The cannabis industry is witnessing massive growth over the last decade. However, with these increased revenues, there is a greater scrutinization of the sector than other industries.
But, unfortunately, most cannabis businesses aren’t prepared for dealing with the ever-increasing compliance issues. And, this puts them under a greater risk of facing hefty fines, license loss, or even closed business doors.
Several unstandardized laws and regulations vary from one state to the other (from cultivation and distribution to advertising and consumption of cannabis. And, with an increase in COVID-19, there are several issues that the industry faces. Thus, businesses are left with razor-thin margins for their mistakes.
From startups to industry veterans, some of the biggest compliance complaints that come to light in Australia are:
- A Little Return on a Lot of Time:
Compliances are incredibly time-consuming. What’s even worse is that these yield tangible value to the business other than keeping the company’s license in good standing.
Although any business can be affected by compliance ignorance issues, small companies and startups suffer the most. It is because they don’t have deep pockets.
Thus, the time spent on compliance takes away the efforts businesses will be spending on things to meet their bottom line.
- Too Many Rules:
When it comes to compliances, know that no “one size fits all”. There generally is a separate state and local municipality for your Australian dispensary. Also, there are individual regulatory frameworks, which include standards, laws, and licensing systems.
Thus, growers, processors, distributors, and dispensaries alike need to comply with these laws. For instance, seed-to-sale is computer software to which all parties must adhere. This software works well in tracking cannabis from a plant form to the final product that lies on the cannabis shelf. Thus, cannabis laws australia require dispensaries to have seed-to-sale tracking software.
On a federal level, there is also a need to consider legislation from the Health Insurance and Accountability Act (HIPAA), the Occupational Safety and Health Administration (OSHA), and the Federal Communications Commission (FCC).
- The Cannabis Regulations are Complicated:
Cannabis compliance and regulation layers at the federal, state, and municipal levels are complex. Know that these can be confusing often.
Beyond sheer numbers, what’s even worse is that these are constantly changing. And, these lead to an even more significant number of challenges. Thereby, suppose you’re a cannabis business. In that case, the regulators expect you to be constant and know and follow hundreds and thousands of rules and regulations.
- Instability in Reporting Tools:
After putting in significant time, effort, and energies into team building and complex law understanding, you have chances of being rewarded.
But, know that the prize is usually unstable and clunky state-mandated reporting tools. Believe when the experts say that grind business progresses to screeching halts.
The Bottom Line- Help’s on the Way!
While there are no simple ways or quick fixes for avoiding compliances and regulations in the volatile industry, there are still steps to negate the chance of making a mistake.
The best you can do is educate yourself and understand the reasons encompassing several laws and regulations. By doing so, you’ll be able to paint a clear picture of what you should legally do and what needs to be avoided.
All you need to devote is time, effort, and a massive amount of energy to keep up with the compliance standards.