Vermont Eases Path on Cannabis Marketing After Lawsuit Settlement

24 September 2025

Vermont’s Cannabis Control Board (VCCB) will revise its marketing guidance following the settlement of a lawsuit brought by a licensed retailer that challenged the state’s advertising restrictions (Title 7 VSA 864). The suit argued that rules requiring lengthy health warnings and prohibiting samples and prizes burdened speech and harmed sales. The plaintiff also said the rules differed from approaches used for other regulated products.

Under the settlement announced this month, the Board said it will change its guidance for dispensary marketing. The agreement follows continuing debate over Vermont’s advertising framework, which restricts language, imagery, and audience targeting with the goal of minimizing youth exposure.

• Retailers and growers have called for loosening certain requirements, citing operational challenges and the need to communicate with adult consumers.

The case adds to a broader conversation about balancing public health priorities with the needs of licensed businesses in a small, craft-focused market. Clarified guidance could affect how dispensaries design labels, websites, and social media posts, and could influence the ability of retailers to conduct promotions that comply with state rules.

• For consumers, any changes would not alter purchase eligibility but may affect how product information and safety warnings are presented.
• For regulators, the settlement provides an opportunity to update instructions without changing the underlying statute.