Study of five US cities shows pharmacies strictly enforce ID verification laws

As a fledgling industry, many are all too familiar with the strict compliance protocols associated with cannabis today. Cannabis retailers in the US must comply with a number of rules issued by state cannabis officials, in part to ensure they verify ID and that product does not get into the hands of underage consumers.

Data published in the journal Addictive Behaviors sheds new light on how well pharmacies are following these regulations, finally finding that adult-use retailers in five US cities are strictly following laws requiring customers to be they identify themselves and prove they are of legal age.

“As the cannabis retail industry expands in the United States, monitoring it is critical to inform regulations and protect consumers. This study addresses that need by conducting point-of-sale audits that examine regulatory compliance (e.g., age verification, signage), promotional/promotional strategies, products, and pricing…” the authors explain in the Summary.

Cannabis Compliance: ID Verification, Warning Signs and Appeal to Minors

A team of investigators affiliated with George Washington University’s Milken Institute of Public Health conducted point-of-sale audits of 150 randomly selected recreational pharmacies in Denver, Los Angeles, Las Vegas, Portland and Seattle, 30 for each city . Investigators conducted the audits in the summer of 2022.

Age verification rates were high, over 90%, and the majority of retailers had signs indicating restricted access (87.3%), on-site consumption (73.3%) and distribution to minors (53.3%). . Retailers were also likely to post warnings about cannabis use during pregnancy and while breastfeeding (72%), followed by health risks (38%), effects on children/adolescents (18.7%) and DUI (14%).

Conversely, 28.7% posted health claims about cannabis, 20.7% posted “youth-oriented signage” and 18% had products with “youth-oriented packaging”.

Other signage, marketing and product insights

The study also examined other information outputs that are commonly posted and marketed in stores. Price promotions were common, particularly special prices (75.3%), followed by daily, weekly and monthly specials (66.7%) and membership program signage (39.3%).

A quarter of stores had signs and promotions promoting curbside delivery/collection (28%) and/or online ordering (25.3%). Social media and website promotions were detected in 64.7% of stores audited.

Finally, the investigators took a close look at the retailers’ product selection. Most cannabis products were most commonly e-liquids (38%) or oils (24.7%), with edibles coming up most frequently (53%) as the least effective product.

The most expensive product was often bud and flower (58%); Joints were the cheapest (54%). More than 81% of retailers sold vaporizers, rolling papers and glass, such as hookahs, hookahs and bongs; 22.6% sold CBD products.

The results reflect previous compliance data

“Marketing strategies varied across cities, reflecting differences in state regulations and/or gaps in compliance/enforcement,” the investigators wrote. “The findings underscore the need for ongoing monitoring of the cannabis retail sector to inform future regulatory and enforcement efforts.”

Commenting on the study’s findings, NORML Deputy Director Paul Armentano began by emphasizing, “Regulation works.”

“Illegal marijuana distributors don’t require or check ID, but licensed businesses certainly do,” Armentano wrote in a NORML blog post. “States’ real-world experience of legalizing marijuana confirms that these policies can be implemented in a way that allows regulated access for adults while restricting access and abuse by youth.”

Age verification numbers are consistent with previous research. Specifically, a 2022 study that focused on the California market found that pharmacies were highly compliant with ID, 100% full ID compliant for the randomly selected retailers.

“It appears that licensed California recreational marijuana dispensaries are avoiding selling marijuana to underage customers. One reason could be a strong incentive for owners and managers of recreational marijuana dispensaries to avoid closure for an illegal activity,” the authors wrote.

This study also suggested that further studies and cannabis law enforcement agencies should investigate whether underage customers attempt to enter cannabis retailers with fake IDs, and whether underage customers obtain cannabis from illegal dispensaries or other sources.

A bulletin issued by the Colorado Marijuana Enforcement Division in August 2022 also found that out of more than 190 compliance audits that used underage employees, four companies in the state made a sale to these individuals, giving a compliance rate of 98% occupied.