Cannabis Packaging Companies Face Scrutiny Over Mold Prevention Claims
Regulators Target Unverified Marketing Statements Amid Broader Safety Concerns
State regulators across the U.S. are intensifying oversight of cannabis packaging companies over unverified product claims, targeting at least one industry leader for suggesting its bags could prevent mold growth.
The renewed scrutiny follows a series of product recalls in seven states where mold was discovered in cannabis products cleared for sale. The incidents have heightened public health and consumer safety concerns, prompting regulators to examine not only growers and testing labs—but also the packaging companies that store and preserve the product.
Promises printed on cannabis packaging, once viewed as harmless marketing language, are now under a microscope. Regulators are questioning whether such claims violate federal labeling laws and whether ancillary businesses have conducted sufficient safety testing to back them up.
Grove Bags Under Fire for “Mold Prevention” Marketing
At the center of the controversy is Grove Bags, a market-leading packaging firm known for its TerpLoc line. The company recently faced enforcement actions in Colorado and Washington state over claims that its products “prevent mold.”
State agencies concluded that making such claims without proper registration violated the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
According to a September 26 order from the Washington State Department of Agriculture (WSDA), Grove’s TerpLoc products met the federal definition of a “device” because they were advertised to “trap, destroy, control, repel, or mitigate fungi or pests.”
That classification triggered EPA registration requirements—standards Grove Bags had not met.
Because the company’s packaging lacked an EPA establishment number, regulators deemed the products “misbranded” and halted their distribution until the claims were removed.
Company Responds: “We Were Taken by Surprise”
After receiving the WSDA notice, Grove Bags destroyed and replaced the affected products, removed the “mold prevention” language from its website, and resumed sales in both Washington and Colorado under revised marketing materials.
“We were taken a little by surprise,” said Dan Jaffe, Grove’s Chief Financial Officer. “Agencies have very specific guidelines when it comes to certain kinds of language. Using words like ‘mold prevention’ triggers alarms for them.”
Jaffe clarified that while Grove’s proprietary film technology helps manage humidity—similar to packaging used for fresh produce, it is not a mold-killing agent.
“We have a film we created specifically for cannabis, but all we are is a plastic bag,” Jaffe said. “If you’re growing and curing properly, you won’t have mold. It’s not the bag that’s doing it.”
Packaging Firms Warned: Know the Rules or Risk Liability
Industry leaders say Grove’s experience should serve as a wake-up call to the broader cannabis packaging sector.
“There’s quite a few packaging companies that are making these claims, and the government is starting to come in and enforce them,” said Simon Knobel, co-founder and CEO of Utah-based Calyx Containers.
Knobel warned that ancillary companies those that do not directly handle cannabis but support the industry can still face legal exposure if they make unsubstantiated health or safety claims.
“In general, the cannabis packaging industry should know about these laws and what’s going on,” Knobel said. “There’s potential liability if they don’t.”
Federal Oversight Extends to Cannabis Despite Prohibition
Ironically, the controversy underscores how federal law still shapes cannabis regulation, even as the plant remains federally illegal.
When a product claims to prevent or mitigate mold, mildew, or other contaminants, that statement can invoke FIFRA oversight bringing the Environmental Protection Agency (EPA) into play.
Under that statute, the EPA can issue a Stop Sale, Use, or Removal Order (SSURO) for products making unregistered or misleading claims about pest or mold control.
This regulatory overlap has created confusion in a marketplace where federal prohibition and state legalization coexist, leaving ancillary businesses uncertain about where the lines are drawn.
Experts Advise: Back Up Claims With Science
Industry compliance experts are urging cannabis companies to conduct rigorous testing before making any claims about mold, freshness, or extended shelf life.
“To make a claim such as that, it needs to meet certain federal requirements,” said Darwin Millard, Technical Director for Cannabis Safety & Quality (CSQ) in St. Louis. “In our industry, we rush to get things to market without doing the appropriate safety testing.”
Jaffe confirmed that Grove Bags conducts internal and third-party testing, but said those studies focus on moisture retention, weight stability, and terpene preservation—not direct mold prevention.
“When we do these studies, the flower we put into our bags is in the optimal range for curing,” he said. “We recommend a certain drying and curing process for optimal results. We don’t necessarily test mold prevention, but if mold had shown up, it would have been part of our study.”
Industry Implications: A New Era of Accountability
The Grove Bags episode marks a turning point for the ancillary cannabis sector, signaling that regulators are broadening their scope beyond cultivators and manufacturers to include packaging, labeling, and marketing practices.
For now, the message from state and federal regulators is clear: if you make a scientific or safety claim, be prepared to prove it.
As mold-related recalls continue to challenge consumer confidence, cannabis companies from growers to packaging suppliers are being held to a higher standard of transparency and accountability.
The packaging sector’s next chapter will depend not just on innovation but on credibility backed by compliance.
For more information contact at info@cannabisriskmanager.com
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