TL;DR: A CBD Oracle investigation finds that 43% of hemp products sold on Amazon often don’t contain hemp at all, and are deceptively marketed to evade Amazon’s lax enforcement.

The independent investigation of the hemp market on Amazon which was commissioned by CBD Oracle has found that almost half of all products lie to customers and has revealed the challenges faced by both consumers and honest sellers on the platform. 

Along with 43% of so-called “hemp” products not containing any hemp at all, companies selling on Amazon.com often report their products being pulled from the storefront while those obviously lying about their contents remain up on sale. 

The market is a minefield for consumers and the main benefactors are deceptive fly-by-night companies and Amazon themselves.

A Brief Introduction to Amazon’s Hemp

If you’ve ever bought or sold hemp before, browsing the selection available on Amazon is truly bewildering. 

Products promise doses of hemp that are impossible to fit into a gummy, make obvious medical claims and reassure customers that they’re third-party lab tested while usually not making the results available on Amazon or anywhere else. There are so many red flags they start to look like wallpaper.

Amazon policy prohibits CBD unless it’s a topical product which has been specifically approved. This was established to prevent unreliable or illegal products from making it onto the site, but the consequence has been just the opposite. Instead, sellers simply don’t mention the word “CBD” anywhere on the product page, and this provides a smoke-screen to companies hoping to sell the expectation of CBD while actually offering nothing of the sort.

“Hemp” on Amazon is not a description, but a purposefully vague euphemism.

Testing the Hemp Sold on Amazon

CBD Oracle purchased 56 of the most popular hemp products on Amazon and sent them to InfiniteCAL for testing. The main results show the impact of the current policies on the platform.

• 30% of products contained CBD. Although these products violate Amazon policy, they at least offer customers what the listings imply in a basic sense.
• 62.5% of products contained no cannabinoids at all. Given that the majority of products explicitly promised some amount of “hemp” in milligrams, these products are misleading at best.
• 43% of products contained no hemp at all, as verified by gas chromatography-mass spectrometry (GC-MS) testing. Every single product in the study promised “hemp,” but even if they meant hemp seed oil, these 43% are still blatantly deceiving customers.
• 11% of products tested positive for THC, with three products having huge quantities of delta-8 THC. The maximum dose per gummy was 76 mg THC.
• 96% of products did not provide an accurate dosage to customers. This means that the measured dosage doesn’t fall within 10% of what they advertised.

The Misleading Marketing of Amazon’s Hemp

The lab results show that the hemp sold on Amazon doesn’t meet the expected standard of CBD and hemp products in the modern day. However, customers on Amazon are less likely to be engaged with the industry and probably have less of an idea of what is expected of any hemp product. Combined with some careful marketing, this makes the average Amazon hemp buyer way more likely to pick up an unreliable product.

CBD Oracle’s analysis of the marketing of Amazon hemp reveals many serious problems with the market and the claims sellers make:

• 52% of products are sold based on unapproved medical claims, often surrounding pain, stress or anxiety relief.
• 95% of products do not provide a third-party lab report to consumers anywhere online, and none of them are shown on Amazon.
• Customer reviews were unreliable in about half of cases. Mozilla’s FakeSpot rated 48% of products D or lower for overall reliability.
• There was no reliable, direct method to communicate with the sellers behind 89% of products. 28 products were identified as breaking the INFORM Consumers Act.
• Many products make claims which are literally impossible (e.g. 7.7 pounds of “hemp” in a 0.8 pound package), but are not removed when reported to Amazon.

How Amazon’s Hemp Impacts the Wider Industry

Amazon’s hemp market is not only bad for the customers who choose to make purchases through the retailer; it also threatens the perception of the industry at large.

Andrew Livingston, Director of Economics & Research at Vicente, commented to CBD Oracle that:

“One, these products drive consumer[s] away from the entire hemp supplement category for fear that the entire market cannot be trusted or is not properly regulated. This means legitimate businesses with great products that benefit consumers lose out. Second, problematically labeled and branded hemp products indicate to regulators and public officials that the entire category needs more robust and stringent restrictions.”

In short, even though these products come from unknown companies and aren’t widely regarded in the hemp industry, their careless actions threaten to drag the whole industry through the mud with them.  

Conclusion: How Amazon Can Solve the Problem

Amazon’s hemp problem is created by a lack of enforcement and a policy which incentivizes companies that lie about their products. In line with this, there are two avenues for a solution. 

Firstly, Amazon could simply devote more resources to enforcing their current policy. 

Alternatively, and more realistically, they could acknowledge that CBD is sold on their platform, and instead rectify their policy. By allowing CBD products if they are backed up with a certificate of analysis by an accredited third-party lab, honest manufacturers would be able to compete on a level playing field, and virtually all of the products in this analysis would have to prove their claims or be removed from sale.

