Cannabis legalization brings some constants, weed for starters, but also new laws. Those who choose to create a weed brand or grow cannabis for the market must adhere to these rules and regulations– or suffer the consequences. One Maryland brand learned about the repercussions after an investigation uncovered multiple violations, according to The Outlaw Report and Maryland Cannabis Administration (MCA).
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An investigation showed multiple points where Holistic Industries, LLC, failed to meet compliance. These actions were spurred by an anonymous complaint received in February 2024. Someone reported that an employee was diverting products from the facility to the unregulated market, also known as backdooring. The employee was seen on surveillance video removing sealed products from the premises for unknown purposes.
This sparked further inquiry into the compliance measures met by Holistic Industries. Spoiler: they fell short. The facilities did not meet cleaning or maintenance standards set by the state. Investigations showed an improper inventory management system. It also revealed that the company did not adhere to its standard operating procedures (SOP) as they were submitted to the state. Cameras were obstructed, indicating a security issue as well.
The cultivation violated multiple sections of the Code of Maryland Regulations. Holistic Industries has opted to pay out a $60k fine rather than engage in a full administrative hearing. Next, key personnel must complete advanced cultivation and inventory management training alongside multiple inventory reports.
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MCA reports that Holistic has acted in good faith since learning of these allegations. It terminated the employee found responsible, hired new management personnel, scaled up its security measures, and conducted an inventory audit since being confronted with the issues.
This marks another example of regulations working to ensure consumer safety, along with the many recalls that have popped up in the last year. This is what legalization does: create laws and boundaries to protect cannabis consumers. Looks like it’s working in Maryland.
