The Price of Monopoly: NY Cannabis Producers Face a 5X Increase in Labeling Costs Under New OCM Mandate
Forcing the Metrc “Retail ID” over open standards will transfer millions in annual costs from licensees to the vendor’s pocket, crippling brand margins.
When the New York Office of Cannabis Management (OCM) announced its updated Seed-to-Sale requirements, the industry expected clarity — not a forced monopoly.
Yet the latest guidance mandates that every licensed cannabis product in New York must display Metrc’s proprietary “Retail ID” QR code on final packaging. This single move reshapes the entire market — and not for the better.
🚨 A Private Vendor Is Now Embedded in State-Required Packaging
Requiring a single company’s proprietary code on every product gives Metrc unprecedented visibility and private control over:
consumer tracking
and the data associated with every unit sold in the state
This is not a minor labeling update — it is a structural lock-in that forces every licensee to share internal and privately owned data with Metrc.
💸 The True Cost of Mandatory Retail ID
Here is where the problem becomes impossible to ignore:
Metrc’s expected Retail ID cost: up to 10¢ per QR code per unit
Lucid Green’s LucidID cost: 2¢ per QR code per unit
For brands producing tens of thousands or millions of units per year, this mandate represents:
significant increase in the cost of operation
reduced margins
no ability to choose a more affordable or more capable provider
Here’s an example of cost inflation which directly benefits Metrc’s bottom line:
Original Biotrack implementation using LucidID as the print solution:
Costs based on the MRTA and OCM’s own regulations specify generic identifiers — lot numbers, barcodes, or lot-unique IDs. Nothing in the law authorizes or allows OCM to require a specific private vendor’s format.
For a case of 25 units:
Biotrack UIN for the case: $0.10 per case
LucidID unique unit IDs: $0.02 per unit x 25
Total for case: $0.10 + (25 x $0.02) = $0.60
New Metrc implementation:
Metrc is charging $0.10 for each unique Identifier called a UID in order for their RetailID system to function.
For a case of 25 units:
Metrc UID for the case: $0.10 per case
Metrc unique unit UIDs: $0.10 per unit x 25
Total for case: $0.10 + (25 x $0.10) = $2.60
That’s almost a 5X increase in costs.
For 50 Million units a year for 25 unit case packs and that’s $1.2M vs $5.2M a year! $4M in pure profit going into Metrc’s pocket at the expense of the industry!
That’s not compliance — that’s coercion through regulation.
⚖️ The Mandate Contradicts NY Cannabis Law
Neither the MRTA nor OCM’s own regulations require — or even allow — the use of a specific private vendor’s technology for labeling.
The latest regulations published on 11/13/2025 § 128.5 Cannabis Product Labeling Minimum Standards section b) 8. calls for a lot unique identifier or lot number or bar code; which can be implemented by any compliant system. There is nothing in these regulations that mandates the use of the Retail ID to comply.
Mandating Retail ID:
eliminates tech neutrality
shuts out competition
undermines regulatory fairness
raises costs for every licensee in the state
🛑 This Is Not About Compliance
This is about a single vendor gaining exclusive control over how compliance is displayed to consumers — and charging licensees for the privilege.
The result?
Higher costs, reduced innovation, and fewer choices for operators who are already navigating one of the most challenging cannabis markets in the country.
📣 The Industry needs to Push Back Before it’s Too Late!
Licensees across New York are being urged to take immediate action by emailing OCM leadership and demanding that this proprietary requirement be removed.
This is the moment for the industry to draw a line:
HELL NO to forced monopolies.
HELL YES to transparency, openness, and technological choice.
💬 Need Help Navigating This?
Lucid Green remains committed to open standards, interoperability, and consumer transparency — not vendor lock-in.
If you want help understanding what this means for your operations or how to stay compliant without surrendering control:
📩 info@lucidgreen.com