U.S. markets closed

Facebook Relaxes Cannabis Ad Policy Just A Tad

Jayson Derrick

Facebook, Inc. (NASDAQ: FB) eased its policy on CBD companies advertising on its platform ever so slightly, according to a June 26 report from Digiday.

Facebook never specifically called out CBD or ingestible hemp as products companies can't advertise, which created some frustration among CBD brands. An agency source close to Facebook told Digiday companies will now be allowed to advertise topical hemp campaigns so long as it directs the user to pages that feature either ingestible hemp or topical CBD.

Advertising campaigns still aren't allowed to specifically feature the products and there is no guarantee that ads which follow Facebook's guidelines will be approved in the first place.

“Our policy remains the same: We don’t allow people to promote CBD or ingestible hemp on Facebook. The update to non-ingestible hemp was made months ago,” a Facebook spokesperson told DigiDay after its article was published.

See Also: CBD Is Invading Over-The-Counter Retail Stores - And Consumers Love It

"Facebook more than ever is having more and more of their reps saying they need placement so they're going to be forced to clarify," Andrew Hemmingway, president of Toasted Collective, told Digiday. "A lot of these companies are selling hemp-derived and primarily they're selling creams, rubs, patches, but Facebook had been staying completely away from it."

Analysts at Cowen estimated in a May report that CBD users will expand to 10% of the U.S. adult population which equates to 25 million consumers.

Need more cannabis news? Check out all of our coverage here.

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.