Arizona regulators sent notices of intent to revoke the licenses of two marijuana testing laboratories for allegedly using procedures that could inflate product potency results.
The two labs – OnPoint Laboratories in Snowflake and Pure Labs in Phoenix – disputed the findings but have settled or plan to settle with regulators, the Arizona Republic reported.
According to the report, OnPoint, which received its notice last August, agreed to pay a $468,000 penalty to settle its case and Pure Labs received its notice in January.
Inspectors from the Arizona Department of Health Services claimed that the laboratories were, among other things, using procedures that could artificially inflate the reported potency of marijuana.
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Marijuana stores can charge consumers more for products with higher potency levels.
OnPoint CEO Jeff Cardot told the newspaper that the quick transition to recreational marijuana sales in January 2021 created an additional demand on testing labs that the industry wasn’t equipped to meet.