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Companies are looking for some flexibility with Ohio’s restrictive marijuana advertising rules | How to order Skittles Moonrock online

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Cannabis companies hope to see these restrictions changed when regulators adopt official regulations for the adult-use programme. This is still a work in process.

This is also why Ohioans haven’t noticed any ads for marijuana on billboards, unlike Michigan, where drivers are bombarded by dispensary advertisements when entering the state, or on TV, radio, or the internet.

Ohio’s adult use launch has been a success, with sales of non-medical products reaching $55 million between Aug. 6 – Sept. 7. However, many operators feel that sales could have been even better if the marketing was less restrictive.

“What we saw was a nice boost in business – not the same as Massachusetts, but better than Connecticut – which has been nice,” said Peter Gallagher. He is CEO of Insa – a Massachusetts multistate operator that operates a dispensary at Willoughby Hills. “But I think the restrictions on marketing and advertising are holding back the market.”

Amplify Coventry in Cleveland Heights, Tuesday, August 6, 2018. From left to right, Buckeye Relief CEO Andy Rayburn is pictured with Amplify Coventry General Manager Marvin Keyes. Cleveland Heights Mayor Kahlil seren and Ohio State Rep. Jamie Callender are also pictured. Photo by Gus Chan

Andy Rayburn, CEO Buckeye Relief, which operates the Amplify brand, and president of OHCANN, stated that he expects Ohio’s market to grow, not only as prices continue to drop, but also as the public becomes familiar with the industry.

He said that the main reason is that he did not believe that the majority of consumers knew that legal marijuana products are available at legal dispensaries. He noted that media and word-of-mouth were spreading a lot of information to the public. “We believe the knowledge base has a lot of work to do.”

Operators don’t want Ohio to look exactly like Michigan in terms of the number of billboards. Regulators certainly do not. But companies would like a middle ground between the current prohibitions and an open-ended policy.

“Advertising helps to raise awareness of a new industry. But nobody wants to be bombarded with billboards as you see when crossing into Michigan,” said Jason Erkes. Cresco Labs is a Chicago-based multistate operator that operates the Sunnyside brand. “We are optimistic that the regulators will come up with a good way to market cannabis.”

Fines and the Future

State records show that at least five Ohio companies were fined $212,500 for violating advertising regulations before or around the adult-use launch of the state on August 6.

All five companies were fined $12,500 for allegedly violating the regulations relating to the language used in exterior signage, social networking posts or email correspondence. These included: GTI Ohio, (OTC: GTBIF), (operator the RISE retail label); Guaranteed Investment OH, (operator the Guaranteed Dispensary retail brand); Bloom Medicinals, (operator the Bloom retail brand); Greenleaf Apothecaries, (operator the Botanist retail label); and

GTI stated in an email it was preparing for “recreational” and “medical” customers. According to regulators, Guaranteed listed its website as a “recreational” and “medical” dispensary. In Ohio, the word “recreational” cannot be used in relation to the cannabis industry.

According to the state, Bloom had, in June, erected an unattached billboard that read, “Bloom Medical Marijuana”, which violated signage regulations.

According to their fines, The Botanist featured promotions/menus that had the header “Can you take me Higher? “; and Standard sent emails stating it was approved for adult use/recreational sale with the phrase “some highlights below!”

The state also fined The Botanist $150,000 – or three $50,000 penalties – for having an ice-cream truck on dispensary grounds on the first day adult-use sales were allowed (rules prohibit food or beverages being furnished or consumed in retail premises), for promoting this free ice-cream on social media, and for using unpermitted exterior signage.

Crain’s has contacted GTI/Botanist to get their comments on these violations.

The regulators have posted some preliminary regulations under consideration which touch on advertising restrictions for adult-use programs, but they remain prohibitive.

The current proposed rules continue to prohibit any marketing that could be included in television, radio or Internet programming or posted in areas of public transit or shelters. Ads in stadiums, arenas, or any publically owned or operated property or anything that encourages consumption are also restricted.

It is up to you to decide what the final rules will look like.

Operators say they would like to be able to inform customers and get their name out there in more ways.

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