Need assistance getting a cannabis business license? Schedule a Free Consultation
MONTPELIER — Advertising in the cannabis industry in Vermont can be a challenge.
Business owners were invited to learn more about the endeavor as part of the Vermont Cannabis Control Board’s Peer Networking event series on April 11.
“The old guidance was more than a year old and was kind of the first out-of-the-gate attempt to construe and clarify the guardrails around advertising established by the General Assembly,” said Gabriel Gilman, general counsel for the CCB. “So we have revamped the whole thing from top to bottom.”
Gilman said the goal is to make the process fair and “smooth as possible for folks in the industry.”
Advertising restrictions make “running my business very challenging,” Vermont Bud Barn owner Scott Sparks told GreenMountain Cannabis News. He attended the event.
“I understand the Vermont CCB is just enforcing the law the Legislature gave them,” Sparks said. “I believe Vermont has the most restrictive advertising policies in the country. I find it interesting and contradictory that the state run liquor website isn’t even age gated.”
Regulators review promotional activities of cannabis establishments to see if they would tend to encourage sales.
“Although artistic expression is often part of advertisement, people sometimes get the idea that they’re mutually exclusive categories,” Gilman said.
Advertising shouldn’t appeal to minors under the age of 21, promote overconsumption or be deceptive, false or misleading.
Products shouldn’t be discussed on social media except by providing a link to a website, Gilman said. He noted product labels are separately regulated and have different requirements from advertising.
Cross-state advertising “really shouldn’t be occurring, however, the board’s jurisdiction is over its own licensees,” Gilman said. “And so what [the CCB is] doing is approving or denying applications under the Vermont statute by Vermont licensees. We don’t have direct jurisdiction over either the out-of-state interests that are buying those ads or the publications.”
Regulators from other states are notified by the CCB of ads that appear in Vermont publications, Gilman said, adding that the issue is “getting serious attention.”
Businesses can participate in directories, sponsorships or events without going through an ad review if activities aren’t directly promoting the establishment.
“We don’t want you to be afraid of being a participant in your community,” Gilman said.
Generally, merchandise isn’t considered advertising. But it must follow the rules related to audience targeting.
Therapeutic claims tend to be “one of the more contentious areas in this space,” Gilman said. He called the state’s medical program “the appropriate venue for people who want to access cannabis for therapeutic uses.”
“In reality, of course, an enormous number of people do have therapeutic goals in mind or want to experiment with cannabis as a possible solution or mitigator of those,” he said. “However … for Vermont’s advertising system for cannabis, curative or therapeutic claims are not allowed by an adult use establishment, and you know, this is a particularly fraught area because there’s just a lot of desire to advertise on that basis. I think this is one of those boundaries against which people stubbed their toes more than many of the others.”
Coordinating with a medical professional or influencer to make medical claims to drive customers to purchase cannabis at an establishment also is “problematic,” Gilman said. Giveaway prizes and free samples also are prohibited.
Instant messaging platforms and intermediary marketplaces such as Facebook Marketplace can’t be used to sell cannabis.
Gilman called online marketing campaigns “a new invention, and one that statute didn’t necessarily contemplate perfectly.”
“[W]hen we’re using the internet, we’re not all seeing with the same article, the same advertisement,” he said. “Instead, there’s a complex and instantaneous demographic matching market going on in the background to determine what user sees what advertising.
Gilman said the CCB reviews ad proposals and decides on them within 10 days. He proceeded to answer several situational questions.
