Cannabis testing facilities have proposed many issues since industries started; and its questionable how useful they are. A current and growing issue to plague the industry is that producers are lab-shopping between these facilities, to find the ones that give the results they want. What does this mean for you as the buyer?

Third party testing facilities

When it comes to weed markets, there are two circumstances when testing facilities are used, and the rules for the two are different; in fact, one doesn’t have rules at all. This is because the difference is in whether the products come from a legal market or black market. For example, when dealing with a delta-8 product, lab results come from a different testing facility then a weed product from a regulated company.

That’s because delta-8 products aren’t generally regulated by state, although there are some exceptions. If a state regulates them, then this no longer applies. For the majority that do not, or which outwardly illegalized cannabinoid products; then any testing done, isn’t mandated. If a company isn’t mandated to do testing, it means its doing it for your benefit; or rather, your perceived benefit. And it’s not going to use a regulated lab, because its not a regulated company. This often results in the use of bogus third-party testing facilities.

However, that’s the unregulated market. The regulated market has specifications on these matters; laws that companies must follow in order to remain compliant. These companies aren’t telling you they tested the products to make you happy, they’re doing it because they can’t legally sell their products, if they do not. As such, testing facilities in the legal market are also regulated.

If you’re thinking that only unregulated markets have issues with third-party testing though, you’re very much mistaken. Not only are plenty of labs happy to flub results for the benefit of a company; but companies are now shopping around for labs, in order to find ones that are willing to give inflated THC results to make the products seem stronger, and therefore, better. Higher THC does not relate to quality, of course; but for many people it’s the thing they’re looking at when buying a product, and these companies know that.

Recent warning for companies

The level of THC in a product has nothing to do with the quality of the product. It doesn’t mean there won’t be heavy metals or pesticides, or that it’s a desired strain, or that the other components like terpenes and flavonoids, will be at the right levels. All it means is that the product has a high level of THC; and for many people, this is the main issue when shopping for weed products.

In a recent MJBizDaily article, this issue was expanded on. In fact, in California, its such a problem that regulators already sent out warnings to labs licensed in the state, to report only accurate results; or face some kind of repercussions, like license retraction. MJBizdaily apparently was able to get a copy of the letter sent to labs on September 14^th, by the state’s Department of Cannabis Control’s Lab Division. The letter stipulates that new random onsite testing will soon occur, for products already tested; as a means to ensure the correct results were reported.

As per the letter, “Inaccurately reporting results and falsification of data will result in action against your license, up to and including revocation.” It continued that “It may also lead to recall and/or embargo of the cannabis or cannabis products.” It stipulated that if Department of Cannabis Control (DCC) results don’t match standard lab results, that this could result in a need to relabel products. This possibility could be costly for companies; but at least doesn’t mean license revocation.

According to DCC Director Nicole Elliott in an email to MJBizdaily, “Randomly testing off-the-shelf products will continue to provide consumers with the confidence that the cannabis products they purchase have been tested and those test results are accurate.”

What does lab-shopping mean?

The cannabis world is a highly competitive place, and this means that companies are constantly fighting to be at the top of it. Since its known that many buyers are mainly looking for high THC levels, companies work to accommodate that desire, by offering high-THC products. Even when this means saying the products are higher in THC than they actually are.

Companies have been reported to go ‘lab-shopping’ in order to find labs willing to bend rules, and say that the tested material is higher in THC than it actually is. Often a company will send its product to multiple labs, and take the results of the company that offers the highest THC, or most favorable results; whatever that means to them. Companies often then end up partnering with the labs that give the results they like the best.

The idea that this exists at all, is indicative of an industry in which regulators really aren’t able to regulate. Especially as reports go back to 2019, when Leafly covered the story in the first place. At that time, it was reported that an audit in Oregon found 43% of companies were using at least three labs; an indication in and of itself, of lab-shopping.

In an MJBizDaily article from last year, industry officials said that growers and manufacturers are likely to keep up this behavior of shopping around for labs to give inflated THC amounts, in the absence of state-run labs to oversee private operations. As of right now, its not standard for states to operate labs for verification. California’s attempt to fight this is evidenced by the DCC letters, and the plan to retest material onsite to see if results match. However the question looms of how far-reaching this can go. In reality, the DCC is still limited in that it can’t test everything that comes through.

The MJBizDaily article quoted Jill Ellsworth, the CEO of Willow Industries out of Denver, Colorado on the topic. She stated, “On the lab side, inflated potency results that are not accurate are happening everywhere.” She continued that it would be a great idea if states actually audited third-party, private labs; which is what California is essentially attempting to do now. Except California is doing onsite testing, its not setting up its own state-run lab.

