As our Los Angeles cannabis business attorneys can explain, cannabis advertising is not something companies should engage in until they’ve consulted with an attorney and are certain their approach is within the boundaries of the law. Having an attorney on retainer assures you can run decisions like this by someone who will be on hand to give you solid advice for whatever issues arise.

The good news is that despite blanket bans on marijuana advertising, many cannabis companies are still finding creative ways to get their brand some traction. For example, some businesses have orchestrated workarounds with state Sponsor a Highway programs. That gets them brand visibility while also complying with the law.

That said, while the strategy is creative, it’s really just a temporary fix. Further, it’s likely the issue will continue to become more fragmented and complicated as states continue legalization.

Cannabis businesses should be prepared to grapple with three sets of regulations: Federal, state and local.

Some baseline rules to bear in mind:

• Advertising limited to target audiences 21 and older. This comes straight from Prop. 64, Section 26151. It states that cannabis ads are only allowed where at least 72 percent of the audience is suspected to be over 21. This covers ads in print, radio, broadcast, cable and digital communications. Direct, individualized dialogue or communication must use some type of age verification method. Companies are also restricted in the release of marketing approaches that might be attractive to kids.
• Prohibition on false and misleading statements. Advertisers can’t make claims that aren’t supported by the truth. Companies can’t make misleading or unsupported claims about the health benefits of their marijuana product.
• Ban on giveaways. Cannabis companies can’t give away products or accessories as part of their promotions. The only exclusion to this is donating cannabis to a patient who benefits from medical marijuana.

Full details on cannabis advertising in California are spelled out by the California Legislature, but you should talk to your attorney as well.

Understand too that some “workarounds” may only work in the very short term. For example, some dispensaries, growers and distributors use their creativity to market products on platforms like social media or search engines without directly identifying their product as pot. If you do this, you’re taking a major risk because:

• Your ad is likely to get pulled soon after launch.
• You may face penalties for actions like this, including being kicked off of those platforms entirely.
• If you make it sound like you’re selling an everyday product or supplement, you might run into serious legal trouble for misleading consumers.

The bottom line is that if you are in any doubt, it’s imperative to be cautious. Marijuana business owners have worked so hard to jump through all the legal hoops to throw it all away for a poorly-planned ad.

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:

Marijuana companies still face advertising and marketing obstacles, but options exist, July 2, 2021, MJBizDaily.com

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