Why did Ohio fine marijuana companies $212,500 this summer?

When it comes to marketing and/or advertising marijuana in Ohio, the state must authorize everything.

Since the opening day of recreational marijuana sales on Aug. 6, customers have spent $44 million at dispensaries. $11 million of that was during the fourth week of sales.

The rollout of recreational marijuana has cost five companies $212,500 in marketing infractions.

The Ohio Department of Commerce provided News 5 with documentation detailing each penalty.

Greenleaf Apothecaries, doing business as The Botanist: $150,000 + $12,500 penalty

The Botanist owns five dispensaries across Ohio from Akron to Columbus. It's owned by a New York-based company called Acreage Holdings.

In June, the business’ website featured a header saying, “ Can you take me higher? ”

Documents show The Botanist hadn’t been issued a certificate for adult use marijuana sales as of then. It also “failed to submit the marketing statement and advertisement to the Division for pre-approval.”

According to state law , a dispensary cannot use a name, logo, sign or advertisement unless submitted to the state and the applicable advertising fee has been paid.

The Botanist was fined $12,500 for that infraction.

Both parties signed a Consent Agreement, and the fine was paid within 14 days of July 26.

The Botanist was then cited again for allowing an ice cream truck vendor to distribute food and beverages on dispensary premises on August 6, according to Division of Cannabis Control records.

A social media post by The Botanist was also reportedly posted with the caption, “Free Ice Cream.”

Documents reveal The Botanist also displayed external signage larger than 16 by 18 inches that wasn’t attached to the dispensary’s permanent structure.

The social media post, food vendor, and unattached external signage cost The Botanist $150,000.

Greenleaf Apothecaries was given the option to negotiate the fine within 30 days.

News 5 reached out for an interview but didn’t hear back prior to publication.

Standard Farms: $12,500

Standard Farms is a medical marijuana processor in Garfield Heights.

In July, the Ohio Department of Commerce discovered an email sent from Standard Farms containing a statement that it had received “ our Dual-Use License Approval for Adult Use/Recreational Sales !” and included “ some HIGHlights below! ”

Records indicate Standard Farms failed to submit the statement as an advertisement to the Division of Cannabis Control prior to hitting send.

Standard Farms had also not been issued a certificate of operation for adult use of marijuana as of then.

A Consent Agreement ordered Standard Farms to pay $12,500 within 14 days of August 6.

News 5 reached out for an interview but didn’t hear back prior to publication.

Guaranteed Dispensary: $12,500

Guaranteed Dispensary is a medical marijuana dispensary operating in Montgomery.

Ohio Department of Commerce documents indicate the agency found Guaranteed Dispensary’s website, where it stated it was a “recreational and medical dispensary.”

However, the Guaranteed Dispensary has not been approved for adult use as of then.

A signed Consent Agreement was dated July 22.

$12,500 was to be paid by the Guaranteed Dispensary within two weeks of the Consent Agreement.

News 5 reached out for an interview but didn’t hear back prior to publication.

Bloom Medicinals: $12,500

Bloom Medicinals has dispensaries from Akron to Columbus. It’s owned by a Florida-based company.

In mid-June, the Ohio Department of Commerce notes it discovered an unattached billboard sign larger than 16 in. by 18 in. advertising “Bloom Medical Marijuana.”

The billboard was reportedly not submitted to the state for pre-approval.

“After six years of operating in Ohio, this was our first infraction and first fine. It was a complete oversight. We took full accountability for it,” the Bloom Medicinals Vice President of Marketing, Missy Starr, told News 5.

The detached sign in question was removed, and Bloom agreed to get pre-approval moving forward.

“The process is we basically submit [marketing/advertisement statements]. Sometimes it gets approved right away, sometimes we enter something called remediation where they just need a little bit more information from us,” Starr explained. “They've been pretty easy to work with and things are pretty straightforward.”

Starr said Bloom Medicinals has not revisited the idea of another unattached billboard since.

“I come from a world of digital marketing. I've been doing it for 25 years and by far cannabis in any state, it comes with its challenges,” stated Starr. “I think educating the public and making people feel really comfortable when they walk in – that's the most important thing to us.”

Bloom Medicinals was fined $12,500. It was ordered to pay the fine within two weeks of July 19.

Green Thumb Industries (GTI), doing business as The Rise: $12,500

The Rise is located in five areas across Ohio, including Cleveland and Toledo.

Ohio Department of Commerce records show GTI sent an email to some of its current patients in early June that it would soon be open to both recreational and medical guests.

The email was not reportedly approved by the state.

Within three hours of the email being sent, GTI became aware that the email was inaccurate and began working to correct the error.

According to state documents, a correction notice was emailed out a half-hour after that.

On June 8, the state learned of the email and deemed the use of the term “recreational” when referring to adult-use marijuana as “inappropriate.”

According to the Ohio Revised Code, “The state of Ohio has a compelling interest in ensuring that any advertisement or marketing campaigns related to or involving medical marijuana does not encourage, promote, or otherwise create any impression… that recreational marijuana use had any potential health or therapeutic benefits.”

GTI was fined $12,500 and expected to pay by June 24.

GTI was also required to post signage on its doors and website clarifying the status of adult-use marijuana.

News 5 reached out for an interview but didn’t hear back prior to publication.

Ohio Department of Commerce response

" The Division has initiated enforcement actions against several licensees who have violated program advertising rules. All licensees fully understand they are required to adhere to the medical rules for advertising, and violations of this directive are being taken seriously. The Division continues to monitor licensees for compliance with all program rules to ensure a level playing field for all licensees," the Department of Commerce Public Information Officer, Jamie Crawford, said.