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US: Metrc urges Colorado State Court to dismiss dispensary’s lawsuit

Florida-based cannabis inventory tracking vendor Metrc LLC is asking a Colorado state court to toss a dispensary’s lawsuit challenging its process for charging so-called “support fees” as violative of state anti-trust and consumer protection laws.

The lawsuit against Metrc, filed by National Green Source LLC in Denver District Court in June, seeks declaratory and injunctive relief and damages. National Green, a state-regulated marijuana business that presently holds marijuana cultivator, processor, and dispensary licenses from Colorado’s Marijuana Enforcement Division (the division), claims that, since April, Metrc has refused to honor its orders for the RFID inventory tags that National Green needs to comply with Colorado’s marijuana regulations amid a dispute over a bill for allegedly unpaid “support fees.”

Under Colo. Code Regs. 212-3 § 3-805(A), licensees like National Green “are required to use RFID tags issued by a division-approved vendor that is authorized to provide RFID tags for the inventory tracking system.” The regulation provides that “[e]ach licensee is responsible for the cost of all RFID tags and any associated vendor fees.”

Metrc holds state contracts to serve as the inventory tracking vendor in Colorado and approximately two dozen other states and is the only division-approved vendor in Colorado that can provide RFID tags.

Read more at regulatoryoversight.com

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