Category Archives: Business Learning Center

Cannabis Consumers: Purchase

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Understanding legalized cannabis, CBD, and hemp buyer behavior is essential for product development and effective marketing. But this industry is still in its infancy, which means demographic and purchase driver information is limited and sometimes unreliable.

Some studies have shown the fundamental purchase drivers for cannabis products are similar to other types of goods, which is great news for businesses in the industry. There are also promising studies emerging from countries where the sale and consumption of recreational cannabis have been federally legal for several years. 

So, how can those in the U.S. market understand what exactly incentivizes legalized cannabis, CBD, and hemp purchase? What distinguishes one brand from another? And what are contemporary buyers prioritizing and demanding from the companies they purchase from?

In this article, we will explore research that demonstrates exciting trends among cannabis customers. Keep reading to discover opportunities to improve communications with consumers. 

Age Demographics of Cannabis Consumers

By a large margin, the majority of American cannabis consumers fall into the Millennial and Gen Z age group.

A recent survey resulted in the following figures:

  • 22% of consumers were 18 – 29
  • 11% of consumers were 30 – 49
  • 12% of consumers were 50 – 64
  • 3% of consumers were 65 +

Surveys have also found the largest demographic of cannabis users were unmarried millennial men, but not by a wide margin. Young adults of varying genders and backgrounds reported using legalized cannabis for both recreational and medical purposes, meaning that the strongest demographic indicator for cannabis use was age.  

Purchase Drivers for Cannabis Consumers

As the legalized cannabis industry is only just emerging, there is limited and unreliable data about purchase drivers for these products. 

In one study of Canadian consumers—conducted after federal legalization and published this year—participants provided information about different purchase drivers and their importance. 

The primary drivers were as follows:

    • Price: Consistent and affordable pricing structure.
    • Quality: Compliance with safety and production regulations, potency, and craftsmanship.
    • Packaging: Label information that conveys details about a consumer’s needs.
    • Social influences: Recommendations or social and cultural beliefs.
    • Retailer characteristics: Availability at a local dispensary and staff knowledge.

Cannabis Purchase Drivers: Price

Price is one of the leading factors cannabis consumers cited for their participation in the illicit market. Although consumers do correlate the low prices in the illicit market with a marked decrease in quality, a small number of them still prioritized affordability.

The demographic of users who were most concerned about price were experienced and frequent users, suggesting that there is a largely untapped market of frequent cannabis users continuing to purchase illegal cannabis. 

Cannabis Purchase Drivers: Product Quality

While the same study found that there was no shared single definition of a quality cannabis product, there were overlapping elements. These included:

  • Compliance with regulations
  • Accurate labeling for potency, effectiveness, and ingredients
  • Cultivation with high production standards
  • Safety of the product

Cannabis Purchase Drivers: Packaging

Surveyed cannabis consumers were also concerned with packaging and labels on the products they chose to purchase. While many felt that the packaging of federally legal cannabis was excessive and not environmentally friendly, they noted the importance of accurate and robust label information.

Some of the key pieces of information they preferred to read on a label included:

  • Warning information
  • Usage instructions
  • Full ingredients
  • Source information
  • Potency
  • Strain information

Overall, there was disagreement about the amount of packaging that should be used, but the survey group was unanimously appreciative of the comprehensive label information.

Cannabis Purchase Drivers: Others

Surveyed cannabis users have reported that they use cannabis as a solution for a variety of wellness-related concerns. An estimated 70% of cannabis consumers use the products to support their sleep health, and 59% consume cannabis to reduce stress and nerves.

The research on whether or not cannabis can support or relieve specific medical conditions or ailments is limited. As such, it is illegal to make medical claims in cannabis product messaging. 

However, regardless of whether or not cannabis has been proven to support these functions, the research suggests that consumers believe it can. As a result, a significant factor driving cannabis purchases involves a consumer’s belief that a product will be effective and include the correct ingredients for solving their problem. 

Cannabis Consumer Priorities and Values

Consumer values, especially among the Millennial and Gen Z demographic, have evolved significantly over the past few years. 

Two of the main shifts in consumer values include:

    • Diversity, Equity, and Inclusion: Consumers care more about inclusivity and they are willing to purchase from companies that demonstrate the same value. An estimated two out of three Americans make purchases based on social values.
    • Environmental, Social, and Governance (ESG): Investors, workers, governments, and consumers are all increasing pressure on companies to make and adhere to their ESG commitments. Of those who cite sustainability as an important factor in their purchasing decisions, 70% are willing to pay a significant premium for sustainable products.

Build Trust with Cannabis Consumers in Qredible®

In the digital marketplace, consumers demand more transparency, trustworthiness, and commitment than ever before. If your company is laser-focused on providing that, the last thing you need is competition with deceptive marketing tactics. Are you willing to stand behind your brand commitments? 

False, accidentally fraudulent, or misleading claims diminish the hard work of responsible businesses and disincentivize them from putting forth the effort to engage in safe commerce. 

In Qredible®, companies are rewarded for transparency. They have access to premium resources that build a solid foundation of trust with their audience.

Trust, transparency, and support to protect and grow your business: that’s what you’ll find in Qredible. Want to learn more? Get started today.

Understanding Cannabis Certifications

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Improving trust and transparency in the legalized cannabis, CBD, and hemp industry begins with developing a shared understanding of what certain claims and certifications mean.

According to a recent study, 51% of Americans find claims and certifications to be important when making purchase decisions, yet they struggle to trust the sources of many claims or understand what different certifications mean.

