SUMMARY
- Protecting consumers’ safety, health, and well-being are arguably the most crucial considerations for regulators when evaluating approval for any new product. One of the issues included in the forthcoming Cannabis Administration and Opportunity Act (CAOA) is a provision that will create a federal regulatory framework for the marijuana industry.
- The complexity of the U.S. cannabis industry has been exacerbated by the consequences of states operating within the confines of closed economies that have thus far striven for their interpretations of legitimacy under the shadow of existing federal laws. Accordingly, there has been ineffective oversight of cannabis and cannabis-derived products because they are not considered legal additives by the U.S. Food and Drug Administration (FDA). Consequently, the variation of standards from one state to another carries an inherent inconsistency in ensuring the safety of products brought to market.
- With rescheduling now in play, resisting interests have begun leaning in with rhetoric aimed at some of the perceived dangers of Cannabis, particularly when it comes to testing and product safety. The ongoing efforts to develop federal standards for product testing, safety, and quality assurance have yet to gain traction but will likely accelerate upon the final Schedule 3 ruling.
- Uniform national testing and operational standardization will help assure consumers of an expectant, safe product consistency. Because of federal illegality, Interstate commerce is disallowed, which has understandably led to inefficiencies affecting consumer safety. Also, limited capital availability has led to a lack of Good Manufacturing Practice (GMP) standards. Eliminating the punitive 280E burden upon rescheduling should facilitate the larger MSOs’ taking a more proactive approach to product safety.