Sweet Leaf’s noncompliance led to millions in fines and an end of their business – are you sure you’re compliant? Do you know what steps you can take to make sure?
As the cannabis industry continues to boom, there is greater and greater opportunity to expand your business and serve more clients. But it’s important to note that this industry is a unique one, and the regulations to which it is subject make it complicated to ensure compliance.
Case in point? Sweet Leaf.
At one time one of the largest vertically integrated cannabis businesses in Colorado, today Sweet Leaf has none of the 26 municipal licenses it needed to operate. All because they weren’t compliant.
Denver marijuana regulators saw fit to revoke Sweet Leaf’s licenses last year, after discovering that they were allowing customers to engage in “looping” – a sales scheme that lets customers purchase product many times in one day, exceeding the legal sales limit with which cannabis businesses must comply.
What was the end result for Sweet Leaf?
They came to an agreement with the state regulators, having to pay $2 million in fines, sell their whatever Colorado business permits they still had, and vacate their appeal immediately.
There are complex state laws, federal HIPAA compliance, and regulations surrounding the use of point of sale systems, all in an effort to guarantee a number of key points, such as the validity of patient I.D., detailed and correct accounting of sales and inventory, and more. What’s more, you also need on-site video surveillance, and robust data management practices to make sure you’re tracking all client info as need be.
Are you confident that you can handle all of that?
With the right technology and training, this can be achieved. But you don’t have to do it alone – allow Veo Verdo to help:
Are you aware that all cannabis businesses are required by law to have fully functional video recording and surveillance systems in place?
The following areas of your cannabis business must be monitored in order to guarantee quality in the growing process, as well as security of a controlled product:
Your wireless networks need to be secure.
That means it needs to be protected by a password to keep unauthorized users from connecting to your network. That also means having a separate connection for your customers and your staff, insulating your internal network from the devices and users logged in to your guest account. Your network holds confidential customer information that you have an obligation to protect, and that requires taking steps to control who can access your systems and network.
The Veo Verde team can help you defend your wireless networks and the data they access by delivering a range of services:
As explored in Sweet Leaf’s case, compliance in the sales process is one of your most important considerations. That can mean anything from making sure your customers don’t have the capability to “loop” their purchases, as well as simply maintaining an accurate and available record of purchases, inventory, and other data.
Our consultants can assist you in making sure that your POS system meets or exceeds all legal and compliance hurdles and you receive the following benefits:
Don’t make the same mistake Sweet Leaf did – after all, given how complex compliance can be, you might even do so by accident. Partner with Veo Verde to have your compliance practices double-checked and supported by the right technology.
Like this article? Check out the following blogs to learn more:
Veo Verde Technology is a division of its larger parent company Alvarez Technology Group. With 20 years of experience providing cutting-edge IT products and services to their customers in California, the administration of Alvarez Technology Group spotted a neglected market in the cannabis industry.
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