Twilio Dumps Cannabis Industry, Messaging API Platform Says Weed Companies Violate Fed Law

Twilio TWLO one of the nation’s largest communications-service providers for retailers, is banning cannabis companies from using its software to reach customers, MJBizDaily confirmed.

The San Francisco-based company provides a communications platform and software that helps companies talk to their customers via text, voice and video.

A company spokesperson said the sale or promotion of cannabis via Twilio’s platform violates “long-standing” policies under federal law.

“If we discover a customer is violating the law or another provision of our policies, we take the action necessary to stop the activity, up to and including account suspension.”

MJBiz author Chris Casacchia noted, “Given Twilio’s size and market position, the company might have found it easier to cut ties with the industry rather than risk regulatory scrutiny.” He pointed out the Twilio exceeded $1 billion in sales in the June quarter and has a market cap of nearly $11 billion.

According to the company’s list of restricted-use cases, marijuana, CBD and accessory-products companies are prohibited from utilizing its SMS or MMS text messaging in the U.S. or Canada, “regardless of the federal or state legality.”

Twilio did not disclose when the policy took effect or its previous business dealings with marijuana operators, says MJBiz, though it indicated more than a year it was joining the likes of T-Mobile TMUS and AT&T T in banning such services, according to the National Cannabis Industry Association.

Other categories banned by the San Francisco-based company include:

• High risk financial services, such as cryptocurrency.
• Debt collection or forgiveness.
• Gambling.
• Sex, firearms and tobacco.

Another Blow To The Cannabis Industry

In late July Mastercard MA shocked the cannabis industry when it banned marijuana transactions on its debit cards. The action forced cannabis shops to go back to all-cash operations, making them vulnerable to robberies or worse. Armed robberies at weed shops in Washington state reached an all-time high in 2022.

Many in the industry are concerned that Visa V will follow suit.