Carter, 21, was arrested April 22 after Fort Worth police pulled over a 2010 Lexus he was driving.
Police made the stop after checking the license plate and finding that the passenger in the car, Alexis Harris, was the car's owner and had an outstanding warrant. Both Harris and Carter were arrested on suspicion of possessing less than 2 ounces of marijuana.
According to the Star-Telegram, the charge was dismissed at the prosecutors' discretion, and the Tarrant County district attorney's office issued a statement, saying: "The evidence was insufficient to prosecute Carter. He was merely the driver of a vehicle owned by a passenger."
Carter's attorney told the Star-Telegram that the charge was dismissed after police camera videos showed the marijuana was in Harris' purse and not in Carter's possession.
Carter did not participate in spring ball with the Horned Frogs so he could focus on his academics.
He was TCU's top returning receiver going into 2013 but struggled last year and finished the season without a touchdown catch.