One thing is certain: the status quo on Amazon is harmful to both consumers and the industry, and it has to stop.

The full dataset from the analysis is available in this spreadsheet. You can download a summary of the report in PDF here.

About the author: 

Lee Johnson is the senior editor at CBD Oracle, and has been covering science, vaping and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers.

CBD Oracle is a consumer research company working to improve the safety and transparency of cannabis and hemp products, producing in-depth research pieces on cannabis and cannabinoids, along with analysis of social and legal issues.

Regulating the Cannabis Industry for Accuracy and Integrity 

In the fast-evolving landscape of the cannabis industry, ensuring accurate testing standards is paramount to safeguarding consumer safety, maintaining regulatory compliance, and fostering fair market competition. However, a pervasive challenge known as cannabinoid inflation threatens to undermine these essential principles, posing a significant obstacle to the industry’s growth and legitimacy. 

Understanding Cannabinoid Inflation 

Cannabinoid inflation refers to the practice of cannabis testing laboratories providing inaccurately high cannabinoid concentrations in their reports, often in an attempt to attract business. This phenomenon distorts market dynamics, leading to unfair competition and jeopardizing the credibility of legitimate labs that adhere to rigorous testing standards. Contaminant deflation is a significant concern, too, as labs willing to inflate cannabinoids are also more likely to underreport the presence and/or amount of hazardous substances. 

At the heart of this issue lies a fundamental discrepancy between reported and actual cannabinoid content in cannabis products. As cannabis producers and distributors seek out labs offering higher THC values, a troubling trend is to use only labs that will inflate the value of desirable cannabinoids, such as THC. This practice, known as laboratory shopping, perpetuates the cycle of inflated results, undermining integrity and forcing accurate reporting labs out of business. 

Proposing Regulatory Solutions 

To address this pressing cannabinoid inflation challenge, Digamma Consulting, renowned experts in cannabis chemistry, presents a comprehensive set of regulatory solutions in their latest white paper, Solutions to Cannabinoid Inflation. 

Solution A: Data Analysis Reports Advocating the adoption of data analysis reports, Digamma proposes a systematic approach to analyzing testing data, providing regulators with a solid foundation for action. By leveraging data analytics, authorities can identify trends, anomalies, and potential instances of cannabinoid inflation. Such identification enables regulators to make targeted and legally justified interventions that can help to improve testing integrity. 

Solution B: Suspect Product Checks Digamma recommends implementing suspect product checks, also known as “secret shopper” programs, to detect inflated cannabinoid values. This cost-effective mechanism allows states to conduct product sampling and testing of suspected lab results by independent accredited reference laboratories that will validate reported cannabinoid content and mitigate inflated results. 

Solution C: Chemical Analysis Laboratory Audits Digamma proposes implementing in-person audits of chemical analysis laboratories to ensure testing integrity and thus directly address cannabinoid inflation. Subjecting testing facilities to rigorous scrutiny by expert auditors enables regulators to assess compliance with standards and uphold the integrity of the testing process. 

Digamma’s White Paper: Solutions to Cannabinoid Inflation 

Digamma’s white paper on regulating the cannabis industry for accuracy and integrity represents a significant step toward addressing the pervasive challenge of cannabinoid inflation. By advocating for practical, low-cost regulatory solutions, Digamma Consulting aims to empower government regulators to uphold transparency, impartiality, and legal defensibility in cannabis testing reporting and labeling. 

As the industry continues to evolve, it is imperative to prioritize consumer safety, regulatory compliance, and market fairness. Through collaborative efforts and ongoing dialogue, we can navigate the complexities of the cannabis industry and propel it toward a future characterized by integrity, transparency, and accountability. Join Digamma in the quest to build a safe, fair, and thriving cannabis industry for all.

Read the white paper here:
https://www.digammaconsulting.com/_files/ugd/f2b5b5_74e672f71f8f4678a79f823738e 87910.pdf 

In just over 200 days, people across the country will head to the ballot box to make their voices heard. As you take the time to consider the issues that matter the most to you and which candidates best align with those values, NCIA is here to help with our recently updated congressional scorecard.

Our scorecard shows how members of Congress have voted and who has supported various cannabis bills over both the previous (117th) and current (118th) sessions. 

With more than 500 members, it can be hard to keep track of votes and congressional support on the issues that matter the most to you and your business. During the 117th congress, the House of Representatives voted on both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) and the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act (H.R. 3617). There has not yet been any floor votes on these bills (or other) priority cannabis legislation over the course of the current (118th) congress. That being said, our scorecard does show how members of the Senate Banking Committee voted on the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a September 2023 markup of the bill. The scorecard also shows which members of the Senate have signed on as cosponsors of the SAFER Banking Act (keep in mind there are about a handful of members who signed onto the SAFE Banking Act, but have yet to support this newer iteration). 

