Marijuana Business Magazine - April 2018

P roduct recalls increasingly may be a fact of life for those who sell marijuana products, meaning that cannabis business owners need to have a plan at their fingertips to cope with questions and concerns raised by regula- tors and consumers. It might even save your business. A crisis can strike at any time. But a good recall plan can help growers, infused product makers and other businesses head off a public relations disaster – and pre- vent customers from abandoning a company’s products. In recent months, marijuana products have been recalled in several states as well as in Canada. A variety of products – ranging from edibles and medical cannabis to vape pens – have been recalled for pesticide contamination, higher concentrations of THC than advertised, mold and mites, packaging issues and other problems. Experts agree that production snafus and recalls are not going to go away, and probably will increase as more states legalize marijuana. So it is essential to have a recall plan in place before things go south. “You don’t want your client’s company going up in smoke,” said Janet Vasquez, principal of JV Public Relations in New York. “It is impera- tive to be ready for anything conceivable, especially a recall because it becomes a public health safety issue.” Why You Need a Plan Having a recall plan may be a requirement for doing business. “Most states have laws around cannabis recalls that specifically state as part of the application/license process that a recall plan is required standard operating procedure,” said Karen Freese, principal of Freese Branding + Consultancy in San Francisco. Even if they are not mandated, it would be crazy not to have a road map in hand for navigating a crisis, she said. “CEOs have a fiduciary responsibility, which includes insulating the company from liability and minimizing risk. If they don’t have a plan, they are foolish,”Freese said. The cannabis industry may be more likely to face recalls than other industries, she said. Not only is the industry growing by leaps and bounds, but medical and recreational marijuana products are not tested in a uniform manner – and that can lead to recalls. Regulatory issues also are at play. “The recalls to date for cannabis have been largely due to the states not having a clear understanding of what is healthy and unhealthy from a parts-per-million (ppm) for pesticides, molds, etc. when inhaled or when plant material is extracted into concentrates, which magnifies the impuri- ties,” according to Freese. “Another issue is that lab testing facilities statewide can use differ- ent testing equipment that can yield different results on the same test sample. The laws for testing are not as much complex as they are knee jerk.” She said some regulators “set the ppm limits super low because they don’t know and have a responsibility to protect the public.” L LL April 2018 • Marijuana Business Magazine • 63