Marketing Marijuana in Canada and the United States: What's the Difference?
It has many names—marijuana, pot, grass, weed, salad, Mary Jane. Whatever you want to call it, cannabis is gaining legal and social acceptance all over North America and globally. With this acceptance comes greater access to both medicinal and recreational marijuana.
Due to national legalization in Canada and a spattering of state legalization in the US, hundreds of cannabis brands throughout North America have emerged to meet patient and consumer demand.
From dried cannabis flower to extracts, edibles, and CBD products, the legal market is rapidly growing and expanding. But, this does not mean that marketers and brands have free reign to promote marijuana-based products.
Canada and the United States, currently, have different governmental stances on cannabis and that leads to different marijuana marketing regulations. Here’s what you need to know about each country and the differences between them.
Cannabis Marketing Laws in Canada
While cannabis was fully legalized in Canada for both medicinal and recreational use in 2019, it does not mean that it is a free for all. Canada’s Cannabis Act contains several rules and provisions that guide and limit the legal cannabis market and determine what a cannabis brand can say or do.
The federal government controls commercial production and manufacturing, adult-use recreational cannabis, and licensed cultivation. The provinces and territories control distribution and sales practices.
The promotion and marketing of cannabis and cannabis accessories are covered by sections 17 to 24 of the Cannabis Act. Unfortunately, it is not as simple as “say this” or “don’t say that.” The Cannabis Act puts a blanket prohibition on the promotion of cannabis.
These prohibitions mean that it is illegal to:
Appeal to young persons
Provide testimonials or endorsement
Create depictions of a person, character or animal, real or fictional
Communicate information about price or distribution
Evoke positive or negative emotions or a “way of life” that includes glamour, excitement, vitality, risk, recreation, or daring
All cannabis industry marketing activities must work within one of the exceptions provided in the Act
But, as mentioned in the final bullet, there are exceptions to the prohibitions and a creative cannabis company can find a way to stay within the laws and work around the prohibition.
The exceptions to the prohibitions are:
Informational or brand-preference promotion: allowed as long as the communication is addressed to someone who is above 18 years of age and identified by name, done in a location where young people are not permitted by law, done via telecommunication and the person doing the promotion has taken steps to ensure that it cannot be accessed by a young person, done in a prescribed place or in a prescribed manner, and is not visible or audible from outside of a place where young persons are not permitted by law.
Point of sale: a person authorized to sell cannabis, cannabis accessories or services, can promote it at the point of sale as long as that promotion only indicates price, availability, or price and availability.
Brand element on other things: a person can promote a brand element of cannabis, a cannabis accessory or a service, on a thing that is not cannabis or a cannabis accessory if that thing is not related to young persons, the thing can reasonably be assumed not to appeal to young people, and is not associated with a way of life that includes glamour, recreation, excitement, vitality, risk or daring.
This exception does not apply if the brand element is displayed more than once on a thing referred to in subsection 17(6) [listed above] or more than one brand element is listed on the thing.
The surface for the brand element must be smaller than or equal to 300 square cm and the height of all letters, characters, and numbers must be smaller than or equal to 4cm.
Other prohibitions linked to promotion in the legal cannabis include:
Flavors: it is prohibited to promote a cannabis extract or accessory in a way that could cause the person to believe it had a flavor other than cannabis. This includes candy or dessert flavored products.
Health and cosmetic benefits: it is prohibited to imply that a cannabis product, accessory, or service could lead to health or cosmetic benefits if used. This excludes medical devices with the properly issued license.
Energy and amount of nutrient: it is prohibited to promote edible cannabis, or a product containing edible cannabis, by detailing the energy or nutrient value. However, any edible cannabis or product containing edible cannabis can be promoted by reproducing the nutritional facts table that is required to be on the label of any edible cannabis package using smaller, larger, or identical dimensions and spacing.
Dietary requirements: it is prohibited to promote edible cannabis, or a product containing edible cannabis if the promotion could lead to the impression that the product is intended to meet the dietary requirements for young persons or individuals with a physical or physiological condition as a result of a disease, disorder, or injury or for those looking to achieve a particular result through controlled food intake.