At Qredible®, we’re working to increase trust and transparency in the legalized cannabis, CBD, and hemp industry. As a part of that commitment, we’ve compiled a list of claims and certifications used in cannabis product messaging.

Keep reading to learn more about what can and cannot be said in legalized cannabis product messaging, and to learn about the most common certifying and regulatory bodies in the U.S. medical and legalized cannabis industry.

Health Claims in Legalized Cannabis, Hemp, and CBD Product Messaging

Ultimately, as cannabis is still considered a schedule 1 substance, the claims that businesses are legally allowed to make generally vary by state. 

On the federal level, however, it is illegal to make health claims about legalized cannabis, CBD, or hemp products.

Some common health claims that are not allowed in cannabis marketing include claims that suggest a product can:

  • Cure, lessen, or relieve any physical disease or illness
  • Cure, lessen, or relieve any mental health condition
  • Alleviate pain, physical disease symptoms, or mental health symptoms
  • Prevent mental or physical disease or illness

Common ways companies make health claims include:

  • Labeling a product as “anti-” something (anti-inflammatory, for example)
  • Suggesting usage for specific conditions
  • Naming physical or mental illness in the product labeling or marketing messaging

The reason that legalized cannabis products are not allowed to make medical claims is that the FDA requires all products intended to address disease to be classified as pharmaceutical drugs. These drugs and supplements are subject to the most stringent regulation of any ingestible substance. 

Cannabis, CBD, and hemp are not yet approved by the FDA as drugs. As such, there are no recommended dosages, proper use guidelines, or information about potential side effects and interactions with other FDA-approved substances.

Certifying Bodies for Legalized Cannabis, Hemp, and CBD Products

There are many certifying organizations, regulatory bodies, and compliance enforcement initiatives that serve businesses and consumers in the legalized cannabis industry. Due to their public reputation, many certifications and designations can be used by businesses in marketing messaging to increase trust and establish authority.  

The following list contains some of the most popular certifying and regulatory agencies operating in the industry.

The USDA

The USDA is a government agency that regulates and manages federal rules surrounding agriculture and natural resources. 

Cannabis growers who meet the USDA standards for organic can apply for a USDA Organic certification that demonstrates their commitment to: 

  • Promoting ecological balance
  • Preserving water quality
  • Fostering resource cycling 
  • Improving soil quality 
  • Improving biodiversity
  • Limiting synthetic materials

In order to determine eligibility, a USDA certifying agent must confirm a business follows all USDA organic regulations. They must also ensure the company is not using prohibited methods or substances at any stage in its production process. 

Food and Drug Administration

The U.S. Food and Drug Administration is the federal regulatory body for all ingestible substances available for public consumption. Their mission is to protect public health by limiting the risk of contaminants, toxins, and product misuse. 

Currently, the FDA has only approved a limited number of cannabis-derived products. They are as follows: 

  • Epidiolex (cannabidiol)
  • Marinol (dronabinol)
  • Syndros (dronabinol)
  • Cesamet (nabilone)

These products are approved for medical use only and require a prescription from a licensed health practitioner. Presently, there is no federally approved policy for recreational or medical cannabis. 

However, the FDA has recently hired Norman Birenbaum as a senior public health adviser for the U.S. Food and Drug Administration. As the former head of marijuana programs in Rhode Island and New York, it is expected that more guidance will be forthcoming as Birenbaum will be working with the Center for Regulatory Programs on projects involving cannabis research and marijuana regulation.

U.S. Hemp Authority

The U.S. Hemp Authority is a certifying organization that enforces high production standards, safe commerce practices, and transparency in the legalized cannabis industry.

To obtain a U.S. Hemp Authority Certification, a company must prove compliance with strict regulatory standards. Applicants are required to undergo a third-party audit of their facilities and products.

NIHC ASTM Program

The National Industrial Hemp Council’s Verify Program focuses on ensuring compliance with testing and labeling standards for cannabis, hemp, and cannabidiol (CBD) products. 

The program was announced in November of 2021. Since then, the council has been developing its own testing standards and labeling protocols. The goal of the Verify Program is to increase consumer trust, ensure transparency, and establish the hemp industry as reliable and trustworthy.

ISO 9001

ISO 9001 is a quality designation that can be used in any enterprise of any size, location, or industry. It is used to demonstrate a company’s success in its commitment to providing products that comply with regulatory requirements and consistently satisfy customers.

In order to obtain an ISO 9001 certification, a company must demonstrate:

  • A focus on customer satisfaction
  • Management intention and motivation
  • Responsible processes
  • Commitment to continuous improvement

An ISO 9001 certification represents customer satisfaction and quality products or services. 

State Health Departments

Each state with medical and/or recreational cannabis regulations has a governmental body overseeing the quality control processes. 

Some states have multiple agencies designated to oversee specific areas of the industry, whereas other states place cannabis, CBD, and hemp under the jurisdiction of their state Food and Agriculture Department or Department of Health.

Cannabis Safety and Quality

The Cannabis Safety & Quality (CSQ) Standards provide a framework for companies to demonstrate their commitment to cannabis and cannabis-infused product excellence. The standards were informed by the ISO and the Global Food Safety Initiative. 

To become certified, companies must prove the following processes adhere to best practices:

  • Growing and cultivation
  • Manufacturing and extraction
  • Food and beverage manufacturing and infusion
  • Cannabis dietary supplement manufacturing

Each of these processes has a different set of requirements.

GMP

Good Manufacturing Practices (GMP) is a certification process conducted by the National Science Foundation (NSF) for ensuring consistency and quality in the manufacturing of cannabis and other products.

