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Tag: Cannabis Regulatory Agency

  • Michigan’s cannabis market shrinks as new tax threatens more closures, layoffs – Detroit Metro Times

    Michigan’s cannabis industry is facing a sobering reckoning in 2026 that could have lasting ramifications for legal weed. 

    Since recreational cannabis sales began in December 2019, prices have plummeted, more than 550 dispensaries and cultivators have closed, and thousands of employees have been laid off.  

    And for the first time, the recreational market saw a decline in annual sales, according to new figures released by the Michigan Cannabis Regulatory Agency (CRA). Adult-use dispensaries rang up $3.17 billion in sales in 2025, down from $3.27 billion in 2024, a decline of about $100 million, or 3.1%. 

    Prior to 2025, year-over-year growth helped turn Michigan into one of the nation’s largest legal cannabis markets. But beneath that growth was an industry struggling with declining prices from an oversaturated supply. 

    The dream of a green rush, it turns out, has given way to a cutthroat market where most businesses are fighting to survive. 

    During the six years of recreational sales, the industry has generated a remarkable $13.23 billion in purchases and $2.2 billion in state and excise taxes that go to local governments, schools, and roads. 

    But those figures are expected to continue falling this year.

    Despite the mounting problems facing the industry, Gov. Gretchen Whitmer and state lawmakers approved a measure late last year to impose a 24% wholesale tax on cannabis in 2026. Desperate to deliver on her aging pledge to “fix the damn roads,” Whitmer teamed up with the state House to sneak in the tax proposal before the industry and consumers could respond. 

    Whitmer signed the bill in October, nearly two weeks after the Michigan Department of Treasury estimated the new tax will shrink the wholesale market by 14%, according to records obtained by Metro Times. In other words, the state anticipates that its wholesale tax will chase away customers and cause a significant decline in excise and sales tax revenue. 

    Meanwhile, legislators have not touched the 4% liquor tax since it was set in 1985. That may be because the liquor industry has one of the most powerful lobbies and has donated heavily to Whitmer and other lawmakers.

    “They took advantage of a fledgling industry that isn’t organized, and they did it without any public discussion and punched it through,” Stuart Carter, who owns Detroit dispensary Utopia Gardens and a cultivation facility, tells Metro Times. “Now everyone is scrambling to figure out what to do.”

    Carter and other business owners say the new tax will deepen the downturn, forcing more dispensaries, processors, and cultivators to close and giving an upper hand to the larger corporate retailers and grow operations that provide mediocre product. 

    “The multi-chain operators are in the best position to weather this because they are buying in bulk and they can diffuse losses at some of their stores,” Carter says. “It’s the smaller entrepreneurs who are going to be the most affected.”

    Tom Farrell, owner of the Refinery dispensaries in New Buffalo and Kalamazoo and Growing Pains, a cultivator, says the tax is already taking a toll on the industry. He says sales at his New Buffalo dispensary “have been very, very slow,” in part because many consumers mistakenly believe they are responsible for paying the 24% wholesale tax beginning on Jan. 1. 

    “It’s slower than it has ever been,” Farrell says, adding that the same store saw record sales in December. 

    Dispensaries stocked up on a lot of weed in December to avoid the tax’s impact. While growers and processors are legally responsible for paying the tax, their options for recouping at least a portion of the extra costs are limited to raising prices or negotiating with dispensaries to absorb some of the increase. In an industry already hanging on by razor-thin margins, those costs are likely to raise prices for consumers, many of whom are already squeezed by inflation and other rising prices.  

    “There isn’t that much action in early 2026,” Brian Farah, CEO of Hello Farms in Au Gres Township, says. “Everyone bought up in anticipation of the tax.”

    Farah isn’t optimistic about this year, saying “2026 is set to be even worse than 2025.” 

    “We always look out for the Michigan consumer by offering a quality product, but it’s becoming more and more challenging because sales numbers are starting to decline,” Farah says.  

    Even before the wholesale tax, the industry has been struggling. Prices are a major factor. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $69.20 a year earlier, and $95.08 in December 2023, according to CRA data. The state has become one of the cheapest legal cannabis markets in the country, which is a win for consumers, but it’s a tough reality for businesses trying to stay afloat.

