Cannabis companies, like all other businesses, rely on marketing for success. And luckily, companies like Alphabet Inc. GOOG are now becoming more inclusive of cannabis ads.
But as cannabis shops proliferate nationwide, observers are raising concerns that the marketing of certain products is to blame for the undesirable trend of increased abuse of cannabis by children and youth.
"If you go through a cannabis dispensary right now, it's almost absurd how youth-oriented a lot of the packaging and the products are," Katherine Keyes, a professor of epidemiology at Columbia University, told Associated Press.
There have been 3,054 cases of children accidentally eating edible cannabis reported in 2021 compared to 207 in 2017, according to findings recently published in the journal Pediatrics. Another study published in Clinical Toxicology showed similar results, with a staggering 245% increase in cannabis abuse among adolescents since 2000.
The newly reported case of a child being taken to the hospital after taking a THC edible at a Phoenix elementary school proves the point.
Two sixth graders took the edibles, according to fire crews who were called to Shaw Butte Elementary School near 21st Avenue and Peoria, reported Fox 10 Phoenix. While one student went home, the other was hospitalized in stable condition.
More Regulation Needed
Certain states are coming up with rules to offset the trend. New York, for example, forbids marketing and advertising that "is designed in any way to appeal to children or other minors" after it legalized marijuana in March 2021 (it is still pending the adoption of rules regarding the use of cartoons and neon colors).
Cannabis is still considered an illegal substance on the federal level, and those raising concerns about various aspects of the industry seem to be in an endless loop.
Cannabis businesses that are taking advantage of the shady situation use several illegal advertising tactics, such as glamorization and testimonials, according to a study by University at Buffalo (UB) — recently published in the journal Cannabis and Cannabinoid Research — that compared cannabis marketing policies in Canada and among U.S. states.
"The United States has inconsistencies compared to Canada when it comes to cannabis marketing and advertising regulations," Natasha Allard, the paper's lead author, said. "While Canada has a federal Cannabis Act that provides structured guidance for those in the cannabis industry to communicate about the product in a way that protects vulnerable populations, many states in the U.S. tend to be vaguer in their policies."
Allard, a PhD student in the Department of Community Health and Health Behavior in UB's School of Public Health and Health Professions, also emphasized that lack of guidance is a window to creating many public health harms, including "youth being targeted with messaging or the spread of misinformation and false claims."
Some operators like Cronos Group Inc. CRON have been addressing the issue with various initiatives, calling for greater responsibility in advertising marijuana. But, with parents being the kids' first and foremost influence, officials are tireless in urging them to use cannabis responsibly.
Products that look like they're marketed to kids are likely "illicit," Lyla Hunt, New York's state Office of Cannabis Management's deputy director of public health and campaigns, told the AP, stressing the need for "a compliant industry, strong regulations" and parental oversight.
Photo: Courtesy of Ramdlon, ganjaspliffstoreuk by Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.