Recently, Brute’s Roots, a cannabis company in New Jersey, was fined $5,000 for violating transport regulations. Specifically, cannabis product was transported in what the New Jersey Cannabis Regulatory Commission refers to as a marked vehicle. The vehicle bore visible markings on its exterior, indicating that it contained cannabis products.

This sounds like a simple mistake. Is it really such a big deal to display your brand on your delivery vehicle?

In New Jersey, regulations state that each cannabis retailer and cannabis delivery service must ensure that vehicles used to deliver cannabis “bear no markings that would either identify or indicate that the vehicle is used to transport cannabis.” N.J. Admin. Code § 17:30-14.8(p) (2024)

This means that any vehicle used to deliver cannabis is violating transport regulations if it displays any advertisements or images of cannabis plants or products. Don’t these regulations get in the way of a simple advertising opportunity? Brute’s Roots was probably just trying to get their name out there, right?

It may seem like a great way to advertise your brand, but rules like this are in place for critical reasons. In this specific case, the rule is intended to reduce the incentive for would-be thieves to stop delivery vehicles for cash and cannabis products, potentially putting drivers at personal risk. Violating transport regulations can lead to steep fines, confiscated inventory, fewer sales, and even license revocation.

The Risk on the Road: Transport Compliance

The core principle behind transport regulations is safety and theft prevention. Advertising that your vehicle contains valuable cannabis products, often coupled with large amounts of cash in this predominantly cash-run industry, turns your delivery vehicle into a moving target.

• Theft is a real threat. Cannabis delivery drivers in states like California and Michigan have been robbed at gunpoint. Vehicles suspected of transporting cannabis are an easy mark for assailants, putting couriers at risk and leading to significant loss of inventory and revenue.
• Delivery routes may be monitored. Many states, like New Jersey, strictly prohibit any markings that identify a vehicle as being used for cannabis delivery. Michigan, like New Jersey, requires drivers to have a pre-planned route, with fines reaching up to $5,000 for non-compliance. To minimize the risk of theft, the business would have multiple routes defined, and then it would randomly choose one of the pre-planned routes each day.

What could have been done differently?

If your business transports cannabis, verify that your delivery vehicle and delivery process comply with current regulations.

• Remove all branding or cannabis imagery from transport vehicles.
• Always have the transport license available in the vehicle.
• Randomize all delivery routes to reduce the chance of becoming an easy target for theft.
• Inform your transport employees of all required transport procedures. Communicate with your team whenever there is a change in regulations or company policies.

Hindsight is 20/20, right? The bigger challenge is ensuring compliance going forward, and not just with transport regulations.

The role of compliance software

Compliance is one of the business activities that greatly benefits from software. We sometimes compare it to accounting. In the beginning, it’s sufficient to track sales and expenses in a spreadsheet. But eventually, it makes more sense to use accounting apps like QuickBooks or Xero because they greatly simplify data entry and reporting, help you implement accounting practices you didn’t even know were needed, and allow you to be more efficient with your time.

Similarly, compliance apps like Simplifya Protect help you stay on top of regulations, simplify the process of maintaining compliance, and allow you to be more efficient with your time. A Protect subscription retails for $335/month per location, and discounts are available for multi-location businesses. It’s an easy way to avoid violations of transport regulations.

Consider how a subscription to Protect compares with a $5,000 fine for violating transport regulations. Additionally, repainting and removing cannabis related decals or branding from your delivery vehicle could also exceed $5,000. Violations of other rules are often five or even six figures. They could also result in license revocation or suspension.

This case of transport regulations is just one example of how a subscription to Simplifya Protect can pay for itself. The practical reality is that citations and fines are common occurrences in the cannabis industry. A tool like Protect helps you avoid these enforcement actions as well as the cost of remediation. You would have peace of mind knowing that your business is compliant.