The Michigan Cannabis Regulatory Agency CRA has issued a formal complaint against PER III, LLC, doing business as Trapstars Outlet, an adult use cannabis retailer in New Buffalo.
The complaint ENF 26 00042 alleges violations tied to cannabis sales reporting, inventory tracking, and standard operating procedures under Michigan adult use cannabis regulations.
What Triggered the Investigation
According to the CRA, the investigation began after a complaint regarding unusually high sales activity.
On September 30, 2025, the state cannabis monitoring system METRC showed 76 separate vape cartridge transactions between 9:56 AM and 10:40 AM.
In total, those transactions accounted for:
- 528 MuhaMeds vape cartridges
- 1,056 grams of cannabis concentrate
Many of these transactions were recorded at “0.06” or “0.07” per sale, far below standard retail pricing, raising red flags for regulators.
METRC and POS Discrepancies
Michigan requires all licensed cannabis retailers to record inventory and sales in METRC, the statewide seed to sale tracking system. The data entered must match the retailer point of sale system and security footage.
During an on site inspection, CRA agents requested receipts corresponding to the 76 transactions. Initially, the store reportedly provided only one receipt.
That receipt reflected:
- 7 cartridges sold
- 14 grams of cannabis concentrate
- A customer profile labeled “bee h”
After reviewing surveillance footage, the CRA states it did not observe customers purchasing anywhere near the volume of cartridges reflected in METRC during that 45 minute window. Instead, footage reportedly showed customers primarily purchasing deli style cannabis flower.
When additional receipts were later provided, the CRA alleges the following inconsistencies:
- Only 37 of the 76 requested receipts were initially produced
- Multiple receipts reportedly listed the same customer ID and budtender Some receipts were marked “(FREE) 100 percent DISCOUNT”
- The standard operating procedure provided for promotions did not align with what was reflected in the sales records
The agency alleges that the POS data, surveillance footage, and METRC entries did not match, raising concerns about inaccurate reporting and inventory tracking.
Alleged Violations
The complaint cites two primary alleged violations:
- Failure to accurately record transactions in the statewide monitoring system
- Failure to maintain compliant and properly implemented standard operating procedures
(Use code “MidwestDazed” to save)
The CRA is seeking fines and or disciplinary sanctions, which could include:
- License suspension
- License restriction
- License revocation
- Refusal to renew the license
Trapstars has 21 days to request a hearing or compliance conference.
It is important to note that these are allegations, and the administrative process will determine the final outcome.
The Bigger Picture
Michigan regulators have recently begun increasing enforcement efforts across the cannabis industry, and we expect more companies to be caught up as audits and monitoring tighten.
Michigan remains one of the most competitive cannabis markets in the country. With heavy promotions and pricing pressure becoming more common, regulators appear to be taking a closer look at inventory tracking and reporting accuracy.
For operators, this serves as a clear reminder:
Every transaction entered into METRC must match what actually happens at the counter Promotions must be documented correctly Standard operating procedures must reflect real world practices Surveillance, POS, and inventory systems must align
Compliance is not optional in a regulated cannabis market.
Stay in the loop with all things Illinois Cannabis by joining the Couch Lock’d Newsletter here!
Become a Couch Lock’d Member.
Want to meet more people in the community and see what everyone’s smoking on? Join our Telegram channel here.
Find our latest reviews here.
Hosting an event & need a consumption bar? Hit us up here.
Save money with our affiliate links here.
Get your Illinois Medical Card for $75 now with our link here or code “CouchLockd”!