Thursday, September 13, 2018

CONSUMER FRAUD IN LEGAL CALIFORNIA POT INDUSTRY

by Bob Walsh

The formerly great state of California maintains a significant bureaucracy to support the semi-legal pot business in CA. One of the things they do is provide MANDATORY testing of product to determine if the THC content is proper and to check for contaminants.

So far almost 20% of the tested products have either significantly less THC than claimed or have chemical or biological contaminants which prevent their sale. In some locations legal pot products are getting hard to get due to testing failure.

The state is also looking at setting up banking services for the legal pot businesses. Right now they operate as cash only because banks don't want their business due to fear of being prosecuted by the feds for money laundering. The fact of the matter is the state does NOT like to take cash money as payment for sales taxes, employee payroll withholding, worksmans comp, etc. They also have to pay employees in actual cash, and pay service people (liked armed guard companies) in cash.

Life is hard in the pot business. It was simpler when it was all illegal.

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