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Rooted Group is putting legal product in the hands of unlicensed operators

Anonymous | September 23, 2021 | 0 0
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Rooted Cannabis Group is a company holding multiple retail, distribution, and cultivation licenses. They are providing access for illegal retailers to gain access to legal cannabis products. They have a lot of information on their website regarding how they operate their “clientele”. Rooted basically provides access to “continue operating” your previous delivery service. We all know that state licenses are NON-transferable and you would have to purchase the entire business associated with the license and properly transfer the license. Licenses are also limited to 1 facility per license. Meaning you can’t rent your license as a service to these illicit operators. On Rooted’s FAQ section on their website, they disclose how they operate with the other black-market services. Rooted uses IndicaOnline and they are the master admin login. The members have control of their own “track and trace” meaning their own indicaonline login since metrc accounts only have one account per license. They have said (in relation to an ordering limit) “there is, however, a limit to the amount of product you can receive from us. You can only have a maximum of $5,000 per driver with you at one time. The remainder of the product that you have ordered, we will keep in one of our facilities. As stated also, “Through a Rooted Group membership, you can have any compliant product on the market. We already order from many companies, and if there is a company that you don’t see on the menu you can submit a request and a product manager will set up the account.” This is giving black market deliveries access to the legal products that they wouldn’t be able to get without using Rooted’s license. On Rooted’s website, there’s plenty of information about how they get the legal products into the hands of their black market services. Quoted directly from their website, Rooted has stated, “To make sure all products and money is accounted for, we run all distribution actions through Rooted Group.” This meaning that they purchase all of the legal wholesale products from licensed distribution and then bringing that product to the many deliveries they are helping to operate. Rooted has also stated on their website, “Rooted tracks all products and business actions to ensure all legal needs are taken care of.” This means that they have one single metrc account for all of the black market deliveries that they assist in daily operation. My question is if you have to have 1 license per 1 facility per 1 metrc account, how would you be able to conduct such an operation out of a singular retailer nonstorefront license? It is impossible to do so compliantly. They are “sub-leasing” their license to many deliveries on the weedmaps website. Rooted claims to have more than 60 Rooted facilities throughout California and 50+ Rooted listings on Weedmaps. Of the ones found, all of them are illegally operating and all with the same license as each other [C9-0000384-LIC]. The current services I’ve seen operating under the exact same license are as follows: Cake (C9-0000384-LIC) Inland Plug (C9-0000384-LIC) Manchester’s Finest 420 (C9-0000384-LIC) OrangeLeaf (C9-0000384-LIC) Root 215 (C9-0000384-LIC) World Class (C9-0000384-LIC) Bibi To Go (C9-0000384-LIC) DNA Weed (C9-0000384-LIC) SD Weed (C9-0000384-LIC) Cannabis Kingdom (C9-0000384-LIC) As much as they claim to be legally operating and within regulations, neither they nor their clients are operating legally. It’s easy to see who’s using Rooted’s license when all of the different black market services are using the same one. One thing is certain, multiple cannabis businesses cannot legally share a license in California or any state for that matter. Rooted is fueling the black market and we’re going to see a lot of legal and legitimate operators start to drop out of the industry if something isn’t done about this. The DCC has not replied to any email or report concerning this information. I was inspired to send this after seeing the previous post about the DCC’s lack of action.

Comments(1)

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    gtg
    Sep 27, 2021, 08:18 AM  Reply

    Compliance person here - this is definitely against regulation. The DCC is slow to respond or take action, not much can be done but make repeat efforts. The issue is taxes. If the business is paying fees and tax on time, the DCC isn't likely to look any closer at this time.

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