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Mississippi’s medical cannabis businesses are prohibited from advertising on billboards or any other platforms due to marijuana’s federal status as an illegal substance, according to a recent decision by an appeals court.
The owner of Tru Source Medical Marijuana, a medical cannabis store operating in Olive Branch, Mississippi, contested this restriction. He claimed that since state law allows the sale of marijuana, the First Amendment should protect medical cannabis businesses’ advertising rights.
However, on Friday, a three-judge bench from the 5th Circuit Court of Appeals ruled against the dispensary owner. The court referred to the federal Controlled Substances Act (CSA), which has classified marijuana as an illegal drug since 1970, banning its production, distribution, and possession. The ruling emphasized that federal law takes precedence and that Mississippi’s restrictions on advertising are consistent with this overarching legal framework.
“Mississippi is not subject to constitutional barriers in limiting commercial speech that pertains to unlawful activities,” the judges stated in their decision.
The state attorney general welcomed the ruling, describing the state’s advertising restrictions as reasonable. MaryAsa Lee, a spokesperson for the office, highlighted that the decision reinforces the state’s efforts to regulate medical cannabis advertising through various media, including broadcast, digital platforms, and print.
Tru Source CEO and founder, Clarence Cocroft II, filed a lawsuit in 2023 to contest the ban on advertising through text messages, mass emails, social media, broadcast, billboards, or print.
Cocroft expressed frustration over the decision, noting that the restrictions make it challenging to reach potential clients and educate the public about the state’s medical cannabis program. Despite the setback, Cocroft stated that he remains determined to continue advocating for equitable treatment of medical cannabis businesses.
Although direct advertising is heavily restricted, the state does allow businesses to maintain social media profiles and websites that provide information about their locations and product offerings. Additionally, businesses can list their information in business directories and phone books and include marijuana imagery in their logos. They are also permitted to sponsor advocacy or charitable events.
Cocroft’s legal representation, the Institute for Justice, a not-for-profit law firm, is exploring further legal options. The firm is considering asking the appeals court to review the case or potentially escalating the matter to the apex court. Ari Bargil, an attorney from the firm, criticized the contradictory stance of the state, arguing that it’s unreasonable to create a legal market for medical cannabis while relying on federal law to restrict communication between businesses and consumers.
Established marijuana firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operating in other jurisdictions understand the frustrations that come with marijuana advertising restrictions in a highly competitive environment. The industry hopes that firms in Mississippi find creative ways to reach their potential clients without breaking any existing laws.
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