Written by Chris Silva
Cannabis operators in the state are reportedly beginning to come together and are in the early stages of a coordinated effort to address the growing and complex issue of CBD-converted oil in legal cannabis products. One such effort, led by Lansing-based Trap House, calls for major reforms and increased government oversight.
Trap House CEO David Bye wrote an upcoming op-ed in the Lansing State Journal urging regulators to ban cannabis-derived THC products and businesses found in violation. requested that their license be revoked. This would be a departure from the mere fines typically imposed on businesses in similar situations.
“Many of us have worked hard to make cannabis safe for people and bring the market back from the shadows,” Bai told City Pulse. “We must act now to remove criminals from our industry by permanently revoking their licenses and refraining from purchasing synthetic and processed oils. All the progress we have made will be undone.”
Efforts to ban CBD-converted oil in the legal cannabis industry are turning into the most brutal civil war in the history of the industry. This conflict is escalating in every major legal cannabis market, with regulators and consumers alike pitting themselves against the powerful lobbying power of the cannabis and e-cigarette industries.
Consumer safety is our top priority. As I wrote in a previous column, recent third-party testing found that numerous e-cigarette cartridges and food products purchased from Michigan dispensaries contained unregulated conversion oils and prohibited substances, including pesticides. It was found to contain other contaminants including.
Another issue is fairness. In his op-ed, Bye emphasizes that CBD-converted oil is having a negative impact on local cannabis businesses, “those of us who play by the rules.” Because CBD-converted oil is so cheap to produce, the average price of cannabis is even lower than before, and small businesses are struggling to compete. Combined with the already high production capacity of Michigan's laissez-faire licensing system, it no longer makes much sense to manufacture and sell distillate-based products in the state's market.
The hemp industry and those who manufacture and sell hemp-derived THC products envision a world where cannabis is sold everywhere, just like alcohol, from grocery stores to gas stations. This is the future that convertible oil proponents are hoping for, and they are currently trying to capture that market share. They hope consumers will perceive hemp-derived THC products as equivalent to those currently on dispensary shelves.
Operators like Bye would like to see cannabis regulated closer to the way it is today, with some limited paths to market, and with consistent oversight, fees, and taxes for all operators involved in the production of THC products. You are betting on the system that is imposed on you. This system puts consumers in direct contact with professional workers at cannabis retail stores.
Companies that follow the rules pay such high regulatory fees and are held to high standards that limit where they can sell their products, whereas companies that promote products using cheaper converted oils also pay regulatory fees. It seems unfair to not pay the minimum amount of tax. You can then sell your products to pharmacies, vape shops, gas stations, and even directly to consumers.
The playing field needs to be leveled by regulating CBD-converted oil or banning it completely. There's still much debate about what the outcome will be, but consumers will be watching most of the next year's cannabis news in Michigan, similar to states like California that recently banned retail sales of cannabis-derived THC products across the country. I expect this topic to dominate. state.
