A small dispensary in Mississippi, Tru Source, is facing challenges due to the state’s advertising ban on medical cannabis, according to owner Clarence Cocroft, who has filed a federal lawsuit asserting that the law infringes on his free speech rights. Despite the legality of medical marijuana for qualified individuals holding a medical cannabis card, state regulations prevent dispensaries and cultivators from advertising their products.
“It’s a daunting task to stay in the industry when you can’t advertise,” Cocroft stated. He believes that if the state allows dispensaries to be licensed, they should also permit them to promote their businesses, as it impacts economic growth.
Tru Source: A Pioneer in Mississippi’s Medical Cannabis Market
Cocroft, the owner of Tru Source, Mississippi’s first Black-owned medical cannabis dispensary located in Olive Branch, filed the lawsuit on November 14 against the Mississippi State Department of Health, the Mississippi Department of Revenue, and the Mississippi Alcohol Beverage Control Bureau.
To establish a dispensary in Mississippi, individuals must secure a dispensary license, register for a sales tax permit, and pay substantial fees. To enter a dispensary, one must possess a medical cannabis card and be over 21 years old.
“We’re paying a lot of taxes and following all the rules. All we’re asking is simple: allow us to advertise. It could increase the tax revenue for the state,” he said.
Impact of the Advertising Ban on Business
Currently, Tru Source relies on its website, word-of-mouth referrals, and signage for advertising. However, Cocroft cannot utilize any other advertising channels, which has limited awareness and customer reach.
“It’s not just my location that is affected. Every dispensary in Olive Branch and across all 82 counties faces similar restrictions,” he explained.
The Institute for Justice, a national nonprofit law firm, is representing Cocroft in this case. Attorney Katrin Marquez highlighted the contradictions in the state’s approach to advertising regulations. While inappropriate advertising targeted at children or making false health claims is regulated, an outright ban on advertising medical cannabis is seen as excessive.
A Call for Equal Treatment in Advertising
Cocroft previously sought to use billboards to promote his dispensary but found himself leasing those spaces to businesses like casinos that can legally advertise. Although the lawsuit has started to bring in new customers, Cocroft believes he is still not tapping into a significant potential market, noting that around 30,000 individuals in Mississippi hold medical cannabis cards.
He expressed concern that the advertising ban negatively affects not only dispensary owners but also cultivators who might see reduced sales if dispensaries can’t effectively market products. “It’s a no-win situation for the cannabis industry in Mississippi,” Cocroft commented.
Investment in the state’s medical cannabis sector, according to Cocroft, has cost dispensaries, cultivators, and associated businesses millions of dollars while providing crucial services to patients. “You become an entrepreneur in a field that has historically led to criminalization. Now that it’s legal, why not allow businesses to thrive?” he questioned.
Legal Precedents and Censorship Concerns
The Rohrabacher-Farr Amendment, enacted in 2014, prevents federal prosecution of medical marijuana operations in states where such programs exist, allowing states to manage their cannabis laws independently. Marquez argued that neither state nor federal laws support the current advertising censorship.
The outcome of Cocroft’s case could have wider implications for various regulated businesses. Marquez pointed out the arbitrary nature of treating cannabis businesses more stringently than others such as alcohol or casino establishments, which can freely promote their services.
Cocroft raised a pertinent question: “If Walgreens can advertise prescriptions for opioids, why can’t Tru Source and other cannabis dispensaries in Mississippi do the same?”
The Mississippi Free Press reached out to relevant state agencies for comments regarding the ongoing lawsuit, but received no responses before publication.
