The SAFE Advertising Act could bring cannabis advertising to TV and radio
Here’s how the proposed law could impact cannabis companies, advertisers, and consumers.
A new bill has been introduced in the US Senate that would allow cannabis companies to advertise in legal markets without the risk of federal penalties.
Senator Ben Ray Luján (D-NM) introduced the Secure and Fair Enforcement (SAFE) Advertising Act, not to be confused with the SAFE Banking Act.
Like the Banking Act, the Advertising Act would allow federally licensed media outlets to service cannabis businesses without penalties from federal regulators. The Banking Act has passed the House of Representatives six times but has never received Senate approval.
Read the full bill here. And read on for Leafly’s breakdown of the SAFE Advertising Act and its potential impact on the cannabis industry.
How the SAFE Advertising Act protects media companies
The newly filed bill would protect television and radio stations from losing their Federal Communications Commission (FCC) licenses, which allow legal cannabis licensees and service providers to advertise products and services where at least 70% of the Audiences over 21 years of age.
It also eliminates the federal fiscal issues surrounding the proceeds of transactions with licensed cannabis companies.
Potential impact on the cannabis industry
Under the SAFE Advertising Act, state-licensed cannabis brands, retailers, and third-party companies like Leafly could advertise in FCC-licensed media, including radio and television.
While some legal states (including New York and Montana) have already updated their state advertising rules to include cannabis, the new federal law would allow both local and state media to expand awareness in legal markets.
The bill does not protect advertising served in banned states or by unlicensed companies.
The bill would not affect social media advertising. No federal agency has an approving authority for websites and social platforms. Each platform has the freedom to set their own rules for cannabis content. Platforms can still face consequences from regulators like the Federal Trade Commission (FTC), which fined Facebook $5 billion for data breaches back in 2019.
Potential Opponents of the SAFE Advertising Act
Senator Lujan’s office said the new bill has the support of the National Association of Broadcasters and the Safe Advertising Coalition. But it could face stiff opposition from conservatives and possibly Democrats who favor competing cannabis laws.
At a Senate hearing this week, Senator Tom Cotton (R-Ark.) said, “There shouldn’t be a Joe Camel of cannabis.” He argued that advertising to children and misadvertising medicinal and recreational effects are two of his party’s concerns about the issue on the broader Cannabis Administration and Opportunity Act (CAOA) bill that would move cannabis to the federal level and create economic opportunities for communities damaged by war on drugs.
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