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Monday, October 24, 2011

Feds Eye Radio Ads in California

Federal prosecutors are preparing to target radio stations that advertise medical marijuana dispensaries in California. This month, U.S. attorneys representing four districts in California said they would single out landlords and property owners who rent buildings or land where dispensaries sell or cultivators grow marijuana. The media could be their next target.
U.S. Attorney Laura Duffy said marijuana advertising is the next area she's "going to be moving onto as part of the enforcement efforts in Southern California." "I'm not just seeing print advertising," Duffy said in an interview with California Watch and KQED. "I'm actually hearing radio and seeing TV advertising. It's gone mainstream. Not only is it inappropriate ? one has to wonder what kind of message we're sending to our children ? it's against the law."
Federal law prohibits people from placing ads for illegal drugs, including marijuana, in "any newspaper, magazine, handbill or other publication." The law could conceivably extend to online ads; the U.S. Department of Justice recently extracted a $500 million settlement from Google for selling illegal ads linking to online Canadian pharmacies.
Duffy said her effort against TV, radio or print outlets would first include "going after these folks with ... notification that they are in violation of federal law." She noted that she also has the power to seize property or prosecute in civil and criminal court.
Broadcast attorney David Oxenford says California stations should think twice about taking these ads. "Whether or not these prosecutions will be successful on their own may be subject to debate, but broadcasters, as Federal licensees, need to be particularly careful in their actions.  There is rumored to be at least one complaint pending at the FCC against a broadcaster who ran medical marijuana ads.  As an agency of the Federal government, whose Justice Department has said that pot is not a legal drug, the FCC would be hard-pressed to say that it is alright for a station to advertise for a marijuana clinic.  With license renewals now pending or about to be filed by all broadcast stations, the opportunities for more objections, and sanctions based on any such complaint, are many.  So, once again, we caution restraint when a broadcast station is offered the opportunity to make a few dollars from a clinics ads.  The dollars you make may be far overshadowed by the dollars you spend defending a legal action - whether it be before the FCC or before a Federal court."

Seven states, including California, allow for medical marijuana to be distributed in dispensaries, though more than 200 California cities and nearly two dozen counties have bans or moratoriums in place on storefront pot businesses. The industry has otherwise exploded in recent years, including a marked increase in delivery services.

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