Ellsworth thinks consumer safety should outweigh the desire for companies to provide high-THC products; especially in light of the issues related to the introduction of high THC products, and the resulting issues of THC overdoses. In this sense, the issue of higher-THC products in general, is – at least partly – the fault of legal producers; who are all competing to sell the highest THC products.

What doesn’t come up in the articles I’ve read on this topic, is the idea of why the labs do this. Sure, it could be a measure of their own competition between each other, just to get regular business. But often when an illegal deed like this is done, it’s done for payment. The logic answer here is that not only are companies lab-shopping to find a lab that will accommodate their desires for reporting inflated THC levels, but they’re likely paying in some way to get the job done.

Is there a way to end lab-shopping?

We’re now left with a legal industry, which is just as confounding in terms of the illicit industry, about what exactly is in a product. And this despite the fact we’re supposed to have product transparency in the legal market. For as ‘clean’ as it’s advertised to be, in comparison to the super ‘dirty’ black market; the amount of issues coming out indicates this is not true at all. In fact, not only are there issues with things like heavy metals, and pesticides; but the reality is, we can’t trust any lab results we do get.

There are a couple hard realities concerning improvement with lab-shopping. The first is that the general public doesn’t know. No matter how many educational programs, or signs, or warnings are out there; its unlikely that the population at large will truly understand the issue. Which means they’re not going to put effort into picking through products to find the one with more honest lab results.

Secondly, it was the desires of the population at large that drove these actions in the first place. Maybe its not all about THC, but lets be honest, weed has gotten more intense; and a lot of people like that. As long as there is a desire for the products (and there is, or this wouldn’t happen); companies will do what they have to, to provide what people want to buy.

Beyond all this, the ability to police it all, isn’t possible. The legal industry can only attempt to regulate the legal industry; and a huge percentage operates as a black market, which cannot be tamed by regulatory laws. Considering no legal market has gotten this under control yet; its unlikely there’s a real workable answer. Plus, watching all governments’ complete inability to control the cannabinoid and vape markets; indicates its rather powerless at controlling this industry in general.

Conclusion

Lab-shopping is certainly not ideal, but it seems to be prevalent throughout the weed industry. Perhaps the only way it will stop, is when people decide they don’t want those products anymore.

Welcome one and all! Thanks for dropping into Cannadelics.com; we’re here to bring you the best in independent reporting for cannabis, psychedelics, and well beyond. Stop by when you can to keep up with recent happenings; and sign up for the Cannadelics Weekly Newsletter, to always stay within-the-loop.

Like this:

Like Loading…

Related

Leafly Budtenders’ Choice 2023-Terms and Conditions

Abbreviated Rules

NO PURCHASE NECESSARY. Open to US residents. Must be at least 21 to enter. Ends 4:20 p.m. PT on 10/12/2023. Three (3) prizes available to be won.  VOID WHERE PROHIBITED OR RESTRICTED BY LAW. See Official Rules at here.

OFFICIAL RULES

Leafly Strain of the Year Budtender’s Choice Giveaway

NO PURCHASE OF ANY KIND IS NECESSARY TO ENTER OR WIN. VOID WHERE PROHIBITED.

Eligibility: Leafly Strain of the Year Budtender’s Choice Giveaway (the “Giveaway”) is open only to legal residents of the 50  United States and District of Columbia where the Giveaway is lawfully offered but excluding residents of Puerto Rico and all US territories and possessions. All entrants must be employed by a duly licensed cannabis dispensary or retailer at the time of entry, and must be at least 21 years at the time of entry. Employees, officers, and directors of Sponsor, and the immediate family members (including spouses, unmarried partners, parents, grandparents, siblings, children and grandchildren) of any such employee, officer or director, are not eligible to enter the Giveaway or win a prize. The Giveaway is subject to all applicable federal, state, and local laws and regulations and is void where prohibited by law. Sponsor reserves the right to verify eligibility at any time. VOID WHERE PROHIBITED OR RESTRICTED BY LAW.

2. Sponsor: Leafly, LLC, 255 S King St. Ste 9-116 Seattle, WA 98104. 

3. Agreement to Official Rules: The Giveaway will be governed by these Official Rules. By participating in the Giveaway, you agree to be fully and unconditionally bound to these Official Rules, and you represent and warrant that you meet the eligibility requirements set forth herein.