Though it may seem silly, I’m envious of your ability to look at these voting records. As a resident of Washington, D.C., I (along with hundreds of thousands of my neighbors) am subject to taxation without representation and have no voting member of Congress. D.C. has also been unable to fully implement its voter approved 2014 adult-use initiative due to congressional interference, but that’s a story for another blog!

I hope this scorecard helps you continue to hold your elected officials accountable- both at the ballot box and through civic engagement. I also hope this tool will empower you to get involved with government- at any level- whether that be by setting a meeting with one of your representatives’ district offices, attending a town hall meeting, or volunteering on a campaign. Don’t forget to make sure you’re registered to vote, and if you’re unsure about who your elected officials in Washington are, you can click here. Lastly, one of the best (in my humble opinion) ways to make an impact on elected officials is by attending our annual cannabis industry lobby days. Make sure you mark your calendars for May 14-16 and register today to get the best rate!

Small businesses — from startup to $20 million — face challenges when it comes to hiring accounting and finance staff.

In addition to the budget-breaking cost of an in-house finance team, it’s not easy to find, train and manage the right people within the day-to-day of a growing business. Not to mention the fact that a full-time team likely wouldn’t have enough work to keep themselves busy with a business of that size. That’s why outsourcing has become popular across industries: small businesses can leverage the expertise of bookkeepers, tax preparers and planners, as well as CPAs and financial advisors, at a fraction of the cost.

The advisory role — often referred to as outsourced or fractional CFO services — fills a particularly essential need, providing business owners with a strategic partner to help make financial decisions about their short-, medium- and long-term future at a lower price-point than a full-time Chief Financial officer (which averages $229,000 per year not including vacations, bonuses and other benefits).

That’s why businesses between the $3-$20-million revenue mark consider outsourcing the position. Oftentimes these services include a la carte options such as taxes, accounting, payroll, and coding of transactions (essentially bookkeeping), depending on whether the business already has some of these functions in-house.

Three things to look for when hiring a cannabis CFO

There are a variety of ways to access outsourced or fractional financial services, whether it’s hiring an individual, using a freelance match-making service or working with a dedicated team.

1. Do they provide forward-looking advice?Cannabis companies face unique challenges. Every business could benefit from cash flow forecasting, but in cannabis, where profits are extra tight, a CFO needs to be able to help strategic planning: weighing the cost-benefit of investments, strategizing to manage overhead and boost sales, and ensure the business stays disciplined as it grows.
2. Are they involved in the industry?In an industry like cannabis, where regulatory shifts are always on the horizon, you want a CFO is staying on top of policy — both federal and local. That means they’ll have the necessary insight to help you plan with those changes in mind, as well as to think about what could happen as a result of all these shifts within your business.Beyond policy, a CFO should be able to help businesses with other industry-specific challenges, like securing merchant services for dispensaries and establishing banking relationships, which is significantly tougher for cannabis businesses to do, in light of current federal policy.
3. Do they ask strategic questions?A good CFO never tells you what to do. They get to know your business through in-depth questions, identify the non-financial drivers to monitor and improve, and then help you navigate the best path with the information that you have.

When is it time to hire a fractional cannabis CFO?

If you find your business is getting to a point where you’re making decisions but don’t understand the financial impact or don’t know what risks may be out there — especially if you’re in a growth phase — hiring a fractional CFO will help guide you on the financial side and still fit within your budget.

The cannabis industry is at an inflection point. There are so many areas where strategic planning isn’t a nice-to-have, it’s a must-have. As regulations shift, it will be essential to have a financial partner who can help businesses pivot quickly and adopt new technologies that become available to the industry as we move forward with policy progress at the federal level.

The cannabis industry is experiencing rapid growth, bringing with it unique risks and regulatory challenges, especially in protecting employees. Recognizing the complexities of this industry is crucial for developing comprehensive insurance solutions, particularly in workers’ compensation. This blog explores strategies and insights tailored to navigate the intricacies of cannabis-related businesses.

The Unique Occupational Risks in Cannabis

Occupational hazards in the cannabis industry vary significantly across its different verticals—from cultivation and harvesting to manufacturing, distribution, and retail. Each step of the way introduces specific risks:

• Cultivation: Employees may face exposure to pesticides, ergonomic challenges, and the potential for injuries related to manual labor or the operation of agricultural machinery and electrical exposures
• Manufacturing: The extraction process involves handling volatile substances, which can pose chemical exposure risks, while the use of heavy machinery introduces the potential for industrial accidents.
• Retail and Distribution: Employees in these sectors might encounter security concerns, the risk of theft, and repetitive motion injuries, alongside the unique challenges of delivering products safely.

