Ohio’s Proposed Cannabis Ad Rules Stricter Than Other States

Ohio Lawmakers Finalize Restrictive Advertising Rules for Recreational Cannabis Sales

In the wake of voters passing the initiative to legalize recreational marijuana sales in November 2023, Ohio lawmakers have turned their attention to finalizing the rules governing cannabis advertising. With recreational sales beginning in August, state leaders have imposed strict regulations on how dispensaries can market their products—more restrictive than in many other states where cannabis is legal.

Ohio’s Tight Advertising Regulations

Ohio’s Division of Cannabis Control has introduced regulations that prohibit many common forms of advertising for recreational cannabis, making the state an outlier compared to other legal markets. For example, while drivers heading east on Interstate 74 in Indiana can spot billboards advertising dispensaries just over the Ohio state line, those same billboards are absent within Ohio itself. The state agency responsible for cannabis oversight has banned billboards and other promotional efforts, including the use of mobile advertising like ice cream trucks outside dispensaries.

Several dispensaries in Ohio have already faced five-figure fines for violating these new restrictions, underscoring the strict enforcement of the rules. This stands in contrast to states like Michigan, where cannabis billboards are common both in cities and along major highways.

Comparing Ohio to Neighboring States

In neighboring Michigan, billboards advertising cannabis products are plentiful, often showcasing prices and locations of dispensaries. Some advertisements even use clever and playful marketing tactics. Despite an attempt by Michigan lawmakers to ban cannabis billboards in 2022, they remain a visible part of the landscape.

Indiana, meanwhile, allows billboard advertisements for dispensaries just across the state line, yet Ohio’s policies are designed to keep cannabis promotions out of the public eye. Kentucky, another neighboring state, has banned marijuana ads as it prepares to launch its medical cannabis program, adding to the regional differences in cannabis regulation.

Limitations on Digital and Social Media Ads

Ohio’s cannabis regulators have also set limits on digital advertising. While some digital platforms will be permitted, dispensaries are prohibited from advertising on national social media platforms like X (formerly Twitter), Facebook, and Instagram. Furthermore, the use of cannabis slang such as “getting high” or “rolling a joint” is strictly forbidden in any form of advertising, whether digital or otherwise.

The regulations also ban cannabis ads on public transportation systems and within sports stadiums. This restriction reflects a broader effort to limit the visibility of cannabis promotions, especially in spaces where ads could potentially reach a younger audience.

No TV or Radio Ads Due to Federal Law

A notable absence from Ohio’s cannabis advertising landscape will be ads on television and radio. These mediums are governed by the Federal Communications Commission (FCC), which has banned cannabis advertisements due to the ongoing federal prohibition of marijuana. Cannabis remains illegal at the federal level, although discussions about reclassifying the substance are ongoing. Until federal laws change, TV and radio will remain off-limits for cannabis marketing.

Dispensary Reactions and Regulatory Silence

Many Ohio dispensary owners have remained tight-lipped regarding the new advertising restrictions, declining to comment publicly. This silence is largely due to the threat of fines, which have already been levied against some businesses. Additionally, dispensary owners are waiting for the final version of the rules to be made official, a process expected to be completed later in September.

Ohio’s Division of Cannabis Control has also refrained from making public statements or giving interviews about the advertising regulations, further adding to the cautious atmosphere surrounding the rollout of these rules.

Economic Impact of Legal Cannabis Sales

Despite the restrictive advertising environment, the legal cannabis market in Ohio has seen significant early success. In the first month of recreational sales, dispensaries have generated over $54 million in revenue. This builds on the $1.9 billion in medical marijuana sales since the state’s medical program began in April 2019.

While the advertising restrictions may present challenges for dispensaries looking to promote their products, the strong sales numbers suggest a high demand for recreational marijuana in Ohio. As the industry continues to evolve, businesses will need to find creative ways to engage customers within the confines of the new rules.

Finalization of Advertising Rules

Ohio’s new advertising regulations are expected to be finalized in late September 2024. As dispensaries adapt to the restrictive environment, the state will continue to monitor and enforce compliance.