BCC Issues Revised Fact Sheet on Branded Merchandise

Front and back of the revised fact sheet.

On December 2, 2020 the Bureau of Cannabis Control (“BCC”) issued a Revised Branded Merchandise Fact Sheet. This is the second revision to the Branded Merch fact sheet this year; we discussed the July 2020 revision previously here.

This newer version of the fact sheet has added some factors that must be considered by licensees when determining whether an item of branded merchandise is considered an “advertisement” and therefore must comply with the laws and regulations governing cannabis advertising. Specifically, the following information has been added to the December 2020 version of the BCC’s Branded Merchandise Fact Sheet:

Branded merchandise may be a form of advertisement subject to the advertising and marketing requirements of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and the Bureau’s regulations. An advertisement is any communication intended to induce sales of cannabis goods. Determining whether a specific item of branded merchandise is an advertisement requires an analysis of the specific facts surrounding the production, distribution, and sale of the item. To determine whether a specific item of branded merchandise is an advertisement, licensees must consider: 

• Whether the item is intended to encourage individuals who view it to purchase cannabis goods. 

• Whether the item is intended to raise awareness of the licensee’s brand. 

• Whether the item is intended to be viewed within the licensed premises, within a customer’s private property, or in public.

• Whether the item is a cannabis accessory that simply indicates that brand of the merchandise for identification purposes. 

• Whether the purpose of the item is to satisfy a regulatory requirement such as an exit bag, which simply indicates where the purchases were made.