Recognizing and addressing these varied risks is the cornerstone of an effective workers’ compensation strategy, ensuring that businesses are prepared to support their employees in the event of an occupational injury or illness.

Why Workers’ Compensation Is Essential

Workers’ compensation is not just a legal formality; it’s a cornerstone of your business’s resilience. A well-conceived policy ensures that employees are protected in the event of workplace injuries, which in turn safeguards your business from potentially crippling financial liabilities. 

Generic workers’ compensation policies often fall short of meeting the specific needs of the cannabis industry. A focused approach on the unique challenges of cannabis operations, is not only beneficial, but necessary for comprehensive protection. This strategy involves:

• Risk Identification and Analysis: Understanding the specific hazards associated with different cannabis industry roles is the first step in crafting effective workers’ compensation policies.
• Rapid Claim Resolution: Efficient processing and resolution of claims are vital in controlling costs and supporting injured employees’ return to work. Speedy claim closure not only benefits the employee, but also helps manage the financial impact on the business.

Mitigation and Cost Control: A Proactive Approach

Effective claim resolution and risk mitigation are key for cannabis businesses to control workers’ compensation costs effectively. Leveraging advanced data analytics helps identify claim sources and implement prevention measures, closing claims swiftly and reducing overall insurance costs.

Implementing Robust Risk Management Practices

Significant impacts on the frequency and severity of claims can be achieved with:

• Safety Training and Education: Regular programs can help employees avoid injuries and safely navigate potential hazards.
• Ergonomic Assessments: Identifying modifications in roles involving manual labor or repetitive tasks can reduce strain and prevent injuries.
• Security Measures: Enhancing security can mitigate risks associated with theft, especially important in retail and distribution.

A Case in Point: Swift Resolution for a Cannabis Delivery Company

Consider the case of a cannabis delivery company that faced a workers’ compensation claim when a delivery driver sustained an injury on the job. By employing a focused approach to claim management, including prompt medical evaluation and clear communication channels, Liberty’s intervention led to the claim being settled and closed in under four weeks—a testament to our commitment to fast and effective resolution. This not only minimized the cost to the company, but also allowed the employee to return to work sooner, maintaining productivity and morale.

Beyond Claims: Comprehensive Risk Management

A holistic risk management approach covers all potential risks, from delivery driver incidents to cultivation and retail hazards, ensuring comprehensive coverage.

Choosing a Strategic Partner

Partnering with an insurance provider that understands the cannabis industry’s complexities is critical. Customized strategies in insurance and workers’ compensation can offer unparalleled protection and peace of mind, supporting your business’s growth and resilience.

The Path Forward for Cannabis Businesses

As the cannabis industry evolves, strategic foresight in managing workers’ compensation is essential. Focusing on specific sector needs and prioritizing efficient solutions can create a safer work environment and a more resilient future. With the right strategies and a commitment to safety and efficiency, businesses can navigate these challenges successfully, ensuring protection for employers and their valued employees.

For more information, please reach out to Valerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers and Kirk Aguilera, Managing Partner (National Workers’ Compensation Practice Leader).

The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.

Delivering Tangible Value

Our seasoned team, boasting a track record of saving well over $2 billion for our clients, specializes in pioneering solutions that deliver tangible value. We recognize the unique demands faced by cannabis business owners and have tailored our approach to offer seamless evaluation and implementation of our tools, ensuring minimal disruption and maximum efficiency. This commitment to excellence has earned us the trust and loyalty of nearly half of our clients, who consistently refer us to their peers and associates.

Game-Changing Healthcare Solution

For cannabis operations employing W2 staff, we offer a game-changing solution: a preventative healthcare plan meticulously designed to address the specific needs of the cannabis industry.

Zero-Cost Structure with Significant Savings

What sets our plan apart is its zero-cost structure for employers, coupled with its ability to instantly lower payroll taxes without necessitating any modifications to existing benefits packages. This makes it an ideal solution for businesses looking to enhance employee retention while simultaneously bolstering their bottom line.

Comprehensive Benefits for Employee Well-Being

The benefits offered through our plan are not only financially advantageous but also genuinely impactful. From round-the-clock telemedicine visits to access to hundreds of free generic drugs and preventative screenings, employees gain access to a comprehensive suite of resources aimed at promoting their health and well-being. This not only enhances job satisfaction but also contributes to a healthier, more productive workforce.

