Corporate Collusion & Regulatory Manipulation in the Cannabis Industry
The cannabis industry, particularly in its nascent stages, has been marked by instances of corporate influence and regulatory manipulation. This has manifested through various means, including financial contributions to lobbying efforts, support for legislation that favors larger corporations, and the exclusion of smaller businesses and community applicants. The following analysis examines specific examples of these practices, drawing on available data and reports.
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The analysis of IRS 990 filings from 2014 to 2019 reveals that Multi-State Operators (MSOs) have made donations to influence policy. Specifically, the following companies are mentioned:
- Harvest Health & Recreation (now Trulieve)
- PharmaCann (Verano Holdings)
- GB Sciences
These financial contributions are a key indicator of corporate involvement in shaping the regulatory landscape of the cannabis industry.[1]
Legislative actions also demonstrate corporate influence. For example, the support for California AB 3503 (2018) by MSOs is a clear example of how larger companies can influence legislation to their advantage. This bill, which was supported by MSOs, had the effect of blocking small cultivators from entering the market.[2] Similarly, the backing of Maryland's 2015 system, which excluded community applicants, further illustrates the trend of favoring established players over smaller, community-based businesses.[3]
A quote from an ASA (presumably Americans for Safe Access) representative during Maryland testimony highlights the rationale behind these actions: "We cannot risk uncontrolled proliferation of dispensaries in underserved markets." This statement suggests a concern for market control and the potential for competition, rather than a focus on equitable access or community benefit.[4] This quote indicates that the industry's focus is on controlling the market and preventing competition.
The actions of MSOs, such as financial contributions and support for specific legislation, suggest a pattern of corporate collusion and regulatory manipulation aimed at controlling the cannabis market and limiting competition.
Authoritative Sources
- IRS Form 990 Filings (2014-2019). [Internal Revenue Service]↩
- California Assembly Bill 3503 (2018). [California Legislative Information]↩
- Maryland Cannabis Regulations (2015). [Maryland Department of Health]↩
- Testimony from ASA Representative, Maryland Hearings (2015). [Maryland General Assembly]↩
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