LucidID: The Standard for Security & Authentication

The Truth about QR Codes, Product Authentication and Consumer Protection.

Why does Lucid Green use QR codes?

When we designed our platform, our development team carefully considered which underlying technology to use in order to address two pivotal real-world concerns.

• What is the most bulletproof foundation for securing data and ensuring that information in each individual, serialized, encrypted LucidID cannot successfully be corrupted, forged, or duplicated?

• How can we provide that information to consumers and the entire supply chain in a way which encourages engagement and can be easily accessed prior to making a purchase?

The fact is, there are several secure technologies available to address the first concern, so we looked at those several options from the lens of:

“If we provide information to consumers, but they never view it, what good is it?”

In other words, how can we limit the friction points between a consumer and authentication, accurate product information, potential effects, dosage recommendations, quality reviews, and COAs?

It’s from that perspective we chose the QR code, and while it may not be patented technology, it does the two things both us and our brand partners need it to do:

• Keep our brand partners’ and consumers’ data safe from malicious attacks and their products protected from counterfeiters.

• Allow anyone with a smartphone to easily access this content-rich information set, simply by using their camera.

LucidIDs are used by your favorite brands to ensure consumer protection and product authenticity.

Why is ease-of-use important?

Volumes of readily-available consumer insights and well-publicized research on market intelligence have given us clear insight into how a customer reacts when they are on the consumer journey. Limiting the number of actions needed are pivotal to completing the journey to a successful engagement.

While 30% of consumers will download a brand’s application for a discount or incentive, and 24% will download a brand’s app for exclusive content, only 4% of consumers will download an app if it’s mandatory to make a transaction. According to Deloitte, more and more consumers are unwilling to download apps until they see the value in the content; when that content is visible only in app, the probability of engagement drops dramatically.

When additional action steps are needed to receive purchase-driving information, the consumer will either bypass that step, or gravitate to a similar product which offers a more seamless experience.

What about competitors with proprietary technology?

Authentication companies who have patented, proprietary on-pack solutions are defeating their own self-stated purpose. In looking to differentiate themselves by the proprietary nature of their on-pack solution, they have placed form and flash over function — their codes can only be read after you download their proprietary application — unwittingly limiting consumers’ access to the very information they need!

By failing to factor in how consumers interact with product and packaging in a real-world dispensary environment, they have missed the mark on engaging with the customer on their own terms.

HOW IT WORKS:

Authentic Product Scanned using Built-in Camera

When a consumer scans an authentic LucidID using their phone’s camera app, they will be taken to a web page showing the product details, with a pop-up that displays immediately directing the consumer to verify the product using the Lucid Green App.The consumer can dismiss the pop-up to view the details of the product without verifying its authenticity.

Authentic Product Scanned in App

When first scanning a LucidID, Lucid Green pairs the specific product item with the consumer account to track which user purchased the item. That consumer is presented with the “Product Authenticity Verified” banner.

If any other consumer scans that same item (and it hasn’t been marked as counterfeit in Lucid Green), they will not be able to verify product authenticity and will be presented with the banner: “Product already claimed and authenticity cannot be confirmed”.

Scanning a Counterfeit Product

When a consumer scans a counterfeit LucidID using their phone’s camera app or the Lucid Green App, they will see a warning screen directing them to contact the brand named on the product prior to consuming the product.

Lucid Green Product Authenticity Protection automatically protects consumers in the following instances:

Scanning a hacked LucidID with an invalid product identifier

If a counterfeiter uses a LucidID, but changes the QR code to use an invalid product identifier, we won’t have a record of that unique product identifier. This protection works when the LucidID is scanned:

• Using phone’s native camera

• Using the Lucid Green App

Scanning a LucidID that is flagged as counterfeit

Lucid Green can automatically or manually flag LucidIDs as counterfeit based on geographic, time-based, and historical signals based on our algorithms identifying anomalous patterns. This protection works when the LucidID is scanned:

• Using phone’s native camera

• Using the Lucid Green App

Scanning a hacked LucidID that resolves to a 3rd party website

If a counterfeiter uses a LucidID, but changes the QR code to point to a 3rd party website, the Lucid Green App will see the counterfeit website url in the LucidID. This protection works when the LucidID is scanned:

• Using the LucidID App

Why is security so important to Lucid Green?

When Lucid Green launched its “Trust and Transparency Movement” nearly two years ago, it was with a singular vision: establishing a standard for trust and transparency in the cannabis ecosystem, and looked to execute on that in two ways.

First, we built a revolutionary information-sharing platform that provided a channel for brands to connect directly with both consumers and retail staff; delivering the most accurate product information and improving consumer experience. Second, we created the LucidID, an on-pack mark which empowers the consumer with the knowledge they need to have a safe, predictable, and enjoyable experience.

Over the past two years, we have partnered with numerous brands; from those new to the marketplace to those with international name recognition. What has driven those partnership is the value we all place on changing the way cannabis knowledge is provided by empowering the consumer.

We call it “Trust and Transparency”.

To our brand partners it means taking action steps to promote and support those companies who are doing business responsibly and ethically; making a positive change in our industry that empowers the consumer with the knowledge they need to have a safe, predictable, and enjoyable cannabis experience.

To consumers, it means everyone, everywhere can have on-demand access to accurate, valuable, and trusted information – where they need it, when they need it. By doing this we enable the public to have confidence when purchasing and peace of mind when consuming.