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Middlebury Cannabis Company Files Lawsuit Against Vermont Regulator Over Free Speech Issues

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Middlebury Cannabis Retailer Sues Vermont Cannabis Control Board Over Advertising Restrictions

In a significant legal challenge to Vermont’s cannabis advertising regulations, FLŌRA Cannabis, a retailer based in Middlebury, has filed a civil lawsuit against the Vermont Cannabis Control Board (CCB). The suit, lodged in Addison County Superior Court this week, contends that the state’s pre-approval requirement for advertising infringes on the retailer’s constitutionally protected free speech rights.

Currently, Vermont law mandates that licensed cannabis businesses receive prior approval from the CCB for any public statements aimed at inducing sales, including in-store signage. FLŌRA co-founder Dave Silberman criticized this restriction, stating, “If I want to put signage in my own store — 20% off a product — I need to get it pre-approved.” He argued that although the law aims to protect minors, no one can access dispensaries without valid identification.

CCB Chair James Pepper acknowledged the lawsuit’s emergence, noting ongoing debates within the legislature regarding the overly strict advertising laws that have persisted since 2020. He defended the board’s actions, stating, "Cannabis advertising is any communication that is calculated to induce a sale," and emphasized the pre-approval process is consistent with existing regulations.

Since November 2022, the CCB has assessed 585 advertising submissions, approving 324. However, Silberman argues that Vermont imposes stricter advertising regulations on its cannabis businesses than any other industry in the state. He further criticized the lengthy review process, which can take up to a week for approvals.

The lawsuit garners support from a coalition of Vermont cannabis manufacturers, distributors, and retailers, indicating a broader push for reform in state advertising regulations. As the industry continues to advocate for less restrictive measures, the outcome of this suit may reshape the regulatory landscape for cannabis advertising in Vermont.

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Photo credit vtdigger.org

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