Michigan Leads U.S. in Cannabis Business Violations as National Enforcement Ramps Up

Cannabis Industry Sees Over 2,400 Violations Across 29 States and D.C. in 2024, With Michigan Accounting for More Than One-Third of the Total

A new report released by Cannabiz Media reveals the growing regulatory pressure facing licensed cannabis operators in the United States, with Michigan emerging as the state with the highest number of enforcement actions in 2024. Cannabis regulators in 29 states and Washington, D.C., issued nearly 2,500 violations, resulting in $10.8 million in fines, reflecting the maturing nature of the cannabis industry and the increasing focus on compliance.

Michigan Dominates the National Violation Count, With Over 900 Notices Issued

Of the 2,500 violations reported in 2024, a staggering 928 came from Michigan alone, representing approximately 37% of all enforcement actions nationwide. The Great Lakes State has one of the most active adult-use cannabis markets in the country, and its enforcement numbers underscore both the size of the market and the growing regulatory attention it receives.

Following Michigan, California came in second with 458 violations, trailed by Washington with 283 and Missouri with 268. These four states together were responsible for 78% of all violations in the country, suggesting that enforcement is heavily concentrated in a few key markets.

A Decade of Data Reveals Operational and Recordkeeping Violations as the Most Common

Cannabiz Media, based in Connecticut, has been tracking cannabis industry violations since 2015 and has categorized more than 10,000 violations over the past two years alone. According to their latest analysis, nearly half of the enforcement actions since 2014 have involved issues related to operations or recordkeeping—ranging from poor documentation practices to failures in complying with inventory tracking requirements.

While violations tied to packaging errors, point-of-sale (POS) infractions, or sales to minors were far less common, the data showed wide variation by state. Some states focused more on recordkeeping and operations, while others placed greater emphasis on POS-related issues.

For instance, California led in recordkeeping and operations violations, Missouri’s enforcement was primarily centered around operations, and Washington’s top infraction category in 2024 was point-of-sale errors. Interestingly, of the top four states, only Washington recorded any underage sales violations, even as states like Oregon led the nation with 62 such incidents—most identified through undercover sting operations.

Not All Violations Come With Fines, But Monetary Penalties Totaled Over $10 Million

Of the 2,500 violations issued in 2024, only 849 included a monetary penalty. Michigan again topped the list, issuing $3.72 million in fines across 568 violations—averaging approximately $6,549 per incident. In total, U.S. regulators issued $10.8 million in fines last year, with the national average fine landing around $12,700 per violation.

Florida issued the largest individual fine of 2024, penalizing Ayr Wellness a record $2.43 million for the sale of unapproved “seeded flower,” a significant deviation from standard compliance requirements.

The data shows that fines are not universally applied across all violations and often depend on the severity of the infraction, the enforcement philosophy of individual state regulators, and available regulatory resources.

Enforcement Approaches Vary Widely by State Based on Budget and Policy Priorities

According to Cannabiz Media co-founder and chief data officer Ed Keating, states adopt vastly different enforcement frameworks, much like they do with licensing schemes. Budget limitations and policy priorities often drive which categories receive the most attention.

For example, some states may focus on food safety violations for edibles or security infractions at dispensaries, while others might concentrate on tracking systems or cash-handling procedures. Because not all states provide public data or maintain the same reporting standards, the 2024 analysis is likely a conservative representation of the true volume of enforcement activity.

Multistate Operators Bear the Brunt of Compliance Failures in a Fragmented Regulatory Landscape

Cannabis multistate operators (MSOs), which hold licenses across numerous jurisdictions, were responsible for many of the recorded violations in 2024. These larger companies face unique challenges navigating different compliance expectations from one state to another, increasing the risk of violations despite robust internal compliance teams.

Cresco Labs, which operates in at least six states, received 39 violations last year—the highest among tracked companies. Other MSOs such as Curaleaf, Trulieve, and Green Thumb Industries also faced double-digit enforcement actions, with 24, 19, and 18 violations respectively.

The figures highlight the growing need for more unified compliance standards or, at the very least, better tools and internal controls for operators managing operations across state lines.

A Push for Better Compliance Tools and Risk Management Practices in the Cannabis Sector

The rising number of violations—and the concentration of enforcement in just a few states—has amplified the call for better compliance management and risk mitigation strategies in the cannabis industry. Operators must invest in strong internal systems for training, tracking, and documenting every step of the supply chain to avoid falling afoul of local regulations.

As the industry continues to expand and evolve, state regulators are expected to increase scrutiny of business practices, especially as legal cannabis becomes more mainstream. The combination of complex regulatory environments, differing enforcement priorities, and inconsistent reporting mechanisms makes it increasingly challenging for businesses to stay fully compliant without dedicated compliance infrastructure.

What Michigan and Other Top-Offending States May Signal for the Industry

Michigan’s dominant share of the national violation count may serve as a cautionary tale for other emerging cannabis markets. As legal markets mature and consumer demand grows, so does the responsibility of operators to remain in lockstep with shifting regulatory requirements. States like Michigan, California, and Washington have set a tone for strict enforcement that is likely to be replicated in newer markets.

At the same time, industry insiders are calling for greater transparency in how violations are tracked and reported. Only with a consistent national framework or improved state-level cooperation can the industry hope to reduce regulatory friction and build a more sustainable future.

For now, compliance remains a moving target, and operators large and small must be prepared to meet it head-on with proactive strategies, ongoing staff training, and robust legal support.