    By the end of 2025, Michigan had 2,171 active cannabis licenses, down 85 from the prior year, marking the first year-over-year decline in active licenses since adult-use began. The CRA’s licensing records show 940 licenses are no longer active. 

    Pleasantrees has a cannabis grow operation in Mount Clemens. Credit: Steve Neavling

    Growers are feeling the pressure the most. Michigan currently has 430 active grow operations, but 191 have closed since the industry began. That means about 30.8% of growers have gone out of business over the past six years. 

    In Detroit, at least 14 cannabis businesses have closed since the city began issuing licenses in late 2022.

    Even with the closures, the market is still crowded. New growers and processors continue to enter the industry nearly as fast as those leaving it. Cannabis operators say oversupply is going to continue to eat away at the industry this year. 

    “There is way too much supply. There’s too much product,” Farrell says. 

    As an example of how bad it has gotten, Farrell points to one brand that is making just a 25-cent profit off of a vape cartridge. 

    Whitmer’s office won’t responds to Metro Times’s questions about the cannabis industry or how the wholesale tax is impacting the market. Instead, they referred us to the CRA, which had nothing to do with the tax and isn’t implementing it.

    CRA spokesman David Harns says changes in a new industry are normal and are similar to the challenges facing other cannabis markets.

    “Since legalization, Michigan’s cannabis industry has experienced significant growth, making the state one of the top producers in the country,” Harns says. “As the market continues to mature, fluctuations in supply and demand are expected and consistent with patterns seen in other states that legalized earlier.”

    After voting in favor of the wholesale tax, the state Senate introduced a set of bills on Oct. 2 that would limit competition in hopes of reducing the oversupply. 

    Senate Bill 597, introduced by Sens. Sam Singh, D-East Lansing, and Jeremy Moss, D-Southfield, would limit each municipality to one dispensary for every 10,000 residents. If approved, the legislation would prevent the CRA from approving new dispensary licenses in municipalities that already exceed the limit. Municipalities with fewer than 10,000 residents would be limited to one retail license. 

    While many in the industry support the legislation, it threatens smaller cities like Hazel Park (pop. 19,431), Ferndale (pop. 19,431), and Inkster (pop. 25,108), which have become cannabis hubs and rely on the tax revenue. Hazel Park has nine dispensaries, Ferndale has six, and Inkster has seven, according to CRA records. The new legislation would limit Hazel Park and Ferndale to one dispensary each and Inkster to two. 

    The legislation wouldn’t force existing dispensaries to close, but once one shuts down, it can’t be replaced until the number of retailers fall below the proposed cap.

    For cannabis workers, this is a nerve-racking year. Michigan’s regulated cannabis industry remains a major employer, with 41,248 workers counted in December 2025. Those jobs include dispensary employees, cultivation and processing staff, delivery drivers, compliance specialists, security teams, and others. 

    “People are really scared,” Farrell says. “I have employees asking me if they are going to still have a job.”

    Municipal budgets are also at risk. Michigan shares adult-use cannabis excise tax revenue with communities that allow dispensaries and other cannabis marijuana businesses to operate, and the payments have become an important revenue stream in those cash-strapped cities and townships. In fiscal year 2024, Michigan distributed nearly $100 million to communities, with each eligible municipality, county, and tribe receiving more than $58,200 per licensed retail store and microbusiness within its borders. 

    If more retailers shut down and sales weaken, local distributions will shrink.

    “The state is going to lose excise and sales taxes because of the wholesale tax,” Stewart says. 

    As frustration grows over the legal industry, business owners are worried more consumers will go back to an illicit market that doesn’t face steep tax rates. If that happens, operators say, the legal market will continue to shrink, and the state will have less revenue in the future. 

    For now, dispensaries, growers, processors, and other cannabis businesses will have to find a way to adapt, and it won’t be easy. 

    “We want to have a sustainable Michigan business that gives back to the customers,” Farah says. “But with these changes, it will be difficult to navigate these waters.”


