By Dario Sabaghi
01-28-2025
Original HA9N Article
Cannabis companies in Illinois are facing a class action lawsuit for allegedly labeling cannabis-infused products as concentrates in order to exceed the state’s THC limits.
Illinois cannabis consumer Chad Alsip filed two class action lawsuits this week against multiple defendants, including Wellness Group Pharms and its affiliates operating collectively as Aeriz, as well as several entities under Acreage Holdings, In Grown Farms, and NCC.
The two complaints represent over 100 members each, with the amount in controversy exceeding $5 million, excluding interest and costs. The law firm Luisi Holz Law represents the plaintiff.
Defendants Accused Of Mislabeling To Evade Rules
The complaints allege that the companies unlawfully manufactured, marketed, and sold cannabis-infused products (CIPs) with THC levels exceeding the legal limits set by Illinois law.
The defendants are allegedly mislabeling their vape oils as cannabis concentrates, which are not subject to the same stringent THC limits as CIPs.
This misrepresentation allowed consumers to purchase significantly more THC than legally permitted, the plaintiffs claim.
For example, instead of being limited to 500 milligrams of THC in CIPs, a customer may buy a total of 5 grams of vape oils—11 times the legal limit—and then, on top of that, another 500 milligrams of CIPs.
“In doing so, Defendants unlawfully promoted the unregulated overconsumption of cannabis by marketing, promoting, and selling improperly labeled and packaged cannabis products that fail to feature or conform to the safeguards against overconsumption imposed by the Illinois Cannabis Acts. Specifically, safety labels, serving size limits, serving size identification, and legal quantity limits,” the lawsuits read.
Consumers were allegedly deceived into believing they were purchasing legal products while, in reality, acquiring illegal amounts of THC that cannot be sold or possessed under Illinois law.
“Defendants’ improper conduct is misleading in a material way in that it induced Plaintiffs and the Class Members to purchase Defendants’ Vapable Oils when they otherwise would not have. Defendants made their untrue and/or misleading statements and representations willfully, wantonly, and with a reckless disregard for the truth,” the lawsuits read.
These vape oils are marketed as legal despite containing more than the 100-milligram THC limit per package for CIPs, posing risks to consumer health and exposing them to potential legal consequences, according to the plaintiffs.
“Plaintiff and other consumers who purchased Defendants’ Vapable Oils were misled to believe that they were purchasing a legal cannabis product that complied with statutorily imposed limits, required labels, and packaging. This deception continues to this day, affecting and harming consumers throughout Illinois daily,” the lawsuits explain.
The lawsuits outline various statutory violations, including deceptive trade practices and consumer fraud, asserting that the defendants intentionally misled consumers and regulators to circumvent regulations.
“By exploiting higher possession limits for concentrates, the defendants allegedly generated substantial profits while violating state laws and compromising consumer safety,” the lawsuits claim.
Alsip seeks compensation for statutory violations, fraud, unjust enrichment, and other common law claims.
“Defendants’ pursuit of profit in disregard of the Illinois Cannabis Acts and their safety requirements is not only unethical and unscrupulous, it is immoral and oppressive,” the lawsuits claim.
The companies named as defendants in the lawsuits have been reached out to for comment.
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