Top Takeaways
- Cresco Labs has asked a federal judge in Illinois to dismiss a proposed class-action alleging mislabeling of cannabis products.
- The lawsuit contends Cresco marketed certain vape cartridges as “concentrates” to bypass Illinois THC limits for “infused products.”
- A ruling on the motion could set precedent for labeling, classification and private enforcement in the cannabis industry.
Chicago-based cannabis firm Cresco Labs has filed to dismiss a proposed class-action lawsuit in Illinois claiming the company and its subsidiaries misclassified and mislabeled certain vape oil products, potentially misleading consumers about potency and breaking state laws.
The suit, Matthews v. Cresco Labs, Inc., accuses Cresco Labs of marketing THC oil vape cartridges under premium brands such as High Supply and Good News, with THC levels of 300mg to 1g, while packaging them as “concentrates” to bypass the 100mg per-package limit that applies to “cannabis-infused products” under the Illinois Cannabis Regulation and Tax Act.
In its motion to dismiss filed in federal court in Illinois, Cresco argues that the Illinois Department of Agriculture’s Cannabis Program has authority over product classification and labeling, and that the company’s products were approved by the regulator. The company further contends that the statute does not give private consumers the right to sue under the Illinois Act for labeling violations—a role reserved for state regulators.
The litigation started in state court and was moved to U.S. District Court under the Class Action Fairness Act. A July 2025 decision denied the plaintiff’s request to send the case back to state court but allowed it to continue. Currently, there is no set date for Cresco’s dismissal motion hearing.
Industry observers say the outcome could have wide-reaching effects beyond Cresco. If the motion passes, it might restrict private lawsuits over labeling in states like Illinois, where regulatory agencies oversee such issues; if it fails, companies could face more exposure from consumer-fraud claims related to cannabis potency and product classification.
