Vermont Cannabis Retailer Challenges Advertising Restrictions
A bold move by FLŌRA Cannabis, a Middlebury-based cannabis retailer, has sparked a legal battle against the Vermont Cannabis Control Board (CCB). On August 15, 2024, the retailer filed a civil suit in Addison County Superior Court, challenging the state’s stringent advertising regulations that the retailer claims infringe upon constitutionally-protected free speech rights.
Understanding the Lawsuit
The lawsuit exposes the controversial Vermont law requiring licensed cannabis businesses to submit all promotional content intended to encourage sales for pre-approval by the CCB. This applies even to simple signage within their stores, such as announcements for special offers or discounts.
Dave Silberman, co-founder of FLŌRA Cannabis, expressed frustration with the restrictive nature of these requirements. “If I want to put signage in my own store — say ‘20% off a product’ — I need to get it pre-approved by the CCB,” he stated in a recent interview.
Debate Over Minors Protection vs. Free Speech
Supporters of the law argue that such regulations exist to protect minors from exposure to cannabis marketing. However, Silberman counters this viewpoint by pointing out that customers must provide ID to enter cannabis retail spaces, indicating that proper age verification is already in place. He stated, “I’m okay with no cartoon characters when I advertise, but with this level of stigma, it’s illegal to restrict our free speech in this way.”
Response from the Cannabis Control Board
James Pepper, chair of the Cannabis Control Board and one of the individuals named in the lawsuit, acknowledged the longstanding tensions surrounding advertising regulations in Vermont. “It has been a bone of contention at the Legislature since back in 2020,” Pepper remarked, noting that cannabis industry representatives have persistently argued that advertising laws are overly restrictive.
He clarified that the CCB enforces existing laws as written, emphasizing, “Cannabis advertising is any communication that is calculated to induce a sale.” While submitting signs for approval may seem tedious, Pepper insists that it remains within legal parameters. “It is legal to put a sign with a sale in your shop; you just have to have it approved first,” he noted.
Statistics on Advertisement Submissions
Data from the Vermont Cannabis Control Board reveals that since November 2022, the board has reviewed 585 advertisement submissions. Out of these, 324 were approved, 169 were denied, and 25 were not classified as advertisements. Most advertisements that faced initial denial were ultimately approved upon resubmission after adjustments were made.
Industry’s Perspective on Advertising Regulations
Silberman claims that cannabis businesses in Vermont navigate stricter advertising controls compared to other industries in the state, highlighting that even sports wagering faces fewer restrictions. However, Pepper challenged this assertion, recollecting his experience at a cannabis regulatory meeting where pre-approval for advertisements was acknowledged among several states, though he could not confirm that Vermont stands alone.
Concerns Over Processing Times
Another issue raised by Silberman is the extended turnaround time for advertisement approvals. He stated that it often takes a week to receive a response from the CCB, and in some instances, no response is provided at all.
According to Pepper, the internal review process involves a designated staff member evaluating submissions. Ads that do not raise significant issues, such as therapeutic claims, typically get processed within one to two days. Submissions with ambiguous content are escalated to a committee that convenes weekly. Overall, Pepper estimated that the review process takes no longer than eight days with occasional exceptions.
“We give feedback, and they have the option to adjust the statement. It’s a conversation. Within a day, it can be approved,” Pepper explained.
Support for the Lawsuit
The lawsuit has garnered support from a diverse coalition comprising manufacturers, distributors, and retailers across Vermont. FLŌRA Cannabis emphasizes that this collective action signals a crucial movement toward reassessing and potentially loosening the burdensome advertising regulations imposed on the cannabis industry.
0 Comments