November 12, 2025
State officials are reminding marijuana retailers to alert authorities if customers purchase or possess more than twice the legal amount.
Michigan cannabis retailers say they’re struggling to understand new guidance from state regulators urging them to report customers who buy or possess illegal amounts of marijuana even though the same rules don’t forbid stores from completing the sale.
The Cannabis Regulatory Agency (CRA) issued a notice on Nov. 3 reminding licensed businesses of their obligation to report theft, diversion, or other criminal activity “within 24 hours of detection.” The bulletin specifically mentioned customers who possess “more than twice the amount of marijuana allowed” under Michigan law.
“It doesn’t really make sense at all,” said the manager of a dispensary in the Upper Peninsula who asked to remain anonymous. “They’re basically saying that if a customer wants more than their daily limit, we should call and tell on them. You can legally sell it—but then you have to report them.”
Under the law, individuals may purchase or carry up to 2.5 ounces of cannabis (or 15 grams of concentrate). Exceeding that amount is a civil infraction, but carrying more than twice the limit can lead to misdemeanor charges.
Some dispensaries handle this by splitting large purchases into two separate transactions, a common workaround that still technically complies with the law. “You’re not gonna stay in business very long if you start calling the police on your customers,” said Lansing-based attorney John Fraser, who advises marijuana businesses.
CRA spokesman David Harns declined to clarify to MLive how stores should handle customers who leave and return for additional purchases.
Retailers also questioned how “criminal activity” should be defined in the cannabis industry, given marijuana’s federal prohibition. “Every single one of the customers is committing criminal activity if you start looking at federal law,” Fraser noted.
Recent enforcement cases appear to have prompted the CRA’s renewed warning. Earlier this year, a dispensary in Battle Creek was cited after police intercepted an Iowa-bound truck carrying eight pounds of marijuana traced back to its store. Another shop, Muha Meds in Ypsilanti, allegedly sold hundreds of grams of concentrate in single transactions.
“It’s one of those things that’s worth reiterating,” Fraser said. “When people start getting reckless with large sales, the CRA wants to remind everyone they’re still watching.”
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