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

LA Weekly reports that state senator Ben Allen of Santa Monica has introduced Senate Bill 162. This bill would:

1. Prohibit both medical and non-medical marijuana licensees from advertising or using branded merchandise. Medical cannabis and medical cannabis products could not be advertised on clothing, hats, or other merchandise with the name or logo of the produce.
2. Limit television advertisements to those periods during which 71.6 percent of the viewing audience is reasonably expected to be aged twenty-one years or older. Advertisers would also have to verify recipients are twenty-one years of age prior to sending direct marketing materials.

The advertising prohibitions illustrate Senator Allen’s stated purpose in introducing the bill – to ensure that children are not exposed to information and material about marijuana. But not all Californians agree with the bill’s methodology. Opposition From the Cannabis Industry In response to Senate Bill 162, the Sacramento Bee interviewed Nate Bradley, a lobbyist for the California Cannabis Industry Association. Bradley describes the bills as “one of those fear-based, emotional bills that is not fully baked.” Indeed, it is difficult to find a correlation between underaged marijuana use and ads which target viewing audiences consisting of only 71.5% viewers aged over twenty-one. Similarly, California cultivator Ryan Jenneman told LA Weekly that it would be “a misguided mistake to ban cannabis small business owners from advertising and branding” at a time when cultivators are “aggressively working to combat the misinformation and damage caused by the outdated Reefer Madness mentality”. This raises the serious question of where the legitimate protection of children ends and the “Reefer Madness mentality” begins. What This Means for Cannabis Farmers and Customers While some predictions have Senate Bill 162 passing handily, it is not yet possible to know with certainty what advertising restrictions will be placed upon cannabis businesses in the future. At present, the marijuana industry can best protect itself by preparing for the most restrictive advertising environment. Business plans can should prepared and adapted to alternate methods of marketing. Case studies from other states which have legalized recreational marijuana can help business owners identify which alternative marketing methods are best suited to their needs and offer the best return on investment. Financial reserves should be set aside for period of restricted advertising which lead to decreased sales. We also recognize that advertising can be a vital part of any business operation, necessary to get the word out about a product or service. However, there are industries (such as tobacco and alcohol) that have thrived despite restrictions. Cannabis farmers face both regulatory obstacles and the challenge of changing business plans to meet the needs of a changing industry. With sound the business planning services of experienced cannabis lawyers, farmers and distributors can be prepared to thrive in California’s cannabis industry – regardless of any advertising restrictions. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Is it OK for marijuana businesses to advertise on their merchandise?, June 29, 2017, by Taryn Luna, the Sacramento Bee More Blog Entries: California Weighs Marijuana Billboard Ban, January 30, 2017 by Cannabis Law Group