Advertising & Marketing Rules (Federal FTC Standards)
Federal law requires all advertising to be truthful, clear, and not misleading. Cannabis businesses are held to the same federal advertising standards as every other industry, even when operating legally under state law.
These rules apply to everything customers see, read, or receive.
What This Covers
- Truth-in-advertising requirements
- Limits on health and medical claims
- Pricing, discounts, and promotion rules
- Influencer and paid endorsement disclosures
- Enforcement authority
Truthful Advertising Standards
All advertising must be accurate and easy to understand.
- Claims must be truthful and not misleading
- Advertising must not exaggerate benefits or omit key facts
- Claims must be supported by reliable evidence
- Fine print cannot contradict the main message
These rules apply to:
- Websites and menus
- Social media posts
- In-store signage and displays
- Emails, texts, and ads
Health and Medical Claims
Stricter rules apply to claims about health or effects.
- You may not make medical or health claims unless:
- They are scientifically proven
- They comply with FDA and FTC standards
- Unsubstantiated health claims are prohibited
- Implied claims can be treated the same as explicit claims
Violations often trigger federal enforcement.
Pricing and Promotions
Pricing information must be clear and honest.
- Prices, discounts, and promotions must be explained plainly
- No bait-and-switch tactics
- No hidden conditions or misleading fine print
- Promotional terms must match what is actually offered
Influencers and Paid Endorsements
Paid relationships must be disclosed clearly.
- Influencers must disclose paid partnerships
- Disclosures must use clear language such as:
- “Paid Partnership”
- “Sponsored”
- Disclosures must be easy to see and understand
- Both the business and influencer are responsible for compliance
Enforcement and Oversight
Identifies the enforcing authority.
- Enforcement agency: Federal Trade Commission (FTC)
- FTC enforces advertising rules across:
- Online and digital marketing
- Print and in-store advertising
- Influencer and endorsement content
Violations may result in fines, legal action, or public enforcement notices.
What Operators Usually Miss
- Menus and websites are treated as advertising
- Influencer posts are regulated the same as ads
- “Wellness” language can still be misleading
When This Comes Up
- Launching marketing campaigns
- Updating websites or menus
- Running promotions or discounts
- Working with influencers or partners
What Happens If You Ignore This
- FTC investigations
- Monetary penalties
- Forced changes to advertising
- Public enforcement actions
Related Pages
Source Material
