You can never be too careful, especially when it comes to cannabis. While it may be easier to control the internal workflow of an organization, it can be difficult to control who may be trying to wrongfully sneak their way into a dispensary. One of the larger areas of opportunity where a retail operator can fall out of compliance is accepting a fake ID. Underage or otherwise unqualified guests are inevitable with desirable products, and the need for safeguards to protect themselves from the inadvertent sale of cannabis. While regulations vary based on region, all share an age restriction commonality when it comes to THC-infused products. The responsibility of ensuring appropriate sales of controlled substances ultimately falls on the shoulders of the retailer for allowing, then conducting, a sale. This is a huge responsibility that can have the entire future of the license at stake- and because of that we don’t take it lightly. We’ve got some measures to keep dispensaries from risking their entire operation by allowing underage or inappropriate sales.
What are We Preventing?
There are a few different kinds of IDs and profiles to be looking for at the reception or welcome desk of a dispensary. There are some actual fake ID cards that are not issued by the government, but probably issued in a seedy backroom to let younger people get access to bars and dispensaries. These sometimes just feel like fake IDs and have the wrong texture, font, markings, or are missing indicators to make it clear this is less than legal and more like McLovin. There are, however, some higher quality fake IDs that may not be visible to the naked eye and have high quality to truly appear like the real thing. Either way, these are considered fraudulent to use and the consequences may range from a misdemeanor all the way up to a felony in certain states.
Some users may use a real government-issued ID, but it may not belong to the carrier. This may also constitute fraud but will typically scan as correct or show up as a valid ID to use. While the ID may appear as real, it is still not legal to utilize someone else’s ID to make a secured purchase like with cannabis.
The last major area of opportunity that is prevented by varying measures across different territories is ensuring people are not overserved or are purchasing over their legal limit of controlled substances in one day. Some systems have built in safeguards to prevent oversales if a guest returns to the dispensary within a day to purchase more than they legally can within a day period to ensure compliance. Perhaps most prominently, the Sweet Leaf dispensaries in Colorado were found guilty in a scandal based in supporting customer ‘looping’- a system where guests buy their legal limit, leave the property, then return later the same day and purchase more. The dispensary chain was entirely closed, the three owners pleaded guilty to violating the Colorado Organized Crime Control Act and of illegally selling and distributing marijuana. Following the Sweet Leaf case, MJBizDaily published an article describing the case as well as measurements to take to avoid the same fate.
Accepting sales under any of the above circumstances is illegal and can absolutely result in detrimental for a business and cause doors to close. Additionally, this is often audited by localized cannabis regulators. In Colorado, the Marijuana Enforcement Division (a subsidiary of the Colorado Department of Revenue) regularly conducts undreage compliance checks utilizing underage operatives. To avoid this drama and the risk of losing it all overnight, stay tuned for our tips to keep compliant.
Raise A F.L.A.G.
The Alcoholic Beverage Control group has a great shorthand for checking fake IDs that they utilize in multiple states. They use the F.L.A.G. method- Feel, Look, Ask Questions, Give Back. This essentially breaks down to feeling the ID for texture, looking for any signs that the ID is not government issued or if the ID does not match the user, asking questions to verify the owner is in fact the person on the ID, and then giving the ID back to the user or seizing it if that complies with local or operational policy.
Train the Team
Regularly training the front of house team on regulatory procedures to prevent fraudulent purchases is helpful. Pay attention to localized rules and regularly go over what is visible in true government issued IDs. Some states feature UV images, holograms that appear in the light, specialized embossing across the texture of card, etc. Keep up to date on what is common to see for your state (and neighboring areas if you are near a boarder or are a tourist attraction) to stay on the edge of identification.
Invest in Compliance Technology
While a team member can only do so much, technology can lighten the load. Groups such as Intellicheck are designed specifically to prevent fraud before it occurs and keeps your dispensary compliant. Intellicheck is used by other industries such as gaming, healthcare, travel, and even by the government. As the cannabis industry blossomed, Intellicheck proactively evolved their platform to support the highly regulated cannabis industry. While there are a few different groups in the cannabis world that have similar goals, we are particular to Intellicheck as they are the MJ Platform integrated anti-fraud compliance technology in all POS systems we use.
If you’re curious and want to check out Intellicheck in action with us, click here for a free personal demo of this and more of our compliance-focused software solutions.