4. Giveaway Period: The Giveaway begins at 11:59 p.m. Pacific Time (“PT”), September 18, 2023 and ends at 4:20 p.m. PT, October 12, 2023 (the “Giveaway Period”). Entries received after the Giveaway Period shall be disqualified. Sponsor’s computer is the official time-keeping device for the Giveaway.

5. How to Enter:

Complete the following steps during the Giveaway Period to be entered into the Giveaway (each an “Entry” and collectively, the “Entries”). Each Entry must comply with the Submission Guidelines below.

i. During the Giveaway Period, go to the announcement post to complete the Leafly Strain of the Year Budtender’s Choice Survey (“Survey”). The Survey will ask you:

1. Questions about your favorite strain and products from 2023; 

2. Your name; 

3. Your state or province of residence; 

4. To state the cannabis dispensary or retailer you are currently employed at; 

5. Contact information to reach you and the cannabis dispensary or retailer you are employed at if you are selected as a winner. 

b. Sponsor reserves the right, in its sole discretion, to reject or disqualify any Entry that does not comply with the Submission Guidelines or is otherwise inappropriate, offensive, not keeping with Sponsor’s image or if it is determined that the entrant has not complied with these Official Rules.

c. Multiple entries allowed per person during the Giveaway Period. Any use of alias names may void your Entries and/or disqualify you from the Giveaway as determined by Sponsor in its sole discretion. Any use of robotic, repetitive, automatic, programmed or similar entry methods or agents (including, but not limited to, Giveaway entry services) will void all Entries by that entrant. 

d. If you choose to participate using your mobile device, message and data rates may apply. See your wireless provider for pricing plan and participation details.

e. BY SUBMITTING AN ENTRY, ENTRANT ACKNOWLEDGES THAT HIS/HER ENTRY MAY BE POSTED ACROSS ANY OR ALL OF SPONSOR’S DIGITAL AND SOCIAL ASSETS, AT SPONSOR’S DISCRETION. Submission of an Entry grants Sponsor and its respective agents the right to publish, use, adapt, edit, and/or publicly perform and/or modify such Entry in any way, in any and all media, including for use in advertising and marketing, without limitation and without consideration to entrant.

6. Submission Guidelines: To be eligible for a chance to win, an Entry must meet the following guidelines (the “Submission Guidelines”).  An Entry must not:

a. Violate any third-party right, including any copyright, trademark, patent, trade secret, moral right, privacy right, right of publicity, or any other property right;

b. Contain any viruses, worms, or other interfering computer programming.

7. Winner Selection/Odds. Three (3) potential winners will be selected at random on October 13, 2023 at 12:00 p.m. PT. Winners will be selected from the total combined eligible Entries received by Sponsor. Odds of winning depends on number of total eligible Entries received. 

8. Winner Notification and Prize Acceptance: The potential winner(s) will be notified via email and phone by Sponsor by 5:00 p.m. PT on October 13, 2023. Each potential winner must respond to the notification via email within 48 hours or they may, at the Sponsor’s sole discretion, be disqualified.  The winner will be required to execute an Affidavit of Eligibility, a Liability Release, a Publicity Release (where imposing such condition is legal), and a W-9 form (for US residents) (collectively, “Prize Claim Documents”) within five (5) business days from the date that the e-mail containing the documents is sent to the potential winner. If the potential winner fails or refuses to sign and return all Prize Claim Documents within the five (5) business day/time period, the potential winner may be disqualified, at the Sponsor’s sole discretion. Failure to provide all required information and a signature on the documents within the stated time period may result in forfeiture of potential winner’s right to claim the prize and may result in the prize being awarded to an alternate winner.

The Sponsor shall not be held responsible for any delays in awarding a prize for any reason. If a potential winner is disqualified, found to be ineligible or not in compliance with these Official Rules, declines to accept a prize or, if Sponsor or its authorized designee is unable to contact the potential winner, or a prize is returned undeliverable, the prize may be forfeited, and in the Sponsor’s sole discretion, the forfeited prize may be awarded to an alternative entrant. If, after a good-faith attempt, Sponsor is unable to award or deliver a prize, the prize may not be re-awarded at the sole discretion of Sponsor.  Prizes are not transferable and include only the items specifically listed as part of a prize. No substitutions allowed, except at the sole discretion of the Sponsor. The winner shall be solely responsible for payment of any and all applicable federal, state, and local taxes for the prize won. Sponsor will issue an IRS Form 1099 to each prize winner. All other costs and expenses not expressly set forth herein shall be solely the winner’s responsibility. Any portion of a prize not accepted by winner will be forfeited. If a prize, or any portion thereof, cannot be awarded for any reason, Sponsor reserves the right to substitute the prize with another prize of equal or greater value or deem the prize forfeited. Each potential winner may be required to furnish proof of identification. Sponsor is not responsible for any winner’s privacy or spam filter settings which may divert any Giveaway message or e-mail, including any notification, to a spam or junk folder. The prize will only be awarded to a verified winner. Winner acknowledges that Sponsor has not made nor is in any manner responsible or liable for any warranty, representation, or guarantee, express or implied, in fact or in law, relative to any prize, including but not limited to its quality, mechanical condition or fitness for a particular purpose. Any and all warranties and/or guarantees on a prize (if any) are subject to the respective manufacturers’ terms therefore, and winners agree to look solely to such manufacturers for any such warranty and/or guarantee. 