    Steve Neavling

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  • Michigan’s cannabis market hits first annual decline as market shows deeper problems – Detroit Metro Times

    For the first time since recreational cannabis sales began in Michigan in December 2019, the state’s legal market saw its first decline in annual sales, according to new figures released by the Michigan Cannabis Regulatory Agency.

    Adult-use dispensaries recorded $3.17 billion in sales in 2025, down from $3.27 billion in 2024, a decline of about $100 million, or 3.1%. The drop follows years of growth that helped turn Michigan into one of the nation’s most robust legal cannabis markets.

    The downturn comes as dispensaries, growers, and processors across the state continue to struggle with a surplus of product and a steep decline in prices. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $69.20 a year earlier and $95.08 in December 2023, according to the CRA’s monthly reports.

    By the end of 2025, Michigan had 2,171 active cannabis licenses, down 85 from the prior year, marking the first year-over-year decrease in active licenses since adult-use sales began. Over the past six years, 940 cannabis licenses are no longer active because the businesses closed, according to the CRA’s licensing data.

    Despite the many failures, new growers and processors are popping up almost as fast as others shut down, though that trend is beginning to slow down.  

    Cannabis businesses are worried this year will be even worse. In late 2025, Gov. Gretchen Whitmer and the Legislature approved a 24% wholesale tax on the struggling industry to pay for road repairs. No other industry in the state is taxed as heavily as recreational cannabis. Consumers already pay a 10% excise tax and a 6% sales tax. 

    Meanwhile, legislators have not touched the 4% liquor tax since it was set in 1985. That may be because the liquor industry has one of the most powerful lobbies and has donated heavily to Whitmer and other lawmakers. 

    Tens of thousands of jobs are at stake. The regulated industry is a major employer, with more than 41,200 workers. The workforce includes dispensary employees, cultivation and processing staff, delivery drivers, compliance specialists, security teams, and others.

    Local governments could also feel the impact if the slowdown persists. Michigan shares adult-use cannabis excise tax revenue with municipalities that allow dispensaries and microbusinesses to operate, and that money has become an important revenue stream for many communities.

    Michigan’s legal marijuana market has generated $13.23 billion in recreational sales since the start of adult-use in 2019, but the state’s latest annual numbers show the industry is on the decline.


    Steve Neavling

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  • Hazel Park sees another cannabis business closure as market falters  – Detroit Metro Times

    A Hazel Park dispensary is closing its doors on Christmas eve, becoming at least the 14th cannabis business to shutter in the city as the cutthroat recreational marijuana industry continues to struggle with too many stores and plummeting prices.

    Clarity announced the decision on its website this week and is offering 60% off everything in the store. 

    Owned by Trucenta LLC, a vertically integrated cannabis company based in Michigan, the dispensary at 24517 John R was originally named Breeze USA and became the first recreational dispensary to open in Oakland County in March 2020. Trucenta renamed the store Clarity last year.

    Clarity is just the latest victim of an industry that has more cannabis than it can sell. Prices have plummeted, and sales continue to decline this year. Profit margins are razor thin, and many businesses have closed or are on the cusp of calling it quits. 

    Although dozens of dispensaries, grow operations, and processors have closed in Michigan this year, state lawmakers and Gov. Gretchen Whitmer approved a new 24% wholesale tax on marijuana that industry insiders say will suffocate the industry and force the closure of more businesses. That’s on top of a 10% excise tax and a 6% sales tax.  

    “Layer that on top of price compression, oversupply, heavy administrative overhead, and an unpredictable enforcement climate, and the outcome is clear: even the largest, most capable operators cannot responsibly justify continued operations under this trajectory,” Trucenta CEO Zoran Bogdanovic tells Metro Times.

    In addition, Bogdanovic says the state’s Cannabis Regulatory Agency (CRA) is making it difficult for businesses by imposing massive fines for small mistakes. In November, the CRA accused Trucenta of committing several violations, including improperly transporting cannabis products, misusing the statewide monitoring system, failing to maintain complete surveillance footage, and attempting to mislead inspectors by switching tags on different marijuana products. The agency’s inspection on April 11 revealed that Trucenta employees switched tags on distillate to deceive inspectors, according to the CRA’s formal complaints.

