Dispensary Compliance Alert: Underage Sting Operations

This is a reminder to Colorado marijuana dispensaries to remain vigilant about compliance, specifically verifying proper ID for all customers. The Marijuana Enforcement Division and several local jurisdictions, particularly Denver and Boulder, have been aggressively performing undercover sting operations. These sting operations include people attempting to gain entry to dispensaries with underage IDs, with sophisticated fake computer generated IDs, and with otherwise valid IDs that are not actually the person presenting the ID. Dispensaries have failed these stings by not properly checking the IDs, verifying IDs with a current ID book, using digital scanners, or asking follow up questions of the potential customer.

Failing one of these ID stings will result in an enforcement action by the local government and the MED. At both levels, you are looking at several thousands of dollars in fines. More importantly, in some jurisdictions like Boulder, multiple violations of the ID rules may result in a revocation of the marijuana business license. Even if you have not reached three violations, once you get ID rule violations, it may make it difficult to sell your store because buyers worry about purchasing a store that could lose its license based on additional ID rule violations. New owners do not necessarily take the license with a clean slate on prior rules violations. These violation can stay with the license as long as it exists. Therefore, compliance is critical.

Contact us if you have any questions about these ID stings or your compliance with the rules.