A state review has identified weaknesses in Colorado’s system for detecting contamination in cannabis products and alerting the public when potential safety concerns arise.
The audit examined testing and oversight by the state’s Marijuana Enforcement Division (MED). While investigators found no signs of widespread safety and health issues, they concluded that several parts of the regulatory system leave room for improvement.
Colorado approved recreational cannabis in 2012. The MED, part of the Revenue Department, is responsible for licensing marijuana operators and enforcing state requirements governing the industry.
According to the review, several issues combine to make it harder for regulators to identify potential threats and verify that companies are meeting safety standards. The weaknesses, they say, could increase the likelihood that contaminated products reach consumers or that marijuana is sold with inaccurate potency information.
Marijuana businesses choose their samples and submit them to privately operated laboratories for analysis. According to the audit, 24 other states with legal cannabis programs prohibit companies from selecting their own samples and instead use independent third parties.
Senator Rod Pelton questioned whether Colorado should adopt a similar approach. He noted that a business acting improperly could potentially choose which products undergo testing.
MED’s deputy director Kyle Lambert said officials have studied third-party sampling but decided not to make the change in 2026. He cited the expense and logistical difficulties involved in reaching businesses, particularly those in rural areas. He also noted that independent collection would not necessarily ensure that samples accurately reflect an entire production batch.
Additionally, regulators lack enough personnel to visit every marijuana business annually, although the share of businesses receiving inspections has risen over the last three years. MED currently aims to inspect each business once every two years.
Auditors also raised concerns about delays in consumer warnings. From 2023 through 2025, products identified as potentially harmful remained available for more than seven months on average before regulators issued public safety advisories. The average response time improved during 2025 after the division changed its advisory procedures.
The audit recommended making it easier for businesses and consumers to report safety issues and further reducing delays in issuing warnings. MED accepted all of the recommendations.
The audit also called on lawmakers to expand the state reference laboratory’s role in overseeing cannabis regulation. Operated by the state Public Health Department, the facility currently can’t test for mycotoxins, pesticides, and residual solvents. Officials estimate expanding its capabilities would cost roughly $13 million.
Marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) in the North American region will take the audit as a positive step towards ensuring that ongoing improvements are made by regulators so that cannabis products sourced from licensed outlets retain their superiority over illicit products on the black market.
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