9. Prizes: A total of three (3) winners will each receive cash prize of $1,000 (USD) in the form of a check. Prizes are non-transferable. Any federal, provincial and local taxes and any other costs and expenses associated with the acceptance and/or use of any prize are solely the winner’s responsibility. Winner is solely responsible for reporting and paying all applicable taxes. 

10. Publicity Release: Acceptance of any prize constitutes permission for Sponsor and its designees to use winner’s name, name of employer, and/or likeness for advertising and marketing purposes, without additional compensation, in any media, worldwide, unless otherwise prohibited by law.

11. Releases, Waivers and Limitation of Liability:

By participating in this Giveaway, entrants agree that the Giveaway Entities and their respective affiliates, subsidiaries, representatives, consultants, contractors, legal counsel, advertising, public relations, promotional, fulfillment and marketing agencies, website providers, Web masters and their respective officers, directors, employees, representatives, designees and agents (“Released Parties”) are not responsible for lost, late, incomplete, stolen, misdirected, postage due, or undeliverable email notifications or postal mail; or for any computer, telephone, satellite, cable, network, electronic or Internet hardware or software malfunctions, failures, connections or availability; or garbled, corrupt or jumbled transmissions, service provider/Internet/website/use net accessibility, availability or traffic congestion; or any technical, mechanical, printing, or typographical or other error; or unauthorized human intervention; or the incorrect or inaccurate capture of registration information; or the failure to capture, or loss of, any such information. The Released Parties are not responsible for any incorrect or inaccurate information, whether caused by any website’s users, tampering, hacking or by any of the equipment or programming associated with or utilized in the Giveaway. The Released Parties are not responsible for any injury or damage, whether personal or property, to participants or to any person’s computer related to or resulting from participating in the Giveaway and/or accepting a prize. The Released Parties shall not be responsible or liable for Entries that are entered by any automated computer, program, mechanism or device, for any Entries in excess of the stated limit or for Entries that are late, forged, lost, misplaced, misdirected, tampered with, incomplete, deleted, damaged, garbled or otherwise not in compliance with the Official Rules, and all such Entries may, in Sponsor’s sole discretion, be disqualified.

If, for any reason, an Entry is confirmed to have been erroneously deleted, lost or otherwise destroyed, corrupted or for any other reason not accepted as an Entry in the Giveaway, the entrant’s sole remedy is to enter the Giveaway again to receive another Entry. If, for any reason, the Giveaway is not capable of running as planned, Sponsor reserves the right, at its sole discretion, to cancel, terminate, modify or suspend the Giveaway and/or proceed with the Giveaway, including the selection of winner in a manner it deems fair and reasonable including the selection of the winner from among eligible Entries received prior to such cancellation, termination, modification or suspension. Notice of such cancelation, termination, or modification of the Giveaway shall be posted at www.leafly.com.

