A Maryland cannabis company has been fined $26,000 by state regulators for selling cannabis products that were retrieved from a dumpster by its employees. The incident occurred in July 2023, just weeks after the state legalized adult-use cannabis sales.
How was the dumpster diving discovered?
The Maryland Cannabis Administration (MCA) found out about the dumpster diving after an inventory manager at Curio Wellness’ Far & Dotter dispensary in Timonium reported the incident to the authorities. According to a consent order, the manager said he advised that the products be destroyed as they violated several compliance requirements, but the management “insisted on not losing profit.”
The MCA obtained surveillance footage that showed three dispensary employees throwing 224 grams of pre-packaged cannabis into a dumpster outside the dispensary, where it sat for 41 hours and nine minutes. The footage also showed another employee retrieving four boxes containing the cannabis products from the dumpster, repackaging them into plastic bags, and storing them inside a vault. The employee told an MCA investigator that the original packages were covered in a liquid substance acquired from the dumpster.
The dispensary then sold the repackaged products between July 28 and August 3, 2023, making a total of $3,174.50 in sales. The inventory manager’s employment at Far & Dotter was “terminated” on or about Aug. 20, 2023, according to the order.
What did the company and the regulators say?
Curio Wellness, which operates a cultivation facility, a processing facility, and two dispensaries in Maryland, issued a statement saying that it conducted an internal investigation and that it does not tolerate regulatory noncompliance. The company also claimed that the products in question were “inside sealed jars, within sealed boxes, and it is undisputed that no outside material ever breached the jars or touched the product.”
The MCA, however, imposed a $26,000 fine on the company as well as other corrective actions, such as submitting its green waste logs, scale calibration logs, cleaning logs for monthly review, and retraining staff on green waste procedures. The MCA said that the company’s actions “constituted a serious violation of the public health, safety, and welfare of the citizens of Maryland.”
What are the implications for the cannabis industry?
The dumpster diving incident is one of the first major scandals to hit the Maryland cannabis industry, which launched its adult-use sales on July 1, 2023, after voters approved a legalization measure in November 2022. The industry has been booming, with sales reaching $40 million in the first month and more than 100 licensed dispensaries operating across the state.
However, the incident also exposes the challenges and risks that cannabis companies face in complying with the strict regulations and standards that govern the industry. Cannabis products must be tested, labeled, packaged, and tracked according to the state’s rules, and any deviation or violation can result in fines, sanctions, or even license revocation. Cannabis companies must also ensure that their employees are properly trained, supervised, and accountable for their actions and that they follow the best practices for quality, safety, and hygiene.
The dumpster diving incident serves as a warning and a lesson for the Maryland cannabis industry, as well as other states that have legalized or are considering legalizing cannabis. It shows that the industry must uphold high standards of professionalism, ethics, and responsibility and that the regulators will not hesitate to enforce the law and protect the public interest.