Changes in the cannabis industry in New York have been fast and furious, and so have the regulations regarding how the companies can market their products. For cannabis business owners operating in New York, complying with New York cannabis marketing requirements goes beyond coming up with an eye-catching ad. They need to ensure that their marketing campaign conforms to very specific regulations to protect minors, prevent misinformation, and prevent cannabis advertisement in particular venues.
The Office of Cannabis Management (OCM) of New York is responsible for enforcing the New York cannabis marketing requirements. The current Part 129 regulations provide guidelines concerning cannabis marketing and advertising, including the audience composition, location, placement of advertisements, warnings, online promotions, outdoor signage, and many others.
For those who work as cannabis business owners, marketers, designers, and advertisers in New York, basic knowledge of the New York cannabis marketing requirements could help you save money on non-compliance costs.
Below is a friendly guide of the most important New York cannabis marketing regulations you should know about.
What Is New York Cannabis Marketing Regulation?
New York cannabis marketing refers to the means of promotion used by legally licensed cannabis companies to reach out to consumers through communication about their cannabis products, services, brands, and retail outlets.
Yes, New York State allows licensed companies to advertise, but they put certain restrictions on such advertising in terms of its appearance, location, and audience.
These restrictions are found mainly in Part 129 of the regulations of the state for recreational cannabis.
According to the OCM, this legislation is supposed to strike a balance between the competition in business and public health and safety.
Therefore, a cannabis company cannot run an advertising campaign just like any other consumer product company.
For instance, an advertising campaign that might be appropriate for a clothing company or a restaurant might cause a cannabis company trouble.
What Marketing Strategy Is Preferable to Adopt Then?
It is preferable to come up with mature, professional branding that would target adults only.
Advertising Audiences Must Comply with the Age Requirements
Yet another critical aspect of New York cannabis marketing has to do with the demographics of the intended audience.
In some instances, the demographics of the audience must include the same percentage of people aged 21 or older as in the overall demographic makeup of New York residents who are 21 or older.
According to the OCM, the businesses will have to maintain evidence that supports their claims about the audience demographics.
It can be essential since saying that the audience consists “mainly of adults” is not enough.
The businesses have to collect evidence such as:
- Audience analytics
- Information about media buying
- Methods of age verification
- Demographics of the audience
- Advertising locations
Proper documentation can be as essential as the advertisement itself.
Some Locations Are Prohibited From Displaying Cannabis Advertising
Location is an essential factor in New York cannabis marketing.
The law currently does not allow the cannabis advertisement to take place inside, or close enough to be easily seen in 500 feet of the following locations: schools grounds, playgrounds, day care centers for children, public parks, and libraries.
Cannabis advertising is also prohibited in the transportation system and any properties that are publically owned or operated.
If you are going to engage in physically placed cannabis marketing, then you need to consider the location of your campaign ahead of time.
This could be true of billboards, signs, and even events where you plan to market your cannabis product.
Online Cannabis Marketing Requires Some Additional Rules
Digital marketing provides cannabis companies with numerous options; however, websites, applications, banners, and pop-ups have their own regulations.
According to the format-specific information provided by New York state, cannabis websites or applications should contain the age restriction function, asking users to confirm that they are 21 years old.
Pop-ups or banners with New York cannabis marketing are also limited.
Generally speaking, cannabis digital advertisement should not be regarded similarly to standard digital advertisement.
When planning a campaign, the marketer should take into account the following aspects:
- Age verification
- Audience composition
- Consent
- Placement
- Warning requirements
- Landing page requirements
- Platform limitations
The digital campaign should be analyzed in the context of a full customer experience rather than just the advertisement itself.
New York cannabis marketing Cannot Promote Overconsumption
Information needs to be included in the advertisements based on the type of format.
For visual advertisements and advertisements that involve visual and audio, the OCM requires information like the licensee name and license number, as well as consumer warnings.
The warning information also requires certain formats to be followed.
For instance, according to the latest OCM guidelines, the consumer warning information should be in a bright yellow text box for visual advertisements.
Audio advertisements also require specific information, which includes a required warning message that should be spoken out.
This implies that the warning messages should not just be added to advertisements as an afterthought.
The warning messages need to be thought of during design of the advertisements.
Cannabis Advertisements Cannot Promote Overconsumption
Advertisements for adult-use cannabis cannot make any claims or promote adult-use cannabis for any medical or wellness use in any way that violates the regulations.
The existing regulations in New York’s Part 129 specifically prohibit making medical claims or statements about the curative and/or therapeutic effect of adult-use cannabis.
It is especially significant for the businesses producing blog posts, social media materials, emails, or even product descriptions.
A company should be very careful with making statements indicating that the product in question is able to:
- Cure a particular disease
- Be used to treat a specific medical condition
- Replace prescription-based treatments
- Promise a certain health result
- Offer a medically proven effect
Medical claims and educational materials are different things.
When it comes to research, companies should clearly differentiate scientific facts, research, and clinical evidence.
Promotions, Discounts, and Giveaways Are Restricted
Promotions by cannabis firms should be approached with caution as well.
According to the latest OCM guidelines, some specific discounts, couponing practices, pricing methods, free promotional goods, give-aways, points-based rewards, loyalty programs, and similar promotions are not allowed.
The requirements are very specific; therefore, one should not take it for granted that the promotion used in any other industry would be legal for the cannabis market automatically.
