Oct 21, 2019
Ohio’s “Tobacco 21” Law Takes Effect
Last week, Ohio joined the growing list of states that have raised the age requirement to purchase tobacco from 18 to 21. The “Tobacco 21” law applies [...]
Endorsements from celebrities can boost a business’ sale through increased exposure and brand credibility. To that end, cannabis-based businesses have increasingly utilized celebrities to endorse their products through testimonials and other marketing efforts. Although the potential of these initiatives is undeniable, they do not come without risk.
Cannabis currently operates in a legal grey area since it remains classified as a federal Schedule 1 drug. Thus, states that have legalized cannabis cultivation, processing, and consumption are operating outside of the confines of federal law. Cannabis businesses that aim to bolster their brand with celebrity endorsements must be aware of the Federal Trade Commission’s (FTC) guidelines that not only oversee this specific form of marketing, but also prescribe additional criteria to ensure that advertisements are truthful and not misleading. Here are four key issues to be aware of before utilizing a celebrity, or any, endorsement of your cannabis-based product.
The intense regulatory scrutiny in advertising cannabis-related products may subject advertisers and endorsers to liability and result in significant financial penalty or even revocation of a license. Cannabis businesses should implement comprehensive guidelines for the creation and execution of their marketing and advertising initiatives, as well as obtain a legal review of content to ensure all federal and state regulatory demands are being met.