Efficient Implementation and Support

Implementing our program is straightforward and efficient, with many businesses up and running in just a matter of minutes. Whether you’re a small-scale operation or a large enterprise, our team is dedicated to providing the support and guidance you need to maximize the benefits of our innovative healthcare solution.

Empower Your Business Today

Take the first step toward transforming your business and empowering your employees by scheduling a brief call with us to learn more. Together, we can pave the way to a brighter, more prosperous future for your cannabis business.

Empower Your Cannabis Business: Join Our Service Solutions Webinar!

Don’t miss out on the opportunity to learn more about how to optimize your cannabis business with our innovative healthcare solution and other service solutions. Join us for our upcoming Service Solutions webinar featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.

Register now to secure your spot and gain exclusive insights from industry leaders. Click here to register for this essential webinar.

Take the next step in elevating your cannabis business to new heights. We look forward to seeing you there!

In today’s rapidly evolving landscape, the integration of AI has ushered in a new era of efficiency and optimization across various domains, including finance and taxation. At LG Resources, we’ve embraced this technological advancement to revolutionize tax planning, transforming what was once considered a daunting task into a streamlined and rewarding opportunity for our clients.

Unparalleled Precision: Our AI-Powered Program

Our commitment to excellence is exemplified by our proprietary AI-powered tax planning program, which stands at the forefront of innovation in the industry. This sophisticated software boasts the capability to analyze over 1,500 Federal, state, and local tax programs with unparalleled precision. By leveraging machine learning algorithms, it identifies bespoke strategies tailored to each client’s unique financial profile, thereby unlocking substantial opportunities for tax savings.

Seamless Integration: Merging AI with Expertise

The cornerstone of our approach lies in the seamless integration of AI technology with over a decade of private wealth management expertise. This synergistic combination allows us to offer clients a comprehensive suite of services that not only optimize tax outcomes but also align with their broader financial goals and aspirations. Whether navigating complex tax regulations or maximizing wealth accumulation, our seasoned team of professionals is dedicated to delivering results that exceed expectations.

Adaptive Strategies: Staying Ahead of the Curve

One of the key advantages of our AI-powered tax planning program is its ability to adapt and evolve in response to changing tax laws and economic conditions. Through continuous monitoring and analysis, we ensure that our clients remain ahead of the curve, capitalizing on new opportunities for tax optimization as they arise. This proactive approach not only minimizes tax liabilities but also positions our clients for long-term financial success and security.

Personalized Service: Tailored Strategies for Every Client

Central to our philosophy is the principle of personalized service. We recognize that every client is unique, with their own set of financial circumstances and objectives. As such, we take a tailored approach to tax planning, crafting customized strategies specifically designed to meet the needs and objectives of each individual client. Whether you’re a high-net-worth individual, a small business owner, or a corporate executive, our team is committed to developing a tax plan that works for you.

Proven Results: Empowering Financial Well-being

Our AI-powered analysis has yielded impressive results for our clients, consistently delivering substantial tax savings across a wide range of scenarios. From helping clients save millions of dollars in taxes to securing substantial refunds and credits, we’ve consistently demonstrated our ability to deliver results that make a difference.

Join Our Service Solutions Webinar: Empower Your Business

Don’t miss out on the opportunity to delve deeper into these cutting-edge services! Join us for our upcoming Service Solutions webinar on Tuesday, March 19th featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.

Discover how these innovative solutions can transform your business operations and financial outcomes.

Register now to secure your spot and gain exclusive insights from industry leaders. Empower your business with the tools you need to thrive in the cannabis industry. We look forward to seeing you there!

Under Maryland state law, all “raw plant material” including pre-rolls are required to be tested at a state-licensed laboratory for: 

• Moisture Content and water activity;  
• Residual solvents and processing chemicals;  
• Residual pesticides;  
• Microbial impurities;  
• Mycotoxins;  
• Foreign materials;  
• The “big four” heavy metals (arsenic, cadmium, lead and mercury) and chromium;  
• Cannabinoids; and 
• Terpenes 

Aside from cannabinoids and terpenes – which is information consumers often look for and want to know when purchasing – all the rest are safety issues. 

“Laboratory testing minimizes the risk of pesticides, microbes, heavy metals, toxins, and residual solvents from being consumed by an immunocompromised population,” reads the most recent revision of the Maryland Cannabis Administration’s Technical Authority For Cannabis, a 33-page document detailing the requirements and procedures labs in the state must perform on cannabis products. 

Like many states that have come online in later waves of legalization, Maryland law requires testing of cannabis products in their final form. That, for example, means testing the completed, fully-packed pre-roll, not just the flower that gets packed into it. 

