As the cannabis industry continues to grow and mature, enforcement actions by regulatory agencies have become more prevalent. Cannabis businesses need to understand the common violations that can result in enforcement actions and how to avoid them. In this article, we’ll cover some of the most common violations and offer tips for maintaining compliance.
Packaging and Labeling Violations
One of the most common violations in the cannabis industry is related to packaging and labeling. Regulations vary by state, but most require specific labeling requirements, including potency levels, testing information, and warnings. Ensure to thoroughly review and comply with your state’s regulations to avoid enforcement actions related to packaging and labeling.
Inventory and Record-Keeping Violations
Inventory and record-keeping violations are also common in the cannabis industry. It’s crucial for businesses to maintain accurate records of all inventory, including where it was sourced, how it was tested, and where it was sold. Regularly review your records to ensure accuracy and compliance with state regulations.
Advertising Violations
Advertising regulations can be complex and vary widely from state to state. Reviewing and complying with your state’s regulations to avoid enforcement actions related to advertising violations is essential. Common violations include making unsubstantiated claims about the health benefits of cannabis, using imagery that may appeal to children, and failing to include required disclaimers or warnings.
Security and Safety Violations
Given the highly regulated nature of the cannabis industry, security and safety violations are taken very seriously. Make sure to comply with state regulations related to security measures, such as alarm systems, cameras, and employee background checks. Additionally, businesses should prioritize safety measures to protect employees and customers.
Employee Compliance Training
Employee compliance training is often overlooked, but it’s crucial for maintaining compliance and avoiding enforcement actions. Make sure to provide comprehensive training for all employees on state regulations, including packaging and labeling requirements, record-keeping, and security measures. Regularly review and update your training program to ensure compliance with any changes to regulations.
In conclusion, maintaining compliance in the cannabis industry requires a thorough understanding of state regulations and a commitment to following them. By avoiding common violations related to packaging and labeling, inventory and record-keeping, advertising, security and safety, and providing employee compliance training, cannabis businesses can reduce the risk of enforcement actions and operate successfully within a highly regulated industry.