Federal Cannabis Rescheduling Prompts Cautious Moves from Big Tech on Advertising

The recent federal rescheduling of medical cannabis has sparked renewed conversations among major tech platforms about loosening longstanding advertising restrictions. According to MJBizDaily, while this regulatory shift marks a milestone for the industry, it does not immediately open the door for cannabis companies to advertise freely on platforms like Google, Meta, or TikTok. Dan Serard, founder of Cannabis Creative Group, confirmed that some Silicon Valley firms have shown interest in the implications of rescheduling, but remain hesitant to update their policies until broader legalization occurs. "They’re not making any changes now, but they are open to it," Serard explained, emphasizing that adult-use legalization would likely be the true tipping point

Despite the federal move to reclassify medical marijuana under Schedule 3 of the Controlled Substances Act, strict advertising rules remain in place. Marketing professionals and legal experts agree that while rescheduling may eventually provide more room for cannabis brands to market themselves, immediate changes are unlikely. Many companies are advised to maintain their cautious, conservative approach to digital advertising, avoiding promotional deals and product displays, even in regions where adult-use cannabis is legal. This status quo persists because tech platforms continue to enforce their own policies, regardless of shifting federal attitudes

A significant but indirect benefit of rescheduling may come in the form of financial relief for cannabis operators. Under the previous classification, Section 280E of the Internal Revenue Code prevented companies from deducting ordinary business expenses, resulting in tax rates that sometimes exceeded 70%. Jason Heller, senior vice president at 5WPR, noted that "relief from punitive taxation means cannabis companies will have extra cash that they can use to resume marketing and promotion." This improved cash flow could allow brands to invest more in events, education, and local outreach, even if digital ad restrictions remain

Regulatory oversight remains a central concern, as federal agencies such as the FDA and FTC are expected to continue scrutinizing cannabis advertising—especially around health and therapeutic claims. Christine Baily, a cannabis attorney and former regulator, stressed that, "Until the research is in place and there’s a level of confidence, they don’t want cannabis or hemp companies to make claims about medicinal or therapeutic effects of marijuana." State-by-state variations in billboard and broadcast advertising rules further complicate the landscape, and federally licensed broadcasters must tread carefully due to cannabis’ ongoing federal illegality

Looking ahead, industry strategists anticipate that national branding and interstate commerce will eventually reshape cannabis advertising, but for now, most brands remain focused on local markets. Annie Star Davis, a cannabis growth strategist, observed that "most brands are hyperlocal, so it doesn’t make sense to pay for an advertising campaign that’s national." In the short term, increased cash flow may encourage more spending on event sponsorships and trade shows, rather than large-scale ad buys. OG Lab notes that, while rescheduling is a meaningful step, the cannabis industry and big tech alike are still in a holding pattern, watching for further legislative and regulatory clarity before making bold moves into mainstream advertising. This transition period is crucial for companies to prepare for future opportunities while navigating persistent legal and operational uncertainties