Companies that earn GMP certifications must submit to an audit of the following information:

  • Testing of raw materials
  • Testing processes
  • Facilities, equipment, and personnel
  • Confirmation of SOPs
  • Testing of the effectiveness of products

Qredible®: Validating and Verifying Legalized Cannabis, CBD, and Hemp Claims

There are many regulatory and certifying organizations working hard to ensure a safer and more trustworthy industry for everyone. 

While Qredible is not a compliance enforcement initiative or regulatory body, we are proud to support and promote the work that these organizations do by validating and verifying claims, certifications, licenses, registrations, and other documentation.

In doing so, we also support companies that are committed to ensuring the quality, safety, and effectiveness of their products. We do this by distinguishing them from competitors that make claims without putting in the effort to earn or substantiate them. 

Being committed to quality and extending the extra resources to become certified and ensure best practices in safety and quality is extremely important to gain trust. This is why we believe so strongly in validation and verification. 

It simply is not fair, nor is it safe for a company to misrepresent these certifications. Any company that is Q-verified means that all of its badging and certifications have been vetted and verified as true!  

Our mission is to facilitate and foster safer commerce that will result in increased trust in the entire industry.

Qredible is the only digital registry of verified and validated legalized cannabis, hemp, and CBD brands. Want to be in Qredible? Get started today. 

Who is Cannabis Industry

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Meet the Company Restoring Trust and Transparency in the Legalized Cannabis, CBD, and Hemp Industry

The horror stories in the industry are numerous. I cannot tell you how many entrepreneurs, speculators, and experienced industry folk alike have been adversely impacted by misrepresentation and fraud.  

My co-founders and I have our own horror story, which I am not at liberty to publicly disclose, but suffice it to say that it quickly became our impetus and inspiration behind the vision and mission of Qredible. 

The contents of these stories are obviously unique to each party, but they all have similar shades of content. I have heard so many stories of misrepresented product claims accompanied by fraudulent lab reports and quality manufacturing practices and standards that sound great in a power-point pitch, but are non-existent when visiting the facilities. 

After asking many industry CEOs and COOs how they trust their trading partners in the supply chain, the answer was common: “We don’t!” They have to verify everything before they proceed.

The other common factor was that almost everybody referred to the industry as “the wild, wild west”. The distrust was systemic on both the buyer’s and the seller’s side. And the consumer, well, they are just confused and want to ensure they are using the best product for their money.

When we started Qredible®, our goal was to bring transparency and reliability to this rapidly growing industry of legalized cannabis, CBD, and hemp. The lack of accountability poses a massive risk to investors, consumers, and to the companies themselves. It also poses a significant issue to the industry. 

I saw this first-hand in the mortgage industry where I spent thirty years building compliance-based technologies. We all saw the negative consequences of an industry where the guardrails are either missing or not adequately observed or left unchecked.

This not only left a host of failed companies in its wake but also significantly impacted the industry and the entire economy. The good news is that nobody died as a direct result of a bad mortgage, but we cannot say the same for an industry where the end product goes into our bodies. 

The hemp, CBD, and legalized cannabis industry has the potential to be a good thing… until it is not. I believe that Qredible is a key element to a safe and thriving industry. Let me tell you why.

The Problem: A Lack of Trust in an Unregulated Industry

Nobody trusts anybody in this industry, and for good reason. The supply chain is laden with false and misleading information regarding suppliers and their products. This creates confusion for everyone in the supply chain, but especially for the consumer.

False Information and Misleading Advertising

Consumers are at the bottom of the supply chain and oftentimes they aren’t aware of what they’re putting into their bodies. Because of the lack of regulation, consumers could be paying a hundred dollars or more for a product they believe to be CBD oil but is actually just a carrier oil that costs four dollars to produce. 

The product may indeed contain CBD, but way less than what is advertised. The product could also have harmful micro-toxins or residual metals that are hidden in an altered lab report. Perhaps the CBD is being produced by a manufacturer who is not following quality manufacturing standards or is using subpar equipment or processing.

There’s so much misrepresentation and fraud, and it comes in so many different forms: licensing, lab reports, registrations, and quality certifications can all be altered to mislead people. 

The primary way companies try to validate their product claims is with Certificates of Analysis (COA) which include information from lab reports. The problem is these lab reports can be modified and consumers are none the wiser. Bad actors get away with this because it is difficult to prove. It is often not enforced, despite the fact that altering a lab report is a felony. 

There is also a widespread misunderstanding about federal regulation; this industry is not yet fully federally regulated. The FDA does its best, but it does not have the resources, standards, and guidelines to fully enforce standards comparable to industries such as pharmaceuticals.

Consumers assume the biggest brands are the safest, but that’s not necessarily true. 

You can find endless examples of major brands in the press or involved in a class-action lawsuit after getting caught with false advertising or deceptive practices.

This reality hurts a lot of people and puts the industry as a whole at risk.

The Risks 

This industry is often referred to as the wild west — because it is. There’s a lot of speculation and everyone thinks they’re going to get rich quick. 

The revenues, specifically in the hemp and CBD industry, have decreased since 2019 while the fixed costs have stayed the same or increased. This has caused some manufacturers to find cheaper sources of raw materials, reduce costs in quality manufacturing practices, and misrepresent the truth about their certifications and qualifications.  

Sellers can make false claims and put badges — such as USDA Organic or Certified ISO 9001 — on their website, but there’s no one to verify them or hold them accountable for that. 

The quality manufacturers in this industry deserve to stand out and be recognized. They are the ones willing to stand by their brand promises because they are the ones focused on doing the right thing and delivering a quality product to the market.

