New Jersey marijuana regulators launch lab fraud probe after THC spike

New Jersey cannabis regulators say they're going to probe a sharp increase in THC potency as well as a sharp decrease in failures for mold.
Published: August 15, 2025

Cannabis potency increased by double digits between 2023 and 2025 in New Jersey.

And the New Jersey Cannabis Regulatory Commission intends to find out whether the sharp increase is the result of potency inflation, acting CRC Director Christopher Riggs said.

Earlier this year, New Jersey marijuana regulators adjusted state testing regulations amid nationwide scrutiny of testing labs and increasing doubt that cannabis safety and potency labels can be trusted.

But while “cannabis hasn’t changed that much” from 2023 to 2025, THC potency in cannabis flower tested in the state did, Riggs said.

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New Jersey marijuana test results showing suspicious trends

In that time, the average amount of tetrahydracannabinolic acid, or THCA, in cannabis flower in New Jersey increased from 24.21% to 27.21%, Riggs said during the CRC’s public meeting Aug. 7.

That’s an increase of 12.4%.

“The percentage of THC seems to go up, so we want to make sure we understand why,” Riggs said.

The state’s fail rate for mold also dropped, from 3.7% in 2023 to 1%.

What’s more, Riggs added, there’s a “cliff” or an over-representation of test results right before the state’s fail limit.

“Mold doesn’t know” what the fail limit is, Riggs said. “We really need to look at that.”

New Jersey latest state to investigate possible lab fraud

Accusations that commercial cannabis testing labs inflate THC potency to please customers are widespread.

That’s partially because consumers continue to pursue high THC products despite potency being an unreliable indicator for product quality or overall effect.

Commercial cannabis testing labs across the country have lost licenses or been punished for inflating THC potency or clearing for sale cannabis later found to be tainted by pesticides or mold.

However, regulators in New Jersey have yet to crack down.

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That’s despite an independent organization’s claim that it found tainted product on store shelves in the state during a “secret shopper” effort.

Lab watchdogs have said that an unexplained increase in THC potency and an over-representation of lab results right before the fail limit are signs of possible lab fraud.

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