Page 26 - Magazine Spring 2019

4
ECONOMY AND FINANCE
Overview to Marketing and
Advertising
On October 17, 2018, the commercialization and use of Cannabis for recreational use was legalized in Canada. Now it’s open to an immense business opportunity that was previously satisfied illegally. However, let’s not forget that Cannabis is a drug that would harm
anyone if used irresponsibly. Also, people under the age of 21 years old are more vulnerable to depression, mental health disorders and dependence. In consequence, businesses who are venturing into this territory should also endorse and promote its advertising in a responsible way.
The Cannabis Act explicitly regulates the marketing of cannabis and cannabis related services under sections 16 to 24. It is modelled after the Tobacco Act in that it begins by prohibiting all promotion activities, and then provides exceptions to the blanket prohibition.
General prohibitions include:
• Communicating information about its price or distribution
• Appealing to young persons
• Testimonial or endorsement
• Depiction of a person, character, or animal, whether real or
fictional
• Evokes a positive or negative emotion or ‘way of life’ such as
one that includes glamour, recreation, excitement, vitality,
risk or daring
• Television and radio advertising
• Promotion of a sponsorship to gain publicity
• Sports marketing associated with a way of life
• Naming of a sports or cultural facility, not including other
facilities
• Overview of Permitted Promotional Activities
Under the Cannabis Act there is a distinction between marketing components: “Brand Elements” are brand names, logos, or brand icons while “Brand Preference and informational promotion” are meant to directly or indirectly persuade use or choice via messages and information.
Physical Mail / Direct Mail: Is addressed to an adult within an envelope if the content of the mailer includes Brand Preference or Informational Promotion. It may be sent by unaddressed mail if
it only contains Brand Elements.
BY: ROMMEL OCHOA
Website, Digital Advertising, email marketing, telemarketing and social media:
It is permissible if “reasonable steps” have been taken to ensure content cannot be accessed by a minor. It is unclear what constitutes "reasonable steps" so proceed with caution and consult legal counsel. You may look examples of how the drink and tobacco industry go about this requirement. Many digital advertising platforms do not accept advertising from the cannabis industry.
Magazines & Newspapers: Brand Elements only and the magazine must not be particularly appealing to young persons. Brand Preference and Informational promotion is permitted if a magazine is mailed directly to confirmed adult subscribers.
Promotional Items: branded T-Shirts, hats, water bottles, keychain, etc., are limited to Brand Elements. The promotional item must not be associated or appealing to young people (e.g.: a plush toy) and may not associate with a way of life (e.g.: a snowboard).
Event Marketing: Permitted only if it is in a location where entry to minors is prohibited and it’s administered through provincial liquor license. Brand Elements may be visible from outside while Brand Preference or Informational Promotion may not be visible from outside.
Canada is one of the pioneers to fully legalize cannabis
for recreational use. Industry is encouraged to be socially responsible, not only because is the right thing to do but also to perhaps prevent additional government interventions in future legislation.
Disclaimer: this article is meant to be an entry level discussion of marketing cannabis; marketers should proceed with caution and consult legal counsel.
Resources
Canadian Marketing Association, CMA Guide: Permitted Cannabis Marketing Activities
https://www.drugabuse.gov/ https://www.canada.ca/en/health-canada/services/drugs-medication/ cannabis.html
Cannabis
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