Moldy weed and the rampant failure of cannabis testing labs

MOLD
Cannabis labs under-report mold concentrations

Driving the news: We’ve covered issues at cannabis testing labs frequently in this newsletter — and they don’t appear to be going away anytime soon. 

The latest: A new investigation from The Wall Street Journal finds that testing labs in multiple states are consistently underreporting the concentration of mold and other contaminants in legal cannabis products. 

A disproportionate number of samples evaluated by the WSJ were found to have just under the legal limit — meaning that it was likely the lab forced the tests to fall under the threshold, perhaps in order to appease their customers or to generate more business. 

And when mold is combusted and inhaled into a person’s lungs, it can cause all sorts of illnesses and complications. 

The WSJ evaluated over two million samples from nine states to generate the analysis. 

What they’re saying: “This is something that would not be expected if you took measurements of mold and reported them out in a way that was done without knowledge of the legal threshold,” Joseph Hogan, a biostatistician at Brown University told the WSJ. 

And: “We’re conducting a big experiment without enough knowledge,” David Miller, a fungal toxin expert at Carleton University said. 

Back up a bit: The WSJ investigation builds off a recent Los Angeles Times investigation that found that California labs were frequently inflating the amount of THC in products — as both consumers and the market favor — and missing or under-reporting the concentration of pesticides and other chemicals. 

And, our reporting last year found testing labs routinely inflate the potency of their products, so they can survive in a competitive market. 

Why it matters: It’s a sign that cannabis testing labs, and the industry more broadly, may be putting profits before public health. 

As the WSJ writes, labs that detected less mold year-over-year tested 28% more samples the next year — whereas competitors that reported more contamination tested 50% less samples. 

In other words, passing contaminated samples and inflating potency is good business for cannabis testing labs.

And it’s also a labor issue. In 2022, Lorna McMurrey died while working at a Massachusetts facility operated by Florida cannabis firm Trulieve. While the company denies wrongdoing, The Occupational Safety and Health Administration (OSHA) fined the company over McMurrey’s death. 

All of Trulieve’s Massachusetts products were being tested at Steep Hill labs (which changed its name to Green Analytics) at the time. Trulieve’s mold failure rate at Steep Hill was one-sixth (!) that of labs that processed the rest of their samples, per WSJ. 

Our take: Many testing labs are succumbing to market pressure rather than doing the job of protecting workers and consumers. That’s a clear failure of one of the core promises of a legal, regulated market. 

I expect this to be weaponized by anti-legalization groups, especially as we get closer to the December 2 hearing on whether to reclassify cannabis as a less dangerous Schedule III drug, and Florida and other states weigh legalization measures.

But fraudulent cannabis testing labs aren’t a referendum on the project of legalization itself. They’re more symptomatic of the flawed implementation of policy in most US states and the lack of coherent federal standards and oversight.

Protecting consumers and the public is one of the core promises of legalization. It’s time to do better. 

-JB

“And I think we need to reconcile the two and say, well, actually you can have something that is extremely beneficial, but which, if it is abused, can go from being pleasant and enjoyable and medical to harmful and toxic,” Marta di Forti, a researcher at King’s College London, told IFL Science regarding a study she authored that found cannabis can leave a signature on users’ DNA. 

Di Forti’s comment is illustrative in how most mainstream doctors, scientists, and other academics view balancing the harms and risks of cannabis use — and it’s one we subscribe to here at Cultivated. No substance comes without harms, but on balance, legalizing cannabis is good policy. 

We’d also contrast Di Forti’s careful view with that of anti-legalization grifters, like Alex Berenson or Smart Approaches to Marijuana, who are decidedly unbalanced in their portrayal of research. 

Six years into Canada’s legalization 🇨🇦

Yesterday marked six years of cannabis legalization in Canada — Jeremy’s home country and Jay’s adopted home country. Canada broke ground as the first country to federally legalize cannabis. Read Jeremy’s report for Business Insider from how the rollout went. It’s like a time capsule from 2018, though many of the same issues still remain in Canada and in new US state markets. 

Ontario cannabis sales 📈

Ontario cannabis sales increased 21% in the first half of 2024 over the same period last year, per the Ontario Cannabis Store. Still, that doesn’t necessarily mean per-store sales are increasing, MJBizDaily reports.

Oversupply in Michigan 🌿

Michigan’s cannabis market is oversupplied — and that’s caused sales to plummet nearly 10% in September, Crain’s reports. There’s a number of factors, including falling wholesale prices, as well as neighboring Ohio opening up recreational cannabis shops. 

Starbuds or Starbucks? ☕️

A federal judge ruled that Starbuds, a cannabis truck in New York City, has to destroy all of its logos after Starbucks filed a federal lawsuit over copyright infringement. Green Market Report has more. 

Cannabis and the Supreme Court 🧑‍⚖️

South Carolina Gov. Henry McMaster and nine other Republican governors told the Supreme Court that the “flexibility” shown to states that legalize cannabis in violation of federal law should be used to allow states to ban gender-affirming medical care for youth, Marijuana Moment reports. Read the full brief here.

Cannabis and sleep 💤

A new study published in The American Journal of Drug and Alcohol Abuse found that adults with cannabis use disorder suffered worse quality sleep — and performed worse on visual-spatial tests. The results indicate that some of the memory impairment reported in cannabis users may actually be a result of poorer sleep quality. The Dallas Morning News has more. 

Medical and recreational sales 👀

Canada’s medical cannabis system experienced large changes — and declines — following recreational legalization, but it didn’t fully disappear, despite some patients’ fears, according to a new study published in the journal American Public Health Association. Read more from the study’s author, Michael Armstrong, in The Conversation.

Canopy Growth is paying down its debt. The company paid $100 million, at a discounted price of $97.5 million, on its senior secured term loan due on December 18, 2026. The company says this will save $14 million in annualized interest. Read more on the looming cannabis debt bomb from our October 9 newsletter here.

The US cannabis industry will need between $65 and $130 billion in sustainable growth capital to support new businesses and help refinance existing ones, per a new report from Whitney Economics.

That's $1 billion to $2.4 billion in potential interest revenue for institutions willing to lend to cannabis businesses — a huge opportunity for those who can stomach the risk. For context, read our newsletter from last week breaking down the debt issue facing cannabis firms.

Without court action, Alabama is never getting medical marijuana | Alabama Political Reporter

Trucking and marijuana testing find their way to the Supreme Court | FreightWaves

Debate on recreational marijuana | CBS Miami

Fact Check: Is anyone going to jail for smoking weed? | Newsweek