Five Stories That Matter in Michigan This Week – February 14, 2025

  1. Large Michigan Cannabis Operator Temporarily Shutters Part of its Operations Due to Market Challenges

Pincanna, which has retail cannabis outlets in East Lansing, Kalamazoo, and Kalkaska, recently announced that it is temporarily closing the greenhouse portion of its cultivation operation (located in Bay County) and laying off part of its workforce.

Why it Matters: One of the company’s co-founders cited an oversupply of cannabis in Michigan, which has created a highly competitive and unsustainable market, as the driving force behind the decision. Despite record sales of product, many Michigan cannabis operators have struggled to remain profitable due to falling prices.

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  1. Governor Whitmer Unveils Proposed Tax Increases to Fund Roads

This week, Governor Whitmer released a proposal that seeks $3 billion in a long-term plan that will lower vehicle repair costs, invest $1 billion in local roads and $250 million in transit.

Why it Matters: Among the components of the proposal, it seeks to close the gap in road funding, ensuring each dollar paid at the gas pump is invested back into the road infrastructure. Additionally will require businesses, specifically Big Tech, to pay more in taxes for doing business in Michigan, and to introduce a wholesale tax on the marijuana industry.

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  1. Latest Product Recall from Michigan CRA on Vapes Containing MCT Oil

On February 11, 2025, the Michigan Cannabis Regulatory Agency released a bulletin on a voluntary product recall on certain vapes from the brand BLOOM Classic and BLOOM Live that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

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  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

Five Stories That Matter in Michigan This Week – February 7, 2025

  1. Update: FinCEN – Supreme Court – CTA Injunction

FinCEN has given notice of its appeal in the Smith case: the lawsuit that led to the current nationwide injunction that makes Beneficial Ownership Information (BOI) reporting voluntary under the Corporate Transparency Act (CTA). If the court grants FinCEN’s appeal and lifts the injunction, BOI reporting would again become mandatory.

Why it Matters: In that event, the government has informed the court that FinCEN plans to implement a 30-day filing extension and “assess whether it is appropriate to modify the CTA’s reporting requirements to alleviate the burden on low-risk entities.” Read more.

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  1. Michigan Cannabis Grower Wins $32M Verdict in Contract Dispute

A federal court jury awarded Michigan-based Hello Farms $32 million last week after finding that Curaleaf, a large cannabis company, breached its purchase agreement from 2020-2021. The dispute arose when Curaleaf, after purchasing only 2,000 of the contracted 16,000 pounds of cannabis, demanded to renegotiate the agreement due to rapidly falling market prices.

Why it Matters: This case highlights the significant challenges facing Michigan’s cannabis industry as it grapples with volatile market conditions and plummeting prices. Particularly for those operating under long-term purchase agreements, this verdict underscores the importance of carefully considering the various business and legal risks of making significant purchase production commitments in an unstable market environment. It’s crucial to seek out experienced legal counsel in such situations.

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  1. U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech. However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment.

Why it Matters: This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch. Read more.

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  1. Michigan CRA Issues Product Recall on Vapes Due to MCT Oil

The Michigan Cannabis Regulatory Agency recently released a bulletin on a voluntary product recall on certain vapes that were found to contain Medium Chain Triglyceride (MCT) Oil, which had been banned for use in 2024.

Why it Matters: The products affected are from the brand Platinum Vapes. MCT Oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. The CRA banned the use of MCT Oil starting October 1, 2024.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the March Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Cannabis Law | Sean Gallagher
Intellectual Property | Andrew Martin

U.S. Supreme Court’s Decision on TikTok

On January 17, 2025, the Supreme Court delivered a landmark decision in TikTok Inc. v. Garland, upholding the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act (“The Act”). The Act’s challenged provision prohibits any U.S. company from providing services to “distribute, maintain, or update the social media platform TikTok, unless the platform is severed from Chinese control.” However, the Act also creates an exemption from the Act’s prohibitions if the foreign adversary controlled application, aka TikTok, undergoes a “qualified divestiture.” The President determines when a “qualified divestiture” has taken place by ensuring that the application will “no longer be controlled by a foreign adversary,” specifically in regard to the apps’ operation of the content recommendation algorithm and the apps’ data sharing.

The central issue in TikTok Inc. v. Garland was whether the Act violated the First Amendment. TikTok argued that the law infringed upon its First Amendment rights, claiming that it was being unfairly targeted as a foreign adversary-controlled application and that the divestiture requirement placed an unconstitutional burden on free speech.

However, the Supreme Court disagreed, ultimately finding that the Act was a content-neutral law that was not in violation of the First Amendment. In order to be considered a content-neutral law, the Act needs to advance “important government interests unrelated to the suppression of free speech and … not burden substantially more speech than necessary to further those interests.” As for the “important government interests” the Act was pursuing, the Court highlighted Congress’s content-neutral justification for the Act’s provisions, which was to prevent China from gathering the private data of over 170 million U.S. citizens. Specifically, Congress was trying to address the concern that TikTok’s parent company, ByteDance Ltd., is a company operated from China, which makes it subject to Chinese laws that require the company to “assist or cooperate” with the Chinese government’s “intelligence work” and to ensure that the Chinese Government has “the power to access and control” the company’s private data.

The Court also explained that the Act’s prohibitions are not more burdensome than necessary because the prohibitions are a conditional ban on the app, which will be lifted if a “qualified divestiture” between TikTok and ByteDance, Inc., its parent company, is achieved. This conditional ban is necessary, the Court reasoned, since without the divestiture, the U.S.’s data collection concerns cannot be properly addressed.

As for what happens now, President Trump granted TikTok Inc. a 75 day extension to become in compliance of the Act. Therefore, unless Tik Tok has completed a qualified divesture by the end of Trump’s extension deadline, TikTok users may need to find another place to post and consume their media content.

For U.S. TikTok users, it is important to know a few things moving forward: Some users may wonder, “What rights do I have to the content I have created on TikTok? Can I use my content on other platforms? Can TikTok continue to use my content if I am no longer able to access the site?” First, yes, TikTok content creators on the app do own the content that they make and distribute on TikTok. The content creators also own the copyright to the content they make through the app. Content creators can also have the right to download their content to their personal devices and post their content to other platforms, as long as the users comply with both TikTok’s and the other platform’s user guidelines.

As for the last question, yes, TikTok does have the right to use the content that you posted and uploaded to their app even if you are no longer utilizing the application. Once you have uploaded “User Content” to TikTok, TikTok can, among other things, distribute, transmit, republish your videos worldwide and to other third parties without your consent.

This Supreme Court decision marks a pivotal moment in the ongoing struggle between the protection of technology-based free speech and national security concerns. When or if Congress considers applying the Act’s prohibitions to other social media platforms, how the Court addresses the constitutionality of those future challenges will be crucial to watch.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.


Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.


Taylor Mikkelson and Jennie Brooks are law clerks at Fraser Trebilcock, both currently 2L at Michigan State University College of Law.