Colorado Marijuana Company Challenging RFID Tag Requirement

Published: February 15, 2024

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A Colorado marijuana edibles manufacturer has filed a lawsuit against state regulators contesting the cannabis tracking system.

Lifestyle Foods, which operates the brands Ripple and Ript, contends the state Marijuana Enforcement Division (MED) mandate for operators to use radio frequency identification (RFID) tags supplied by cannabis software company Metrc adds an unnecessary financial burden, Law360 first reported.

The lawsuit claims the RFID tags cost the company more than $1,400 a month and their requirement could violate state law regarding unclear rulemaking and improper notice and collection, alleging the fees should be collected by the state’s Department of Revenue, according to Green Market Report.

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The legal challenge comes in the wake of a confusing MED rule change in November that replaced the RFID acronym in state contract language with “inventory tracking system.”

The rule change, which took effect in January, does not necessarily eliminate RFID requirements, however.

According to the revision, the state licensing authority may reevaluate “the benefits of and alternatives to certain aspects of the current Inventory Tracking System such as RFID technology requirements.”

Colorado’s contract with Metrc expires in October 2026.

At that time, bidders for the seed-to-sale pact will not be required to have RFID technology as part of their service offer.