    In response, Bogdanovic stresses that the company tried to comply with regulations and collaborate with the agency. He says Trucenta has been “diligently providing all requested documentation, including video footage,” and engaging with the CRA’s inquiries. However, Bogdanovic says the company has encountered delays in the CRA’s processing of its submissions.

    According to Bogdanovic, Trucenta filed five formal complaints against the CRA earlier this year over concerns about what he describes as “disruptive business practices” that were not addressed before the CRA’s recent complaints.

    “The regulatory and economic landscape in Michigan has reached a point where the operational risk, financial strain, and enforcement volatility no longer align with responsible, sustainable business,” Bogdanovic tells Metro Times. “This isn’t about any single event or disagreement. This is structural.”

    He adds, “Over the last several years, the Cannabis Regulatory Agency has intensified its enforcement posture to a level that has created a climate of constant operational uncertainty. Formal complaints, disciplinary actions, and protracted investigations have increased across the entire state.” 

    Bogdanovic points out that Trucenta is far from alone. For example, TerrAscend Corp., a multistate, publicly traded cannabis company, announced this summer that it’s closing all 20 of its dispensaries and four cultivation and processing sites in the state. The company also laid off about 250 employees at its dispensaries under the Gage, Pinnacle Emporium, and Cookies brands across Michigan, with locations in Detroit, Ferndale, Lansing, Kalamazoo, Traverse City, Grand Rapids, Battle Creek, and other cities. The company is also closing its cultivation and processing facilities in Bay City, Harrison Township, and Warren.

    PharmaCann shut down its massive LivWell facility in Warren in December 2024, and Curaleaf ended its Michigan operations last year. Countless small cannabis businesses have also shuttered.

    Trucenta also opened the state’s first licensed cannabis consumption lounge, Hot Box Social, in Hazel Park, in 2022, but the business has since shut down. 

    In Hazel Park alone, at least one other dispensary, four grow operations, six processors, two secure transporters, and a consumption lounge have gone out of business. 

    Nine dispensaries still operate in Hazel Park. 

    Cannabis businesses in the city were also hit with at least six break-ins between January 2024 and March 2025. In August, several armed suspects were arrested after breaking into the HP Lab Group processing center on John R around 1:33 a.m Police said a security guard was disarmed, kidnapped, and bound with duct tape, and the suspects drove a U-Haul through the building.

    The closures could spell trouble for the city under legislation introduced by Democrats in the state Senate.

    In October, Democrats who control the state Senate introduced a set of bills on Oct. 2 that would limit each municipality to one dispensary for every 10,000 residents. If approved, the legislation would prevent the state Cannabis Regulatory Agency (CRA) from approving new dispensary licenses in municipalities that already exceed the limit. Municipalities with fewer than 10,000 residents would be limited to one retail license.

    The bill wouldn’t force existing dispensaries to close, but once one shuts down, it couldn’t be replaced until the municipality falls below the cap. 

    If the bills pass, Hazel Park would be limited to one dispensary. 

    Bogdanovic says his company isn’t giving up. 

    “Trucenta will always stand for responsible operations, transparency, and forward-thinking leadership,” he says. “As we navigate this next chapter, our decisions will reflect one principle: doing what is right, sustainable, and aligned with the long-term health of the organization, employees, and the customers we served.”


    Steve Neavling

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  • Michigan’s proposed cannabis caps could hurt consumers and small cities that rely on weed revenue  – Detroit Metro Times

    After delivering a serious blow to Michigan’s already struggling cannabis industry by imposing a 24% wholesale tax, state lawmakers are now trying to make amends with a set of bills aimed at limiting competition in the oversaturated market.

    Democrats who control the state Senate introduced a set of bills on Oct. 2 that would impose limits on new dispensaries and eliminate new large cultivation licenses. 

    While the legislation would benefit many established businesses, it would hurt consumers and smaller cities like Hazel Park and Ferndale by reducing tax revenue, eliminating cannabis jobs, and paving the way for regional monopolies, according to state analyses obtained by Metro Times. 