There are considerable compliance and litigation risks for those companies that thwart the truth and cut corners. They face fines, fees, penalties, FDA or FTC involvement, reputational harm, injunctions, and lawsuits. When that happens, investors get spooked and may turn away from the industry altogether causing a further degradation in the quality and availability of the product.

For responsible companies that don’t cut corners or try to mislead their customers, it’s nearly impossible to stand out and it’s increasingly difficult to gain trust.

So, what is to be done? 

How can we restore faith in an industry rife with fraudulent claims and misleading information?

The Solution: Verified Claims Through Qredible®

Qredible protects businesses and consumers from risk by providing the only digital registry that validates legalized cannabis and CBD brands and their products. 

The system not only protects businesses through compliance monitoring and alerts but also promotes the growth of responsible businesses by increasing the value of products, establishing trust with industry partners, and limiting risk.

The Q-Trust™

The Q-Trust™ is a digital registry of verified products and brands that provides some of the following services and functionalities:

  • Automated and artificial intelligence-driven compliance monitoring of digital marketing including, website, social media, and other online promotional means
  • Active reputation monitoring and management
  • Q-Vault: A blockchain registry of licenses, certifications, and lab reports that cannot be modified in any way
  • Integrated community of industry partnerships
  • Industry research, analytics, and insights
  • Market access and promotion

Businesses that are a part of the Q-Trust system will get access to a Qredible seal. This encourages safe commerce across the entire industry.

Who Should be in Qredible?

More than just growers, merchants, and manufacturers, all ancillary businesses and providers can benefit from being in Qredible.

  • Farmers
  • Manufacturers
  • Retail and wholesale merchants
  • Third-party product and service providers
  • Network buyers of wholesale product
  • Financial institutions
  • Labs
  • Consumers

Say you run a trucking company and you are transporting a load of industrial hemp. How can you prove that what you are hauling is indeed federally legal hemp and not marijuana? By being in Qredible. 

Not only will Qredible verify all your licenses and claims, but it will also provide you with access to digitally validated lab reports regarding the product you are transporting. 

Anyone who believes in safe commerce, consumer safety, and responsible business management should be in Qredible. 

We’re establishing a foundation of trust in an otherwise unregulated and unreliable industry.  

A Team United by Purpose

Qredible is made possible by our team of driven, skilled technology and industry professionals. 

This is a very open and communicative company. Our team is carefully selected based on a mutual passion for innovation. Driven by humility and faith-based principles, we look for the most competent people, then we prioritize listening and learning from each other.

I’m so thankful for our team. Their unique perspectives make me better, make us all better, and make Qredible better. I feel so blessed to have them on board with our mission.

The Future of the Cannabis Industry is in Qredible® 

Currently, without Qredible, the industry functions in such a way that businesses actually benefit from using fraudulent claims and manipulative marketing tactics. Qredible will completely change that.

Our vision for the future of Qredible is for it to become a fully integrated part of the legalized CBD and cannabis industry supply chain. Investors, manufacturers, and retailers will all recognize the benefit of dealing with companies that are verified, resulting in more safe choices being available to customers.

When shopping, customers will pull out their phones and simply take a picture of the product or input the name of a company to check if a company or product is in Qredible. 

I cannot tell you how many friends and family members email me a picture of their product and a lab report that they cannot interpret to ask me what I think about the brand. Is it safe? Will it work? Should I use something else?

Soon, we will release the consumer-facing version of Qredible and they will no longer need to ask me. The answer will be a click away. This insight will empower them to make better choices and support responsible businesses. 

When brands aren’t in Qredible, we will drive endless opportunities for them to get involved and register their brand. This will increase accountability among a greater number of companies.

When consumers support responsible businesses, the right companies succeed, resulting in a safer and more ethical industry. 

Qredible is the only online verification system that helps ethical suppliers differentiate themselves from competitors who make deceptive claims about their products. Get started today to be in Qredible.

What is Mission?

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Currently, in the legalized cannabis, CBD, and hemp industry, companies can make claims, create labels, and market their products without worrying too much about regulatory bodies holding them accountable. It does not mean that enforcement does not happen; it is just few and far between at the present time.

As a result, the industry has become somewhat like the wild west — although there are measures designed to prevent companies from making false and misleading claims about their products, they are not heeded by many. 

Honest, responsible industry professionals in every area of the supply chain are then left to compete with companies that engage in these misleading and sometimes fraudulent marketing tactics. Investors and businesses risk catastrophic legal repercussions. And consumers are required to navigate an untrustworthy industry without the tools to make informed decisions about what they put into their bodies. These products are not cheap and ensuring that consumers get what they are paying for is another key critical factor in augmenting consumer trust and brand loyalty. 

Qredible® is here to solve these problems by fostering a symbiotic ecosystem and network of manufacturers, merchants, distributors, analytic labs, banks, and ancillary businesses to provide a single digital source for researching brands and building trust and transparency in a rapidly growing and challenging industry.  

Our mission is to promote safe commerce using advanced technologies that protect businesses, facilitate growth, and consistently build consumer trust. 

Keep reading to learn more about how we’re accomplishing that mission.

What is Qredible®?

Qredible is the only digital registry that validates and verifies companies, brands, and products in the legalized cannabis, CBD, and hemp industry. It is a system-wide platform intended for use by customers and industry professionals in all areas of the supply chain.

