TESTSTSARDSAR

The Power of Labeling by Jim Sanfilippo

Imagine buying a product that promises relief, only to find it ineffective or even harmful. Conversations about labeling are not uncommon within the legal cannabis industry. Recent headlines continue to infiltrate news cycles, highlighting the distrust between popular cannabis brands and consumers. As an industry, we must prioritize consumer safety, brand reputation, and the overall consumer experience by addressing these critical issues head-on.

An alarming number of academic studies and news reports have found that cannabis products are often mislabeled, less potent than advertised, or do not provide the effects their labels advertise. In Nevada, the Cannabis Compliance Board recently issued a public health and safety bulletin over mislabeled cannabis products. In Oklahoma, a testing lab accused dispensaries of selling cannabis products with less THC than advertised. While some may accuse brands of carelessness, the reality is more complex.

Many cannabis products are tested at the time of production, but their potency and other characteristics degrade over time. As a result, these products often no longer match the claims made on their labels within 60 to 90 days. If not addressed, the consequences of continuing to put mislabeled products on the shelves could be severe, including class action lawsuits, product recalls, and loss of consumer trust. Our neighbors in Canada have seen nearly 70% of cannabis products recalled since 2018 due to mislabeling issues. Fortunately, we can take steps in the U.S. market to counteract similar problems. 

The cannabis industry is not the first, nor will it be the last, to face these challenges. Food and pharmaceutical companies often encounter class action lawsuits for false label claims, allergen contamination, and other discrepancies. Under the regulation of federal agencies like the Federal Trade Commission (FTC) and Food and Drug Administration (FDA), regulations are put in place, and labeling laws are enforced, setting a standard for all to follow. With federal legalization on the horizon for cannabis in the United States, uniform regulations will likely be instituted to ensure labels accurately reflect products during their entire shelf life and will become standard. Additionally, the sector could adopt aseptic modified atmosphere packaging, similar to the food and medical industries, to preserve product integrity and extend shelf life to a year or more, thereby ensuring shelf life stability, freshness, and label accuracy.

Beyond the food and pharmaceutical industries within the U.S., we can also look to the European Union’s handling of cannabis in general. The EU has instituted stringent pharmaceutical-grade standards under Chapter 5.1.4 of the European Pharmacopoeia, resulting in safer and more consistent products. In contrast, the U.S. has a more fragmented approach with varying state regulations on the microbial load that is allowable in each state. Adopting a more unified and rigorous standard similar to Europe’s could benefit the U.S. cannabis industry and maintain consumer trust.

Cultivators must prepare adequately for the forthcoming regulatory measures and practices. With federal legalization, there will be uniform enforcement of labeling standards, addressing the current fragmented regulatory environment. Industry leaders need to recognize these future changes and prepare for them to ensure compliance and maintain consumer trust.

Companies must also invest in access to the equipment needed to utilize modified atmosphere packaging.  This technology allows products to have longer shelf lives and increases satisfaction for consumers and patients.

Above all else, we must hold the cannabis industry to the standards our consumers deserve. Failure to do so could create distrust between cannabis enthusiasts and legal cannabis brands that can take weeks, months, and even years to improve.

The importance of accurate labeling can be boiled down to a five-letter word — trust.

Trust takes years to build, seconds to break, and forever to repair. It may be cliché, but it’s true. Adult-use consumers and medical patients rely on a product’s label for potency and composition, usage and dosage, safety and quality, aroma profiles, allergen information, and other essential details. Without accurate labeling, consumers with allergies may not avoid products that cause adverse reactions and patients may not receive the correct strains and formulations needed for specific health conditions, such as chronic pain, anxiety, or insomnia.

Accurate labeling is a cornerstone of consumer empowerment and building trust in any industry; the cannabis sector is no exception. The road to industry-wide accurate labeling may not be seamless, but it’s necessary. As a young industry, we have the opportunity to learn from established sectors to maintain consumer trust and safety, and by emphasizing the importance of accurate labeling, we can ensure the growth and sustainability of the cannabis industry.

Photo by Kym MacKinnon on Unsplash

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