An injunction in Maryland protecting unlicensed businesses involved with hemp THC has been overturned, and the state’s Alcohol, Tobacco, and Cannabis Commission (ATCC) is gearing up to carry out enforcement actions.
The injunction in July 2023 had previously prevented the ATCC from carrying out enforcement actions against businesses selling hemp-derived THC products without a cannabis license. But on September 9, 2025, the Appellate Court of Maryland issued its decision to overturn the preliminary injunction.
“Moving forward, any person or business that engages in the distribution or sale of an intoxicating THC product without the required license issued to them by the Maryland Cannabis Administration (MCA), is subject to criminal prosecution under Maryland law,” says the ATCC.
Offenses include:
- Packaging, labeling, and potency violations
- False or illegal THC advertising
- Unlicensed sales above THC limits
- Synthetic intoxicating THC products
“Conviction of any or all of these offenses could result in fines of up to $5,000 for each offense, with enhanced fines of up to $10,000 for offenses involving synthetic THC products, the destruction of the seized intoxicating THC products, and potential adverse effects on any other State license held by that person or business,” says the Commission.
According to the Daily Record, when delivering his decision, Appellate Court Judge Dan Friedman wrote.
“(These products) are now and have always been illegal in Maryland. That the prohibition has been the subject of lax enforcement does not make it legal.”
Cannabis is legal for recreational and medical use in Maryland, but industry participants must have the correct licensing. Before legalisation, cannabis was decriminalized in the state in 2014.
Year-to-date, legal cannabis sales (medical and recreational) have reached $678 million.
The Maryland Department of Agriculture adopted new regulations that expanded the state’s industrial hemp program in 2020, but the Department does not have jurisdiction over the processing, sale, or distribution of hemp. Loopholes in definitions related to THC at a state and federal level led to the proliferation of hemp-derived THC products, and like many other states Maryland has been trying to cram the genie back into its bottle ever since.