By entering the Giveaway, each entrant agrees: (i) to be bound by these Official Rules and by all applicable laws and by the decisions of Sponsor and Administrator, which shall be binding and final; (ii) to waive any rights to claim ambiguity with respect to these Official Rules; (iii) to waive all of entrant’s rights to bring any claim, action or proceeding against any of the Released Parties in connection with the Giveaway; and (iv) to forever and irrevocably agree to release and hold harmless each of the Released Parties from any and all claims, lawsuits, judgments, causes of action, proceedings, demands, fines, penalties, liability, costs and expenses (including, without limitation, reasonable outside attorneys’ fees) that may arise in connection with: (a) the Giveaway, including but not limited to any Giveaway-related activity or element thereof, and the entrant’s Entries, participation or inability to participate in the Giveaway, (b) the violation of any third-party privacy, personal, publicity or proprietary rights, (c) typographical or printing errors in these Official Rules or any Giveaway materials, (d) acceptance, attendance at, receipt, travel related to, participation in, delivery of, possession, defects in, use, non-use, misuse, inability to use, loss, damage, destruction, negligence or willful misconduct in connection with the use of a prize, (e) any change in a prize due to unavailability or due to reasons beyond Sponsor’s control, including but not limited to by reason of any acts of God, any action(s), regulation(s), order(s) or request(s) by any governmental or quasi-governmental entity (whether or not such action(s), regulation(s), order(s) or request(s) prove(s) to be invalid), equipment failure, threatened or actual terrorist acts, earthquake, war, fire, flood, explosion, unusually severe weather, hurricane, embargo, labor dispute or strike (whether legal or illegal), labor or material shortage, transportation interruption of any kind, work slow-down, civil disturbance, insurrection, riot or any other cause beyond any of the Released Parties’ control, or as otherwise permitted in these Official Rules, (f) any interruptions in or postponement, cancellation or modification of the Giveaway, (g) human error, (h) incorrect or inaccurate transcription, receipt or transmission of any part of any Entry (including, without limitation, the registration information or any parts thereof), (i) any technical malfunctions or unavailability of any website or any telephone network, computer system, computer online system, mobile device, computer timing and/or dating mechanism, computer equipment, software, or Internet service provider, or mail service utilized by any of the Released Parties or by an entrant, (j) interruption or inability to access the Giveaway, any other Giveaway-related websites or any online service via the Internet due to hardware or software compatibility problems, (k) any damage to entrant’s (or any third person’s) equipment used to access the Giveaway and/or its contents related to or resulting from any part of the Giveaway, (l) any lost/delayed data transmissions, omissions, interruptions, defects, and/or any other errors or malfunctions, (m) any late, lost, stolen, mutilated, misdirected, delayed, garbled, corrupted, destroyed, incomplete, undeliverable or damaged Entries, (n) any wrongful, negligent, or unauthorized act or omission on the part of any of the Released Parties, (o) lost, late, stolen, misdirected, damaged or destroyed prizing (or any element thereof), or (p) the negligence or willful misconduct by entrant.       

WITHOUT LIMITING THE FOREGOING, EVERYTHING REGARDING THIS GIVEAWAY, INCLUDING THE PRIZE, ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.  ANY ATTEMPT BY AN ENTRANT TO DELIBERATELY UNDERMINE THE LEGITIMATE OPERATION OF THIS GIVEAWAY MAY BE A VIOLATION OF CRIMINAL AND/OR CIVIL LAWS, AND SHOULD SUCH AN ATTEMPT BE MADE, CENTER RESERVES THE RIGHT TO SEEK REMEDIES AND DAMAGES (INCLUDING WITHOUT LIMITATION ATTORNEYS’ FEES) FROM ANY SUCH ENTRANT TO THE FULLEST EXTENT OF THE LAW, INCLUDING CRIMINAL PROSECUTION.

