Vermont Cannabis Retailer Challenges State's Advertising Rules in Court
MIDDLEBURY, VT – A Vermont cannabis retailer has filed a lawsuit against the state’s Cannabis Control Board (CCB), arguing that stringent advertising regulations infringe on constitutionally protected free speech rights.
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FLŌRA Cannabis, a Middlebury-based dispensary, initiated the civil suit in Addison County Superior Court this week, targeting rules requiring pre-approval for all promotional content, including signage displayed within the store.
The Advertising Restrictions
Under Vermont law, cannabis businesses must submit all advertising content intended to induce sales to the CCB for approval. This includes seemingly innocuous displays such as a sign advertising a 20% discount.
“If I want to put signage in my own store — 20% off a product — I need to get it pre-approved by the CCB,” said FLŌRA co-founder Dave Silberman. He claims the restrictions create unnecessary barriers for cannabis retailers, particularly given the strict age-verification protocols already in place to protect minors.
Silberman acknowledged the need for some regulations, such as prohibiting cartoon characters in advertisements, but argued that Vermont’s rules go too far. “With this level of stigma, it’s illegal to restrict our free speech in this way,” he said.
Enforcement and Industry Pushback
Cannabis Control Board Chair James Pepper defended the regulations, stating that they aim to ensure all advertisements comply with state law. Since the board began reviewing advertisements in November 2022, it has processed 585 submissions, approving 324, denying 169, and marking 25 as not falling under the advertising category.
“Cannabis advertising is any communication that is calculated to induce a sale,” Pepper explained. “So someone saying they’re selling with 20% off, whether that’s online or in-store, is made to induce a sale.”
Despite complaints, Pepper insisted the approval process is efficient, often taking just one to two days for straightforward cases. More complex submissions are reviewed by a committee that meets weekly, with an average turnaround of eight days.
Comparisons to Other States
Silberman contends that Vermont’s regulations are among the most restrictive in the country, even more so than those governing sports betting advertisements. While Pepper questioned whether Vermont is unique in requiring pre-approvals, he acknowledged the state’s cautious approach to cannabis advertising.
The Industry’s Reaction
The lawsuit has garnered support from a coalition of manufacturers, distributors, and retailers statewide, signaling broader discontent within Vermont’s cannabis industry.
Silberman emphasized the need for change, citing the burden these rules place on small businesses. “Licensed cannabis businesses in Vermont operate under stricter advertising regulations than any other industry in the state,” he said.
Looking Ahead
As Vermont’s cannabis market continues to mature, the lawsuit could set a precedent for how states balance industry regulations with constitutional rights. For now, the case has sparked a broader conversation about whether Vermont’s cautious stance on cannabis advertising stifles the growth of its burgeoning industry
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