Branding is valuable for any business, but in the case of marijuana, the benefits are industry-wide because it can help to combat archaic conventional perceptions about marijuana as a product. Formulating a professional, unified brand can help address this – and allow companies to carve a name and a niche in a fiercely competitive market.

On the flip side, even where it’s legal to sell marijuana, it’s tough to advertise it. As our Los Angeles marijuana advertising attorneys can explain, marketing cannabis brands and marijuana dispensaries is rife with hurdles.

Hurdles to California Cannabis Advertising

A recent poll from Pew Research Center reveals nearly 7 in 10 Americans think marijuana should be legal. There’s a broad market of potential consumers within your reach. But when it comes to advertising, marijuana businesses need to tread carefully.

To begin, online platforms that are typically prime go-to’s for any start-up company – social media platforms like Facebook and search engine giants like Google – they don’t allow drug or drug-related promotions on their platforms. That means most cannabis advertising is left to blogs, podcasts, print media and e-newsletters. Although marijuana is legal in some form in 33 states and for recreational purposes in 11, it’s unlikely we’re going to see these corporations alter their formal policies until the substance is fully legal at the federal level. That also boxes bud businesses out of mediums like radio and television (each of which carry their own set of special rules too).

That leaves California marijuana businesses on their own to navigate the complex web of state-by-state, region-by-region regulations. Marketing restrictions can vary significantly depending on where you’ve set up shop. Some regulations are very similar to those for alcohol, but it’s best to have an attorney on retainer to advise you on such matters. In most parts of California, you can still advertise your cannabis company on a billboard, but not in certain cities. In other states, it’s wholly banned.

Some have taken the position that it’s easier to act first and apologize later. However, as our Los Angeles cannabis business attorneys can explain, an apology may not cut it. Instead, you could be staring down substantial fines and penalties. That’s not a risk you want to take if you can avoid it. An experienced legal team advising your branding efforts could help significantly.

Rebranding Your Cannabis Business Identity

Reasons to consider rebranding your marijuana business include:

• You’ve launched new or different services.
• The competition of your local market has shifted and you want your business identity to reflect that.
• You want to underscore the growing environment of professionalism within the industry.

Companies that are selling products online or arranging for pickup and delivery would also be wise to evaluate their branding and advertising platforms, both from a marketing and legal standpoint.

California cannabis companies have more to consider than the average small business when considering their marketing strategies. Consulting with an experienced marijuana attorney is in your best interest.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

The Challenges of Marketing Marijuana, Oct. 25, 2019, By Thomas Mitchell, Westword.com

Federal and state regulations on marijuana advertising are murky – and there can be possible repercussions both for cannabis corporations and publishers of that material. Social media giants aren’t likely to open themselves up to federal or state regulatory action if they can avoid it, especially when they can do just fine without the income.

Specific legal strategies should be formulated in close coordination with your cannabis company attorney (and if you don’t already have one, in this industry, you should get one). Generally speaking though, there are a few ways you can capitalize on social media marketing – if you’re careful. This is especially true considering these platforms are evolving to require more “pay-to-play” advertising, rather than putting as much emphasis on organic likes or hits.

Paid boosts may be treated differently than organically viral content, but the truth is cannabis marketing is still a very gray (and green) area of law. Further, many social media platforms outright ban advertising by cannabis companies. In some cases, ancillary marijuana businesses and even CBD marketing is prohibited too. This is likely to continue despite a turning tide of state-level legalization, so long as the drug remains illegal under federal law.

What Types of Cannabis Advertising is Allowed?

Generally speaking (and again, it’s a good idea to talk to your lawyer first), there are some allowances for:

• Billboards;
• Television;
• Print.

But there are strict caveats – and keep in mind, the rules can evolve quickly without much notice. Billboards offer one of the few forms of marijuana marketing that are more often allowed, but local and state laws will come into lay. Companies will need their licensing already in place, and it’s possible both the municipality and billboard owner will have a say in not only whether it’s allowed but what the sign can say.

The rules for television can be similar, and sometimes require a certain percentage of the population to be over the age of 21. Print ads too work in much the same way. The good news about the latter is that there are a growing number of trade and industry publications, which can provide an important advertising space for your materials. It’s still a good idea to check with an attorney, because here again, local and state laws can come into play.

What Type of Ads are Forbidden?

For the most part, neither Google nor social media outlets like Facebook or Twitter will allow paid-for advertising, as these companies adhere to federal law.

Google, for example, bars certain marijuana-related keyword terms, but those associated with hemp are mostly allowed. If you’re going to run a Google Ads campaign, you’ll want to check with a cannabis lawyer in Los Angeles to make sure your piece meets all the required terms and conditions.

Social media platforms present some of the most challenging ad spaces because you know they would yield high return on investment. Yet because of federal law, social media policies strictly prohibit certain kinds of advertising related to state-legal cannabis sales.

Facebook especially has gotten vigilant in reviewing advertising content. The platform also distinguishes between restricted content and prohibited content – and cannabis falls into the latter section. Snapchat has a whole provision in its terms of use that bars “glamorizing drug use.” It’s a fine legal line to walk.

