Massachusetts regulators fine Ascend Wellness, Curaleaf for ignoring consumer safety practices

Massachusetts cannabis regulators issued fines on Thursday to two of the state’s biggest marijuana companies – Ascend Wellness Holdings Inc. (CSE: AAWH-U.CN) (OTCQX: AAWH) and Curaleaf Holdings Inc. (CURA:CA) (TSX: CURA) (OTCQX: CURLF) – for a total of $165,000 over allegations that both companies were negligent when it came to consumer safety practices.

Ascend, which has three dispensaries in the state, and Curaleaf, which has five, both self-reported the violations in question, The Boston Globe reported, and the state Cannabis Control Commission fined the first $85,000 and the second $80,000.

Ascend was found to have not followed the state’s track-and-trace system properly, meaning regulators couldn’t verify if all legal products had been delivered to their intended dispensaries. The discrepancies affected some 900 goods, the commission found, and a government staffer said the incident was “so egregious as to amount to incompetent” during a hearing Thursday, The Globe reported.

“Ascend is fully committed to adhering to the regulations set forth by the CCC and places great importance on compliance,” said Frank Perullo, president and co-founder of the company. “We have already implemented most of the necessary actions and remain dedicated to working with the CCC to restore trust and confidence as we move forward.”

Curaleaf, meanwhile, was faulted for a “systemic problem of not following best practices to limit contamination” at its two grow sites, in the towns of Amesbury and Webster. The problems dated back as far as 2021, the commission found, and said that staff leaving doors open, not securing gaps in doors and ducts, and various other problems led to the contamination of at least three cannabis product samples.

Curaleaf was placed on a six-month probationary period by the CCC and is required to report any pesticide detection directly to regulators during that period. Regulators can also force Curaleaf to have its goods retested by a third-party lab at any point in the next six months to ensure compliance.

“The health and safety of our patients and customers remains our number one priority,” a Curaleaf statement to The Globe asserted. “We feel confident about the changes made to ensure this doesn’t happen again.”