Cannabis company Veterans Holdings, Inc filed a lawsuit this week in New York Supreme Court against the state, challenging its seed-to-sale tracking system, arguing it significantly increases operating and compliance costs for licensed businesses. The program, overseen by the Office of Cannabis Management, requires cannabis products to be tracked from cultivation through retail sale using the “Metrc” platform.
According to the company, and echoed by other growers and processors, the program’s tagging, reporting, and data-entry requirements sharply increase compliance expenses, particularly for smaller operators. Businesses say costs associated with mandatory tags, system integration, staff training, and ongoing reporting could erode already thin margins in the state’s developing legal cannabis market.