On December 18, 2024
State News

Vt Cannabis businesses sue over alleged free speech violations

FLŌRA Cannabis, a licensed cannabis retailer in Middlebury, has filed a lawsuit against the Vermont Cannabis Control Board, challenging what it claims are unconstitutional restrictions on free speech rights for the state’s 500-plus licensed cannabis businesses.

The suit, Park Rec LLC v. Vermont Cannabis Control Board et al. (Case No. 24-CV-05027), was filed in Addison County Superior Court’s Civil Division. Represented by attorney A.J. Ruben of Black Bear Legal Services in Pittsfield, FLŌRA’s case seeks to overturn regulations they argue stifle lawful marketing and communication with adult consumers.

According to the lawsuit, Vermont’s regulations require licensed cannabis businesses to submit all public statements for state pre-approval and prohibit them from posting images or descriptions of products on social media. FLŌRA and other businesses say these rules infringe on their constitutional right to free speech, putting them at a competitive disadvantage.

“Instead of narrowly tailoring advertising regulations to prevent harm, Vermont has implemented the most wide-ranging and onerous restrictions on protected speech in the nation,” said Dave Silberman, co-founder of FLŌRA Cannabis. “This effectively muzzles the cannabis industry and prevents us from communicating effectively with adult customers.”

The coalition claims these rules are unique among the 24 states that regulate adult-use cannabis sales, harming not only businesses but also Vermont taxpayers. FLŌRA estimates that restrictive advertising policies have contributed to regulated cannabis sales falling nearly 50% below the Cannabis Control Board’s projections, with customers turning to unregulated and out-of-state markets.

The lawsuit has the backing of a wide array of Vermont’s cannabis cultivators, manufacturers, distributors, and retailers—most of whom operate small, locally owned businesses. Collectively, these businesses pay millions in fees annually while struggling under what they view as unfair and burdensome restrictions.

FLŌRA Cannabis, a prominent name in the industry, opened its doors in downtown Middlebury in 2022 and made Vermont’s first legal adult-use cannabis sale. The company continues to advocate for what it describes as reasonable advertising standards akin to those in place for alcohol and sports wagering.

“We reluctantly filed this lawsuit after years of failed attempts to find a workable compromise with legislators and regulators,” said Silberman. “We’re simply asking to be treated like other regulated industries.”

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