Court Rulings Impact Cannabis Advertising Laws

Recent court decisions are reshaping cannabis advertising rules across the US. Here’s what you need to know:

State	Key Change	Impact on Businesses
New York	Marketing rules struck down	Can now use Leafly/Weedmaps for ads
Mississippi	Complete ad ban stays	No ads allowed anywhere
California	Highway billboard limits	Must target 71.6% adult audience

Bottom line: Each state has different rules. Here’s what works:

Allowed	Not Allowed
Third-party platforms	Interstate highway billboards
Age-verified websites	Ads near schools
Local store signage	Misleading claims
Direct mail (with age checks)	Federal-level advertising

What this means for you:

Check your local rules first
Keep ads 500-1,000 feet from schools
Use age verification
Stick to state-approved platforms
Get legal approval before running campaigns

The big picture? Cannabis advertising is changing fast. While Mississippi keeps strict bans, New York’s opening up. California’s somewhere in between. Your best bet? Know your local rules and follow them carefully.

"It doesn’t matter if you are pro or anti pot… It’s just the law being corrected to what the voters wanted." – Mary Harding, LA cannabis lawyer

Mississippi’s Medical Cannabis Ad Rules

Mississippi’s cannabis advertising rules top the charts as the most restrictive in the U.S. A recent federal court battle put these tight limits in the spotlight.

Here’s what Mississippi lets cannabis businesses do (and what they can’t):

Allowed	Banned
Signs on store property	Newspaper ads
Basic product info on websites	Magazine ads
Price listings in-store	TV commercials
	Radio spots
	Highway billboards
	Online product listings

The story starts with Clarence Cocroft II, who runs Tru Source Medical Cannabis in Olive Branch. He took the state to court because these rules force customers to walk into his store just to know what’s available.

But U.S. District Judge Michael P. Mills shut the case down. Here’s what he said:

"This court can discern no federal interest which would justify the drastic intrusion upon state sovereignty urged by the plaintiffs in this case."

The message? Since federal law still bans cannabis, it doesn’t get the same free speech protection as other products.

Ari Bargil from the Institute for Justice, Cocroft’s lawyer, disagreed:

"When Mississippi legalized medical marijuana, it relinquished its power to censor speech by medical marijuana businesses."

Cocroft’s not backing down. He’s taking his fight to the 5th U.S. Circuit Court of Appeals:

"I’m prepared to fight this fight for as long as it takes. This case is bigger than me and my dispensary—it is about defending the right of everyone to truthfully advertise their legal business in the cannabis industry."

The clock’s ticking. Mississippi just kicked off medical marijuana sales last year, after 69% of voters said YES in 2020. For now, dispensaries must play by these strict rules or face consequences.

But change might be coming. The DEA’s thinking about moving cannabis to Schedule 3, which could shake up how courts look at these advertising limits.

2. California’s Highway Billboard Ban

A court ruling in San Luis Obispo County changed everything for cannabis billboards in California. The decision? No more cannabis ads on 4,000+ miles of interstate highways.

Here’s what you can (and can’t) do now:

Highway Type	Billboard Status	Examples
Interstate Highways	Banned	I-5, I-10, I-80
State Highways Crossing Borders	Banned	All cross-border routes
In-State Highways	Allowed	State-only routes

It all started when Matthew Farmer sued the Bureau of Cannabis Control (BCC). His issue? His kids kept seeing cannabis ads during family drives.

The BCC tried a workaround – keeping billboards 15+ miles from state borders. But Judge Ginger Garrett said NO. Why? Because it went against what Proposition 64 said.

"When the voters passed Proposition 64, they enacted robust protections shielding youth from exposure to cannabis and cannabis advertising." – Gavin Newsom, Governor of California

For cannabis companies, this means:

Taking down interstate highway ads
Scrapping billboard plans
Looking for other ways to advertise

Here’s what LA cannabis lawyer Mary Harding says about it:

"It doesn’t matter if you are pro or anti pot… Prop 64 said, in black and white, that this wasn’t allowed. I wouldn’t call it a victory for those against marijuana or a loss for the pro-marijuana people. It’s just the law being corrected to what the voters wanted in 2016."

The BCC hasn’t set a deadline for billboard removal or mentioned any plans to appeal. For now, cannabis ads can only go up on highways that don’t cross state lines.

Want more proof this isn’t changing? In October, Governor Newsom vetoed a bill that would’ve brought back highway billboards. Message received: California’s keeping cannabis ads off major roads.

3. New York’s Marketing Rules Case

In 2023, Judge Kevin Bryant overturned New York’s cannabis advertising rules after Leafly Holdings sued the state. Leafly, which handles 4 million cannabis orders per year, challenged the restrictions on third-party marketing.

