Local cannabis company joins fight against CBD conversion oil

Cannabis operators across the state have reportedly started to band together and are in the early phases of an organized effort to address the ever-growing and complex issue of CBD conversion oil in legal cannabis products. One such effort, spearheaded by Lansing-based Trap House Co., is calling for massive reforms and increased administrative oversight.

Trap House CEO David Bye authored a forthcoming op-ed for the Lansing State Journal urging regulators to ban hemp-derived THC products and revoke the licenses of operators found to be non-compliant. This would be a departure from the mere fines normally imposed on operators in similar situations.

“So many of us have worked so hard to make cannabis safe for the people and to bring the market out of the shadows,” Bye told City Pulse. “We must act now to remove the criminal elements from the industry by revoking their licenses permanently and refraining from purchasing synthetic or converted oils. Failing to do so would undermine all the progress we have made.”

The effort to ban CBD conversion oil in the legal cannabis industry is turning into the industry’s most brutal civil war yet. The conflict is raging in every major legal cannabis market, pitting regulators and consumers alike against the heavy lobbying power of the hemp and vape industries.

Consumer safety is the foremost issue. As I wrote about in my last column, recent third-party testing has found numerous vape cartridges and edibles purchased from dispensaries in Michigan to contain unregulated conversion oil and other contaminants, including banned substances like pesticides.

Another issue is fairness. In the op-ed, Bye emphasizes the detrimental effect CBD conversion oil has on local cannabis businesses, “those of us who follow the rules.” CBD conversion oil is so cheap to produce that it’s pulling average cannabis prices down even lower than they already were, and small businesses are struggling to compete. Combined with the already high production capacity due to Michigan’s laissez-faire licensing system, it almost doesn’t even make sense to make and sell distillate-based products in our state’s market anymore.

The hemp industry and those who make and sell hemp-derived THC products envision a world where cannabis is sold just like alcohol, anywhere from grocery stores to gas stations. This is the future proponents of conversion oil are banking on, and they’re trying to earn that market share now. They’re hoping consumers see the hemp-derived THC products as equivalent to the ones currently found on dispensary shelves.

Operators like Bye are betting on a system where cannabis is regulated closer to how it is today, with somewhat limited avenues to the market and consistent oversight, fees and taxes for all operators involved in making any THC product. This system also puts consumers in direct contact with specialized workers at cannabis retail stores.

It doesn’t seem fair that those following the rules should pay such high regulatory fees and be held to such high standards and then be limited in where to sell their products, while those pushing products with cheap conversion oil pay no regulatory fees and minimal taxes and can sell their products at dispensaries, vape shops, gas stations and even directly to consumers. 

The playing field needs to be leveled through either the regulation or outright banning of CBD conversion oil. There’s still much debate over what the outcome should be, but consumers can expect to see this topic dominate the next year of cannabis news in Michigan as it has in states like California, which recently banned the retail sale of hemp-derived THC products across the state.