Nevada Organic Remedies, who operates The Source, self-reported a selling error that resulted in a $62,500 fine. The fine came from a transaction back in May of 2021. An employee unintentionally sold more than the legal limit of 1 ounce to a customer. The software that prevents such events was somehow disabled. Still, the company reported the incident three days later when they discovered it
The charge is higher than average due to Nevada Organic Remedies previous violation. In the past, they were involved in “a transfer of interest issue relating to its cannabis license.” For that reason, the Cannabis Compliance Board fined them much higher. Some board members think it’s extremely steep considering the company reported themselves. Riana Durrett is one of those members, pushing to lower the fine to $45,000 instead.
“I think the amount is really, really high, so I would be in favor of a lower amount since it was self-reported.”
-Riana Durrett
Riana is right. Despite the reasoning, the punishment for reporting your own error discourages others to do the same. This was a minor violation but, consequences for bigger ones may be intentionally hidden to avoid charges. The attorney representing the company agrees.
“I do think it’s important for the board to remember that such steep penalties on self-reports is going to discourage people in the industry from self-reporting.”
-Amanda Connor, Nevada Organic Remedies attorney, on the effects of such fines.
This is especially important considering supply shortages in the state. Cannabis may not be on the shortage list anymore; but, compliant packaging is. The state requires specific bags for the purchase of cannabis. A shortage could lead to cutting corners and breaking laws. With high charges for minor offenses, the likelihood of companies reporting the violation is slim. For consumers, it could also lead to higher prices. As reported, consumers may feel the impact of cannabis packaging shortages first. The lasting effects, however, could have more serious consequences.