Alcoholic beverages: it is prohibited to promote cannabis or cannabis accessories in a way that can associate it with an alcoholic beverage.
Tobacco products and vaping: it is prohibited to promote cannabis or cannabis accessories in a way that could associate it with tobacco or vaping products as defined under section 2 of the Tobacco and Vaping Products Act.
Clear as mud right? If these restrictions seem limiting, that is because they are. Compliance is assessed and enforced by Health Canada on a case-by-case basis and they vow to consider the content, context, and purpose of the communication before reaching a conclusion.
These regulations have been put in place in an attempt to protect the health of young people and to prevent them from becoming enticed to use cannabis. But any persons or cannabis business in Canada looking to promote products or services should carefully read the appropriate sections in the Cannabis Act or the guidelines released by the Canadian Marketing Association.
Cannabis Marketing Laws in the United States
The legal marijuana market in the United States is quite different than the one in Canada. At the federal level, cannabis remains a prohibited Schedule 1 narcotic. At the state level, it is a different story.
Fifteen states have fully legalized adult-use and 36 states have recognized medicinal marijuana. This patchwork marijuana legalization means that rules and regulations are in a near-constant state of flux.
To make things even more confusing, marijuana marketing regulations are left up to state regulators. Unfortunately, legalization is happening faster than the regulations so things are often assessed on a case-by-case basis or prohibitions are set in response to a particular action or promotion by a marijuana business or brand.
Typically, the states have been modeling their marijuana marketing laws on alcohol marketing regulations. The primary purpose for this is to prevent children from seeing the advertisements and being enticed to use marijuana.
In a state like Colorado, this means no advertising cannabis on television, radio, print publications, or websites where the audience consists of more than 30% of individuals under the age of 21.
Because cannabis legalization is not approved federally, you will not be able to advertise in a national media outlet or publication. And where advertisements can be shown, the marketing and promotion will be subject to the laws of each state in which it will be seen. This, understandably, can become quite complicated, particularly for MSO’s (multi-state operators).
Consider Connecticut and Massachusetts. Recreational and medical marijuana are legal in Massachusetts but not in Connecticut. So in 2019, a cannabis service business put up a billboard in Connecticut stating “Weed is Legal in 60 miles” to market the legality of marijuana in its neighboring state. This set off a bit of a controversy and sparked legislative debate around marijuana marketing regulations.
While the laws that govern the marijuana industry in the United States are like shifting sands, two elements remain consistent:
It is illegal to make health claims: It is against the law to make health claims on products that have not been approved by the Food and Drug Administration (FDA). Because only a few cannabis-based therapeutic treatments have been approved by the FDA (i.e., Epidolex, Marinol, and Syndros), it is against the law to make health claims on any other product. Do not make curative claims about cannabis products.
Safety claims are closely monitored: You cannot make false claims about the safety of a cannabis product. In some states, you will be required to also include a list of possible side effects.
In order to understand how to market dispensaries, cannabis, or CBD products, brands and marketers need to work closely with their compliance officers and refer to the specific laws of each state the advertisement will appear.
Marketing Marijuana in Canada and the United States: What's the Difference?
Both Canada and the United States have expressed concerns about minors having access to, or interest in, controlled substances like marijuana. Many of the marketing regulations in both countries seek to address these concerns by limiting where ads can be placed and the language used to promote them.
The biggest difference between the two countries, however, is the status of the cannabis industry at the federal level.
Because cannabis is legal recreationally and medicinally for all persons in Canada over the age of 19, the federal government has established marketing guidelines. Many of the particulars of cannabis use and sales (like the number of licensed dispensaries and grow facilities) are left up to the provinces and territories, the federal government has set up the guardrails.
Things are a little more chaotic in the states with cannabis laws and regulations being left almost entirely in the hands of state legislatures. This means that marketing regulations can vary widely from state-to-state and depend greatly on the political leanings of state governments.
