METRC Is Failing New York’s Cannabis Industry From Top to Bottom
What started as an effort to understand how METRC functions in New York has unraveled into something much more revealing: this isn’t simply a matter of bad software. It’s a deeply flawed regulatory system that imposes unreasonable burdens on licensed cannabis operators while offering minimal benefit to consumers or public safety.
As New York’s adult-use market continues to evolve, licensees are discovering that the state-mandated METRC platform is creating more problems than it solves.
RetailID Is Not Item-Level Tracking
One of the most misunderstood components of METRC in New York is its so-called “item-level” tracking. In practice, it doesn’t exist. Manufacturers do not tag each unit individually. Instead, they apply a single RFID tag to an entire case — for example, a box containing 100 vape cartridges — and then generate 100 unassigned RetailIDs in the system.
These RetailIDs remain disconnected from the actual products until the receiving retailer manually assigns them, one by one. That’s not chain of custody. That’s deferred data entry, and it opens the door to human error, inventory delays, and compliance inconsistencies across the supply chain.
Retailers Are Doing Unpaid Manual Labor
Once a product shipment is received, retailers are responsible for manually associating every individual RetailID to each unit in inventory. A single 100-unit case now requires 100 separate digital actions before those products are even eligible for sale.
Multiply that workload by dozens of brands, rotating SKUs, high turnover among retail staff, and frequent delivery schedules, and the system quickly becomes a logistical nightmare. These are unpaid hours, and they’re not trivial. This burden directly contributes to inventory stagnation, slower sell-through, and rising operational costs across the board.
COAs Are Hidden Behind App Downloads
Cannabis processors are required to pay for comprehensive lab testing and ensure that Certificates of Analysis (COAs) are available to consumers. Yet when a customer scans a METRC QR code, they are often directed to install an applet — sometimes even an entire application — before they can access the data.
If the app doesn’t work or the consumer declines the download, the transparency ends there.
This extra step discourages most consumers from even trying, turning what should be public safety data into a gated, inconvenient experience. Transparency is not achieved through forced app installations — it’s achieved through open, direct access.
Everyone Pays — Except METRC
The financial and labor burden of METRC doesn’t fall on regulators or METRC itself. It falls squarely on the licensees:
Processors pay for RFID tags, lab testing, and data entry labor
Retailers absorb massive amounts of unpaid time to maintain compliance
Consumers face friction and confusion at the point of purchase
Regulators receive an incomplete, noisy data stream that is less reliable because of manual input errors
Meanwhile, METRC benefits from a state-sanctioned monopoly, collecting operational insights and licensing fees from every cannabis business in the state — with no incentive to improve system usability or support retail functionality.
It’s Time for New York to Reassess
As licensees continue to struggle with system bottlenecks, unscannable products, and data-entry overload, the question becomes unavoidable: Who is METRC really serving?
The system is failing at the most fundamental levels — product traceability, consumer transparency, and retail operability. New York has an opportunity to fix this before it becomes too entrenched.
If the state’s goal is a thriving, compliant, and safe cannabis industry, it needs a system that works for retailers, processors, consumers, and regulators — not just for one software vendor.