    Senate Bill 597, introduced by state Sens. Sam Singh, D-East Lansing, and Jeremy Moss, D-Southfield, would limit each municipality to one dispensary for every 10,000 residents. If approved, the legislation would prevent the state Cannabis Regulatory Agency (CRA) from approving new dispensary licenses in municipalities that already exceed the limit. Municipalities with fewer than 10,000 residents would be limited to one retail license. 

    The bill wouldn’t force existing dispensaries to close, but once one shuts down, it couldn’t be replaced until the municipality falls below the cap. 

    On Oct. 15, the Senate Regulatory Affairs Committee voted 11-0 in favor of the bill that would cap new dispensaries. 

    The caps would defy the voter-approved initiative that legalized recreational marijuana in Michigan in 2018 and called for unlimited cannabis licenses. 

    When voters approved recreational cannabis in 2018, the ballot initiative called for unlimited business licenses. So any change to the initiative would require a three-quarter supermajority in the Senate and House. 

    While many in the industry support the legislation, it threatens smaller cities like Hazel Park (pop. 19,431), Ferndale (pop. 15,064), and Inkster (pop. 25,108), which have become cannabis hubs and rely on the tax revenue. Hazel Park has 10 dispensaries, Ferndale has six, and Inkster has seven, according to CRA records. The new legislation would limit Hazel Park and Ferndale to one dispensary each and Inkster to two.

    Cash-strapped municipalities have come to rely on cannabis revenue. With a 10% excise tax on recreational cannabis sales, hundreds of millions of dollars have gone to local governments, schools, and roads since 2020. 

    Municipalities shared nearly $100 million from excise taxes collected last year, according to the Michigan Department of Treasury. For each dispensary within their boundaries, cities and townships receive more than $58,000 annually.

    This year, Hazel Park received $582,300, a major source of revenue for a city with rapidly rising pension obligations. Without that money, the city “would have had to make cuts in services or pass those costs on to taxpayers,” Hazel Park City Manager Edward Klobucher told Metro Times in 2024. 

    Ferndale received $349,400 in excise tax revenue, and Inkster collected $407,600.  

    An Oct. 13 analysis by the Senate Fiscal Agency warns that a cap on licenses will harm small cities and towns and “create regional monopolies or oligopolies preventing new businesses from entering the marijuana market.”

    The agency points out that larger cities like Detroit have not yet reached their dispensary limit, but smaller municipalities have. In Detroit, which has a population of 645,705, there are 61 active dispensary licenses. The city’s cap would be 64.  

    “If small cities and villages were prevented from increasing the number of dispensaries while larger cities were not, there would be a shift of payments from small towns to larger cities,” the report states. 

    The legislation would also bar new large cultivation licenses that permit operators to grow as many as 2,000 plants. 

    The bills came in response to a new 24% wholesale tax that will be slapped on the struggling cannabis industry beginning on Jan. 1. With no feedback from the industry or consumers, the House approved the bill 78-21 in late September, and the Senate narrowly approved the tax 19-17 after cannabis business owners spoke out. Gov. Gretchen Whitmer signed the tax into law on Oct. 7.

    Hours later, the Michigan Cannabis Industry Association filed a lawsuit against the state, alleging the Senate lacked the three-quarters supermajority required to change a voter-approved initiative. Voters agreed to a 10% excise tax and 6% sales tax on retail cannabis sales. Any new or higher tax, the association contends, amounts to an amendment of the ballot measure and therefore needs a supermajority vote.

    Records obtained by Metro Times show lawmakers knew the increase was going to harm the industry and ultimately lead to a drop in excise taxes. On Sept. 26, a day after the House approved the tax hike with no public input, the Michigan Department of Treasury estimated the new tax will shrink the wholesale market by 14%.  

    By the state’s own estimates, lawmakers are harming cities that have embraced cannabis legalization and leaving consumers with higher prices and fewer choices. 