That means all your ingredients, including your pre-rolled cones, need to be as clean as your flower, or you risk losing the whole batch due to a failed test. 

MICROBIALS AND MYCOTOXINS 

While adult-use cannabis sales continue to climb, Maryland still has a fairly robust medical marijuana program that includes nearly 134,000 patients. For those consumers in particular, making sure the cannabis products they use, including pre-rolls, are as safe as possible is vitally important. 

Testing for Microbials and Mycotoxins, for example, while important safety considerations for healthy users, is key for those who may be immunocompromised. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage.  

Maryland requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption. 

Regulations require a total mycotoxin concentration of less than 20 parts per billion in order to make it to dispensary shelves. 

Maryland law also requires testing for E. coli and Salmonella, among others. 

In a similar vein is the requirement to test for water activity, a measure of the available water that can be a breeding ground for microbiological growth. Like most states, Maryland caps water activity at 0.65 Aw in flower and pre-rolls, since water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed. 

HEAVY METALS INCLUDING CHROMIUM 

Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system. 

Like many states, Maryland requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. But unlike many legacy markets, Maryland is among a handful of recently-legal states that also require testing for chromium, another dangerous heavy metal. Once chromium reaches the bloodstream, it can damage the kidneys, liver and blood cells with the potential for renal and liver failure if untreated. 

RESIDUAL PESTICIDES AND CHEMICALS 

Maryland also has strict laws regarding the use of pesticides and other “crop protection agents” (like fungicides) on cannabis. There are 146 crop protection agents approved for use on cannabis by the Maryland Department of Agriculture. 

The state also specifically requires testing for 48 pesticides and plant growth regulators, each with their own actionable limits, any of which can require the product to be destroyed. 

There are similar requirements for residual solvents used in the process to create cannabis extracts for vape cartridges or infused pre-rolls. 

LAB REQUIREMENTS 

Along with direction on actionable limits, Maryland requires that all cannabis products be tested at one of the four labs that are certified by the state and accredited to ISO/IEC 17025 by an International Laboratory Accreditation Cooperation (ILAC) recognized third party.  

Additionally, the state offers guidance on exactly how samples are to be collected and maintained, including notes on be sure the lab is clean and that employees use personal protective equipment to ensure samples are not contaminated. There is also direction on the standard operating procedures required for some of the tests. 

“To reliably provide the laboratory with a representative sample, standard sampling methods with descriptive steps must be applied with quality and consistency,” reads the technical authority document. “All sampling must be consistently performed using accepted methodologies.” 

PRE-ROLL COMPLIANCE AND SAFETY 

As noted, Maryland’s cannabis testing is done on products in their final form, meaning that, for example, any pre-rolls must be tested after being packed in their cones. That means that no matter how attentive to the rules you are, your product can still fail if your pre-roll supplier is not as diligent as you are. 

On top of that, customers – especially medical patients – should not be worried that the products they are using to help feel better will make them sicker, whether they purchase a pre-roll at a store or pack a cone at home themselves with their favorite flower. 

“You’re putting something in your body; make sure it’s high quality,” says Custom Cones USA Compliance Manager André Bayard. 

Testing is not required on rolling papers and pre-rolled cones, so many producers do not know what they are getting in their paper, which can contain all of the same dangers as cannabis. For example, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits 

Bayard recommends making sure your pre-roll supplier has COAs available to prove their products are clean and will pass tests or will send you samples for you to test before committing to a full order. 

“Work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. “Any one issue can be detrimental to your brand reputation.” 

JOIN US AT THE FOREFRONT: REGISTER FOR NCIA’S MARYLAND STAKEHOLDER SUMMIT

Don’t miss out on the opportunity to delve deeper into Maryland’s cannabis landscape at the upcoming NCIA Maryland Stakeholder Summit 2024. This event, hosted by the National Cannabis Industry Association on Tuesday, April 2nd in Baltimore, MD brings together key players, industry experts, and stakeholders to discuss the latest developments, regulations, and opportunities shaping Maryland’s cannabis market.

As a special offer for Industry Insights readers, NCIA is excited to provide a 20% discount code for summit registration. Simply use the code CUSTOMCONESMD25 at checkout to unlock your savings and secure your spot at this must-attend event.

Whether you’re a producer, retailer, advocate, or simply interested in learning more about the industry, this summit offers invaluable insights and networking opportunities. Join us as we explore strategies for navigating regulatory challenges, ensuring product quality, and driving innovation in this dynamic sector.

Register now to secure your spot at the Maryland Stakeholder Summit and be part of the conversation driving Maryland’s cannabis industry forward. Don’t miss your chance to connect with industry leaders, gain valuable knowledge, and contribute to the growth and success of Maryland’s cannabis market.

