‘Harming consumers’: pot companies face class action lawsuits
As the cannabis market evolves, it will eventually find itself facing the same challenges as other consumer-packaged goods. This includes market fluctuations, supply chain hiccups, and even lawsuits. Weed companies have already seen legal problems brought by consumers, including a recent case brought on by an alleged “THC overdose.” Now, several cannabis brands in Illinois are being hit with class action lawsuits centering around potency.
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Litigant Chad Alsip filed two potential class action lawsuits. One is against Acreage Holdings, and the other is against Wellness Group Pharms LLC (better known as Aeriz). Alsip argues the companies are violating Illinois law by marketing and selling vapes that exceed potency limits.
Under the state’s adult-use cannabis law, cannabis-infused products (CIPs) cannot exceed 100mg of THC. However, cannabis concentrates, like rosin and shatter, are not subject to these rules. In the lawsuit, Alsip claims that vapes are actually CIPs because of how they’re consumed—allegedly making them illegal.
“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,” the lawsuits state. “This deception continues to this day, affecting and harming consumers throughout Illinois daily.”
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Similar class action lawsuits were recently filed against the Cannabist Company, Verano, Cresco Labs, and Progressive Treatment Solutions. In addition to vapes, those lawsuits also targeted Rick Simpson Oil, an extremely potent form of hash oil typically used by cancer patients.
Representatives for Cresco declined to comment on the litigation. Requests for comment to the other defendants were unanswered at the time of publication.
The litigants seek an undisclosed sum, alleging fraud, statutory violations, and other complaints. It’s unclear if the lawsuits will proceed to trial–or if any actual harm was done. However, if a judge sides with the defendants, it could impact the way products like vape carts are packaged, labeled, and sold in Illinois and beyond.