Michigan cracks down on 40 cannabis businesses for alleged violations in April

May 12, 2025

Michigan regulators have been cracking down on cannabis businesses that commit violations. - Shutterstock

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Michigan regulators have been cracking down on cannabis businesses that commit violations.

State regulators fined 40 cannabis businesses in April for violations ranging from selling bags of edibles with cartoons on the packaging to growing marijuana in buildings that failed safety inspections.

Nine of the businesses operate in metro Detroit and one in Ann Arbor. Together, those 10 were fined a total of $98,500.

The Cannabis Regulator Agency took against these local businesses:

Distro 10 Inc, a cannabis processor in Warren, was fined $9,000 for packaging edibles called Rocket Bites with a cartoon rocket ship and rainbow smoke, which violates rules prohibiting cartoons on edible cannabis products.

Pure X LLC, a cultivator in Warren, was fined $10,000 — $5,000 for using unapproved CO₂ extraction equipment and having multiple safety violations, and another $5,000 for allegedly selling an edible product with a cartoon cowboy on the packaging.

Free Reign LLC, a cultivator in Warren, was fined $1,500 for failing to submit a required reporting form before renovating the building and installing noncompliant door locks and AC units that altered the building’s electrical system.

Remedi LLC (Joyology in Orion Township), a dispensary, was fined $10,000 in total—$1,000 for failing to accurately tag a product and $9,000 for failing to timely file its annual financial statement.

Madhaus LLC, a cannabis business in Warren, was fined $9,000 after an anonymous tip led to findings that it transferred trade samples to House of Dank in Centerline beyond allowable limits.

Cherry Industries, a cannabis processor in Detroit, was fined $20,000 for allowing employee beverages in a trim room with exposed cannabis and having large surveillance gaps during a CRA inspection.

222 Companies LLC (Joyology of Mount Clemens), a dispensary, was fined $6,000 for failing to retain 30 days of surveillance footage, as required by state regulations.

Revolution Strains (Nirvana Center Processing in Center Line), a cannabis processor, was fined $17,000 for possessing marijuana products that weren’t properly labeled or entered into the statewide monitoring system.

Private Stock LLC, a grower in Warren, was fined $12,000 for failing to accurately track all inventory in the statewide monitoring system.

XYZ Ventures LLC (JARS Cannabis in Ann Arbor), a dispensary, was fined $4,000 for failing to maintain the required 30 days of surveillance footage.

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

Elsewhere in the state, Favrd, a popular cultivator in Mount Morris known for its flavorful, high-quality cannabis, was fined $25,000 after inspectors found a building on the premises that was not inspected or authorized to be used for growing purposes.

At a state Senate committee hearing last month, representatives of the cannabis industry complained that state regulators are heavy-handed in their approach to regulatory fines. Business owners reported significant financial stress due to steep fines for minor violations, sometimes for self-reported infractions.

 

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