Before launching a:
- Give-away
- Loyalty program
- Coupon
- Promotional event
- Discount campaign
- Merchandise campaign
it is necessary to find out the regulations that apply.
Outdoor Signage Is Not Like Other Forms Of Advertising
It is important to note that New York has changed its rules for outdoor signs.
According to the Part 129 guidelines issued by OCM, the new rules help differentiate the differences between allowed outdoor signs and banned billboards. The new rules have also increased the number of outdoor signs allowed for retail dispensaries.
As such, it is advisable not to depend on old articles in planning your outdoor advertising activities.
The rules have changed from the initial days of New York’s adult-use cannabis market.
It is better to depend on current OCM guidelines and not assume that everything published in 2022 or 2023 is entirely up to date.
Cannabis Merchandise Can Also Be Advertisements
This is one of the rules that some business organizations ignore.
The merchandise in the cannabis industry may also be subject to advertisements laws.
OCM defines cannabis merchandise as those consumer products that do not have cannabis but have the branding of the licensee. This includes clothing, caps, pens, cups, water bottles, key chains, and others.
Therefore, branding does not exempt one from the rules of cannabis advertising.
The Packaging and the Marketing Should Conform to One Story
The cannabis marketing campaign in New York cannot operate independently of the packaging of the product.
In New York, packaging laws dictate that cannabis packaging must adhere to certain criteria with regard to child resistance, tamper resistance, protection of the product, labeling, and appeal to minors.
The packaging cannot feature cartoons, mascots, youth-focused images, or resemblance to products that are marketed towards kids.
This implies that when determining compliance with New York Part 128, the brand’s website, advertising, packaging, social media content, and in-store collateral must be evaluated collectively.
An Example Compliance Checklist for Cannabis Businesses
Prior to launching a New York cannabis marketing campaign, businesses can run through a simple checklist:
Audience check
Is the target audience age-restricted appropriately?
Location check
Is there a possibility that the advertisement will be visible from a restricted location?
Design check
Does the campaign feature cartoons, mascots, imagery associated with younger audiences or any other elements that would attract those who are under 21 years old?
Claims check
Are all the statements correct and substantiated?
Warnings check
Is all the necessary information included in the advertisement according to its type?
Promotions check
Does the campaign include discounts, giveaways, loyalty program or any other promotions?
Platform check
Does the website or mobile application comply with all age restrictions?
Documentation
Can the company prove that the advertisement is compliant with all relevant regulations?
It is much more convenient to follow these recommendations prior to the launch rather than to solve the issues after receiving them.
New York Cannabis Marketing Becomes More Formalized
The main takeaway for business in New York from its latest laws is the sophistication of cannabis advertisements.
With the new regulations, businesses get clear guidelines concerning outdoor signage, promotions, audience, warning labels, and brand representatives, at the same time remaining restricted in advertising which may attract people younger than 21 years.
It is both an advantage and a challenge for cannabis firms.
Those who know how the laws work can create professional brands without using aggressive marketing or targeting young audiences.
And as the industry progresses, it will be important to stay up-to-date.
Frequently Asked Questions
What is New York cannabis marketing?
New York cannabis marketing entails the promotions and advertisements conducted by licensed cannabis businesses in New York. New York cannabis marketing is subject to regulation by the State’s Office of Cannabis Management.
Is New York cannabis marketing allowed online?
Online cannabis marketing is not forbidden, but it needs to comply with the relevant New York law. Websites and digital applications should provide proper age-restriction mechanisms, and pop-ups and banner cannabis advertisements are limited.
Is it possible to target minors in cannabis marketing?
No. Cannabis marketing cannot be oriented towards targeting people under 21 and encouraging cannabis usage among such individuals.
Can New York cannabis marketing include cartoons?
The present OCM guidance bans using cartoons and mascots in cannabis marketing since such elements may attract people under 21.
Are health claims possible for adult-use cannabis?
No. Adult-use cannabis marketing cannot contain prohibited health and medical claims and suggest curative or therapeutic effects of cannabis.
Can cannabis businesses place their billboards?
Outdoor marketing is strictly regulated. The current cannabis marketing rules distinguish allowed outdoor advertising from banned billboards. It is recommended to consult the latest Part 129 regulations concerning outdoor advertising.
Conclusion
From the implementation of adult-use regulations in New York to this day, the cannabis industry in this state has grown considerably. Today, New York cannabis marketing operates within a more advanced regulatory system, which includes demographic requirements, advertising locations, warning statements, Internet advertising, packaging, promotion, and merchandising.
The positive take-home message for businesses is that creativity goes hand-in-hand with compliance.
A good cannabis brand does not have to employ bright youth-oriented design elements and suspicious health benefits. Accurate information, responsible branding, clear messaging, and targeted audience will do just fine according to New York laws.
As regulations regarding cannabis keep changing, it is highly recommended to review them in advance at the New York Office of Cannabis Management website.
Resources
New York OCM – Part 129: Marketing & Advertising Guidance
Read the official OCM marketing and advertising guidance
New York OCM – Format-Specific Marketing & Advertising Requirements
View format-specific advertising requirements
New York OCM – Part 128: Packaging & Labeling Guidance
Review New York cannabis packaging requirements
New York OCM – Compliance Reminders
View current cannabis compliance reminders