Twitter allows ads for cannabis and THC products
Twitter on Wednesday became the first social media platform to allow cannabis companies to market their brands and products in the United States. Previously, the company only allowed advertising for topical hemp-derived CBD products, while other social media platforms, including Facebook, Instagram and TikTok, operate a "no ads policy for cannabis,” the herb that remains federally illegal.
However, more and more US states are moving towards allowing the sale of cannabis for recreational purposes, and 21 of them have already adopted this measure.
Twitter said it would allow cannabis companies to advertise, provided they have a proper license, go through its approval process, only target jurisdictions where they are licensed to operate and, above all, that they do not target people under the age of 21.
“This is a massive victory for sellers of legal cannabis“said Cresco Labs, a multi-state cannabis and medical marijuana company.
Most cannabis companies quickly embraced the changes suggested by Twitter. Trulieve Cannabis Corp (TRUL.CD) already launched a multi-state campaign on the platform on Wednesday.
“This change reflects the growing acceptance of cannabis as a mainstream wellness category, and we hope it serves as a catalyst for other social media platforms to follow suit,” said Kate Lynch of Curaleaf, the largest cannabis company operating U.S..
After benefiting from a surge in sales at the start of the pandemic, the US cannabis industry has shown signs of slowing in the face of regulatory and economic challenges, including falling prices and an illicit market that is poaching customers.
Musk's purchase of Twitter immediately stoked speculation that the billionaire would relax Twitter's strict advertising policy governing marijuana.
“Until now, only CBD news brands were allowed to advertise on the Twitter platform,” AdCann noted in its social media post.
“Moving forward – the social network will enable the promotion of regulated cannabis products containing THC and CBD, accessories, services and more. »
In its new guidelines, Twitter made it clear that it would not allow advertising directed at minors.
The company also set out several other restrictions, saying cannabis ads must:
- “Not attract minors into the creation, and landing pages should be age-restricted and sales should be age-verified.
- “Do not use characters, athletes, celebrities or images/icons that appeal to minors.
- “Do not use minors or pregnant women as models in advertising.
- “Not making claims of efficacy or health benefits.
- “Do not make false/misleading claims.
- “Do not show depiction of the use of cannabis products.
- “Do not represent people consuming or under the influence.
- “Do not encourage transportation across state lines. »
Twitter's move follows the January announcement that Google Ads will no longer ban all hemp and CBD advertising in California, Colorado and Puerto Rico.
However, marketers will continue to be limited, Google added in its blog post.
Side note: Most Americans don't want additional regulations imposed on the cannabis industry
According to a survey, most Americans reject the idea of imposing additional regulatory restrictions on the legal marijuana industry by the state, according to survey data national compiled by the Center for American Political Studies at Harvard University.
Pollsters asked respondents what they thought of the degree of regulation currently imposed on various existing industries, including cryptocurrency sellers, state-licensed marijuana growers, social media companies, anthrax manufacturers and manufacturers of electric vehicles.
45% of respondents said the marijuana industry should be less regulated than it is now. Twenty-two percent said existing regulations were adequate and 33% favored stricter regulations.
In contrast, a majority of respondents said they want additional regulations to be put in place to protect consumer online privacy and imposed on the cryptocurrency market.
Respondents were almost evenly split on whether government regulation, in general, 'stifles' innovation or economic growth or whether it helps to grow the economy in a more 'equitable' way.