Cannabis’ challenge isn’t regulation – it’s enforcement

This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.

Ripple CEO Justin Singer/Courtesy photo

For Justin Singer, rescheduling medical cannabis only matters if it leads to stronger consumer protection.

Singer, co-founder and CEO of Colorado-based Ripple Edibles, said the real issue in the legal market is not too much regulation but too little enforcement.

Rescheduling medical marijuana to Schedule 3 under the Controlled Substances Act is an opportunity to ensure that consumer safety regulations are enforced across the country, he said.

“There’s a distinction between having regulations and having rule of law,” he said. “Businesses are skeptical of regulations if you don’t have enforcement.”

In his view, rescheduling should bring clearer federal oversight of testing, labeling and health-and-safety standards so consumers can trust what they are buying.

“Enforcement ensures consumers are consuming what they think they’re buying and that they’re not smoking pesticides,” he said.

Singer supported a Colorado bill, which failed on April 28, that would have shifted cannabis testing lab oversight from the state Marijuana Enforcement Division to the Department of Public Health and Environment.

What is the gap in state and federal cannabis law enforcement?

Singer said the problem stems from how cannabis regulation is organized.

States legalized cannabis individually without the federal infrastructure to enforce meaningful consumer protections. The result, he said, is a patchwork of regulations that differ across states and frequently change within states as lawmakers and regulators update their policies.

That lack of federal guidance has caused inconsistencies in measuring THC milligrams accurately and testing for pesticides, yeast, mold and other contaminants, making it difficult for consumers to know what they’re smoking, eating or drinking.

“There’s no consumer protection whatsoever,” Singer said. “Without federal oversight, states are left to figure out a lot of things they were not resourced for.”

He draws a parallel to the used-car market. When buyers can’t distinguish a well-maintained vehicle from a lemon, they give every car on the lot a lower value.

Singer sees the same dynamic playing out in cannabis retail, and he believes price data supports his view.

“A certain price drop will always happen with economies of scale,” he said. “But we’re seeing a much steeper decrease on cost to consumer than on the cost of manufacturing. That tells me that consumers are losing faith in regulation.”

Who should control which pieces of cannabis law enforcement?

Singer said a clear line should be drawn between what federal and state governments should control.

Health and safety standards, such as acceptable levels of contaminants like aspergillus mold, pesticide thresholds and potency testing methodology, should be handled at the federal level through a single authoritative voice, Singer said.

“Structurally, there needs to be one voice speaking about what the standard is – how much yeast and mold is OK,” he said. “The differences between states lead to bad outcomes.”

Excise taxes should also be federal, structured similarly to how the federal government taxes raw alcohol by volume.

States, on the other hand, should retain authority over retail – where stores can locate, how products can be marketed locally, what retail taxes apply and how consumer exposure is managed in each community.

“Retail should be state by state,” Singer said. “But the federal government needs to handle health and safety and excise taxes, and leave it to the state to handle retail taxes.”

Regulators’ role is not to promote the industry but to ensure consumer safety through enforcement.

“The regulator’s duty is to protect consumers,” Singer said. “My business’s duty is to make money. Those are different roles and they break down when no one is enforcing them.”

How does Singer’s philosophy apply to Ripple?

Singer’s consumer-protection philosophy shapes how Ripple approaches its own product development. The company hired food scientists from the start, bringing in expertise in flavor systems and emulsification from consumer-packaged goods.

Its Ripple powder, which dissolves in any beverage, was designed to deliver consistent, fast-acting effects at a predictable dose. Newer formats include Ripple tablets, a compressed version of the same powder, and Ript gummies, which Singer said were priced aggressively after raw-material costs fell 70%, with savings passed directly onto consumers.

“We are continuing to make the best products we can, deliver the most value and partner with the best dispensaries to make Colorado the best cannabis market for consumers,” he said.

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.