Nevada regulators are accusing a cannabis testing lab of falsely boosting THC potency numbers and allowing contaminated products to pass.

According to the Las Vegas Review-Journal, the Cannabis Compliance Board filed a complaint against Cannex Nevada charging the lab with implementing “testing processes that were designed to protect the monetary assets of their clients without regard for consumer safety.”

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Regulators are seeking to:

  • Revoke Cannex’s license.
  • Bar the Las Vegas-based lab for nearly 10 years.
  • Fine the company $62,500.

A Cannex representative did not immediately respond to the Review-Journal’s request for comment.

Dubious practices by marijuana testing labs and an overall lack of standards is an ongoing problem for the industry.

Cannex’s license has been suspended twice.

Most recently, last December, the lab was found with two strains of marijuana containing three times the allowable limit of yeast and mold.

Such issues led the Nevada Tax Commission in September 2019 to launch an investigation of marijuana testing labs in the state.