That said, you can usually have a social media account associated with your business, post about your company and services and hope to generate some hits organically in social media feeds. Even if you know you’d reach a wider audience with a boost, our marijuana lawyers often urge caution because the last thing you want is your account to be taken down entirely.

If you have an above-board cannabis business with a good product, your best bet is often to stay focused on organically-cultivated audiences. The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Snapchat and Twitter cannabis ads risk government crackdown, July 31, 2019, MarketWatch

Through all of this, the Los Angeles marijuana lawyers at The Cannabis Law Group have been on the forefront of these evolving laws.

Today, “cannabis law” encompasses a broad array of legal services, including:

• Marijuana business licensing/permitting
• Civil litigation
• Regulatory compliance (tracking and tracing, zoning disputes, etc.)
• Business plans/corporate structure
• Trademark/patent
• Employment/labor law
• Contracts
• Product liability
• Premises liability
• Financial/tax law
• Unfair competition

And yes, cannabis criminal defense lawyers are still needed too – not only so long as marijuana prohibition is in effect at the federal level but also to handle marijuana DUI cases.

We have been centrally focused on all-things-cannabis law in Los Angeles for the better part of two decades, cultivating a highly-skilled team of knowledgeable, dogged attorneys known for consistently-favorable client results.

However, for as many new legal cannabis businesses that have cropped up in recent years, there are just as many new “cannabis lawyers” and “cannabis law firms.” Some work solely on a single area of cannabis law. Others eagerly claim they’ll represent you in all areas, but unlike The Cannabis Law Group, their attorneys have little first-hand industry knowledge or experience actually protecting companies like yours.

It’s important that no matter what kind of bud business operator you are – farmer, pot product manufacturer, investor, shop owner, restaurant, landlord, lab and delivery/tech app services firm – that you hire the right cannabis law firm for your needs.

Cannabis Business is… Really Just Business… But More Complicated

At the end of the day, cannabis businesses in California are going to require a firm well-versed in business and employment law (which we are).

The two major differences between cannabis businesses and “ordinary” businesses are:

• Cannabis companies are more highly-regulated than most others;
• The patchwork of inequitable laws that vary dramatically – not only between the state and federal government, but from state-to-state, county-to-county, city-to-city, town-to-town.

Lots of other industries are highly-regulated too (motor vehicles, alcohol, medicinal products, gasoline/oil, firearms, etc.). Each have their own case law history, their own set of rules, their own exceptions. Many of these are so heavily regulated, they have attorneys who only specialize in that industry. Cannabis is a relatively brand new industry and ongoing federal prohibition complicates matters exponentially.

Yet even as marijuana law is likely to be battle-tested in court, it’s probable there will also be significant overlap of legal principles and guidelines applicable to these other more established sectors.

Because of the complications, though, a general business lawyer is unlikely to be able to protect your interests and assets the same as an attorney whose primary focus is cannabis business law. Hiring one who has specifically practiced extensively in Los Angeles, Orange County and Southern California is especially helpful, given the jurisdictional patchwork of laws.

With What Kinds of Things Can a Cannabis Business Attorney Help Me?

There is no requirement that any new cannabis business hire a lawyer. You can technically file your own business license application, secure investors and hire employees without help. That doesn’t mean it’s wise.

Some of the various ways a marijuana business attorney can help you build your business and keep it secure:

• Advising/assisting with appropriate corporate structure. California cannabis entrepreneurs have had to endure several different models of this over the years. Originally, the state required non-profit co-op corporate structures. Those have since been outlawed in favor of the for-profit model. Determining how your assets can be matched to your vision and matching that to the appropriate corporate structure will put you in the strongest possible position to succeed.
• Securing a license to operate. In California, the agency issuing your provisional permit/annual license will depend on the type of business you do. For instance, the state’s Department of Agriculture handles licenses for marijuana farmers. Knowing where to apply, how to apply and what information and capital you’ll need to boost your odds of a successful application and launch. Trademark/patent protection. You’re going to want to do all you can to protect your name, logo, unique processes – the things that make you special and help build customer loyalty. Intellectual property law falls under federal jurisdiction – and federal agencies don’t make it easy. Working with a cannabis lawyer experienced in intellectual property cases will help protect your brand to the fullest extent possible. Leases and contracts. If you’re looking for a place to rent, a landlord considering renting to cannabis businesses, rental and lease agreements must be carefully drafted to limit your liability. Same goes for business contracts you work out with other cannabis companies, labs, growers, suppliers, retailers or ancillary firms. Taxes. Cannabis companies loathe taxes – not only because lack of options for banking make logs harder to keep, but the Internal Revenue Service bars any company that earns its money in the “illegal” drug trade (and cannabis is still illegal under federal law) is not entitled to a host of key deductions on which many businesses rely. There are numerous strategies that can help ease crushing tax burdens, and you can try to navigate them without a cannabis tax lawyer: Just keep in mind the IRS is watching your every step. If those records aren’t meticulous, everything could be in jeopardy. These are just a few areas that for which cannabis companies are advised not only to seek legal counsel – but from someone with direct experience in this unique and changing areas of law. The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Protecting Your California Cannabis Intellectual Property, July 1, 2019, California Cannabis Lawyer Blog