It’s no secret that cannabis businesses face unique challenges when it comes to compliance. The cannabis industry is still in its infancy, and the laws and regulations are constantly changing. This can make it difficult for cannabis businesses to stay up-to-date on the latest compliance requirements. In this blog post, we will discuss some of the reasons why every cannabis business needs a compliance program, and we will also dispel some of the myths that often surround compliance.
Why does every cannabis business need a compliance program?
A compliance program helps cannabis businesses stay up-to-date on the latest rules and ensures they take the necessary steps to remain compliant. Because the cannabis industry is highly regulated with complex and ever-changing rules and regulations, the consequences of non-compliance can be severe. History has shown that cannabis businesses that fail to comply with state and local regulations can face significant fines, suspension, and even license revocation.
In addition to avoiding costly fines, a compliance program can help cannabis businesses save money in the long run. A compliance program ensures that all business practices are conducted legally and ethically, following the businesses’ best practices. This can help cannabis businesses avoid lawsuits and other legal problems down the road.
What are some of the myths surrounding compliance?
Myth 1: Compliance is only for big businesses.
Many think that only big businesses must concern themselves with a compliance program; however, this could not be further from the truth! All cannabis businesses, regardless of size, must have a compliance program. The reason is simple: compliance protects your business from potential legal and financial risks.
Even if your cannabis business is small, you could still face stiff penalties if found to violate any laws or regulations. In addition, compliance-related issues can damage a company’s reputation and deter customers from doing business with you. So, even if you’re not required to have a compliance program by law, implementing one is still in your best interest.
Myth 2: Compliance is a cost center.
Another common misconception about compliance is that it’s nothing more than a cost center. In other words, people think that compliance costs money without providing any tangible benefits. This could not be further from the truth!
While it’s true that compliance does require an investment of time and resources, it can save your cannabis business money in the long run. For example, suppose a business is found to be violating a regulation, and the business lacks a compliance program. In that case, the business could be subject to costly fines and administrative actions, including license revocation. However, suppose the same business had a compliance program. In that case, the business would have mitigated the consequences, including lessened fines or receipt of a notice to comply. These mitigating benefits are in addition to businesses avoiding other costly problems, such as product recalls and class-action lawsuits.
Myth 3: Compliance is boring.
Finally, some people think managing a compliance program is boring; however, this is also untrue. Compliance may require reading lengthy regulations and standard operating procedures, but it can also be exciting. After all, you are working to protect your cannabis business from legal and financial risks!
As you can see, there are many myths about compliance. But the truth is that compliance is essential for all cannabis businesses. If you don’t have a compliance program in place, you could be putting your business at risk. So, don’t wait – start implementing a compliance program today!
Contact us today to learn more about our award-winning compliance programs!