Cannabis Companies Hit with Class Action Lawsuits in Illinois Over Vapable Oil THC Content

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Two proposed class action lawsuits accuse several cannabis companies of marketing cannabis-infused products that exceed the legal limits of tetrahydrocannabinol (THC) in Illinois.

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The class action lawsuits were respectively filed against Acreage Holdings—the company behind cannabis brands Botanist and Superflux—and Wellness Group Pharms, which sells products under proprietary brands such as Aeriz, UpNorth, Fig Farms, Daze Off and 93 Boyz, as well as third-party brand Stiiizy. The suits take issue with the companies’ vaping products—including cannabis oil vaporizer cartridges, disposable oil vaporizers and other types of vapable oils—claiming the items contain THC at levels well above Illinois’ 100-milligram limit per product.

The cases allege the companies deceptively advertise their vapable oil products as smokable cannabis concentrates rather than cannabis-infused products in a bid to fool state regulators and consumers. The items are marketed as concentrates, extracts or vaping products with no mention or clarification that they are, in truth, cannabis-infused products, the complaints contend. The products are also packaged in amounts in which cannabis-infused products are prohibited from being sold, the filings claim.

“All of this serves to deceive and confuse consumers into believing that the Vapable Oils are cannabis concentrates instead of [cannabis-infused products], and, further, that [the defendants’] Vapable Oils are lawfully compliant products,” the lawsuits charge.

The suits argue the items are misrepresented in an attempt to duck the per-package THC cap and personal possession limits for cannabis-infused products imposed by Illinois law.

According to the complaints, cannabis concentrates (which can only be sold to consumers as smokeable products or after being incorporated into cannabis-infused products) are not subject to any per-package maximum under state law and have higher personal possession limits—5 grams for Illinois residents and 2.5 grams for out-of-state consumers. With respect to cannabis-infused products, state residents can cumulatively possess no more than 500 milligrams of THC contained in the products, while non-residents can possess no more than 250 milligrams in cannabis-infused products, the filings explain.

“Under Illinois law, [cannabis-infused products] are not allowed to contain more than 100 milligrams of THC per package,” the lawsuit against Wellness Group Pharms says. “Despite this, [the defendants’] Vapable Oils universally exceed this legal limit by three, five, and a staggering ten times by marketing and presenting their products as smokeable cannabis concentrate when, in fact, the Vapable Oils are [cannabis-infused products].”

Per the suits, if the defendants complied with Illinois law, consumers would be limited to buying up to five 100-milligram cartridges at a time, or any combination of cannabis-infused products that contain a cumulative total of 500 milligrams of THC. However, as a result of the companies’ allegedly illegal practices, customers can purchase 10 times that amount—5 grams—as purported cannabis concentrate and still buy an additional 500 milligrams of cannabis-infused products, the cases contend.

The defendants’ deceptive conduct has violated state cannabis product packaging regulations and misled consumers into believing they were buying legally compliant items, the filings claim.

In addition to the potential legal ramifications, the alleged misrepresentation exposes users to a risk of overconsumption, the complaints assert.

“By selling their Vapable Oils with THC content well above the legally allowed limit, [the defendants] put their customers at risk of adverse physical effects like psychoactive effects, anxiety attacks, or overwhelming intoxication,” the Acreage Holdings suit claims.

The lawsuits look to represent anyone who, within the applicable statute of limitations period, purchased in Illinois any vapable oils manufactured, processed, labeled and/or packaged by the defendants.

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