Reports of alleged fraudulent activity in cannabis testing labs have surfaced once again in New York’s recreational market, with claims that some vape oil cartridges are being labeled with cannabinoid levels exceeding 100%. Similar accusations of labs inflating THC levels to meet client demands and possibly altering data meant to ensure consumer safety have been raised in other states as well.
Critics argue that such fraudulent practices could erode public trust just as New York’s recreational market surpasses $1 billion in sales for the first time following a challenging launch. Adding to the concern, New York lab operators say that regulators are not addressing the issue with the seriousness it deserves.
In December, representatives from two of New York’s 16 licensed testing labs sent a letter to the state’s Office of Cannabis Management (OCM) highlighting what they described as major concerns. These included exaggerated THC levels in marijuana products and vape cartridges with unrealistic cannabinoid compositions.
“If these problems are ignored, there is a real risk that unsafe and unethical lab results will be standard practice, much like what has happened in other states,” wrote Aaron Riley, CEO of Certified Testing and Data in Orlando, Florida, and Edward Lukaszek, Biotrax Testing Laboratory CEO, in the letter dated December 17.
They warned that failing to take action would jeopardize the integrity of the program in the future. Their letter urged the OCM to initiate recalls immediately to begin addressing these concerns.
However, regulators appear to be downplaying their concerns. According to them, officials have also been slow in releasing critical data that could shed light on the extent of the issue.
In other jurisdictions, anonymous test results have exposed trends suggesting potential manipulation. This aligns with the suspicions of many industry insiders who believe certain labs may be deliberately adjusting results to appease clients.
When asked for comment, an OCM representative stated that the office doesn’t discuss active investigations or disclose actions being taken against licensees to third parties. In a December 20 response to Riley and Lukaszek, state officials emphasized their commitment to ensuring public safety and health.
Similar problems have been reported in other states. In Massachusetts, MCR Labs, which also operates in New York, filed a lawsuit against competitors for allegedly inflating THC results and approving contaminated products for sale.
Most experts agree that strong oversight is necessary to ensure lab integrity. In states like Colorado and California, regulators conduct independent tests by purchasing products from retail shelves. If potency inflation or contamination is detected, recalls are issued. After stricter regulations were introduced in California, recall rates surged, and several labs shut down due to noncompliance.
However, New York has yet to conduct any reference testing or announce product recalls. When asked about this, an OCM representative stated in September that reference testing had not yet been used to verify lab results.
The entire marijuana industry, including entities like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operating across the border, would be happy to see any claims of testing lab fraud dealt with so that the industry’s reputation isn’t tainted by the wrongdoings of a few bad actors.
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