How Face Recognition Addresses Cannabis Compliance Concerns

by | Apr 21, 2021 | Blog

The cannabis industry is experiencing monumental growth and shows no signs of slowing down. In fact, in the U.S. alone it’s expected to reach $30 billion in market value by 2025. If you’ve recently opened a store or are considering it, profitability is certainly therebut your biggest priority should be compliance.  

The cannabis industry is still considered new territory, so the businesses that operate within the space are under a microscope. The reality is companies that don’t take proactive steps to ensure they are following strict regulations are risking penalties and fines that can cost hundreds of thousands (if not millions) of dollars. In some extreme cases, licenses could even be at risk, or cannabis compliance concerns can even result in criminal prosecution. Luckily, there are ways to mitigate these challenges. 

What to Look Out For 

Part of ensuring your company is compliant with current laws and regulations is to learn which compliance issues are most likely to make your business vulnerable. These are three common cannabis compliance concerns that companies frequently encounter.


States, like Colorado, require cannabis dispensaries to enforce transaction limits that prevent customers from purchasing excessive volumes of cannabis in a single visit. While somewhat effective, these rules are regularly broken by customers who make one large purchase, then return to the store moments later to make the maximum possible purchase again. This illegal practice is called “looping”, and cannabis dispensary laws dictate that the business owner (and potentially employees) can be held liable for their failure to prevent looping in their stores.   

Looping is a serious cannabis compliance concern as customers often buy in bulk so they can sell it illegally on the street. Due to the criminal nature of this act, lawmakers don’t hesitate to prosecute these customers and penalize companies that allow looping to occur within their stores. If it is determined that your company’s negligence led to illegal looping, you or your employees could be hit with criminal charges that might lead to your arrest. 

Fake IDs

Fake IDs are an issue for cannabis companies not just because of underagers, but also the above-mentioned loopers who are trying to avoid getting caught. That’s why companies must be vigilant when checking the identification of their customers. If you don’t take the necessary precautions, you may find your company caught up in an investigation that could lead to fines or other penalties being levied against it. 

In many cases, law enforcement catches non-compliant companies by conducting sting operations, wherein underaged individuals are sent into the store to make a purchase. If the underaged person manages to successfully make a purchase, your company will be in hot water.   

Lack of Security Cameras

Security is a crucial component of cannabis compliance requirements and includes alarm systems and video surveillance. In fact, cannabis companies are required to keep their inventory under surveillance during all stages of transportation and storage. If regulators discover any discrepancies in a company’s inventory, they will likely be subject to a massive fine or other penalties. 

Focus on the Who

Compliance can be complex for cannabis companies, as there are many rules that can be difficult to uphold. You may get penalized for administrative failures, such as not having an updated business license or neglecting regulated security measures. For most cannabis companies, however, people attempting fraud is the commonality among the main compliance concerns. 

You may be able to manage your regulatory requirements, but are you doing your best to keep others from putting your company at risk? The key to maintaining compliance is taking precautionary measures to combat this type of fraud before it occurs. Really, there is only one effective way of getting the job doneface recognition software. 

What is Face Recognition Software

Face recognition technology is used for identity verification. The systems process images or video to determine whether a face is present then measure various dimensions of the face. 

It then creates a unique “faceprint” that can be algorithmically tied to an individual. By tying the faceprint to a person’s actual identity, face recognition technology enables foolproof identity verification for any business that needs it. 

How It Can Help You

Facial recognition software allows your company to conduct less invasive identity monitoring free from human error. Rather than requiring a phone number, physical address, or other personal details, cannabis dispensaries with facial recognition technology can simply use the software to identify visitors for them. 

This technology offers a significant benefit for cannabis companies that are under tight regulations. If you are considering investing in facial recognition software, however, you need to find the right partner that follows ethical practices and produces high-quality products.  

What to Look for in Face Recognition Software 

Face recognition software can eliminate many cannabis compliance concerns, so you shouldn’t compromise on quality when searching for a new facial recognition software productprotecting your business is worth the investment. While high accuracy tops the priority list, additional features you should aim to have included are:

  • Anti-spoofing algorithms– Keep software safe from being fooled by a photo or video image. 
  • Database referencing– Compare captured images and videos to public databases, then provide alerts if the data doesn’t match. 
  • REST API – Allows for the simplistic integration of the software into your current technological ecosystem. 
  • Real-time face tracking– Track faces in real-time, making it easier to capture the footage your company needs to verify identities. 

A Trusted Partner

With so many possible functions and so much at risk, choosing the right face recognition software partner is vital. That’s where OCR Solutions comes in. 

Known for their dedication to customers and top-of-the-line products, OCR Solutions offers every feature needed to ensure identities are verified and accurate. Their products can be seamlessly integrated into your current system so there is a minimal learning curve leaving you to feel more secure almost immediately. 

Cannabis compliance concerns can be a giant thorn in the side of new businesses, causing added stress and worry. OCR Solutions aims to give you peace of mind helping you remain compliant without lifting a finger. 

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