Daniels Fund Ethics Initiative
University of New Mexico
http://danielsethics.mgt.unm.edu
Debate
The Ethics of Marijuana Advertising
Issue: Should marijuana be advertised where it is legally sold?
Marketers in any vice industry face political, legal, and sociocultural challenges when communicating the message
of their brand or product. Marijuana is no exception. The legalization of cannabis for recreational use in Colorado
and Washington has created both opportunities in a new market as well as uncertainties associated with
advertising to this market. The media industry as a whole is averse to promoting recreational marijuana use due to
its controversial nature. While two states have legalized this activity and others are planning on putting the issue
to a vote, federal law still considers it to be illegal. Marijuana retailers are technically considered to be narcotics
traffickers, and marketers for the substance can be held as accomplices to criminal activity.
Google, one of the main online advertising outlets, has long restricted searches related to drugs out of its own
conviction. Other advertising channels, such as newspapers and billboards, are legally restricted from accepting
advertising money related to drugs. This is true in cities where the substance is legal for both recreational and
medicinal use. These laws work to protect underage individuals from seeing the advertisements and sparking their
interest in drug use. For example, Colorado laws state that any kind of mass media advertising that has the
potential to reach 30 percent or more individuals under the age of 21 is restricted. Online content that does not
block minors’ access cannot contain marijuana advertising. Signage, flyers, and leaflets are also restricted as their
reach cannot be controlled. Similar advertising regulations apply in Washington as well.
However, some startup advertising agencies are emerging to help marijuana retailers with their advertising.
Seattle-based Mirsky Media is one such company, whose services include search engine optimization, Web page
design, marketing consulting, and obtaining advice on how to get good feedback on the review website Yelp. There
are other methods that marijuana retailers use to promote themselves as well. Sponsoring charity walks, sporting
events, and live concerts have been an effective means of public relations for some dispensaries.
Despite these legal restrictions in advertising, the question as to whether marijuana dispensaries should advertise
their products remains. On the one hand, they are a legal business in Colorado and Washington, and it is their
ethical duty to generate a profit. But is this profit generated to the detriment of society? Some argue that the
legality of the issue does not mean that it should be promoted. The use of marijuana is linked to side effects,
including memory loss, a tendency toward depression, and a lack of motivation. It is also linked to m.
Daniels Fund Ethics Initiative University of New Mexico .docx
1. Daniels Fund Ethics Initiative
University of New Mexico
http://danielsethics.mgt.unm.edu
Debate
The Ethics of Marijuana Advertising
Issue: Should marijuana be advertised where it is legally sold?
Marketers in any vice industry face political, legal, and
sociocultural challenges when communicating the message
of their brand or product. Marijuana is no exception. The
legalization of cannabis for recreational use in Colorado
and Washington has created both opportunities in a new market
as well as uncertainties associated with
advertising to this market. The media industry as a whole is
averse to promoting recreational marijuana use due to
its controversial nature. While two states have legalized this
activity and others are planning on putting the issue
to a vote, federal law still considers it to be illegal. Marijuana
retailers are technically considered to be narcotics
traffickers, and marketers for the substance can be held as
accomplices to criminal activity.
Google, one of the main online advertising outlets, has long
restricted searches related to drugs out of its own
conviction. Other advertising channels, such as newspapers and
billboards, are legally restricted from accepting
advertising money related to drugs. This is true in cities where
2. the substance is legal for both recreational and
medicinal use. These laws work to protect underage individuals
from seeing the advertisements and sparking their
interest in drug use. For example, Colorado laws state that any
kind of mass media advertising that has the
potential to reach 30 percent or more individuals under the age
of 21 is restricted. Online content that does not
block minors’ access cannot contain marijuana advertising.
Signage, flyers, and leaflets are also restricted as their
reach cannot be controlled. Similar advertising regulations
apply in Washington as well.
However, some startup advertising agencies are emerging to
help marijuana retailers with their advertising.