Anyone involved in the CBD, hemp, and legalized cannabis industry who wants to earn the trust of partners, investors, customers, and other businesses should be in Qredible. This includes:

  • Growers, nurseries, and handlers
  • Manufacturers
  • Retail and wholesale merchants
  • Third-party product and service providers
  • Network distributors and buyers of wholesale product
  • Financial institutions and insurance companies
  • Private and institutional investors,
  • Analytical testing labs 
  • Regulatory agencies 
  • Consumers

Once they’re in the registry, businesses will have access to a wide variety of features unique to their needs. Consumers will be able to view verified licensing and badging/certification information about a company. They can also track information regarding the brand’s product’s, including lab testing, product ingredients and much more. 

Merchants and investors will be able to view vaulted and blockchained lab reports before making financial decisions. And manufacturers will be able to confirm merchant claims align with their products. The Qredible Q-Trust platform incorporates all of the intelligence to enable a 360-degree view of your customers, your partners, and your vendors. It will enable you to prove your quality and stand by your brand promises through the power of the Q-Verified seal. 

The result is total supply chain participation in trustworthy and compliant business practices that significantly lower risks for all parties and increases the value of your brand in the market.

Functionality and Features of the Q-Trust™

Qredible does more than just verify claims made about a product or company, it also encourages accountability and reform through compliance monitoring in Q-Trust™ through a powerful compliance engine called Q-Comply™. 

By establishing their business in Qredible’s Q-Trust platform, industry professionals gain access to: 

  • Q-Comply™ — Automated compliance monitoring: This includes a powerful AI-powered compliance bot to perform audits and proactively monitor your website, social media, marketing messages, and labeling to prevent issues and mitigate risk.
  • Brand reputation management: Active monitoring and management of critical data sources including news, lawsuits, regulatory warnings or enforcement actions, and reviews on various sites such as google my business and the Better Business Bureau.
  • The Q Vault™: A blockchain registry of immutable documents, including licenses, certifications, and lab reports complete with critical tracking data and alerts of critical dates of expiration.
  • A network of reliable industry partners: An integrated community of industry participants to build and strengthen relationships.
  • Advanced research, analytics, and industry insights: Access to news, industry research, resources, and data curated for your needs and interests.
  • Market access and promotion: Promote your brand, services, and products through Qredible’s marketplaces and platforms. 

All businesses that claim their profile and complete their “Road to Qredibility” (RTQ) in the Q-Trust™ platform will be verified with a seal that indicates that the information related to your brand, including licensing, certifications, and lab reports, has been validated and verified. 

This allows companies to finally stand by their brand and distinguish themselves from dishonest competitors who, until now, took advantage of the unregulated nature of the industry to cut corners and deceive customers. 

Regardless of whether a business claims its profile or not within the Q-Trust platform, Qredible is currently reporting on over 30,000 licensed industry entities in both Hemp/CBD and the legalized cannabis industry. As such, it is important for a company to claim its profile and complete its RTQ in order to gain control of its digital industry profile. 

Functionality and Features of the Q-Vault™

Using sophisticated technology, Qredible confirms the validity of a brand’s claims, licenses, certificates, permits, labels, registrations, and more. 

Once validated, lab reports and other documents are then stored in a blockchain-powered database that obstructs the ability to alter the document in any way, ensuring it cannot be tampered with. 

Key data and expiration dates associated with these critical documents and certifications are also tracked, allowing the system to send proactive notices and warnings when critical dates are nearing expiration. This includes dates on licenses, certifications, insurance policies, and  Certificates of Analysis and allows users to receive warnings when a predetermined time period has elapsed (i.e. 18 months). 

Protecting and Growing Your Business In Qredible®

At the same time as Qredible works to improve trust and transparency in legalized cannabis, CBD, and hemp organizations, it also provides them with a variety of benefits that both protect and encourage the growth of their business.

Qredible protects businesses by actively monitoring their compliance with regulations. This prevents and limits potential fines, fees, and penalties associated with any violative messaging in products and marketing. Additionally, Qredible provides proactive monitoring of hundreds of data sources of not only brands but that of their suppliers to ensure that subscribers of Q-Trust are always aware and notified of critical events whether they are positive or negative. 

Q-Trust also helps businesses avoid FDA or FTC involvement and lawsuits which can lead to irreparable harm in the form of reputational damage and injunctions. These conflicts and disruptions result in more than just temporary losses in revenue. Investors will be less inclined to support a business with a poor reputation, especially if a company has a history of irresponsible business practices. 

Many businesses think they are doing or saying the right thing, but are surprised by unintended consequences caused by a rapidly changing regulatory environment, which could cost them their business. 

Not only does Qredible help businesses avoid these conflicts through advanced technology-driven active monitoring, but it also helps responsible and ethical businesses proactively manage their reputation and continue to build their brand in the industry. 

Once a business is in Qredible, it’s easier to promote growth through the advanced functionality and features only available to members. It also increases the value of products by cultivating a reputation synonymous with quality consumers can trust.

Qredible®: Increasing Trust in the Legalized Cannabis Industry

Qredible’s mission is, ultimately, to transform the legalized cannabis, CBD, and hemp industry from a place rife with fraudulence and misinformation to a symbiotic community based on mutual trust.

In Qredible, all parties can engage in safe commerce, enabling them to promote and distribute their products on their own e-commerce sites, a multitude of industry aggregation platforms, and the Qredible Q-Marketplace. The Q-Verified Seal and unique company QR code connote trust and transparency fostering confidence in the purchasing process.  

Prospective customers can pull out their phones to scan the QR-Code associated with the participating company which will provide a summary level report to potential buyers indicating the validation and verification of both the company and the products. 

When consumers support responsible businesses, the right companies succeed. The result: safer commerce through shared accountability and mutual respect. 

