QR code pilot program suggests transparency in cannabis retail

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A pilot project in Alberta is aiming to transform cannabis product transparency with Metrc’s Retail ID system. By simply scanning a QR code provided at purchase, consumers gain access to lab test results, certificates of analysis (COA), product name, image, cannabinoid, and terpenes, ensuring greater trust in legal cannabis products.

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“The short of it is the QR code is handed out with the product as it’s purchased,” said David Urbanowicz, vice-president of external affairs at Metrc.

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“For the pilot, it’s limited to just one product which is manufactured by Token Naturals and distributed by Plantlife Cannabis. So when consumers scan the QR code, they’ll be taken to a landing page that provides supplemental information on the product,” he said.

The initiative, supported by Alberta Gaming, Liquor and Cannabis (AGLC), Token Naturals, and Plantlife Cannabis, serves as “a proof of concept,” Urbanowicz said.

“We’re in discussions with Token Naturals, Plantlife Cannabis, and AGLC. Our goal is, once we demonstrate the proof of concept, that we’ll be able to expand to additional products, potentially to additional businesses as well,” he said.

Metrc, which has experience deploying the system in the U.S., ensures data accuracy through a structured compliance approach, though noted there’s not the same source of record system in Canada as in the U.S. As part of the pilot, Token Naturals, the local manufacturer located in Edmonton, tests results into their system and generates a QR code. The QR codes and products are then shipped to AGLC’s distribution center, which supplies retailer Plantlife Cannabis. Plantlife then distributes the QR code stickers and business cards to consumers.

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Ian Scott, vice-president of operations at Plantlife Cannabis, an Alberta-based cannabis dispensary, said while the pilot currently includes only one product, a white chocolate raspberry edible, its potential impact is vast.

“Trust and transparency is crucial in a new industry. And I think that the QR code absolutely offers that, where a guest can come into our store, scan a QR code and then be delivered a lot more information than it is available on an actual package or that potentially an associate is able to give them,” he said. “I think it’s incredible when you see the transparency of where the product was grown or made, how it was produced.”

From a local producer’s perspective, Keenan Pascal, CEO of Token Naturals, also highlighted the value of the system for educating customers in a tightly regulated industry.

“One of the biggest challenges the industry has is educating customers. There are very restrictive marketing rules in place on cannabis products. With the Metrc QR code, we’re able to put a lot of that information that is data-driven directly onto the package that was previously difficult to share,” he said.

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However, current regulations in Canada limit the amount of information on cannabis packaging, creating challenges for consumer education, Urbanowicz said.

“Right now, if you’ve ever walked into a store to purchase cannabis, you’ll notice very limited information provided on the package itself,” he said. “An unintended side effect is that as a consumer, there’s not a whole lot of product differentiation. What this is intended to do is provide a whole lot of additional information on that product.”

Implementation has required regulatory navigation. Since QR codes are considered graphics under federal packaging regulations, they cannot be printed directly on product labels. Instead, retailers provide QR codes via stickers or business cards, Urbanowicz said.

Scott agrees, saying regulatory hurdles remain.

“So the simplicity of adding a QR code to a product makes that product non-compliant according to Health Canada,” Scott said. “In our pilot phase, we have the card that goes along with it with the QR code, but Health Canada, just as far as the regulations and how labels and stuff have to be on products, they do not like a QR code on it.”

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Despite these challenges, consumer response has been overwhelmingly positive, Scott said.

“Very positive. We have more than 20,000 people every week that come through our doors in Alberta,” Scott said. “So guests that come in and see an added layer of transparency, people get excited to learn every product is grown or produced tip to tail in Canada.

“We’re in conversations about what phase two and phase three would be as well. So like I said, I would love to see that expand.”

The pilot project is currently focused on Alberta only to evaluate its efficacy, but there is potential for future expansion, Urbanowicz said, adding “if we’re demonstrating the value, I do hope that this would be able to spread to other provinces, even federally.”

With QR code-based transparency gaining traction in the U.S. and growing interest in Canada, this initiative could set a new standard for consumer trust in the regulated cannabis market.

Looking ahead, Pascal also hopes to see a national standard for cannabis product verification.

“For us, it’s really moving towards a national code, whether a QR code or national stamp, whatever the government feels is the most efficient way. There are challenges having to do things province by province, so the goal is a uniform way of supplying information and verifying authenticity,” he said.

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