Seattle-based Mirsky Media is one such company, whose
services include search engine optimization, Web page
design, marketing consulting, and obtaining advice on how to
get good feedback on the review website Yelp. There
are other methods that marijuana retailers use to promote
themselves as well. Sponsoring charity walks, sporting
events, and live concerts have been an effective means of public
relations for some dispensaries.
Despite these legal restrictions in advertising, the question as to
whether marijuana dispensaries should advertise
their products remains. On the one hand, they are a legal
business in Colorado and Washington, and it is their
ethical duty to generate a profit. But is this profit generated to
the detriment of society? Some argue that the
legality of the issue does not mean that it should be promoted.
The use of marijuana is linked to side effects,
including memory loss, a tendency toward depression, and a
lack of motivation. It is also linked to more positive
side effects such as slowing the progression of Alzheimer’s,
reducing the spread of cancer, and controlling epileptic
seizures. Despite these linkages, adequate research has not been
3. compiled to make any definitive claims.
There are two sides to every issue:
1. Advertising for recreational marijuana should be legal in
states where its use has been
legalized.
This material was Michelle Urban under the direction of O.C.
Ferrell and Linda Ferrell. It is provided for the Daniels Fund
Ethics Initiative at the
University of New Mexico and is intended for classroom
discussion rather than to illustrate effective or ineffective
handling of administrative,
ethical, or legal decisions by management. Users of this
material are prohibited from claiming this material as their own,
emailing it to others,
or placing it on the Internet. Please call O.C. Ferrell at 505-277-
3468 for more information. (2014)
2
2. Because recreational marijuana use can be a detriment to
society, advertising for
recreational marijuana should be prohibited.
Sources:
Bruce Kennedy, “Ad Agencies Prepare for the Legal Marijuana
Market,” CBS News, January 6, 2014,
http://www.cbsnews.com/news/ad-
4. agencies-prepare-for-the-legal-marijuana-market/ (accessed
January 14, 2014).
Eleazar David Melendez, “Marijuana Doesn’t Just Sell Itself, As
Marketers Face Resistance From Google, Media Companies,”
The Huffington
Post, August 30, 2013,
http://www.huffingtonpost.com/2013/08/30/marijuana-
marketers_n_3832448.html (accessed January 14, 2014).
Melanie Williamson, “Legalized Weed Means Changes for
Digital Marketing Strategies,” Josic, January 14, 2014,
http://www.josic.com/legalized-weed-means443-changes-for-
digital-marketing-strategies (accessed January 14, 2014).
Anne Holland, “Recreational Marijuana Retailers to Face Major
Advertising Restrictions in Colorado,” Marijuana Business
Daily, September 17,
2013, http://mmjbusinessdaily.com/recreational-marijuana-
retailers-to-face-significant-advertising-constrictions-in-
colorado/ (accessed
January 14, 2014).
Jacob Sullum, “6 Ways Washington’s Marijuana Rules Are
Looser Than Colorado’s,” Reason, July 5, 2013,
http://reason.com/blog/2013/07/05/6-ways-washingtons-
marijuana-rules-are-l (accessed January 14, 2014).
Jennifer Welsh, Dina Spector, and Randy Astaiza, “The
Positives and Negatives: How Marijuana Affects Your Brain
and Body,” thejournal.ie,
January 11, 2014, http://www.thejournal.ie/marijauan-health-
effects-legalised-medical-negative-positve-1256236-Jan2014/
(accessed
January 14, 2014).
6. Debate
Is Gambling Harmful To Our Society?
ISSUE: Do the economic benefits gained from the gaming
industry outweigh the damage
that gambling inflicts on those who are addicted?
“Gambling” is the wagering of money or property on the
outcome of a game or event that is largely random with
the intent to win more money or property. “Gaming” refers to
the industry created by the activity of legal
gambling. Examples of gambling and gaming include lotteries,
poker and other table games, slot machines, other
casino games, horse racing, and online gambling. In 2009, the
global legal gambling market was worth over $335
billion, with lotteries and casinos generating most of that
revenue. Proponents of gaming argue that the industry
generates much-needed revenue for state and local governments
and provides psychological benefits. However,
critics claim that gaming is addictive, provides few societal
benefits, and drains resources from society.
