Crackdown on Texting an ‘Attack’ on Legal Cannabis Industry, Trade Group Says

The National Cannabis Industry Association (NCIA) is considering legal action as its members complain they are being routinely shut out of text messaging services, even in states where cannabis is now legal. 

In a Tuesday letter to members, NCIA Deputy Director of Public Policy Rachel Kurtz-McAlaine said the trade group had been made aware of text messaging service interruptions, and even complete shutdowns, for businesses trying to do cannabis marketing and order fulfillment. 

She said a number of SMS platforms, including AT&T, Twilio, Avochato, & T-Mobile, had already announced they were terminating services for cannabis companies, with some citing federal regulations.

“We have been working with legal experts to better understand what is happening, and we have the potential to fight this attack on the legal cannabis industry if there is enough interest,” Kurtz-McAlaine said.

As the burgeoning cannabis industry faces restrictions on advertising in the states where it is legal, many companies have been turning to SMS to stay in touch with their customers. 

Kurtz-McAlaine said Twilio in particular was an important platform for major players in the industry, because it provides niche technical platforms for services like delivery, marketing and loyalty points.

“Numerous businesses throughout the cannabis industry rely on those platforms to reach their customers and to better facilitate delivery and order pickups,” she said.

However, Twilio has made it clear on its website that it does not want to work with cannabis companies.

“SMS or MMS messages related to cannabis are not allowed in the United States, as federal laws prohibit its sale, even though some states have legalized it,” it says on its website, adding that it doesn’t allow CBD marketing, either. 

Kurtz-McAlaine said the crackdown on cannabis-industry text messages came on the heels of new telecommunications regulations introduced to reduce spam.

The new 10DLC regulations require businesses using an app to text to register their brand and messaging before they are approved to send texts, Twilio said.

“Telecommunications companies have used it as an excuse to exclude legally regulated cannabis companies, or at least significantly interfere with their operations,” Kurtz-McAlaine said.

Meanwhile, cannabis businesses have also faced a wave of class action lawsuits brought under the Telephone Consumer Protection Act, which was enacted to stop companies from invading people’s privacy and engaging in unwanted and annoying telephone solicitation.

If you received a text message from a marijuana dispensary after texting “stop,” you may qualify for a free class action lawsuit claim review.

In March, Purple Lotus, a California cannabis dispensary, was accused of “aggressive unsolicited” telemarketing in a nationwide class action lawsuit filed in federal court.

In January, marijuana dispensary customers reached a settlement with several dispensaries in California and Colorado to resolve claims the businesses sent unwanted texts.

Do you think the cannabis industry should be allowed to send text messages like other businesses? Let us know in the comments. 

Read About More Class Action Lawsuits & Class Action Settlements:

• Do You Qualify: Marijuana Dispensary Text Message Spam Lawsuit Claim Review
• Cannabis Dispensary Roots RX Violated Privacy With Unwanted Texts, Class Action Alleges
• Do You Qualify: Text Message Spam, Pre-recorded Messages, Telemarketing Calls Class Action Lawsuit Investigation
• Class Action Lawsuit Accuses Dispensary of Aggressive, Illegal Telemarketing