Qredible is the only digital registry that helps ethical suppliers differentiate themselves from competitors who make deceptive claims about their products. Get started today to be in Qredible.

Why Trust Regulation

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In the legalized cannabis, hemp, and CBD industry, professionals in every area of the supply chain have good reasons not to trust one another. Although there are requirements in place to prevent misleading or fraudulent claims in product messaging, there is a significant lack of adherence to regulatory measures and responsible business practices.

Qredible® is the only digital registry and network of verified and validated manufacturers, merchants, distributors, labs, banks, and ancillary businesses. But why should you trust us? 

Qredible’s mission is to provide an accessible digital registry and platform for increasing transparency in this rapidly evolving industry. Using advanced technologies that protect businesses and consumers, we aim to create an ecosystem based on mutual trust that allows businesses engaging in safe commerce to thrive. 

Still, the industry is beginning from a state of reactivity and distrust. It seems as though companies are caught both mistakenly and knowingly defying regulations on a daily basis. So, how can you be confident that Qredible is trustworthy?

This article will explore how Qredible was designed to address and resolve the concerns of various professionals in the legalized cannabis, hemp, and CBD supply chain. Keep reading to learn why you should trust Qredible.

Qredible®: Supporting Trusted Organizations

To start, Qredible is not a regulatory body, certifying organization, or compliance enforcement initiative such as the U.S. Hemp Authority, The Food and Drug Administration or a USDA Organic accredited audit agent. 

Qredible is a digital registry and sophisticated support system that validates and verifies critical information about a company, its practices, and its products.

Qredible starts with the validation of critical industry license data and various quality certifications. For example, if a company claims that they have received a quality certification such as an ISO 9001 Certification or a quality designation from the U.S. Hemp Authority, Qredible validates and verifies this with the accredited source of truth. It provides a digital smart contract ID and locks it down in its blockchain registry. 

Qredible will also provide critical automated tools and data connections to key information sources to enable additional quality monitoring and research. This will enable full transparency and awareness of violative language in multiple forms of digital marketing. 

These tools include:

  • Automated compliance monitoring and proactive audits to identify potential violative language and false claims
  • Reminders about expiry and recertification dates
  • Reputation monitoring and management
  • Validated, immutable documentation including lab reports, certifications, registrations, and licenses
  • The ability to access curated news and industry-specific research, resources, and analytics

In this way, Qredible’s mission is to cultivate an industry that functions as a thriving ecosystem, where brands, manufacturers, companies, and consumers trust and respect one another, resulting in safer commerce for all. 

Certifying organizations, regulatory bodies, and compliance enforcement organizations are a critical part of that ecosystem. As such, Qredible works to increase trust in seals and certifications by preventing misleading or fraudulent claims.

Protect and Grow Your Business in Qredible® 

Qredible provides businesses in all areas of the supply chain with the support to overcome the unique challenges facing their sectors. Regardless of what role your business fills, Qredible has solutions designed for you.

Why Should Manufacturers and Distributors be in Qredible®?

There are many benefits for suppliers of legalized cannabis, hemp, and CBD products who are in Qredible. 

The most urgent concern is the significant compliance and litigation risks that come as a result of the current state of the industry. Altered COAs, lab reports, and other documentation can inflict serious damage on a manufacturer or distributor. 

In Q-Trust™, members will gain access to a network of verified growers, nurseries, and handlers whose documentation has been verified and validated using advanced technology. The Q-Vault™ ensures all documentation is immutable, meaning suppliers no longer need to worry about altered COAs and lab reports.

In addition to more transparent sourcing processes, Qredible enables manufacturers and distributors to differentiate themselves. Because of the current lack of visibility in the industry, it is nearly impossible to prove and differentiate a product’s quality. In Q-Trust™, suppliers gain access to verification and validation services that set them apart from other companies and build consumer trust. 

Finally, Qredible offers suppliers unique opportunities to gain insight into what their customers are saying about them. This, along with Q-Trust™ market research features, allows them to unlock information about their reputation as well as insights into their audience demographic. 

As a result of being in Qredible, manufacturers and distributors are better equipped to develop successful marketing strategies, build professional relationships with industry partners they trust, and gain a competitive edge in the marketplace. This means reduced risk, improved reputation, increased visibility, and higher revenues.

Why Should Merchants be in Qredible®? 

Consumer trust is paramount in the digital age. These days, merchants must answer directly to consumers who are more informed than ever. As Qredible begins to establish increased transparency in the legalized cannabis, hemp, and CBD industry, consumer demand will adjust to accommodate the availability of more trustworthy brands and products.

In order to provide consumers with the best experience possible, merchants must establish trust by ensuring the brands they stock are transparent about the quality of their products. Qredible provides merchants access to resources for verifying their manufacturers and distributors in order to provide their customers with a high-quality selection that will differentiate them from competitors.

In addition to maintaining a solid reputation among customers, merchants must also establish and maintain trust with financial institutions, including banks and insurance agencies. Financial institutions are required to follow strict compliance regulations and will pull away from a merchant who is involved in any potentially illegal or non-compliant operations, whether or not the noncompliance was intentional. Losing your merchant account suddenly or primary bank relationship is disruptive and could cause significant harm to a merchant’s business.

Through Q-Trust™ active monitoring, merchants will be notified of events that could have a negative impact on their business and brand, providing peace of mind and confidence in the level of trustworthiness of their suppliers and ancillary partners. 

The presence of companies in Qredible will establish more trust with customers, resulting in an improved reputation that will lead to increased sales and revenue.  

Why Should Labs be in Qredible®?