12. Arbitration. By participating in the Giveaway, you and Sponsor agree that any controversy or claim arising out of or relating to this Giveaway shall be settled by binding arbitration in a location determined by the arbitrator as set forth herein (provided that such location is reasonably convenient for claimant), or at such other location as may be mutually agreed upon by you and Sponsor, in accordance with the procedural rules for commercial disputes set forth in the Comprehensive Arbitration Rules and Procedures of JAMS (“JAMS Rules and Procedures”) then prevailing, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The JAMS Rules and Procedures are available at www.jamsadr.com or by calling (800) 352-5267. The arbitrator shall be selected pursuant to the JAMS Rules and Procedures. In the event that the claimant is able to demonstrate that the costs of arbitration will be prohibitive as compared to the costs of litigation, Sponsor will pay as much of the claimant’s filing and hearing fees in connection with the arbitration as the arbitrator deems necessary to prevent the arbitration from being cost-prohibitive. If any part of this arbitration provision is deemed to be invalid, unenforceable or illegal (other than that claims will not be arbitrated on a class or representative basis), or otherwise conflicts with the rules and procedures established by JAMS, then the balance of this arbitration provision shall remain in effect and shall be construed in accordance with its terms as if the invalid, unenforceable, illegal or conflicting provision were not contained herein. If, however, the portion that is deemed invalid, unenforceable or illegal is that claims will not be arbitrated on a class or representative basis, then the entirety of this arbitration provision shall be null and void, and neither claimant nor Sponsor shall be entitled to arbitrate their dispute. Upon filing a demand for arbitration, all parties to such arbitration shall have the right of discovery, which discovery shall be completed within sixty days after the demand for arbitration is made, unless further extended by mutual agreement of the parties. THE ARBITRATION OF DISPUTES PURSUANT TO THIS PARAGRAPH SHALL BE IN THE ENTRANT’S INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. THE ARBITRATOR MAY NOT CONSOLIDATE OR JOIN THE CLAIMS OF OTHER PERSONS OR PARTIES WHO MAY BE SIMILARLY SITUATED. DO NOT ENTER THIS GIVEAWAY IF YOU DO NOT AGREE TO HAVE ANY CLAIM OR CONTROVERSY ARBITRATED IN ACCORDANCE WITH THESE OFFICIAL RULES. BY PARTICIPATING IN THE GIVEAWAY, EACH ENTRANT AGREES THAT TO THE EXTENT PERMITTED BY APPLICABLE LAW: (1) ANY AND ALL DISPUTES, CLAIMS AND CAUSES OF ACTION ARISING OUT OF OR CONNECTED WITH THE GIVEAWAY, OR ANY PRIZE AWARDED, WILL BE RESOLVED INDIVIDUALLY THROUGH BINDING ARBITRATION AS SET FORTH ABOVE, WITHOUT RESORT TO ANY FORM OF CLASS ACTION AND (2) ENTRANT’S REMEDIES ARE LIMITED TO A CLAIM FOR MONEY DAMAGES (IF ANY) AND ENTRANT IRREVOCABLY WAIVES ANY RIGHT TO SEEK INJUNCTIVE OR EQUITABLE RELIEF. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATIONS OR EXCLUSION OF LIABILITY SET FORTH ABOVE AND IN SECTION 11, SO SUCH LANGUAGE MAY NOT APPLY TO EVERY ENTRANT.

13. Governing Law; Disputes: THIS GIVEAWAY IS GOVERNED BY, AND WILL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

This Giveaway and its Official Rules, excluding any and all disputes, are subject to all applicable US Federal, state, and local laws and regulations. All issues and questions concerning the construction, validity, interpretation and enforceability of the Giveaway Official Rules, or the rights and obligations of entrants and Sponsor in connection with the Giveaway, shall be governed by, and construed in accordance with, the laws of the state of New York, without giving effect to the conflict of laws rules thereof, and any matters or proceedings which are not subject to arbitration as set forth in Section 12 of these Official Rules and/or for entering any judgment on an arbitration award, shall take place in the state of New York and hereby waive any objection to such jurisdiction and venue. Any claim or cause of action arising out of or related to this Giveaway or these Official Rules must be filed within one (1) year after such claim or cause of action arose regardless of any law to the contrary. In the event any such claim or cause of action is not filed within such one (1) year period, such claim or cause of action shall be forever barred.

14. Severability. If any provision of these Official Rules shall be held invalid, illegal or unenforceable, such provision shall be enforced to the maximum extent permitted by law and the Sponsor’s fundamental intentions hereunder, and the remaining provisions shall not be affected or impaired, provided, however, that in such cases the parties oblige themselves to use their best efforts to achieve the purpose of the invalid provision by a new legally valid stipulation.

15. Winner List. To obtain a list of the winners, mail a self-addressed, stamped business-sized envelope to Leafly Marketing Department, at 113 Cherry St. PMB 88154 Seattle, WA 98104, USA. Winner List requests must be received by October 22, 2023.

© 2023 Leafly. All Rights Reserved. 

The vape industry is only getting bigger, yet most of the products within it, are illegal. In a new move, California just filed suit against nine vape companies; seemingly in an effort to root out illegal providers. Will this work?

This article is the express opinion of the writer in relation to California’s new lawsuit.

California vs nine vape companies

On Friday, September 8^th, California, via Attorney General Rob Bonta, filed a suit against nine different companies that Bonta says sell illegal vape products. All the products are inhalable, come from online sales platforms, and are unregulated. California does allow recreational cannabis, as per ballot measure Proposition 64 in 2016; and the state has a medical legalization since Proposition 215, in 1996.

Bonta said the nine companies targeted by the lawsuit, also violate Proposition 65; because of failure to include certain warnings on the products. This relates to delta-9, and a terpene called beta-Myrcene; both natural compounds of the cannabis plant; neither of which was ever definitively tied to reproductive harm, or developmental delays, the topics of the warnings. The suit also alleges that the companies are involved in unfair business practices.

