New Scheduling for Cannabis + Advertising Implications [2026]

The cannabis industry has been receiving a lot of attention in the news cycle lately as the government continues to determine regulation laws. In a constantly shifting landscape, cannabis brands are under more pressure than ever to learn how to adjust their advertising campaigns and comply with all necessary restrictions.

At Alluvit Media, we’ve helped launch a number of dispensary billboard campaigns and can help cannabis brands navigate a complex sea of marijuana advertising regulations and restrictions. Laws not only differ from state to state but even within local municipalities, so working with experts who know their way around the industry is key to staying above board.

Keep reading to learn what’s changed and what you need to do about it.

The Justice Department’s Latest Announcement

In April of 2026, the Justice Department announced an order immediately placing both FDA-approved products containing marijuana and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act. They also expedited the administrative hearing process to consider the broader rescheduling of marijuana from Schedule I to Schedule III. This hearing is currently underway and is expected to conclude mid-July.

What’s the Difference Between Schedule I and Schedule III?

Schedule I substances are defined by the United States Drug Enforcement Administration (DEA) as “drugs with no currently accepted medical use and a high potential for abuse.” On the other hand, the DEA defines Schedule III substances as “drugs with a moderate to low potential for physical and psychological dependence.”

Why Does It Matter?

If the decision is made to move cannabis to Schedule III, it will hugely boost the cannabis industry, as it means businesses would be able to deduct their business expenses from federal taxes. This would make cannabis businesses more profitable, allowing them to grow and expand. It also further legitimizes the cannabis industry, making it more publicly accessible.

What Does This Mean for Advertisers?

Schedule I substances and Schedule III substances are subject to different advertising regulations. With FDA-approved products containing marijuana and marijuana products regulated by a state medical marijuana license being moved to Schedule III, cannabis brands now have the ability to advertise more freely, though regulations still remain.

How to Legally Advertise Schedule III Drugs

Under Schedule III, marijuana products would be considered prescription drugs. As such, advertising these products requires compliance across a number of different areas:

1. True Statements: Advertisements are required to include the drug’s established name, formula, side effects, contraindications, and effectiveness.
2. Fair Balance: Both the drug’s risks and benefits must be made clear, with no material facts omitted.
3. CSA Labeling: Marketing materials must comply with controlled-substance labeling, including a required warning indicating that transferring the drug to anyone other than a patient is a crime.

Drug manufacturers are also typically required to submit specimens of advertisements to the FDA upon publication. Members of the cannabis industry promoting products that haven’t yet received formal FDA approval may be viewed as promoting illegal activity if their products are not federally compliant.

State Advertising Regulations for Cannabis Products

Each state has different laws and regulations surrounding cannabis products. Currently, there are four basic categories of cannabis legality: Legal for Adult Use, Legal for Medical Use, Limited Legal Use, and Not Legal. The states within each category are as follows:

Legal for Adult Use:

1. Washington
2. Oregon
3. California
4. Nevada
5. Alaska
6. Arizona
7. New Mexico
8. Colorado
9. Montana
10. Minnesota
11. Michegan
12. Illinois
13. Missouri
14. Ohio
15. Virginia
16. Maryland
17. New Jersey
18. New York
19. Connecticut
20. Rhode Island
21. Massachusetts
22. Maine

Legal for Medical Use:

1. Vermont
2. New Hampshire
3. Pennsylvania
4. West Virginia
5. Kentucky
6. Florida
7. Alabama
8. Mississippi
9. Delaware
10. Louisiana
11. Arkansas
12. Oklahoma
13. Nebraska
14. North Dakota
15. South Dakota
16. Utah
17. Hawaii
18. Limited Legal Use:
19. Texas
20. Iowa
21. Georgia
22. Not Legal:
23. Idaho
24. Wyoming
25. Kansas
26. Wisconsin
27. Indiana
28. Tennessee
29. North Carolina
30. South Carolina

It’s not necessary to memorize every detail about each state’s cannabis advertising regulations, especially as there is so much variety even within different parts of a single state. However, it’s smart to understand the basic categories that each state can fall within.

When you work with an expert advertising agency to craft your campaign, you don’t have to worry about any of the details: you can trust that the experts have it taken care of and will ensure that your ad is fully compliant to all regulations, no matter where it’s located.

Common Outdoor Advertising Restrictions for Cannabis Brands

Within the cannabis industry, there are several common advertising restrictions that out-of-home (OOH) advertising campaigns run into:

1. States that prohibit all outdoor cannabis marketing (Primarily the states wherein cannabis use is illlegal)
2. States that allow outdoor cannabis ads, but place restrictions on content
3. States that allow outdoor cannabis ads, but only in certain locations
4. States that allow outdoor cannabis ads only if approved 30 days before the campaign launch

While this list is far from comprehensive, it gives you a solid starting point as to a few of the key things to be aware of when planning your next advertising campaign launch.

Craft a Compliant Cannabis Marketing Campaign With the Team at Alluvit Media

The cannabis industry is constantly shifting and changing. As regulatory practices continue to involve, there’s nothing more valuable than being able to partner with a team of experts who know the industry inside and out and believe in your business just as much as you do.

At Alluvit Media, we’ve launched countless dispensary billboard campaigns across the country. We know how to create ads that capture and convert while also staying compliant, and we’d love to partner with your business to build brand trust and deepen customer awareness through OOH advertising.

Want to learn more? Contact us today to receive your free proposal.

FAQs

What does rescheduling cannabis mean?

“Rescheduling” refers to the Department of Justice’s reclassification of approved marijuana products from Schedule I (unsafe/high risk of abuse) to Schedule III (safe for medical use/low risk of abuse). This is an important distinction for marketers to understand, so they can advertise cannabis in compliance with government regulations.

How does cannabis’ new schedule affect advertising?

When it comes to marketing and advertising cannabis, the reclassification from Schedule I to Schedule III doesn’t immediately lift every restriction, but it does make the process a little easier. The change should improve the perception of cannabis and make your audience easier to reach in the long run. It’s also a move toward even more policy improvements in the future.

Can I advertise cannabis on billboards if it’s Schedule III?

Cannabis billboards are allowed by some states and forbidden by others, and the reclassification to Schedule III doesn’t change thi