Alcohol and pharmaceuticals have used TV and radio to promote their products for a long time. Cannabis, however, has been restricted from this traditional type of advertising. As well, the many restrictions on social media make it no easy feat to advertise cannabis. However, a new bill is changing this.
Last month, the House passed a bill permitting cannabis advertising on radio and broadcast television. This is part of a broader measure, the Fiscal Year 2023 Financial Services and General Government appropriations bill, passed on July 20th, 2022.
The bill states that the Federal Communications Commission (FCC) would be prohibited from using authorized funds to deny broadcasters a license renewal or sale application for advertising weed in areas where weed is legal. Additionally, a station will not be required to submit an early license renewal application to the FCC in order to broadcast cannabis advertisements.
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What the House Bill Means For Cannabis Advertising
Previous regulations allowed the FCC to revoke a broadcaster’s license for advertising weed and other federally illegal products. Even in places where cannabis is legal. Ultimately, this limits cannabis businesses to advertising on other channels; this includes print newspapers and magazines, billboards, online, social media, cable television, and satellite radio. Though, these channels still come with challenges.
“For too long, local broadcasters have been stuck in a regulatory purgatory because of conflicting federal and state cannabis laws. Today’s passage marks an important step towards allowing broadcasters to receive equal treatment for cannabis advertising that many other forms of media have enjoyed for years. While we are pleased to see the House act, broadcasters will continue to work with policymakers for a permanent resolution to this competitive disparity to the benefit of consumers.”
Alex Siciliano, a spokesman for the National Associations of Broadcasters, said in a statement
This bill opens up the opportunity for broadcasters to benefit from the growing market of cannabis advertising. In fact, the market is predicted to hit $18.5 billion in 2022.
Photo by Diego González on Unsplash
“The provision in this House appropriations bill is a major step forward for leveling the playing field for local broadcasters. We believe the law of the state in which a station is licensed should determine whether a station can accept cannabis advertising, if they so choose. We look forward to working with members of Congress and the Administration to help restore parity between local broadcasters and other media outlets.”
David Donovan, president of the New York State Broadcasters Association (NYSBA), said in a statement
The Next Steps To Put The Bill In Effect
To become effective, the bill will need to be passed by the Senate, then signed into law by the president. This could present a challenge, but broadcasters and lawmakers remain hopeful.
According to David Donovon, “The appropriations process is notoriously complex, which means the bill may get stalled. Congress is likely to adopt an interim budget through a continuing resolution. At some point, perhaps after the mid-term elections, there will be a final vote. Even if it passes, the legislation is not a ‘silver bullet.’”
As part of an annual appropriations bill, the FCC would only be prohibited for one year from taking action against broadcasters for airing weed ads. This would begin on October 1st. Then each year after, it must be reauthorized to remain in effect.
Learn About Cannabis Advertising
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