Twenty-six cannabis manufacturers and distributors have been subject to recalls this year as the California Department of Cannabis Control ramps up testing enforcement amid critical news reports of the state’s lab testing.
At least one distributor, Grizzly Peak Farms, has surrendered its suspended license following two recalls in March of this year and December 2023.
The DCC has been subject to scathing investigative news reports by the L.A. Times/WeedWeek and the SF Gate that found illegal pesticides in cannabis products and general lax enforcement. In the midst of these reports, the DCC has stepped up enforcement and product recalls. Nearly every week, there’s been a new recall notice.
Product recalls skyrocketed from just four voluntary recalls in 2023 to 32 mandatory and voluntary recalls as of Aug. 8 this year.
Enforcement actions are up more than 300% this year, according to DCC spokesperson David Hafner, including against testing labs.
The DCC attributed the increased enforcement to the department’s increasing maturity in the state’s cannabis industry, which has sold more than $22 billion since 2020.
“This escalation reflects our ongoing efforts to fill open positions, refine policies and procedures, and scale our regulatory activities as we closed out our third year and entered our fourth year of operation,” said Hafner in an email. “The Department’s recent actions reflect outcomes of work that has been underway for many months and these actions are a part of a strategic approach to strengthen compliance and safety within the cannabis industry.”
Mandatory recalls, according to the DCC’s web page for recalls, are ordered by the DCC “when there is an immediate and serious threat to human life or health, and other remedies would cause an unreasonable delay.” Voluntary recalls are initiated by the licensee “when the licensee identifies that their product is mislabeled, defective, or unsafe for consumption (adulterated or misbranded).”
The latest recall was Thursday, Aug. 8. Almora Naturally Better Single Origin Cannabis Flower was recalled for Aspergillus niger mold contamination. There are many species of Aspergillus. Aspergillus niger is known to cause pneumonia. The product was packaged by Fluids Manufacturing Inc., doing business as Mammoth Distribution, Heavy Hitters.
Fluids Manufacturing was also subject to a mandatory recall of an Almora 14 Half Gram Pre-Rolls product on March 20, again for Aspergillus niger.
On Aug. 1, a Lowell 35’s 10 Tall Pre-Rolls product was recalled also due to Aspergillus niger. The recalled product was distributed by Cypress Manufacturing Co., which was subject to another mandatory recall on Feb. 21 for a Lowell Big Buds Blueberry Kush Indica flower product with Aspergillus sp.
Cypress Manufacturing surrendered its Monterey County cultivation licenses in February but still has an active manufacturer/processor license, according to the CRB Monitor licensing database. It is a subsidiary of INDUS Holding Co., which is owned by Lowell Farms Inc.
“The quality and safety of our products has always been important to the ethos of the company. Lowell Farms uses a wide variety of licensed California-based laboratory partners to test every product at multiple stages including growing, harvesting, processing and the final California state compliance testing. Lowell will continue to work alongside the state in all compliance matters,” said a Lowell Farms spokesperson in an email.
Grizzly Peak Farms surrendered its distribution license, according to the CRB Monitor database, which was suspended by the DCC on March 13. Grizzly Peak Premium Indoor Flower was subject to a mandatory recall on March 1 for Aspergillus sp. contamination, and Grizzly Peak Zoap Hybrid was voluntarily recalled Dec. 7, 2023, for containing the pesticide chlorfenapyr.
Chlorfenapyr is an insecticide developed by BASF Corp. that has been shown to be toxic to humans. Some of the agency’s most recent recalls are for chlorfenapyr.
Grizzly Peak representatives did not respond to requests for comment.
On July 17, the DCC recalled Circles Cannabis Oil Vaporizer and Backpackboyz Premium Vape products, both manufactured by K.U.S.H. (Kinder Understanding Sensitive Healing) Collective. KUSH Collective co-owner David Shin declined to comment on the recalls.
On July 2, regulators recalled three West Coast Cure vape products for chlorfenapyr contamination, manufactured by Shield Management Group. The company also voluntarily recalled its West Coast Cure Premium Cure flower on June 12 for inflated cannabinoid labeling. Shield Management representatives did not respond to requests for comment.