The falsification or doctoring of lab reports and COAs creates significant liability for labs involved in the testing of legalized cannabis, CBD, and hemp products. In the case that a document is altered, the burden of proof will fall on them to demonstrate that they did not commit fraud. 

As a result of the lack of validation in the industry as it stands, there is a growing need for labs to prove the security and quality of their certifications.

The Q-Vault™ provides a blockchain-powered solution that renders all documents produced by a lab immutable and secure, eliminating the legal risk for the lab and anyone basing claims on information in lab documents.

A Q-Verified Lab in Qredible builds a reputation synonymous with transparency and excellence. Q-Verified Labs provide a direct source of data integration into the laboratory information systems (LIMS) to enable direct integrity of data comprising the certificates of analysis. As such, the quality of their documentation cannot be compromised, allowing them to differentiate from competitors and enjoy legal protection, risk management, and conflict mitigation.

Qredible®: Cultivating Trust in the Legalized Cannabis, Hemp, and CBD Industry

By providing benefits for businesses in all areas of the supply chain, Qredible is working to foster a symbiotic community and ecosystem of quality and credibility based on mutual trust. A place where merchants, distributors, retailers, financial institutions, labs, and consumers can all engage in safe commerce.

Qredible is the only digital registry of verified and validated legalized cannabis, hemp, and CBD brands. Want to be in Qredible? Get started today.

Federal Cannabis Regulation

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When the Canadian bill legalizing the sale of recreational marijuana was passed in October 2018, the industry was split into two—on one side, there were businesses that resisted regulatory requirements (at Qredible®, we call them the ‘rascals’ of the industry), while on the other side, there were businesses who embraced them. 

In the four years since, the results of each side’s decisions have been clear: those who embraced and complied with regulatory requirements saw a dramatic increase in revenue leading to more jobs and a booming industry. 

The ‘rascals’ who resisted, however, did not fare well. Communities in cities all over the country watched many of these formerly established, successful companies close their doors.

In the U.S., the regulatory landscape of the legalized cannabis, CBD, and hemp industry is dizzying at best and turbulent at worst. Overall, the government is moving in the direction of federal legalization, with an increase in regulation posing a unique, bilateral moment for businesses currently operating in the space.

On one hand, rapidly-evolving regulations pose a threat to businesses that either willingly or mistakenly fail to keep up with the changing requirements. On the other, businesses that heed the government’s push for increased regulation have the opportunity to widen the gap between themselves and their competitors.

In this article, we will discuss the impact of federal regulation on the Canadian cannabis industry in order to understand the importance of keeping up with regulatory changes, and how Qredible is here to help legalized cannabis, CBD, and hemp businesses do just that.

Cannabis Regulation in Canada

Prior to federal cannabis legalization and regulation in Canada, the country had permitted medical use of the drug since 2001. Businesses operated under the regulations set out in the Marihuana for Medical Purposes Regulations and The Access to Cannabis for Medical Purposes Regulations. 

Under these laws, dispensaries intended for the sale of medical cannabis were largely under-regulated—aside from the occasional police raid—and operated in a similar way to many of the current U.S.-based cannabis, CBD, and hemp businesses.   

Cannabis became federally regulated on October 17th, 2018 under the Cannabis Act. The impact of this regulatory change was felt by cannabis business owners, employees, investors, and consumers. 

A Framework for the Legalization and Regulation of Cannabis in Canada

Nearly two years before the legalization became law, a Government of Canada task force published A Framework for the Legalization and Regulation of Cannabis. This report outlined the concepts and plans businesses and policymakers would need to understand regarding federal, provincial, and municipal regulations. 

The report highlighted the goals of the bill, including minimizing the harm of cannabis use, establishing a safe supply chain, protecting the public, and improving medical access.

In section three of the report, titled Establishing a Safe and Responsible Supply Chain, the task force laid out recommendations for the production, distribution, and retail of cannabis. They note that “the Government’s principal interest should be to establish an efficient, accountable and transparent system for regulatory oversight of the supply chain, emphasizing the protection of health and safety and reducing diversion to the illicit market.”

Although cannabis had become federally legal, the conditions under which it could be grown, manufactured, and sold to the public became highly regulated. As such, many businesses either couldn’t or chose not to comply with the changing rules. 

Canadian Cannabis Companies Operating Unlicensed: Closures and Losses

In order to apply for a retail license for their medical cannabis company, all merchants were required to close their doors on or before October, 17th, 2018—the day The Cannabis Act came into effect. They would be allowed to reopen upon receiving the proper retail license.

However, a large number of merchants and retailers failed to meet this deadline, therefore rendering themselves unable to apply for the correct licensing. 

Although cannabis access had increased under the new regulations, a large number of previously successful businesses were forcibly shut down by law enforcement in the months that followed. The punishment for failing to keep up with the new laws was up to $100,000 in fines and up to one year in prison.

Canadian Cannabis Regulation: A Missed Opportunity

While businesses that failed to adhere to new regulations faced complicated legal trouble as well as catastrophic losses in revenue, not all businesses suffered as a result of the changes. 

In the year that followed, the new regulations resulted in an increase of more than 6,500 jobs in the cannabis industry. Licensed producers of cannabis in the country reported a revenue increase of 92% in 2018 and 52% in 2019.

The divide between companies that embraced regulatory changes and the rascals that resisted them demonstrates the importance of prioritizing licenses, registrations, and other safe commerce measures in order to successfully navigate this complex and volatile industry. 

Many compliant companies enjoyed the success that was promised as a result of legalization. The rascal businesses that resisted: they no longer exist.

