Colorado marijuana company challenging RFID tag requirement

A Colorado marijuana edibles manufacturer has initiated a legal battle against state regulators, challenging the cannabis tracking system. Lifestyle Foods, the company behind the Ripple and Ript brands, argues that the state’s mandate from the Marijuana Enforcement Division (MED), which compels operators to utilize radio frequency identification (RFID) tags provided by the cannabis software company Metrc, imposes an unnecessary financial burden.

The lawsuit asserts that these RFID tags cost the company over $1,400 per month and raises concerns about potential violations of state law related to unclear rulemaking and improper notice and collection. Lifestyle Foods contends that the fees associated with RFID tags should be collected by the state’s Department of Revenue12.

This legal challenge emerged following a confusing rule change by the MED in November. The change replaced the RFID acronym in state contract language with the term “inventory tracking system”. Although the revision took effect in January, it does not necessarily eliminate the RFID requirements. Instead, it allows the state licensing authority to reevaluate the benefits and alternatives of various aspects of the current Inventory Tracking System, including the use of RFID technology.