    At the same time, cannabis businesses are struggling to hang on in an industry that has more product than it can sell. Prices have plummeted, and sales continue to decline this year. Profit margins are razor thin, and many businesses have closed or are on the cusp of calling it quits. 

    Reducing competition would control oversupply and help existing businesses survive in a tough, competitive, and expensive industry, advocates say. 

    At a Senate Regulatory Affairs Committee meeting on Oct. 15, Moss blamed the wholesale tax vote on House Speaker Matt Hall, R-Richland Township. 

    “He said he would shut down the government if the 24% didn’t pass,” Moss said. 

    Moss pledged the Senate would “demonstrate in good faith that we are serious about listening to the industry,” which he said was “struggling with too many operators both in the grow and retail space, leading to unprofitability of product.”

    Robin Schneider, executive director of the Michigan Cannabis Industry Association, which represents more than 400 cannabis businesses, told the committee that her organization supports the limit on new dispensaries and large-scale cultivation licenses. She said the surplus of marijuana has created “stockpiles of cannabis that are currently sitting in facilities, rapidly losing value across the state.”

    “Unlimited cultivation licenses have created oversupply, causing wholesale prices to plummet, financially harming businesses all the way down the supply chain,” Schneider told the committee. “As we’ve seen in other states, unlimited cannabis production in the license market leads to failing businesses and sometimes diversion of product into the illicit market, and that puts our entire program at risk of federal noncompliance.” 

    But not all cannabis operators support the cap on licenses. At Alien Tech Farms, a relatively new grower of high-quality cannabis in Vassar, a small city of 2,727 located outside of Flint, the goal was to eventually open a dispensary. But Vassar already has more than one dispensary for every 10,000 residents, so opening one there would be impossible if the cap is passed. 

    “This would effectively freeze us all out from vertically integrating or expanding,” Alien Tech Farms owner Steve Wagner said. “That would be pretty tough. … It’s now feeling like we can’t go anywhere.”

    He added, “The little guys are seemingly stomped on.”

    It’s not yet clear if lawmakers can round up enough votes for a supermajority to approve the bills.


    Steve Neavling

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  • State fines a dozen metro Detroit cannabis businesses for myriad violations – Detroit Metro Times

    State regulators fined 11 cannabis businesses in metro Detroit in September and revoked the license of another for various violations ranging from selling expired or contaminated marijuana to improperly tagging their products. 

    The fines are noticeably lower this month after the state’s Cannabis Regulatory Agency (CRA) pledged to reduce penalties on the struggling industry, which will face a 24% wholesale tax in January. 

    In metro Detroit, cannabis businesses were fined a total of more than $61,000. By comparison, the CRA doled out $169,100 to local businesses in July. 

    The took action against these local businesses:

    Cherry Industries, a cultivator in Detroit, agreed to surrender its license following multiple violations. Most recently, inspectors found more plants growing than was allowed by the company’s licenses, numerous plants and products were not property tagged, and contaminated cannabis was sold to a dispensary, among numerous other violations.  

    Outside of metro Detroit, 12 cannabis businesses were fined for violations. They are One Love Labs in Chesaning ($30,000), Infinity Artisan Cannabis in Muskegon ($3,000), Greenway Provisioning Center in Beaverton ($1,000), Exclusive Cannabis Cookies in Monroe ($2,000), Strange Rootz Cannabis, a dispensary in Twin Lake ($1,000), NH Ventures in Jackson ($12,000), Moses Roses in Port Huron ($28,975), JK Logix in Lansing ($3,750), Treetown Cannabis in Michigan Center ($4,000), Exclusive Grand Rapids in Grand Rapids ($10,000), Exclusive Grand Rapids in Kalamazoo ($10,000), and Cloud Cannabis Company in Kalamazoo ($1,000).


    Steve Neavling

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  • Ex-cops banned from Michigan cannabis industry for inflating THC, downplaying hazards, regulators announce

    Courtesy photos

    Former cops Todd Welch, left, and Dr. Michele Glinn have been banned from Michigan’s cannabis industry for numerous alleged violations.

    Three former Michigan State Police cops who founded one of the most controversial marijuana testing labs in the state have been permanently banned from participating in the cannabis industry.

