Missed Metrics: METRC Whistleblower Case Raises Questions About Traceability
recent whistleblower lawsuit has thrown a harsh spotlight on Metrc, the seed-to-sale tracking giant contracted by numerous states to monitor product movement. Marcus Estes, a former executive, alleges the company is complicit in enabling illegal interstate sales by failing to flag suspicious activity, despite a $40 million contract with California that mandates such oversight .
This isn’t just a California problem. In New Mexico, the state’s mandated system, BioTrack, is riddled with issues. Retailers frequently underreport due to product type mismatches, inventory discrepancies, and synchronization failures. The situation worsens when third-party platforms like Dutchie or Cova enter the mix; their systems often don’t communicate effectively with BioTrack, leading to further data inconsistencies. The relationship between BioTrack and these third-party apps is strained, making integration efforts akin to mixing oil and water.
The consequences are severe. Golden Roots, a New Mexico operator, faced a nearly $300,000 fine and license revocation after allegedly fabricating reports in BioTrack. The state’s Cannabis Control Division cited multiple violations, including implausible production timelines and unsubstantiated inventory adjustments .
These systemic failures underscore a broader issue: when tracking systems are flawed or poorly integrated, they create opportunities for bad actors and hinder regulatory enforcement. For industry professionals, the challenge lies in navigating these complexities and advocating for more cohesive, transparent systems that ensure compliance and integrity across the board.