Then Bonta went on to make a statement, that perhaps explains this California vape situation better; so long as you can read between the lines. He said, “I want to be clear: The sales of industrial hemp products that do not comply with California law, and the illegal sale of inhalable hemp in California will not be tolerated.

The dangers of these products must be communicated for sale to the public, and the sale of all industrial hemp inhalable products must cease altogether. The California Department of Justice will continue to protect the legitimate businesses who are operating responsibly in this space. There is no room for illegal inhalable hemp products in our state.” 

What’s really going on here?

So, California will continue to protect its legitimate businesses, and try to root out as many illegal vape providers as possible. This suit isn’t about finding a few companies that are deviating a bit; its about trying to get rid of black market retailers. The real issue Bonta has is not fear for your health; regardless of all those warnings he wants to make sure you see. It’s fear for tax revenue, and control of the market. Black market = no government revenue.

One mistake in this, is using the concept of ‘inhalable.’ Isn’t all flower inhalable? Obviously he doesn’t mean to get rid of the flower market, right? The guy is totally cool if you want to light hemp on fire and breathe it in, which is inhalation as well. No, he’s not trying to get rid of that. He’s only talking about vaporizers, and only ones sold outside of regulation. It’s an attack on the vape market, which is known to be a hugely illicit market. So big, that the government has tried to stop it in several ways, already.

A couple years ago the federal government tried to institute a vape mail ban; which was so unpopular it fizzled out. It also greatly targeted the company Juul, even though there isn’t a death or injury suit related. How? With the line that Juul created a vape epidemic by marketing to children; a nonsensical argument on many levels. Like, 1) The idea that vapes are what introduce knowledge of tobacco to kids, is insanely short-sighted; I mean, consider Hollywood. 2) No one is solely targeting the group least likely to have their own money for products. And 3) Who cares if it keeps kids from SMOKING??

The company, and similar campaigns, are used to induce fear of kids vaping. Its not a relief that those who choose a tobacco product, are more likely to inhale vapor than smoke. Rather, a fear that this method of inhalation will somehow cause the undoing of society, despite it being an alternative to the actually death-casing smoking. It’s so beyond logic, that its scary. Nicotine gummies almost made it out last year, but the FDA squashed it; in fear your child might want one. Nevermind that they 100% eliminate the issue of inhalation.

Logic time? Last I checked, pretty much every beer can looks like a soda can. And those pink and blue opioid pills sure look like little candies. Do you think someone actively ODing will make sure the safety lock is utilized correctly? Every US government allows the sale of opioids, while concurrently collecting money from opioid settlements on behalf of their people. This is already a massive contradiction when it comes to our health and well being. But heaven forbid you switch to vaping from smoking, or swallow an edible without having read a warning about issues that were never confirmed as related.

Cigarette taxes

The UK instituted a program to get smokers to switch to vaping; starting with the likes of pregnant women. It’s still talking about all kinds of risks, but it has conceded enough to allow this to happen. What’s the stipulation? The vape has to come from the government, whether directly, or through an approved source. As in, its cool to vape, but only if its for sure a legal sale. This might look like the government being wary of its residents’ health; but if you read between the lines… its really about reining in a wildly big illicit vape industry.

Because of the fallout with big tobacco, nearly every country allows the sale of cigarettes, but puts exponentially high taxes on them. These are the same sin taxes applied to cannabis products. These taxes are high enough to often make government entities, the biggest benefactors of the cigarette industry.

Some examples? Mexico has a 70% tax rate as of 2020, per its government; in 2021 the tax rate averaged 80.4% across Europe per TaxFoundation; and the UK has had as high as 82.16% on cigarette products in 2015 according to WHO data. The US, for its part, brought in $12.9 billion in cigarette tax money in just 2019, according to taxpolicycenter.org.

Governments seem happy for people to continue smoking, as long as they pay the high cost. On the other hand, vaping created another tobacco option to standard cigarettes; and one not regulated, and therefore outside of government tax reach. Governments seem generally unhappy for their populations to take this option. Even though vaping has overall shown to be way healthier than smoking, (except in a few freak cases that deal with certain additives); we’re continually fed fear on vaping, even as it gives an alternative to smoking.

Size of illicit vape market

It’s one thing to talk about something, and another thing to measure it. So lets try to attach some numbers to all this. Remember, illicit markets don’t report to governments, so we have no official data on them, or what they bring in. Everything we have, is estimates from different governments or research organizations. And sometimes its just pieces put together, and they don’t always match. It often feels like we’re very specifically not told anything. Think of what California just did with the vape lawsuit; yet it didn’t mention this as a legal market vs illegal market issue.

