The expansion of legal cannabis across the United States brings increased attention to every stage of the supply chain, where tracking technology is now essential to ensure accountability and transparency. From seed to sale, dispensaries and distributors are required to log and monitor product movement with precision, often through sophisticated tracking systems like METRC (Marijuana Enforcement Tracking Reporting Compliance), BioTrack, or MJ Freeway. But with growing concerns about consumer privacy, supply chain integrity, and accountability, one question looms: how transparent should cannabis companies be about their tracking practices?
The Mandate for Compliance
State regulations require cannabis companies to track every stage of a product’s lifecycle — from cultivation and processing to distribution and point-of-sale — to ensure that it doesn’t enter the illicit market. This includes entering data about harvests, lab testing, packaging, transfers, and even driver routes when delivering to retail locations or directly to consumers.
“The entire goal is to ensure legal cannabis stays legal,” said Laura Martinez, a regulatory analyst with the California Bureau of Cannabis Control. “Tracking systems are there to protect public safety and prevent diversion.”
Because these requirements are state-mandated, operators have no choice but to comply. However, transparency around how these tracking systems are used internally — particularly in customer-facing operations — is far more discretionary.
Internal Monitoring vs. Public Disclosure
Internally, many companies use real-time tracking software not just to meet compliance but to improve operational efficiency. Fleet management tools track delivery drivers; inventory systems sync with point-of-sale software to monitor stock levels; and customer data is used to optimize marketing strategies.
But how much of this should be shared with the public?
Cannabis watchdog groups and digital privacy advocates argue that consumers deserve to know if — and how — their personal data is being used. “We’re talking about a heavily regulated substance with a complex supply chain. If consumers are being tracked in any way during their purchase or delivery process, that needs to be disclosed,” said Jasmine Klein, director of the Digital Cannabis Privacy Coalition.
Yet others in the industry worry that too much transparency could expose trade secrets or create confusion among consumers not familiar with the nuances of cannabis compliance.
Striking a Balance
Experts suggest that a middle ground is necessary — one that reassures consumers while maintaining business integrity. Companies could offer simple explanations about their tracking methods on websites or packaging, much like food companies do with ingredients and sourcing.
“Transparency isn’t just about dumping data,” said Ethan Marks, founder of a cannabis logistics consultancy based in Denver. “It’s about communicating in a way that builds trust without overwhelming or alarming your customers.”
Marks noted that being upfront about delivery tracking, for instance, can actually improve customer satisfaction. “Letting customers see the status of their delivery — even knowing when their driver left the dispensary — makes them feel safer and more in control,” he said.
Legislative Pressures May Force the Issue
Recent discussions in state legislatures, particularly in New York, Illinois, and Florida, suggest that more formal transparency requirements may soon be introduced. Proposed laws include mandatory customer notifications when delivery tracking is used and clearer opt-in requirements for any marketing-related data collection.
The federal landscape may also influence future transparency standards. Should cannabis be rescheduled or legalized at the federal level, national consumer protection laws could come into play — much like they do with alcohol, tobacco, or pharmaceuticals.
The Road Ahead
As the cannabis industry grows up, so must its accountability to consumers. While compliance with tracking regulations is a given, transparency about how these systems operate, what data is collected, and how it’s used remains largely unregulated. In an era where digital privacy is paramount, the companies that choose to lead with clarity may be the ones that earn the most trust.