A Vermont cannabis retailer and the state’s Cannabis Control Board have reached a settlement clarifying how marijuana businesses can advertise, resolving a lawsuit that had challenged the board’s enforcement of state restrictions.
The agreement, signed last week, followed litigation filed by Park Rec LLC, doing business as Flora Cannabis, against the board. The settlement lays out new interpretations of Vermont’s cannabis advertising law, 7 V.S.A. § 864, giving businesses more clarity while avoiding a prolonged legal battle.
Under the deal, cannabis companies in Vermont will be allowed to post product names, descriptions, and promotions on social media, though photos and images of products must be limited to age-gated websites. If a platform allows users to restrict content to those 21 and older, that will be deemed sufficient to satisfy the state’s rules. Direct messages and one-on-one conversations with customers will not count as regulated advertising.
In-store marketing is broadly accepted under the settlement, with inspections and signage logs deemed sufficient for compliance. Verbal statements made to customers will not be considered advertisements. Web ads targeted only to users who identify as 21 or older, using industry-standard safeguards, will also qualify as compliant.
The agreement further allows promotional coupons and loyalty programs tied to purchases, clarifies that product labels are not subject to advertising restrictions, and sets limits on the scope of pre-approval reviews by the board. It also updates requirements for health warnings, including shorter versions for audio ads, and confirms that outdoor signage with basic business information is permissible.
Finally, the settlement establishes a template approval process for recurring ad formats and confirms that business-to-business marketing is outside the scope of advertising rules. The Cannabis Control Board has committed to publishing a list of approved publications and venues for cannabis advertising and to revising its health warning requirements within 90 days.
By ending the dispute, both sides avoid further litigation while providing marijuana retailers in Vermont with clearer rules on how they can market their businesses.
Sponsored