The court found several problems with New York’s approach:

Issue	Court’s Finding
Evidence Base	Zero documentation for rule development
Public Input	Ignored community feedback
Decision Process	No meeting or discussion records
Constitutional Rights	Broke free speech rules

The case centered on platforms like Leafly and Weedmaps. The old rules blocked dispensaries from:

Paying for platform marketing
Showing product listings
Using third-party order systems

"Here there is no indication that any evidence was actually placed before the administrative agency and there is no outline of the process that the agency followed when deliberating regarding the proposed regulations." – Judge Kevin Bryant

Stage One, a Rensselaer dispensary, joined Leafly’s lawsuit. They pointed out how these rules hurt both sellers and buyers in the legal market.

"Today’s State Supreme Court decision was another setback in a series of blows New York’s adult-use cannabis market has faced since legalization, three years ago." – State Sen. Jeremy Cooney, Chair of the Senate’s cannabis subcommittee

The Office of Cannabis Management (OCM) must now pick: fight the ruling or draft new rules. For now, dispensaries can work with third-party platforms, but new regulations might pop up.

What’s Different Now	What Stays the Same
Third-party ads OK	Basic marketing rules
Platform orders allowed	Age checks
Website listings permitted	Local ad limits

The OCM’s next move isn’t clear. But here’s what we know: Any new marketing rules need facts and logic to back them up.

What Works and What Doesn’t

The courts have shaped how cannabis companies can and can’t advertise. Here’s what’s working – and what isn’t:

What’s Working	What’s Not Working
Third-party platforms (Leafly, Weedmaps)	Blanket advertising bans
Age verification systems	Regulations without proof
Direct mail marketing	Interstate highway billboards
Local advertising compliance	Unclear marketing rules

Success in advertising depends on how rules are put into action:

State	Rule Type	Outcome
New York	Evidence-based	Rules failed – no documentation
California	Distance-based	1,000 ft school zones OK
Mississippi	Complete ban	Courts backed ban (federal law)

Courts Want Two Main Things:

Proof that rules protect kids (71.6% adult audience rule works)
Clear local rules instead of broad state limits

"They have also failed to submit any transcripts or meaningful minutes of meetings that would enable this court to determine the factual basis or the reasoning supporting their decision to adopt the regulations." – Judge Kevin R. Bryant

Marketing Methods That Pass Legal Tests:

Method	Must Have	Legal Status
Business Info Ads	License number	OK
Platform Listings	Age gates	OK
Local Print Ads	Distance rules	OK
Direct Mail	Age checks	OK

In California, breaking these rules costs $5,000 per slip-up. That’s why getting it right matters.

"By staying informed about the cannabis advertising laws, you can effectively market your cannabis business, mitigate risks, and ensure long-term success." – Andrew McGraime, Founder at Canna Direct Mail

Rules That Stand Up in Court:

No lies or misleading claims
Keep ads away from schools (500-1,000 ft)
Include health warnings
Check ages
Follow local rules

Bottom line: Courts want proof. Simple rules with clear evidence win. Broad bans without backup fail. Focus on protecting kids, and you’ll likely stay on the right side of the law.

Conclusion

The cannabis advertising landscape keeps changing. Here’s what you need to know for 2024:

State	Key Ruling Impact	Business Effect
Mississippi	Total ad ban upheld	No product listings allowed
New York	Third-party rules voided	Leafly/platform ads permitted
California	$5,000 per violation	Strict compliance needed

The cannabis market’s heading to $50.7 billion by 2028. But there’s a catch: you’ll need to play by specific rules.

What’s New	What Hasn’t Changed
Digital platform rules	School zone restrictions
Third-party advertising	Age verification needs
State-specific guidelines	Federal ad limitations

"We hope this decision ultimately leads to a healthy, stable adult-use market in the state. It’s impossible to overstate the importance of providing consumers with choice and educational information when making purchasing decisions." – Callie Driehorst, Leafly spokesperson

Here’s what your business MUST do:

Hit that 71.6% adult audience target
Keep ads 500-1,000 feet from schools
Stick to state-approved platforms
Get legal sign-off before running campaigns

The Fifth Circuit might shake things up with its Mississippi ruling. For now? Stick to what works.

"This court can discern no federal interest which would justify the drastic intrusion upon state sovereignty urged by the plaintiffs in this case." – U.S. District Judge Michael P. Mills

The DEA’s potential move of cannabis to Schedule 3 could open new doors. But right now? Focus on what’s allowed – and do it well.