Michigan Revokes Ypsilanti Dispensary License, Fines It $251,250

Michigan’s Cannabis Regulatory Agency (CRA) has revoked the adult-use retail license of a Ypsilanti dispensary and fined it $251,250 after finding that employees handed hundreds of vape cartridges to two social media influencers in amounts above the legal limit. The agency announced the final order on October 1, 2026, and it is one of the clearer recent examples of how regulators treat purchase-limit workarounds.

The licensee is Budbridge LLC, which does business as Muha Meds Ypsilanti at 19 N. Hamilton St. According to the CRA, the case ended with seven administrative rule violations, not just the influencer transfers.

What the Michigan CRA found

The CRA’s press release says the retailer transferred hundreds of vape cartridges to two social media influencers on June 24 and July 7, 2025. Employees split the orders into smaller transactions to get around system warnings about overselling, then gave each recipient the entire order in a single transfer that exceeded the legal limit.

The agency’s formal complaint, dated October 24, 2025, gives the numbers:

  • June 24, 2025: 400 two-gram vape cartridges (800 grams of concentrate), with a promotional value of $5,400, recorded under a customer account named “Chris Peterson.”
  • July 7, 2025: 487 two-gram cartridges (974 grams of concentrate), with a promotional value of $4,383, recorded under the same account name.

The complaint cites a section of Michigan’s cannabis law, MCL 333.27955(1), as the basis for the possession limit. It does not state the threshold itself, only that the totals were alleged to exceed it. Readers who want the current limits can check our cannabis possession limits by state chart.

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The other violations

The complaint listed eight counts. Beyond the bulk transfers, the CRA alleged that the store:

  • Failed to accurately enter transactions and inventory into Michigan’s statewide monitoring system, which is Metrc.
  • Failed to verify age with a government photo ID and to enforce single-transaction limits.
  • Sold or held products without required batch numbers or identification tags, including 75 untagged one-gram pre-rolls found during a July 16, 2025 inspection.
  • Did not clearly mark, tag, or secure transfer containers.
  • Did not record internal product sample transfers in the monitoring system.
  • Did not report criminal activity to the CRA and local law enforcement within 24 hours.

The complaint also describes three fake “Chris Peterson” profiles in the store’s point-of-sale system. That matters because accurate customer and transaction records are what let regulators trace where legal products go. The press release says seven of the violations resulted in the final order. It does not break the $251,250 fine down by violation.

How the case moved from complaint to revocation

The timeline shows a full administrative process rather than a quick penalty:

  • May 30, 2025: The CRA received an anonymous complaint, according to the formal complaint.
  • July 16 and July 29, 2025: Regulators made two site visits.
  • October 24, 2025: The CRA issued its formal complaint.
  • April 21, 2026: A contested case hearing was held.
  • August 14, 2026: An administrative law judge with the Michigan Office of Administrative Hearings and Rules issued a proposal for decision.
  • October 1, 2026: CRA Executive Director Brian Hanna signed the final order adopting the judge’s findings and conclusions.
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In the release, Hanna said deliberately bypassing purchase limits is a serious violation of the responsibilities that come with a marijuana license. He also said licensed retailers must verify identification and accurately track their inventory.

Why it matters for Michigan retailers and shoppers

Purchase and possession limits are the main legal guardrail between a regulated retail market and diversion into other channels. The CRA’s position in this case is that splitting a large order into smaller transactions does not change the legal limit when the whole order is handed over at once.

For licensed businesses, the case is a reminder that giveaways and influencer promotions are regulated activity. Product given away or sampled still has to be tracked in the monitoring system and cannot exceed legal limits. For shoppers, the practical takeaway is smaller: dispensaries are required to check ID and follow transaction limits, and the record-keeping systems behind them are subject to inspection.

This is also not a statement about every Michigan retailer or about influencer marketing in general. The order concerns one licensee and the specific conduct found in its case. The press release does not say whether Budbridge plans to appeal or seek further review.

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What remains unclear

  • The identities of the two influencers are not given in the CRA press release, and the complaint refers to the customers by initials. Ganjly is not naming them.
  • The release does not state the dollar amount attached to each violation.
  • The CRA’s materials do not say what happens next for the license or the location, or whether the licensee will challenge the order.

The combined final order (ENF 25-00795) is linked from the CRA press release for readers who want the full legal language.

What to watch next

Whether other states with regulated adult-use markets bring comparable cases over promotions and sample programs is an open question. In Michigan, the practical test will be how the CRA handles future complaints involving the same type of conduct. For background on how limits and taxes differ from state to state, see our guides to cannabis tax rates by state and whether cannabis is legal in all 50 states.

Sources



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