Cannabis industry stakeholders in New York warned lawmakers this week that many small processors are still struggling to implement a mandatory seed-for-sale program set to take effect Saturday.

The cap on 10-cent labels on all products sold in licensed cannabis stores has forced some processors to take their products back from retailers for labeling, a cumbersome process that cannabis industry experts and stakeholders say has been financially burdensome for small business operators already struggling to break even.

“If you’re a smaller processor, I think it’s almost a life-threatening situation because of the cost, not just in dollars of these labels that go to private businesses, but in terms of the human capital it takes to do that,” said John Vavala, president of the New York Cannabis Processors Association. He added that he is in the process of purchasing a $100,000 laser printer to help with the process of attaching labels — with their unique QR codes — to canned cannabis products.

“The technology doesn’t exist, so I have to develop it because … no industry in the world does,” said Vavala, who shared his concerns with lawmakers this week at a state legislative budget hearing on economic development. “You feel like there are processors and/or retailers that just won’t be able to label products and be ready by (Saturday).”

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Thethe company behind one of Colorado’s largest dispensary chainsa supplier sued for alleged failure to pay nearly $400,000.

Cannabist, also known as Columbia Care Inc., owns nineteen dispensaries throughout Colorado under the Green Solution and Medicine Man brands. With fifteen stores, Green Solution is one of Colorado’s largest and longest-running major dispensary chains, and Medicine Man, which debuted in Denver in 2009, is one of the oldest in the state.

A public company that paid millions for its Colorado holdings, Columbia Care changed its name to Cannabist Company in 2023. It is considered one of the leaders of legal cannabis with 51 dispensaries in ten states. But according to the maker of cannabis products and vaporizers, Cannabist isn’t paying its bills.

The lawsuit, filed in Denver District Court by C2C, LLC, which does business as Bonanza, accuses seventeen Cannabist stores of evading payments between November 2025 and February of this year. According to the lawsuit, the dispensaries were supposed to pay Bonanza within thirty days of each product shipment, but ended up racking up $382,962.70 on 68 separate invoices.

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Licensed California cannabis dealers reported3.9 billion dollarsCannabis sales in 2025 are down significantly from $4.2 billion in 2024, according to government data released Thursday.

It is also the third straight year of decline in the country’s largest market. Cannabis sales in California will reach $4.4 billion in 2023, according to the state Department of Revenue.

Athe excise tax has since been abolishedthe increase, which took effect July 1, also may have contributed to lower sales in the nation’s largest legal hemp market.

But sales in the fourth quarter — after the tax hike was reversed on Oct. 1 — were still well below the same period a year ago, according to DTFA data.

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