THC Inflation Scandal: Oregon Cannabis Labs Under Investigation by OLCC

25 September 2024

The Oregon Liquor and Cannabis Commission (OLCC) issued violation notices to seven cannabis testing laboratories, citing alleged misconduct ranging from negligent sampling practices to intentional THC inflation. These allegations have led the OLCC to propose penalties, including license cancellations, suspensions, and fines, highlighting significant regulatory challenges in the state’s cannabis industry.

The seven targeted labs represent a majority of Oregon's 11 accredited facilities, underscoring the potential impact on the industry. Alleged violations include improper sampling of marijuana batches and intentional adulteration of samples to manipulate potency results. These practices not only undermine consumer trust but also highlight weaknesses in the enforcement of marijuana laws. Additionally, they reflect deeper systemic issues driven by market pressures to inflate THC levels for higher pricing and demand.

The potential loss of these facilities could disrupt the cannabis supply chain, delaying product approvals and impacting both medical and recreational users. While recent measures, such as a state-run cannabis reference lab established under House Bill 2931, aim to enhance testing reliability, the OLCC’s enforcement actions indicate that substantial efforts are still needed to improve oversight, address longstanding deficiencies, and restore confidence in the regulatory framework.