Exploring the Trend of Secret Shoppers in Cannabis Retail

A new trend is emerging in cannabis retail compliance: secret shoppers. Whether required by regulation or implemented by licensees to ensure standards are met, secret shoppers are becoming more and more common in cannabis dispensary operations. These mystery shoppers are used to uphold critical security and compliance standards, such as age verification and product quality, making them a valuable addition to the evolving cannabis industry.

Read on to learn more about the role of secret shoppers, the states that mandate their use, and how dispensaries can leverage this approach to protect their businesses and communities.

What are Secret Shoppers?

In highly regulated industries like alcohol, tobacco, and pharmaceuticals, age and identification verification are crucial for ensuring that products are sold only to legally permitted individuals. To enforce these regulations, municipalities or multi-store retailers often employ secret shoppers. These individuals attempt to purchase restricted products using underage IDs, fake IDs, or no ID at all. Retailers caught selling to minors or underage individuals can face significant fines or even risk losing their license to sell.

Secret shoppers are widely employed by chain and boutique retailers, product brands, and restaurants to verify that company standards and industry-specific requirements are consistently met. These mystery shoppers evaluate various aspects, such as customer service, facility cleanliness, product placement, and more, ensuring that quality standards are maintained across multiple locations.

State-Required Secret Shoppers in Cannabis

While the implementation of secret shopping is not a new concept, the cannabis industry has only just started adopting these practices to ensure compliance in newly legalized states. Minnesota, for example, has written into their law that local governments will be tasked with conducting “age verification compliance checks” at each retail facility at least once each calendar year. These checks will involve individuals at least 17 years of age, but under the age of 21, attempting to purchase adult-use cannabis with either fake IDs or no IDs at all and will be used to ensure cannabis retailers are not dispensing cannabis to minors.

In Oklahoma, secret shopper programs are implemented differently but still focus on maintaining compliance. At the beginning of this year, Oklahoma introduced a new law requiring the Oklahoma Medical Marijuana Authority to send secret shoppers into at least 50 dispensaries to purchase cannabis products and send them into labs to ensure compliance with testing requirements. The goal of this regulation is to ensure that product quality standards are met throughout the state.

In-House Secret Shoppers in Cannabis Retail

In addition to external regulatory checks, many cannabis companies are proactively implementing their own management commissioned secret shopper programs. These in-house initiatives allow businesses to conduct regular, unannounced compliance checks from within, ensuring their staff adheres to age verification, product security, and other regulatory requirements, while providing an excellent experience for customers and/or patients.

These in-house secret shoppers may be implemented by the licensees themselves or may be conducted by a third-party cannabis security company or contractor ensure objectivity. These programs may include checks to ensure that:

Customer and/or patient identification and age are verified at critical stages, such as upon entrance to the facility or during the sale process
Customers and/or patients are receiving a receipt with their purchases
An adequate number of dispensary employees are on the floor serving customers
Employees are not overserving customers and/or patients in accordance with applicable laws
Packaging laws or company standards are upheld
Product sample pods or sniff jars are secured and and/or tethered to the product displays
Product education is available for customers and/or patients
Required signage is prominently displayed in accordance with applicable laws
Appropriate non-medical language is used when describing adult-use cannabis products
Facility cleanliness is maintained
All regulations or company standards are maintained

By using internal secret shoppers, companies can identify potential weaknesses in their procedures, provide targeted training to employees, and ultimately enhance their overall compliance strategy. This proactive approach not only helps prevent violations and fines but also demonstrates a strong commitment to maintaining high standards of integrity and responsibility within the cannabis industry.

Preparing for a Secret Shoppers in Cannabis Retail

Implementing a secret shopper program requires thorough preparation, with employee training being the cornerstone of success. Once you’ve conducted thorough background checks during the hiring process, educating your staff on relevant regulations and company standards is crucial for excelling in both state-run and internal secret shopper evaluations. Comprehensive training ensures that employees are well-equipped to deliver exceptional customer service, uphold security protocols, and meet compliance requirements. Operators can also implement risk assessments on the property to ensure that the physical security and regulatory compliance standards are met.

To maximize the effectiveness of your program, consider the following steps:

Detailed Training Sessions: Conduct in-depth training sessions that cover company policies, industry regulations, and best practices for customer interactions.
Regular Refresher Training: Offer periodic refresher courses to keep employees updated on any changes in regulations or company standards.
Clear Communication: Maintain open lines of communication regarding the purpose and goals of the secret shopper program, so employees understand its importance and how it impacts their roles.
Continuous Improvement: Establish a system for providing constructive feedback to employees based on secret shopper reports, allowing them to continuously improve their service and compliance.

By investing in thorough background checks, ongoing employee training, and comprehensive risk assessments, your business will be better prepared to excel in secret shopper evaluations and consistently meet high standards.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 37 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!