Qredible®: Supporting Businesses in a Rapidly Evolving Landscape

In the U.S., it is estimated that over 428,000 people are employed full-time in the legalized cannabis industry. As the industry becomes increasingly legalized, that number could reach 1.75 million. The potential for revenue loss and closure poses a massive threat not only to individual business owners but also to entire communities and the economy as a whole. 

Qredible was created to support and protect businesses navigating this evolving regulatory landscape by improving access to valuable technological tools that mitigate risk and promote growth.

Rapidly shifting requirements pose massive challenges to businesses in all areas of the supply chain. Qredible was designed to help them avoid fees, fines, penalties, closures, revenue losses, legal conflicts, and reputational damage.

Proactive Regulatory Compliance with Qredible® 

Businesses in Qredible will have an easier time passing through regulatory requirements as they arise. Not only will they have a comprehensive picture of how their operation is performing with regard to compliance, but they will also be able to actively monitor their licenses, registrations, and certifications for compliance-related risks and concerns. This effectively limits the risk of legal action or repercussions as a result of an expired license or inapplicable registration. 

Using AI compliance monitoring, your team can electronically track and monitor marketing content and product labeling. You will be warned about violative language that could easily become a target for opportunistic plaintiffs’ lawyers and watchful regulatory agencies. 

Leveraging machine learning and artificial intelligence has enabled Qredible to create a virtual resource that saves businesses from expensive legal and compliance bills. 

I wonder: how many Canadian companies were forced to exit the business as a result of the rising cost of compliance? A recent survey found that over 86% of Canadian companies had at least one compliance violation in their online messaging, suggesting that many were unable to afford or simply did not prioritize compliance services that could have protected their business. 

Protecting Everyone in the Supply Chain

There are many benefits for merchants, suppliers, and other cannabis companies in Qredible. But, by supporting these businesses through changing regulations—and by encouraging proactive compliance—Qredible is also helping protect ancillary businesses.

These businesses include: 

  • Landlords
  • Banks
  • Insurance companies
  • Trucking and logistic companies
  • Venture capital and private equity companies

Landlords leasing space to dispensaries that fail to adhere to compliance standards could be subject to fines and fees and even lose their ability to operate their business. 

Other ancillary businesses such as financial institutions and transportation companies benefit from the ability to validate and verify their business partners’ compliance with regulations. Using Qredible, they can access the critical documentation they require. And because the platform is blockchain enforced, they can do so with confidence knowing the documentation can be trusted.

Ultimately, those who stand to lose the most from poor business practices are consumers. With the increasing presence of fentanyl across the country, the threat to public health is very real. Qredible is currently available to businesses, but will soon be accessible to consumers. 

The increased access to validated information will empower consumers to make better purchasing decisions. This will disincentivize corner-cutting in the industry and encourage businesses to engage in better practices, resulting in safer commerce for all. 

It is not the intent or mission of Qredible to tell consumers which company or brand to purchase from, but rather to provide a central digital repository to learn and research the brands that interest them. Similarly, CARFAX does not make judgments about which car to buy, but it provides important details on specific brands and vehicles. Consumers can then make informed decisions with that knowledge.

Making Compliance More Affordable

As it currently stands, the industry has quality control standards for legalized cannabis, hemp, and CBD products. With medicinal CBD products especially, federal regulations are stringent. There are countless rules regarding what a company can or cannot say in its labels, marketing, and messaging. These are all very important to ensure that consumers are not misled. 

In the past, companies had to hire a high-priced attorney to manage, monitor, and address any disputes with regard to messaging and public reputation. With Qredible, much of this job can all be done automatically with artificial intelligence—at a fraction of the cost. 

One of the main reasons consumers continue to purchase black- and grey-market cannabis is the price. And it’s always cheaper to sell unlicensed… until you get caught. Qredible allows businesses to protect themselves from potential risk while raising the value of their product without sacrificing their competitive price point. 

Regulatory Advocacy for a Safer Industry

We believe in proactivity when it comes to compliance. Catching, diagnosing, and solving quality control issues before they lead to revenue loss, legal conflicts, and reputational harm. 

By doing this in advance of anticipated legislation, we help drive good quality regulatory framework through technology. Our plan is to work proactively with state and federal regulators—they have their hands full in a big and rapidly expanding industry. 

The FDA, for example, does not have the resources to maintain the same level of control as they do over pharmaceuticals. They and the industry at large need affordable tech solutions like Qredible to promote safe commerce and better practices. We are hyper-focused on ensuring that the industry becomes safer for all participants and to that end: knowledge is power!

The Future of the Legalized Cannabis, CBD, and Hemp Industry is in Qredible® 

Ultimately, Qredible is here to advocate for and support the success of the entire industry. We believe in protecting businesses with valuable technological tools. Our goal is to advocate for the industry’s best interest when it comes to important policies and regulatory decisions.

The future of Qredible is in building meaningful relationships with governments and regulatory bodies. That foundation of trust will streamline the introduction of new regulations that the industry desperately needs to thrive, without suffering the same losses as were seen in Canada.

When the rascals in Canada failed or refused to participate in the new changes impacting the industry, they paid a dire cost. They are no longer in operation. But it doesn’t have to be that way. The years following federal regulation in Canada saw many positive growth trends that make me feel optimistic about the future of the industry in the U.S. as well. 

I believe that the future of the cannabis, CBD, and hemp industry will be in Qredible: trust, transparency, and support. Join us and you’ll see what I mean. 

Qredible is the only digital registry of verified and validated legalized cannabis, hemp, and CBD brands. Want to be in Qredible? Get started today.