Your cannabis business MAY live or die by your or your consultant’s understanding of cannabis compliance, especially in the states. With no federal legalization program currently in place, each state has created its own legalization program.
In our blog, we’ll talk about cannabis compliance, non-compliance, why compliance matters, and how your business depends on cannabis compliance.
Why your Business Depends on Cannabis Compliance
Cannabis is a developing industry in the commercial market. From administrative to operational there are a few things business owners must consider when keeping their business running smoothly. Cannabis Compliance is the most important consideration for your business model. Cannabis Compliance is essential for every marijuana business at any stage.
Whether you are in the application process or actively operating cannabis compliance is vital to ensuring the longevity and success of your business. In this post we are going to dive into what is compliance, why is it important, and what you can do to ensure your business’ future.
What is Cannabis Compliance?
Compliance is the backbone of any cannabis business. Each state creates its own rules for regulating cannabis businesses. Compliance means your business follows the rules and regulations for your type of cannabis business. You must know and follow the rules required of your business whether you grow, process, transport, test, or dispense. Regulations also differ between medical and recreational cannabis and CBD.
To illustrate, operating a recreational dispensary in California has a different set of rules to that of New York. Big or small, compliance is essential to your business operations. And if you are a multi-state operator (MSO) cannabis compliance is a necessity for your business model. Keeping track of the different regulations in each state you are operating in is a huge undertaking. A cannabis compliance consultant on your team keeps your license in good standing to avoid non-compliance issues.
Now that we have gone over what cannabis compliance is we will discuss why it is important. In a heavily regulated industry such as cannabis, non-compliance can be costly. Non-compliance could mean anything from correction orders to expensive fines or losing your license. And depending on the violation you may be forced to shut down until the issue is corrected. For instance, fixing non-compliant packaging can result in significant financial losses and delays. For many, the cost of shutting down operations is too high and is not a risk best worth avoiding.
Why does Cannabis Compliance Matter?
Cannabis remains a Schedule 1 Controlled Substance and protecting public health is the number one priority when it comes to cannabis. Regulations are in place to protect the health and safety of the consumer.
The movement of cannabis is tracked through every step in the supply chain (seed-to-sale) to ensure each product meets quality and safety standards for consumption. And the protection of minors is of utmost concern. As such, businesses must follow strict rules when it comes to marketing and packaging, and labeling standards.
How to Keep your Cannabis Business Compliant
Regulations change frequently. Staying up to date on regulatory changes and keeping track of important deadlines are essential. That is why hiring a cannabis compliance consultant is the best thing you can do to ensure the longevity and success of your business.