Register here and be at the forefront of Maryland’s cannabis revolution!

When it comes to cannabis testing requirements, Missouri absolutely lives up to its nickname as the Show Me State, requiring its licensed cannabis businesses to run a wide series of tests to prove the cannabis they are sending to store shelves is safe.

As a relatively new state to join the cannabis industry, with voters approving medical marijuana in 2018 and recreational cannabis in 2022, Missouri has had the benefit of watching several other states develop programs ahead of it and its testing regulations reflect that.

Among the strictest testing regiments in the industry, Missouri’s regulations require all cannabis products produced for the medical or recreational market to be tested in its final form, including pre-rolls. That means not only is the flower subject to testing, but your paper and any other ingredients as well, since anything can cause a failure that can see the whole product lot destroyed.

In Missouri, both flower and pre-rolls, for example, must be tested by one of 10 state certified labs for:

• Moisture Content and water activity;
• Residual solvents and processing chemicals;
• Residual pesticides;
• Microbial impurities;
• Mycotoxins;
• Foreign materials;
• The “big four” heavy metals (arsenic, cadmium, lead and mercury) + Chromium;
• Cannabinoids; and
• Terpenes (if requested).

The majority of these tests are designed to protect consumers from potential dangers hidden in their cannabis products, so it is important that any rolling paper or pre rolled cones you buy – even for personal use – should pass these tests.
For example, moisture content and water activity can point to the potential for mold growth. Any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, which is why Missouri, like many states, caps water activity at 0.65 Aw in flower and pre-rolls.

THE BIG FOUR HEAVY METALS PLUS CHROMIUM

Like many states, Missouri requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system.

Missouri, however, is one of a handful of states that also include chromium in their testing regiment, another dangerous heavy metal. Once chromium reaches the bloodstream, chromium can damage the kidneys, liver, and blood cells with the potential for renal and liver failure if untreated. So, you can see why states have begun adding it to their testing requirements.

MICROBIALS AND MYCOTOXINS

While heavy metals are dangerous, microbials and mycotoxins pose the greatest risk to human health.
Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage. Missouri requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption.
Missouri regulations require a total mycotoxin concentration of less than 20 micrograms per kilogram for cannabis to receive a passing mark.
Missouri also requires testing for other microbials like Pathogenic E. Coli, Salmonella and Pathogenic Aspergillus Species including A. fumigatus, A. flabus, A. niger and A. terreus.

PESTICIDES

Missouri also requires testing for residual pesticides and other chemicals. The state allows some pesticides to be used on cannabis – tracked by the Missouri Department of Agriculture’s Pesticide Program – but cultivators are required to report in the state track and trace system all pesticides, fertilizers and other chemicals applied to the plants, as well as all the ingredients contained in each of those.
State law requires tests for 61 chemicals and 20 residual solvents, with actionable limits, and foreign matter screening.

LABELING LAWS

Missouri also has a very strict labeling law for its cannabis packaging that requires specific information in a specific order, beginning with the state’s diamond THC logo, the letter “M,” all ingredients, license number of the producer and where the products passed their testing, as well as the track-and-trace number for the samples and the THC potency, among others.

LAB LICENSING AND LAB SHOPPING

Aside from specifics for testing, the Show Me State goes even further when it comes to which labs can be used and how those labs get licensed.

Missouri law contains provisions for exactly who at the labs can conduct the tests, requiring the labs to be employ a laboratory director with a degree in a natural science and at least five years’ experience in a regulated lab environment or a degree in “another applicable field” with 10 years’ experience. It also requires the person performing the test to have a bachelor’s degree in natural science and at least two years of lab experience.

But recent updates to Missouri’s regulations go even a step further than most states in an attempt to stop the process known as “lab shopping” to get desired results. Normally aimed at trying to limit THC potency inflation, the new law requires producers and labs to submit their samples to other labs so results can be compared.

For example, the new regulations say that up to 10 times per year, the state will require one lab to pick up samples from another lab and re-perform a test. The state will review all the results to make sure they have similar potency results and to see if one lab is passing samples for pesticide residue while another one is failing it.

According to Custom Cones USA Compliance Manager André Bayard, while the main focus of the new law appears to be THC potency inflation, which, of course, is a major driver of sales for cannabis companies, that too is a safety concern, especially in the medical market or for low-dose patients and consumers.

ENSURING PRE-ROLL COMPLIANCE

As noted, the Missouri law requires all products be tested in their final form, including pre-rolls. That means even if your cannabis is clean, your products can fail and be destroyed if your rolling papers are not.

Because of that, manufacturers need to protect themselves – and their customers – by carefully selecting suppliers. After all, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits.

