In the Massachusetts cannabis industry, a significant regulatory wave hit two major players with hefty fines for neglecting consumer safety practices last week. Ascend Wellness Holdings and Curaleaf Holdings, two prominent multistate operators in the marijuana industry, have found themselves under the scrutiny of the Massachusetts Cannabis Control Commission (CCC) for violations that have raised eyebrows across the industry.
Fines and Violations In Massachusetts Cannabis Industry
Ascend Wellness Faces Track-and-Trace Compliance Issues
Ascend Wellness Holdings was fined $85,000 after allegations emerged that the company failed to comply with Massachusetts’ track-and-trace system, first reported by the Boston Globe. The track-and-trace system is crucial for ensuring that all cannabis products are accounted for and safely delivered to their intended destinations.
Ascend’s failure to properly track nearly 900 marijuana products meant regulators couldn’t verify their delivery. This breach in procedure led the CCC to deem the violations significant enough to warrant a substantial fine. During a public meeting, a commission member described the offense as “so egregious that it amounts to incompetence.”
“Ascend is fully committed to adhering to the regulations set forth by the CCC and places great importance on compliance,” Frank Perullo, president and cofounder of Ascend, to the Boston Globe, adding, “We have already implemented most of the necessary actions and remain dedicated to working with the CCC to restore trust and confidence as we move forward.”
Curaleaf Pesticide Contamination
Meanwhile, Curaleaf Holdings received an $80,000 fine for a “systemic problem of not following best practices to limit contamination” at its Amesbury and Webster cultivation sites. The CCC identified systemic issues dating back to 2021, including facility maintenance problems like unsecured doors and gaps in ducts that led to the contamination of cannabis products.
Curaleaf is currently on a six-month probation period and must promptly report any positive pesticide findings to the commission. Additionally, the agency has the authority to mandate that Curaleaf retest any products with high pesticide levels at a testing laboratory approved by the agency.
“The health and safety of our patients and customers remains our number one priority,” spokesperson Jordan Rahmila for Curaleaf said in a statement to The Globe. “We feel confident about the changes made to ensure this doesn’t happen again.”
Massachusetts Cannabis Regulatory Landscape
The CCC has experienced its own challenges, including leadership changes and criticisms of its structure. This turmoil has added complexity to the regulatory landscape and raised questions about the commission’s effectiveness in managing the state’s cannabis industry.
Bruce Stebbins’ recent appointment as acting chair of the CCC followed the firing of the former chair, Shannon O’Brien, due to allegations of ‘gross misconduct.’ As the commission searches for a new executive director, stakeholders are closely watching how leadership changes may impact the agency’s ability to enforce regulations and address industry challenges.
While the Massachusetts cannabis industry continues to evolve, and ongoing oversight will be crucial to ensuring that it operates safely and responsibly. The CCC’s actions demonstrate that the agency is actively working to address challenges and uphold its regulatory framework, even as the industry faces ongoing scrutiny and criticism.
Innovation within the industry, whether in the form of improved safety protocols, advanced tracking systems, or enhanced cultivation practices, will play a key role in shaping the future of cannabis regulation.
Consumer and Industry Reputation Is The Way To Hold Them Accountable
At the heart of the cannabis industry’s success is consumer confidence. By addressing compliance issues head-on and demonstrating a commitment to safety and transparency, companies can build and maintain the trust of consumers and regulators.
The recent fines against Ascend Wellness and Curaleaf serve as a reminder of the potential consequences of neglecting consumer safety practices. However, they are just a drop in the bucket for large MSOs like Ascend and Curaleaf, likely not impactful enough to drive real change.
To hold them accountable, we must closely monitor regulations and call them out when necessary. This ensures the consumer base stays informed and that these companies follow the rules. This situation also presents an opportunity for the industry to learn, adapt, and strengthen its commitment to building a safe and trusted cannabis market in Massachusetts and beyond.
