Cannabis businesses must adhere to specific marketing restrictions when advertising to minors or touting health benefits without supporting evidence.
Businesses may display their name and logo according to certain restrictions on signs, packaging, and other materials. This may include rules regarding images related to cannabis or paraphernalia; colloquial references related to marijuana; medical symbols that resemble established associations; as well as medical symbols that resemble established associations.
Youth Appeal Restrictions
Licensed entities are prohibited from advertising to minors through media such as radio and TV broadcasts; printed media like newspapers; outdoor media like billboards; transportation venue signage and transit advertising boards. Furthermore, licensed entities cannot display cannabis products in windows or areas accessible to the public and cannot give out free promotional items like t-shirts and stickers.
Content wise, licensed entities may advertise their services and products but must avoid making false claims about cannabis having medicinal qualities or targeting minors to suggest cannabis is candy. Furthermore, buyers are required to be provided information about ingredients used, THC content levels and health warnings mandated by the Cannabis Control Board before making purchasing decisions.
Marketing restrictions also include prohibiting designs or images that appeal to children or immature persons and providing child-resistant storage containers, while offering candy or child’s toy-shaped products and requiring age verification measures on websites and private social media accounts. The law also prohibits making statements against competitors without sufficient clinical evidence, or asserting that certain cannabis products possess therapeutic effects without sufficient proof. Finally, advertising near schools, public transport vehicles or sporting events with predominantly minor attendance is forbidden – an advertising ban applies instead.
Proximity Restrictions
Zoning ordinances have become an essential tool for managing cannabis production and sale in states legalizing cannabis, with local zoning ordinances providing guidance as to when, where and how cannabis production and sale take place. They may also contain requirements regarding proximity restrictions which define where cannabis establishments may be situated with regard to churches, public or parochial schools, convents, charitable institutions supported by public funds (whether private or public), hospitals and veterans homes as well as any camps, barracks or flying fields of the military.
Dependent upon the municipality, proximity restrictions may be set between 1,000-2,000 feet from approved retail dispensary, microbusiness or ROD retail co-location locations. Furthermore, owners or operators of cannabis businesses cannot own or lease more than one establishment at any one time; additionally their location must not be within 600 feet of sensitive use facilities and no one may grow more than six plants at any residence, regardless of household size.
Navigating local zoning laws can be a complex task for cannabis entrepreneurs who lack legal expertise. Seeking advice from legal experts may be wise when setting up their cannabis businesses, as these experts can offer insight into zoning regulations in their jurisdiction as well as draft documents required to legally establish them. They can also ensure the business complies with state and local regulations as well as any financing documents or federally mandated requirements that might hinder operations.
Health Claims Restrictions
The cannabis industry is heavily limited in what types of health claims it can make, which are carefully scrutinized for accuracy and backed up with clinical data. Furthermore, the Federal Trade Commission (FTC), which typically acts as an impartial watchdog against potentially misleading health claims, has not taken any actions regarding marijuana-related advertising yet.
Failing to comply with these restrictions could result in fines, penalties and prohibition from working in the cannabis industry entirely. These regulations aim to protect consumers, children and at-risk populations by restricting underage appeal near schools or public places; encouraging recreational cannabis use; making false or misleading statements and providing false or misleading statements about cannabis products or use.
Advertising Restrictions
A business’s name, logo and address may be displayed on their property and signage but must not be visible from public areas or areas likely to attract minors. Pamphlets, business cards and email communications with current patients or caregivers for educational purposes are permitted but should avoid images that would appeal to young people, paraphernalia, or references to cannabis use that might appeal to youth. It is prohibited to advertise in billboards, radio or television broadcasts, social media sites such as Facebook or Twitter that target audiences under 21, as well as on public transit vehicles or shelter placards.
Age Verification Restrictions
Cannabis businesses must comply with strict age verification restrictions, making sure their advertising can only be seen from private spaces rather than being visible in public areas where children could see it. Furthermore, childproof storage containers must be provided upon purchase of cannabis products.
Age restriction regulations aim to shield children from advertising and marketing designed for adults that might appeal to them as children. They are prohibited from making claims about the health benefits of cannabis, displaying images that might appeal to children, and encouraging children’s consumption.
Licensed cannabis businesses may still advertise to adult consumers in some ways, but must use age verification gates on their websites and mobile apps in order to do so legally. This process asks customers to enter their date of birth to prove they are over 21; those not verified cannot access or purchase product from these platforms.
The Act also permits some facility signage and business websites, provided they are approved by the commissioner. Such websites should include information such as manufacturer’s name, distribution facility location, contact info and medical cannabidiol forms produced (which must also be approved by commissioner). Manufacturers must make it clear that their websites do not target children nor contain images related to smoking paraphernalia or cannabis plant strains that may appeal to minors.