As scientific research on cannabis continues to grow and its use becomes more widespread and socially acceptable, it is likely that regulations and rules regarding cannabis marketing will shift in both countries.
The onus falls on marketing services providers and cannabis companies to know the rules and make sure they are in compliance.
Marijuana Marketing Tips and Strategies for Companies in the United States and Canada
Canada and the United States may have restrictive laws governing advertising in the marijuana industry but there are still several ways to create an impactful and effective marketing campaign.
Know the rules: Before you can create a campaign for a cannabis dispensary, product, accessory, service, or brand, you need to know what you can and cannot do. Check federal regulations as well as any regulations that apply to states, provinces, territories, and specific locations where you plan to run your campaign.
Seek legal advice: Because the legal market is relatively new, the law can be murky and confusing. There may be one set of rules for cannabis flower and another for edible products, for example. Do your best to understand the rules when developing your campaign and then run it by a lawyer and/or your compliance officer. Legalese is confusing at the best of times so cover your bases if you are unsure about some of your marketing measures.
Avoid stigmatizing cliches: With the recent wave of legalizations, more and more people are comfortable admitting that they use cannabis for one reason or another. This means that the target audience and demographic is likely to be broader than expected. Avoid using typical stoner stereotypes and imagery (unless, of course, that is your brand target) to avoid alienating segments of the audience. For decades, that imagery, language, and characterization has been the subject of stigma and criticism. Some people may love being compared to a Seth Rogan character, others may not. Try to find a middle ground to reach as many potential buyers as possible. The cannabis market has evolved, and the idea of the “typical” cannabis users needs to evolve along with it.
Focus on values and culture: One way to avoid running afoul of marketing restrictions is to focus on something other than the cannabis or CBD product. Instead of talking about marijuana, focus on the core brand values or the company culture. Explain what the brand stands for, and share what makes employees proud to be a part of the community. You can be light on details and help people feel favorably towards the product without having to say anything much about it.
Consider cannabis platforms: Platforms like Leafly, Weedmaps, the GrowthOp, The Bluntness, Mantis, and many more can be a great place to produce content or place ads. These platforms either work directly in the cannabis vertical or produce content for niche audiences that includes cannabis and cannabis adjacent enthusiasts.
Be careful with social media: At the moment, social media is not technically open to cannabis marketing, though social, predominantly Instagram, is a hotspot. Given that it remains federally illegal in the United States makes this stance understandable. While you will be unable to buy ads on Facebook or Instagram ,you can post to a brand profile page. Be warned, however, that the platform has been known to filter out posts that use the terms “cannabis” and “marijuana” and delete cannabis accounts without a moment’s notice. Therefore, you will need to show creativity in your posting strategy. Many successful brands use these platformsto share lifestyle and information-based, educational posts rather than product-based ones. Be sure you never overtly show consumption or use verbiage that implies you have a business promoting cannabis on Instagram or Facebook. Twitter has restrictions similar to Facebook’s in terms of what can be shared on the platform, but it tends to be more lenient in the enforcement of these posting policies. LinkedIn can also provide an interesting opportunity at the parent company/corporate level. The platform won’t allow cannabis advertising but does allow posts about it.
Make use of directories: Cannabis businesses should make sure they appear in directory searches. Optimize for listing on as many cannabis websites as possible but don’t forget local business directories as well. When listed in a directory, you have the benefit of being easily discoverable to new customers but you will also have the benefit of customer reviews, helping you build your reputation, trust, and authority. Consider using Leafly, Ganjapreneur, Google My Business, TripAdvisor, Weedmaps, Manta, Yelp for Business Owners, Bing Places, and MedicalJane to name a few.
While cannabis use has been around for centuries, cannabis legalization and marketing in the United States and Canada are relatively new.
It is hard to predict exactly what will happen in the months and years ahead but one thing is certain, things are bound to change as society grows more understanding and accepting of this plant. But until then, marketers will have to get creative in order to grow their brand and reach a wide range of new potential customers.