Illinois Cannabis Lawsuits: Did Companies Bend the Rules on THC Limits?

Case Overview: Three class action lawsuits claim several Illinois cannabis companies mislabeled vape oils to circumvent THC limits set by state law. 

Consumers Affected: Consumers in Illinois who purchased the mislabeled vape oils.

Court: U.S. District Court for the Northern District of Illinois, Eastern Division

Some Illinois cannabis companies may have found a way to get around THC restrictions—at least, that’s what a new lawsuit claims. Filed by cannabis consumer Chad Alsip, the cases takes aim at businesses accused of mislabeling vape oils to skirt state regulations.

According to the three lawsuits, Wellness Group Pharms (operating as Aeriz), Acreage Holdings, In Grown Farms, and NCC labeled vape oils as cannabis concentrates instead of cannabis-infused products (CIPs). That small distinction, the lawsuits argue, made a big difference in how much THC consumers could legally purchase.

Did Vape Oils Exceed State Limits?

Illinois law sets strict purchase limits on CIPs, capping each package at 100 milligrams of THC. But concentrates? Those fall under a separate category with much higher allowances. The lawsuit claims that by branding their vape oils as concentrates, these companies let consumers buy up to five grams—eleven times the state’s THC limit for infused products.

The lawsuits alleges this labeling practice misled consumers into thinking they were purchasing legal products when, in reality, they were walking out with far more THC than state law allows.

Lawsuit Says Consumers Were Misled

Alsip argues that people buying these products had no idea they were being sold something that didn't match up with Illinois regulations. The lawsuits claims companies “unlawfully promoted the unregulated overconsumption of cannabis” by selling vape oils that lacked proper safety labels, serving size guidelines, and other required packaging elements.

For consumers, this could mean more than just a confusing label. Those who unknowingly exceeded the legal THC limit could face legal consequences, all while believing they were following state rules.

“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.

Illinois Cannabis Rules Under the Microscope

Illinois legalized recreational cannabis in 2020, setting detailed regulations on how products can be packaged, sold, and labeled. Infused products like edibles, drinks, and vape oils must follow strict THC limits, while concentrates such as wax, shatter, and rosin have different allowances.

The lawsuits claim that vape oils should be classified as infused products rather than concentrates, arguing that the method of consumption—vaporization—places them in the same category as other restricted items. If true, the lawsuits suggest that mislabeled vape oils may have allowed companies to sell products far outside the limits set by state law.

Similar Lawsuits Target Cannabis Companies

The Illinois cases aren’t the first lawsuits accusing cannabis companies of misrepresenting their products. In December, a lawsuit claimed that Lifted Liquids, Inc. falsely advertised its Urb-branded delta-8 and delta-10 THC vapes as compliant with federal limits, despite independent testing revealing higher-than-allowed THC levels.

Other lawsuits have recently targeted companies like Cannabist, Verano, Cresco Labs, and Progressive Treatment Solutions for allegedly misrepresenting potency levels or failing to comply with labeling regulations.

In the class action lawsuits, Alsip seeks over $5 million in damages on behalf of consumers who purchased the allegedly mislabeled vape oils. He argues that these companies gained an unfair financial advantage by sidestepping Illinois laws while other businesses followed the rules. 

Case Details

• Lawsuits: Alsip v. Wellness Group Pharms et al., Case No. 1:25-cv-00833; Alsip v. Acreage Holdings et al, Case No. 1:25-cv-00867; and Alsip v. Ieso LLC et al, Case No. 1:25-cv-00920
• Court: U.S. District Court for the Northern District of Illinois, Eastern Division

Plaintiffs' Attorneys

• Laura Luisi and Jamie Holz (Luisi Holz Law)

Have you purchased vape oils from any of the companies named in these lawsuits? Share your experience in the comments below.