According to Grand View Research, the global market for e-cigarettes and vapes in 2022, was valued at $22.45 billion; although what this includes exactly is hard to say. We do know it separates vape sales from cigarette sales. Whatever it exactly refers to, this market is expected to grow at a compound annual growth rate of 30% from 2023-2030. According to that company, it was worth about $6 billion in 2020, so its already grown greatly in the last few years.

In terms of the UK, a recent Convenience Store article, reports on a UK study. The study was run by Japanese Tobacco International (a tobacco product manufacturer, not a research agency). The group tested purchasing in the UK, and found that more than half of the 186 tested locations, sold illegal cigarette and vape products. Said Ian Howel, the company’s fiscal and regulatory affairs manager, “Unfortunately, the illegal sale of tobacco and now vapes seems to be everywhere and it’s very difficult to put the genie back in the bottle.”

This doesn’t estimate the size of the total illegal tobacco market or vape market in the country; but it indicates they’re huge. A March 2023 article from the Daily Mail, which quotes a Trading Standard (government agency) report, claims that up to 1/3 of vapes sold in the UK could be illicit.

This is in part due to calling anything that does not 100% meet regulation, as illicit. Even if its that something lacks a warning; or is slightly bigger than the regulated size; or was made legally, but sold illegally. According to Better Retailing, about 138 million disposable vapes are sold every year in the UK. If Trading Standard’s numbers are correct, it means up to 45 million are illegal products. And that could be a low estimate if over half of retailers are willing to sell illegal products.

US illicit vape market

In terms of the US, there are a million fear tactic articles about illicit vapes, but very little information released. I have two theories on this. 1) The government doesn’t actually want you to know how little control it has. If it confirms the black market is bigger than regulated markets; its saying it can’t control it. 2) The other aspect of hiding this information, is that if use numbers are very high; it means there are very few actual incidences of danger involved. By never giving numbers; this allows entities to drive fear by talking about possible danger, while never answering for the frequency/infrequency of this danger.

A June article in NBC sheds more light on the situation. According to the article, there are over 9,000 electronic nicotine devices sold in the US, which is triple what it was in 2020. Most are thought to be disposable vapes, originating from China. NBC claims these numbers come from The Associated Press. The article goes on to explain that regulators refuse as many as 99% of product applications for e-cigarette products; which means only a few of the over 9,000, are approved and regulated.

It could be a nearly 100% illegal market, as anything not approved by the FDA is illegal. As per the article, 40% of the e-cig market in 2022, was disposables. Disposables are all illegal, so at least 40% of the market is automatically illegal. Considering the lack of approvals, its still a majority black market, even outside of disposables. NBC then quotes analytical company IRI, which says the total retail value of the vape industry was $7 billion in 2022. IRI claims over 5,800 different vape products are sold, a 1500% increase from 2020. Sources are not entirely consistent; highlighting the lack of info on this topic.

However, all sources indicate a massive market, which is nearly all illicit. In fact, the US is so far behind, and so antiquated in its techniques, that it spent months of time demonizing the companies Elf Bar, Esco Bar and Breeze; even blocking their imports. Just like it did with Juul before. What did it find? Those companies only accounted for 14% of the disposables market, last year. As starting a brand is as easy as sending your information to a manufacturer, new companies can pop up overnight. Which makes US attacks like that, nearly useless.

While it obviously grapples with a problem that leaves it embarrassingly left out, the FDA makes it sound like its all going according to plan. Tobacco Director Brian King stated, “I don’t think there’s any panacea here. We follow a comprehensive approach and that involves addressing all entities across the supply chain, from manufacturers to importers to distributors to retailers.”

Conclusion

Weird, I guess its not a panacea to have a 40%+ (let’s be honest, probably over 75%) illicit vape market operating in the country. Of course, this whole thing centers around an epidemic with no real death toll, for which no one wants to give any hard numbers. If it really is everywhere, then its also proven safe enough (at least in the short term), just by the mass existence connected to so few problems. If its not everywhere, and the situation is controlled; why the argument? Either way, the California lawsuit will likely do nothing to change the illicit vape landscape; either in the state, or beyond.

Hey there readers! Thanks for making your way to Cannadelics.com; an independent publication in the worlds of weed and psychedelics. Come by frequently for all updates; and head over to the Cannadelics Weekly Newsletter, for the best product promotions along with the news.

Like this:

Like Loading…

Related