Pre-roll manufacturers in particular need to pay attention to their suppliers and make sure that the company from which they buy their paper takes testing as seriously as they do. Bayard recommends making sure your pre-roll paper supplier is a partner.

“Find a supplier that is willing to work with you and do the due diligence to make sure you know ahead of time whether your paper will pass,” Bayard says.

Bayard notes that when contacted by a manufacturer in Missouri in 2022 about chromium content causing failures, Custom Cones USA sent samples ahead of time so the manufacturer could pack and test a handful of their completed pre-rolls to make sure the products were clean before committing to a full order.

If your pre-roll supplier is not willing to go through that step, it may be a red flag.

Testing failures can be expensive, so make sure you not only keep up on the latest changes to your states regulations, but also work with a Pre-Roll Expert to get the cleanest, best-tested pre rolled cones you can find. And always ask to see COAs.

Engage with Missouri’s Cannabis Community: Join Us at the Summit!

As you navigate through Missouri’s stringent cannabis testing requirements, it’s imperative to stay informed and engaged with the latest developments in the industry. To further your understanding and involvement, consider joining us at the upcoming Missouri Stakeholder Summit, hosted by the National Cannabis Industry Association (NCIA). The Missouri Stakeholder Summit serves as a crucial platform for industry leaders, policymakers, and stakeholders to convene and discuss the pressing issues shaping Missouri’s cannabis landscape. Each event will host a wide range of programming including interactive panel discussions, intimate fireside chats, and live Q&A to provide participants the opportunity to make the Voice of Main Street Cannabis heard by key decision makers.

All industry professionals are invited; NCIA members attend free and have exclusive access to Q&A sessions. From regulatory updates to market insights, this summit offers a comprehensive view of the opportunities and challenges ahead. From regulatory updates to market insights, this summit offers a comprehensive view of the opportunities and challenges ahead.

Ready to elevate your involvement in the cannabis industry? Explore the benefits of NCIA membership and gain access to exclusive resources, networking opportunities, and advocacy initiatives. Join online today or schedule a meeting with our team to learn more about membership and how NCIA can support your professional growth and business success.

Whether you’re a seasoned professional or new to the industry, the summit provides invaluable networking opportunities, expert panels, and discussions tailored to meet your needs. It’s a chance to connect with like-minded individuals, gain strategic knowledge, and contribute to the growth of Missouri’s cannabis market. Don’t miss out on this unique opportunity to be part of the conversation that drives change and innovation in Missouri’s cannabis industry. Register now to secure your spot and take an active role in shaping the future of cannabis in the Show Me State!

In our ongoing commitment to providing timely and essential education to the cannabis industry, the National Cannabis Industry Association (NCIA) recently hosted a thought-provoking webinar titled “Positioning for Prosperity: Insurance Essentials for Social Equity Awardees.” In collaboration with NCIA’s Risk Management & Insurance Committee (RMIC), this webinar delved into the critical considerations surrounding insurance needs within the cannabis industry.

Led by a panel of esteemed experts, the discussion navigated the intricate landscape of insurance coverage, specifically tailored to address the needs of social equity awardees. From exploring the advantages and disadvantages of social equity programs to addressing challenges such as information inaccessibility and skyrocketing premiums, the webinar provided valuable insights for businesses seeking to navigate the insurance landscape.

Key topics included:

• Defining social equity awardees and discussing their advantages and disadvantages in the industry and market.
• Exploring the unique coverage needs for social equity awardees.
• Examining real-life examples of what has and hasn’t worked in the cannabis industry regarding insurance coverage.
• Understanding the differences between state requirements and optimal coverage for cannabis businesses.
• Exploring other financial requirements that help social equity awardees establish sustainable companies.

Panelists:

Angela White
Equity for Industry Program Manager
Success Centers SF

Antoine Mordican
Owner/CEO
Native Black Cultivation

Nichelle Santos
Founder, CEO
CannaCoverage Insurance Services

Matthew Johnson, CICS
Risk & Insurance Consultant
AssuredPartners

Cimone Casson (Moderator)
CEO
Minorities for Medical Marijuana

Throughout the webinar, participants gained insights into how to position their businesses for success in the evolving cannabis landscape while gaining a deeper understanding of the vital role organizations like CANNRA play in progressive policy improvement.

Missed the webinar? Don’t worry! You can watch the full recording on our YouTube channel below.

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At NCIA, we remain committed to providing valuable resources, education, and insights to empower businesses and individuals within the cannabis industry. Stay tuned for more updates, webinars, and events designed to support your journey in the cannabis space.

Thank you to our panelists, attendees, and the RMIC for their contributions to making this webinar a success.