fbpx
QQQ
-2.49
316.84
-0.79%
DIA
-2.00
312.11
-0.64%
SPY
-2.91
381.49
-0.77%
TLT
+ 0.60
150.62
+ 0.4%
GLD
-2.07
175.30
-1.19%

Report: Twitter And Snapchat's Cannabis Ads In Canada Could Face Legal Punishment

August 1, 2019 8:32 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Report: Twitter And Snapchat's Cannabis Ads In Canada Could Face Legal Punishment

Twitter (NASDAQ:TWTR) and Snapchat (NASDAQ:SNAP) are the only two big names in Silicon Valley’s social media alley willing to provide a space for cannabis companies to show ads in Canada. According to MarketWatch report by Max Cherney, this willingness to accommodate cannabis businesses could result in punishment by Canadian law.

What To Know

It's widely known that, although cannabis has been legalized for adult-use in Canada and many U.S. states, some of the big channels for corporate advertising are blocking cannabis-related ads from their users’ screens. Google parent Alphabet Inc. (NASDAQ:GOOG) and Facebook Inc. (NASDAQ:FB) both deny cannabis businesses the possibility of advertising their products in any of their channels, which include Youtube and Instagram, respectively.

Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.

Twitter and Snapchat, however, have been known to run ads from some of Canada’s largest cannabis companies, which include Hexo (NYSE:HEXO), Canopy Growth (NYSE:CGC) and Aphria (NYSE:APHA).

Why It's Important

Health Canada is the body in charge of developing and overseeing the regulation around cannabis advertisement. However, the department has yet to outline specific, non-ambiguous rules for cannabis adverts in social medial. An expert on digital advertising told MarketWatch Health Canada is unlikely to apply severe punishment to these companies because strict outlines for these cases have yet to be developed.

Even though both companies make use of targeting technology to automatically select which users will receive the age-restricted ads, this software is not necessarily a guarantee of government compliance. Failing to comply with regulation could put both the cannabis company and the advertising channel at legal risk.

The outcome of this situation will likely set the ground for the future of digital cannabis advertising in Canada.

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — click here to learn more!

Posted-In:

Cannabis Markets Tech Media

Related Articles

Cantor Analyst Raises Aphria And Tilray Price Targets Amid Merger

Cantor Fitzgerald analyst Pablo Zuanic expressed disappointment by Aphria Inc. (TSX: APHA) (NASDAQ: APHA) quarterly results in an analyst note published Friday. read more

Cannabis Movers & Shakers: Next Green, Cannabis Control Commission, Willow, TruTrace, HEXO, Bengal Capital, MediPharm Labs, NIHC

Here is a summary of the latest leadership changes within the cannabis industry. read more

French Energy Firm Backs Hemp-Fueled Gas Plant With $23M

French energy company Qairos Energies is financing a project that will use locally grown hemp for the production of hydrogen and methane, according to HempToday. read more

USDA Approves Hemp Regulatory Proposals For Rhode Island, Soboba Band of Luiseno Indians

Rhode Island and the Soboba Band of Luiseno Indians received approvals from the U.S. Department of Agriculture (USDA) for its hemp regulatory proposals. read more

Regulatory Update: Arizona, Kansas, Montana, And New Jersey

Arizona Issues New Draft Legalization Rules, Will Start To Accept Cannabis Business Application Soon During November’s election, a majority of Arizona voters said “yes” to recreational cannabis. read more