Twitter becomes first social media platform to allow cannabis ads in U.S.

Curaleaf Holdings

15/02/2023 19:59

By Mrinalika Roy
       Feb 15 (Reuters) - Twitter on Wednesday became the first
social media platform to allow cannabis companies to market
their brands and products in the United States.
    The company had earlier only allowed advertising for
hemp-derived CBD topical products, while other social media
platforms including Facebook, Instagram and TikTok follow a "no
cannabis advertising policy" as pot remains illegal at the
federal level.
    However, more states in the United States are moving towards
allowing the sale of recreational cannabis, with 21 already on
board.
    Twitter said it will permit cannabis companies to advertise,
as long as they have proper license, pass through its approval
process, only target jurisdictions where they are licensed to
operate and most importantly, do not target people below 21
years.
    "This is a pretty massive win for legal cannabis marketers,"
multistate cannabis and medical marijuana company Cresco Labs
said.
    Most pot companies were quick to embrace the changes
suggested by Twitter. Trulieve Cannabis Corp  TRUL.CD  already
launched a multistate campaign on the platform on Wednesday.
    "This change speaks to the growing acceptance of cannabis as
a mainstream wellness category, and we are hopeful it will serve
as a catalyst for other social media platforms to follow suit,"
said Kate Lynch of Curaleaf, the biggest cannabis company
operating in the United States.
    After enjoying a sales surge during the early stages of the
pandemic, the U.S. cannabis industry showed signs of slowing in
the face of regulatory and economic challenges, including
falling prices and an illicit market poaching its customers.
     Curaleaf recently cut its workforce by 10% and exited
majority of its operations in three U.S. states. 
 (Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini
Ganguli)
 ((mrinalika.roy@thomsonreuters.com;))