A week earlier, another West Coast Cure product, an Orange Cookies CUREpen Premium THC Oil vape cartridge packaged on or after Sept. 26,2023, was recalled June 25, listing Alkhemist DM as the manufacturer.
Recalls leading to further investigations
Hafner said recalls, both voluntary and mandatory, can be critical components of the DCC’s investigatory process.
“They can lead to broader investigations across the supply chain, those investigations can result in citations, fines, and in more severe cases, license suspensions or revocations,” Hafner wrote. “These disciplinary measures are crucial for maintaining industry standards and protecting public health.”
That appears to be the case with the June 25 recall. Alkhemist Chief Operating Officer Nina La Rose told CRB Monitor News that the Los Angeles-based company served solely as the co-packer of the CUREpen vape product and only handled the packaging. They also send product samples out for testing.
“For all brands we co-pack for, we use the testing lab preferred by the client. In the case of the recalled products, the chosen lab for those batches was Verity [Analytics] at the time,” she said in an email.
“Our involvement was limited to packaging: we receive pre-filled carts, place them in their respective boxes, and submit them for testing via the chosen lab. Once the Certificates of Analysis (COAs) are received, we apply the post-test labels and notify the brand that the units are ready for pickup.”
La Rose said the company cooperated with the DCC’s investigation. “We have provided the DCC with all pertinent information, including video footage of the packaging process, emails, invoices, work orders, and text threads to substantiate our role. We have been dismissed from the recall process and have been informed that the DCC will reach out if they need anything further,” she said.
Verity Analytics’ license was revoked on July 16, according to the DCC’s database of disciplinary actions, after being suspended in April. As of press time, the state’s licensing record still shows Verity’s license as suspended.
Hafner said the suspension of Verity’s license was the result of the Department’s investigative processes, adding, “DCC does not comment on ongoing investigations.”
Verity Analytics did not respond to an email requesting comment.
The only other company subject to recalls this year that has faced disciplinary action is Modern Leaf Culture Inc., a vertically integrated microbusiness. On March 4, it voluntarily recalled the Panda Pen 1 ml Premium Disposable Cartridge for mislabeling. Previously, on Jan. 30, the Riverside company was fined for violating an embargo.
The other licensees named in recalls this year are:
- GC Global
- The Bake Shop LA
- Paet Real Estate (dba Stella Farms)
- Epic Bros Enterprises Inc.
- Crafted Canopy Co.
- JDI Farms
- TBP Indoor Facilities Inc.
- RCW Manufacturing (dba Rebel Coast)
- UC Advisor Corp.
- Flagship Distribution Inc.
- ECD Inc.
- Malibu Gold
- UpNorth Distribution
- JC Rad Inc.
- Discount Caregivers
- Kind Op Corp.
- 90nine Bridge Co. Holdings
- Urban Therapies Distribution
- Echsen Industries
Hundreds of retailers impacted
The recalls impact hundreds of retailers who are required to cease sales of the products. Each recall notice lists the affected stores. For example, the recall notice for the WCC CUREpen Premium THC Oil Vape lists over 200 licensed dispensaries. However, the notices often come too late and the products have already been sold, MJ Biz Daily reported.
In addition to recalls, the DCC can also embargo products to prevent their sale when the department has probable cause to believe the cannabis products are adulterated, misbranded or would otherwise state cannabis law or regulations.
Up until this latest lab testing crisis, one of the biggest complaints against the DCC has been a lack of diversion enforcement.
Hafner said the DCC provides guidance to all affected licensees, including retailers, on the handling and removal of recalled products.
“We closely monitor compliance through California’s Track and Trace system to prevent diversion and ensure proper handling of embargoed and recalled products,” he said. “Retailers that fail to comply with embargo and recall directives can face severe penalties, including fines or loss of their license, depending on the circumstances.”
The DCC disciplinary actions database shows 17 enforcement actions, out of 310 entries, for violating an embargo, as of Aug. 1.
They begin with the Dec. 20, 2023, revocation of Medford Organic’s cultivator license for track and trace and pesticide testing violations, in addition to the embargo violation. The most recent was the revocation of Markvision Biotech Inc.’s manufacturer and distributor licenses on March 6 for a variety of violations, including track and trace. Neither company was subject to a recall.
All the rest of the companies with embargo violations were fined.
