, they are considered seriously delinquent.

Given the volatile nature of California’s cannabis market, we believe a customer that is 60 days past due should be considered severely delinquent.

Here is a sample collection strategy to help manage a customer on credit terms:

  • Five days before the invoice is due, an email is sent out with copies of the outstanding invoices.
  • The day before the invoice is due, an email reminder is sent with a link to pay online as well as details about where to send a payment.
  • On day 31, if the invoice is not paid, an email goes out letting the customer know that they are now past due.
  • On day 35, if the invoice is not paid, a phone call is made to collect payment.
  • On day 40, an email demand is sent and a phone call is made.
  • On day 47, an email demand is sent and a phone call is made.
  • On day 52, a “past due” email is sent
  • On day 60, a “final demand” email is sent, letting the customer know that if payment is not received within 10 days, the account will be referred to a collection agency.
  • On Day 70, if no payment has been received, the account is sent to a collection agency.

4. Have a formal policy that moves nonpaying customers to collection

In the B2B collection market, average gross recoveries are in the 35% to 40% range, and the average account is placed at around 150 days past due.

In the cannabis market, however, recoveries are in the 15% to 20% range, and the average collections placement is 285 days past due.

Why?

Most debt in the cannabis market is uncollectable because companies do not have good internal collection strategies and hold on to nonpaying customers far too long.

Many times, when a placement is that delinquent, the customer is already out of business or uncooperative, and the only recourse is litigation.

Here are five signs that your cannabis customer may need to be placed for collection:

  • Your customer is over 60 days past due.
  • Your customer is not returning your phone calls or emails.
  • Your customer is purchasing erratically.
  • Your customer has stopped buying.
  • You receive negative trade information about the customer from other suppliers.

About 50% of payment issues are caused by companies not having the right process and people in place to manage order to cash.

To make sure your cannabis customers will pay you, implement the above four steps, and you should see a big difference in a short period of time.

Source: https://mjbizdaily.com/why-arent-your-cannabis-customers-paying-you/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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