Oregonian cannabis companies are probably tensing up this week after the state issued violations to several companies Monday. One extraction company, the CBD oil producer Modern Medicinals, is shutting its doors after receiving four violations, withdrawing a request for a hearing, and allowing its processor license to expire.
A press release from the Oregon Liquor Control Commission (OLCC), an authority which regulates cannabis in the state, alleges that Modern Medicinals did a lot of shady stuff. For instance, they are alleged to have delivered marijuana product to unlicensed entities (according to Leafly, these were new age clinics that practiced acupuncture and hypnosis). The business’s employees and representatives are also said to have ghosted the state’s cannabis tracking system (CTS) by fudging the weight of packages, failing to create or finish manifests for 32 packages, and “failing to discontinue packages in CTS that had no content.” The fourth violation is probably the most egregious in that they committed an obvious one right in plain sight. According to the OLCC, the company’s promotional materials claimed explicit health benefits to the product such as treating “seizures and other neurological disorders,” fighting cancer, as well as being an antipsychotic medication promoting “cardiovascular health.”
The problem is that the FDA and other government organizations frown on companies making claims for their products, particularly sensational ones about treating cancer, without those claims actually being true. They could be, but medical marijuana research is still at an early stage, since almost no one in the country is allowed to test it.
Monday’s press release also mentioned two other companies slapped with violations. Medigreen Collective will also let its retail license expire after receiving its third one in two years. The violation is for failure to “keep surveillance recording for a minimum of 90 days.”
Jenny’s Dispensary was also fined more than $6,000 and imposed with a 37 day ban on business after receiving two violations: one for failing to keep tabs on their product in the CTS, and another for improper storage of cannabis.
Photo via Flickr user Loren Kerns