Monday, November 7, 2016

Marijuana Advertising Laws Differ on a State-by-State Basis



As a society, we can almost unanimously agree that recreational marijuana legalization or at least medical legalization is an eventual reality across the board. Knowing this, as future marketers, we need to be able to be aware of certain regulations that may be in place. These emerging brands and companies cannot simply advertise in every state like say a toy company might do. There are certain guidelines set in place in the relevant states where there is either medicinal or recreational marijuana legalization. The spectrum of rules varies on a state-by-state basis and ranges from little to no regulation, to states that have adopted similar guidelines as with alcohol and cigarettes. Let’s look at a few different states that have restrictions in place:

Colorado:

Having adopted a legalization of marijuana for adults over the age of 21, Colorado is most certainly a pioneer state with marijuana. The general requirement in Colorado for advertising is that there are no deceptive, false, or misleading statements. This is a normal requirement for advertising, which holds true almost universally with all industries. Further, Colorado has put in place a restriction on television advertising, which states, “A Retail Marijuana Establishment shall not utilize television Advertising unless the Retail Marijuana Establishment has reliable evidence that no more than 30 percent of the audience for the program on which the Advertising is to air is reasonably expected to be under the age of 21”. This is pretty interesting because it limits the informed audience to people over the age of 21, which is the youngest you can be to legally purchase marijuana in Colorado. In reality, advertisers are often focusing on reaching their target audience, so I personally do not feel that this is too restrictive on their business efforts. This same rule of no more than 30% under the age of 21 also holds true for radio, print, and Internet advertising. While it may be difficult to be certain of the amount of viewers are under the age of 21, it does put in place a guideline to be adhered to. In Colorado, you are also not permitted to advertise marijuana specifically to out of state persons or advertise with content that targets minors or is publically visible outdoors.

Delaware:

Marijuana is decriminalized in Delaware, which means that while you cannot go into a store and purchase it, you will not be criminally charged if found possessing the plant. Medical marijuana exists, although for smaller list of ‘approved’ medical conditions than say a state like Rhode Island. Here, the law states that, “no person may advertise medical marijuana sales in print, broadcast, or by paid in-person solicitation of customers. This shall not prevent appropriate signs on the property of the registered compassion center, listings in business directories including phone books, listings in trade or medical publications, or the sponsorship of health or not-for-profit charity or advocacy events”. This is much more severe than with Colorado. While there are guidelines with advertising on say print media in Colorado, the entire act is prohibited in Delaware. This makes sense though; Delaware’s marijuana legislation is not nearly as encompassing as a state like Colorado.

Nevada:

In Nevada, marijuana is decriminalized for adults over the age of 21 and still considered a misdemeanor for persons under the age of 21. In addition, medical marijuana exists in Nevada and was put in place back in 2000. Here, “a medical marijuana establishment shall not use: (1) A name or logo unless the name or logo has been approved by the Administrator of the Division; or (2) Any sign or advertisement unless the sign or advertisement has been approved by the Administrator of the Division”. I would consider these advertising laws to be somewhere in the middle of Delaware and Colorado. There are not necessarily laws prohibiting the advertising from these companies like in Delaware, but are not as loose as in Colorado. The amount of grey area here can be scary for an advertiser. Not only do the advertisements have to be approved by the Administrator of the Division, but also so do the names and logo of the business. This essentially places the branding and advertising efforts in the hands of the state department, which obviously hinders the flow of creative and unique marketing campaigns.

It is important to keep these regulations in mind as well as realize that these are prone to change. While a state like Delaware has certain regulations in effect now, does not mean that these will be the same advertising laws in effect 10 years from now. It is safe to assume that the more marijuana is normalized and legalized in the United States, the less restrictive the marketing restrictions will be. Laws will always be the strictest following a prohibition, but will start to loosen as time passes and society adapts. This applies to other industries than just marijuana too. Certain states have alcohol or cigarettes regulations with advertising and these are vital to be aware of when configuring a new campaign for your brand or company.





3 comments:

  1. Very good article. This is such a great business to get into right now. So much opportunity to market the product and competition will be scare in more places.

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    1. Thanks, I appreciate the feedback. I agree, this is one of the largest growing markets and lacks recognizable/fully established brands. There is so much room for improvement, which is exciting to a new era of marketers.

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  2. Although this new industry poses so many opportunities, I think it would be a nightmare for marketers. With such discrepancy among state laws, it would be tactically challenging to manage the vastly varying state laws. For those marketers within just one state, I think they have good opportunities for success. Marketing across various states in this current legal environment seems to me a daunting challenge and liability, even for big business/ big tobacco.

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