A Recipe For Avoiding Disaster: How Strong Trade Associations Can Help Neutralize Bitter Ingredients in the Cannabis Industry | Where to order Skittles Moonrock online

Surveillance Testing Program in October 2025.

Feelings of Dissatisfaction and Distrust

There are common ingredients in the Catalyst and Mammoth lawsuits and Ripple’s secret-shopper study—for example, state regulations regarding mandatory seed-to-sale tracking, concerns with testing results, and the software company that holds exclusive long-term contracts with the states to provide tracking services.

The lawsuits allege that bad actors engaging in inversion and diversion were able to easily manipulate the Metrc system to hide this illicit activity, and the secret-shopper study called into question a majority of test results for marijuana products already on shelves.

Catalyst, Mammoth, and Ripple each accused state regulators of ignoring these red flags and failing to promulgate more effective regulations to prevent inversion and diversion from slipping through the cracks in the regulatory framework, as well as contaminated products from reaching consumers. Additionally, the lawsuits and media coverage following the secret-shopper study asked state regulators to tighten regulations and increase enforcement to prohibit activities from endangering the industry.

These cases illustrate current feelings of (1) dissatisfaction toward regulators who impose burdensome rules on the “good” actors while appearing to ignore the behaviors of “bad” actors, and (2) distrust between businesses struggling to stay competitive in stagnant markets.

But more often than not, litigation is expensive, time-consuming, and too slow to effectuate real change; most cannabis businesses do not have the resources to fight state regulators or bad actors in court. And, even when operators are willing to “go it alone” and speak up, they run the risk of being cast as pariahs within the industry—alienating potential partners or customers by publicly calling out peers rather than working collaboratively toward solutions.

So, how can cannabis businesses work together to minimize the bitter taste that bad actors can leave behind?

#1 Amplify Influence

A strong trade association will often champion common industry interests at the political table. While one cannabis business alone may not have the resources to lobby for beneficial policies, joining (or starting) a trade association can be an effective way to pool resources, present a collective voice, and advocate for positive regulatory change.

#2 Increase Accountability

Trade associations often advance best business practices and utilize peer benchmarking to measure performance and identify areas for development. When local and state governments struggle to keep pace with innovation, a strong trade association can provide an invaluable opportunity to implement effective means of self-regulation, like enhanced safety, quality, and ethical standards.

#3 Develop Networks

Not everything needs to be a competition. Though cannabis businesses compete in the market, strong trade associations can offer cannabis business owners and employees the chance to connect with peers, discuss industry trends, offer advice, and foster symbiotic business relationships. This spirit of “coopetition”—where rivals collaborate on shared challenges while still competing in the marketplace—can help raise overall industry standards and strengthen collective resilience. In an industry facing heavy regulation and persistent stigma, coopetition can be a powerful way to build trust and solve problems that no single operator can tackle alone.

#4 Promote Public Health and Safety

Education is the key to ensuring the continued prioritization of public health and safety in the cannabis industry. Just as strong trade associations help individual businesses combine forces to better lobby on behalf of the industry, they can also help develop educational programs and campaigns to increase public awareness when it comes to the healthy and safe use of regulated marijuana, e.g., distinguishing “good” actors from “bad” actors.

Final Notes

By joining or forming a strong trade association, cannabis business owners can overpower the bitter taste of bad actors and advocate for improved policies, implement higher quality and safety standards, and help hold each other accountable more effectively—and less expensively—than a lawsuit.