Advertising in the* that is( industry is incredibly challenging. Not only are marijuana businesses limited in how they can also advertise, but where they could market. Unlike other commodities, cannabis companies generally cannot purchase such things as radio and tv ads because state laws generally restrict advertisements to individuals over the age of 21. How can a ongoing company make sure that a radio or television ad will not be heard or seen by kids? They can’t. In addition, companies haven’t any fascination with possibly marketing an substance that is illicit to the potential for criminal liability (e.g., aiding and abetting, conspiracy).
BY DANIEL SHORTT, GREEN LIGHT LAW GROUP —
Online advertising presents some opportunities but media that are social like Twitter, that also has Instagram, don’t allow cannabis companies to advertise their products or services. When they do, Twitter or Instagram will shut their account down.
One of the few paths for marijuana businesses to advertise is through text marketing campaigns. Why? Because it allows marijuana businesses to market directly to individuals who are of age. They can do this by collecting numbers from individuals who make purchases at their shops that are retail. Overtime, this list becomes bigger and much more valuable to your cannabis business who is able to market services and products and product sales by text.
This txt messaging might seem like a opportunity that is perfect marijuana businesses but there is a huge catch: The Telephone Consumer Protection Act (TCPA).
The TCPA is a liability that is strict that ended up being passed away within the very early nineties to quit “robocalls” by applying aggressive charges. A “robocall” basically means any call produced by “automatic phone dialing system” which, in change, means “equipment that has the ability to keep or create phone figures become called, making use of a random or number that is sequential; and to dial such numbers.” The TCPA makes it unlawful to make phone that is unsolicited, but courts and also the Federal Communications Commission have actually interpreted the TCPA to additionally apply to texts. Further, any phone that is automated can lead to penalties under the TCPA.
The TCPA has become a cottage industry for plaintiff attorneys who sue companies for sending text that is unsolicited. That’s since the TCPA produces a cause that is private of meaning that consumers can sue companies for violations of the TCPA. A violation that is single have a penalty of between $500 and $1500. Which means delivering one text to people that are one-hundred lead to a $50,000 lawsuit.
The marijuana industry has been ravaged by TCPA claims lately, as outlined in this Green Entrepreneur that is recent article. The reason being text-marketing is amongst the areas that are few a marijuana business can market. You need to make sure that your entire team is trained on TCPA compliance and that any customer who is opting-in to a text messaging campaign is providing express written consent if you are operating a text marketing campaign. In addition, clients have to be capable opt-out of the communications which calls for a operational system where customers can be removed from a text list after providing notice.
The TCPA is complicated, so expect to see additional posts on this blog about how the TCPA is impacting the marijuana industry. If you have received a demand letter or been sued for a TCPA violation do not hesitate to reach out to Green Light Law Group.