    The Cannabis Regulatory Agency (CRA) announced Wednesday that Viridis Laboratories and its sister facility, Viridis North, will shut down, ending years of legal battles and disciplinary actions over allegations that the company used unapproved methods, produced unreliable test results, inflated THC levels, and downplayed hazards in cannabis.

    As part of the agreement, the lab’s majority owners — former state police forensic director Greg Michaud, forensic scientist Todd Welch, and former toxicologist Dr. Michele Glinn — are barred for life from holding any role in the state’s cannabis market. Viridis must close its Lansing lab immediately and shutter its Bay City location by Sept. 28.

    “This is justice, plain and simple,” Brian Hanna, the executive director of the CRA, said. “Viridis failed to uphold the standards required of marijuana safety compliance facilities in Michigan. Viridis circumvented the rules. Their majority owners will never operate in this space again, and the Michigan cannabis industry will be stronger for it.”

    The settlement ends a years-long clash between regulators and Viridis, which was one of the most dominant cannabis testing labs in Michigan. Founded in 2018, the company’s owners claimed their former law enforcement credential gave them unrivaled credibility. But it quickly drew scrutiny from regulators and competitors for allegedly inflating THC levels and disregarding scientific standards.

    In 2021, state regulators ordered the largest recall in Michigan history after questioning Viridis results, forcing hundreds of dispensaries to pull an estimated $229 million worth of products from shelves.

    “Several competitors alleged they were pushed to the brink — some even out of business — as a result of Viridis’ disregard for the rules,” the CRA said in a news release.

    An administrative law judge in March found that Viridis repeatedly violated state rules by failing to follow its own testing protocols, misidentifying mold, and keeping inadequate records.

    Despite those findings, Viridis stayed in business while fighting regulators in court. The company argued the CRA was targeting it unfairly, but its lawsuits were repeatedly dismissed.

    Stories of inflated THC levels have become so widespread that some consumers boycott cannabis products tested by Viridis, which critics say is often reporting suspiciously high potency.

    By admitting to all violations in six formal complaints and agreeing to drop its legal challenges, Viridis has now brought an end to one of the industry’s most contentious regulatory battles.

    “This wasn’t just a single misstep,” Hanna said. “It was a sustained, deliberate pattern of noncompliance that shook confidence in the entire regulated cannabis system.”

    At its peak, Viridis tested an estimated quarter-million pounds of cannabis flower each year, giving the company enormous influence of the state’s $3 billion marijuana market.

    “We are at a pivotal moment, where scientific progress in cannabis is unfolding under our watch,” Claire Patterson, director of the CRA’s reference laboratory, said. “Here, we had a responsibility to get this right and set a critical precedent. Scientific integrity isn’t a formality — it’s the foundation of the cannabis industry. The future of this industry depends on ethics, transparency, and science we can all trust.”

    Steve Neavling

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  • Michigan regulators fine 29 cannabis businesses for numerous violations in July

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    Michigan regulators cited 29 cannabis businesses for violations in July.

    State regulators fined 29 cannabis businesses in July for violations ranging from selling excessive amounts of weed to failing to tag products with compliance stickers.

    Eleven of those businesses operate in metro Detroit and were smacked with $169,100 in fines.

    The Cannabis Regulatory Agency took action against these local businesses:

    In each of these cases, the businesses admitted fault and pledged to make corrections.

    Other cannabis businesses that were fined outside of the area are Amber Waves Cannabis Co. in Morenci, Berry Green Management in Lapeer, Blue Fox Brands in Lansing, Holy Smokes Farms in Lansing, Exclusive in Coldwater, Birch Solventless in Rogers City, Cherry Brands in Jackson, Flos in Kalkaska, Infinity Artisan Cannabis in Kalkaska, Levels in Grand Rapids, Gramz Cannabis in Mt. Morris, Uniq Pressure in Monroe, Backpack Boyz in Monroe, Native Leaf in Reading, Nirvana Center in Menominee, One Love Labs in Chesaning, and Wanda Products in Luzerne.

    Steve Neavling

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