Missouri’s Cannabis Industry Grapples With Multiple Recalls And New Regulations

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Missouri’s cannabis sector faces its fifth recall, affecting over 23,000 products due to inadequate safety tests by ClearWater Science.

At a Glance

Missouri recalled over 23,000 cannabis products due to improper safety testing.
No adverse health incidents have been reported associated with the recalled products.
Numerous hemp products are returning to the market following lifted restrictions.
DHSS shifts focus to “misbranded” products, especially those appealing to children.
The recall’s impact on Missouri’s cannabis industry has been substantial.

Missouri Cannabis Recall and Regulatory Changes

Missouri’s Department of Health and Senior Services (DHSS) recently announced the state’s fifth recall of cannabis products since the adult-use market launched. Industrial-scale recalls have spotlighted the cannabis sector’s safety protocols, reflecting increasing regulatory scrutiny. The latest recall affected over 23,000 products due to non-compliant mandatory testing by ClearWater Science, causing significant disruptions across several brands.

The Division of Cannabis Regulation (DCR) acknowledged that affected products, including pre-rolled joints, flower, concentrates, vape cartridges, and edibles, “were not compliantly mandatory tested,” leading to concerns about consumer safety. Despite these recalls, no health incidents have been reported, underscoring a complex regulatory landscape.

Missouri Division of Cannabis Regulation issues new recall | Click on the image to read the full story https://t.co/kqDcuYYITc

— KMBC (@kmbc) September 17, 2024

Regulatory Shifts and the Focus on Misbranded Products

Governor Mike Parsons’ executive order initially imposed strict bans on most intoxicating hemp products. However, many hemp goods now find reprieve as authorities recalibrate efforts. DHSS will prioritize “misbranded” psychoactive cannabis items, particularly those potentially appealing to children, instead of indiscriminate bans. The pivot aims to better regulate the market and alleviate friction between the state and hemp professionals.

Missouri regulators issued another cannabis recall on Friday, the third this month, this time for about 37,000 marijuana products. #moleg #mogov via @Rebeccarivas https://t.co/OGugT276Js

— Missouri Independent (@MO_Independent) August 31, 2024

Industry and Legal Implications

Facing regulatory crackdowns, Delta Extraction, a prominent cannabis company, contests the state’s authority over hemp-derived products. Delta’s license was revoked following the recall of over 60,000 items made with out-of-state hemp-derived THC concentrate, spotlighting violations including improper seed-to-sale tracking. Delta’s legal challenge reflects broader debates over state boundaries in cannabis regulation and how federal laws, like the 2018 Farm Bill, shape local cannabis markets.

“Delta is also not limited to only challenging the [Department of Health and Senior Services’] authority to regulate hemp-derived products,” Delta’s attorney Chuck Hatfield wrote in a Nov. 15 letter to the state. “Any lawsuit will likely include claims relating to the department’s regulatory authority in other areas of the marijuana industry.”

The administrative hearing set for early 2024 will examine these appeals and potential adjustments to the state’s stance on hemp-derived products. Simultaneously, Missouri’s marijuana cultivators express concerns over competition with lower-cost hemp-based THC, which could destabilize their market. The case underscores significant economic and political ramifications formulating Missouri’s cannabis policy landscape.