Gaming supporters argue that regulated and legal gambling
provides both psychological and economic benefits.
Some psychologists claim that gambling brings out the “fortune-
hunter” within us, creates opportunities to
exercise control, and helps people to release tension and stress.
7. Others believe that going to a casino is a form of
entertainment, similar to attending a movie, show, or sporting
event. According to a 2011 public opinion poll, 82
percent of Americans believe that casino gaming is acceptable
for themselves or others.
Proponents also argue that gambling adds significant economic
value to communities in the form of employment
opportunities and higher tax revenue. The American Gaming
Association argues that gaming is “vital to the states
and communities where it operates, creating jobs and business
opportunities for local businesses and providing
direct gaming tax revenues to stimulate struggling economies
and help communities grow.” In 2010, casinos
generated over $34.6 billion in revenues and paid $7.59 billion
in taxes to state and local governments. The tax
rate on gaming revenue varies from state to state, ranging from
6.75 percent in Nevada to 55 percent in
Pennsylvania. The tax revenues from gaming help states pay for
projects like education, infrastructure, economic
development, and other state-funded services.
Gaming also helps many communities to create local jobs and
grow their tourism industries. According to the
National Opinion Research Center (NORC) at the University of
Chicago, welfare payments and unemployment rates
8. are 12 to 17 percent lower in the communities that are closest to
casinos. Hotels, spas, golf courses, shopping
districts, restaurants, and other entertainment venues often
develop or expand near successful casinos. The NORC
found that the hotel and lodging revenues in communities near
casinos are 43 percent higher than in communities
without casinos.
However, critics of the gaming industry claim that gambling is
harmful to individuals and society. Casinos and
lotteries are profit-driven businesses; they use sophisticated
techniques to ensure that the “house” wins the
majority of the time. However, the gaming industry implies that
“winning big” is more probable than it really is.
Thus, people with little money are often attracted to gambling
because it gives them the feeling that they will hit
the jackpot.
The positive psychological effects of gambling can be addictive,
especially for pathological gamblers. The American
Psychiatric Association defines pathological gambling as a
clinical disorder characterized by a persistent and
recurring failure to resist gambling behavior that is harmful to
the individual and concerned others. Studies suggest
9. that pathological gamblers make up about 1 percent of
American adults. The social ills associated with problem
gamblers are widespread and often go beyond an addition to
gambling. Problems with gambling can lead to
bankruptcy, crime, domestic abuse, and even suicide. A single
bankruptcy could potentially impact 17 people. The
National Council on Problem Gambling estimates that gambling
addictions cost the U.S. $6.7 billion annually, and
some experts believe that cost could be even higher.
Many critics don’t believe that state and local governments take
responsibility for the social problems generated
by the gaming industry. Sam Skolnik, a former gambling addict
and author of High Stakes: The Rising Cost of
America’s Gambling Addiction argues that although many states
use some gambling revenues to treat and prevent
gambling additions, this may not be enough. He says,
“Essentially, [legislators are] admitting that they know they
are creating a class of gamblers who become addicts. If you
know what you’re doing creates problems, is this
appropriate policy?”
There are two sides to every issue:
1. Gambling produces positive psychological and economic
benefits at a relatively low
10. cost to society.
2. Gambling creates social problems that outweigh the benefits
of job creation and tax
revenues.
Sources:
American Gaming Association, “Facts at Your Fingertips: U.S.
Commercial Gaming Industry,” 2009,
http://www.americangaming.org/files/aga/uploads/docs/facts_at
_your_fingertips_12022010.pdf (accessed August 9, 2009).
“2011 State of the States: The AGA Survey of Casino
Entertainment,” American Gaming Association, 2011,
http://www.americangaming.org/files/aga/uploads/docs/sos/aga-
sos-2011.pdf (accessed August 10, 2011).
Sheryl Nance-Nash, “The High Price of America’s Gambling
Addiction,” DailyFinance, July 22, 2011, http://srph.it/pS4TNZ
(accessed August 10,
2011).
“You bet,” Economist, July 8, 2010,
http://www.economist.com/node/16539402 (accessed August 8,
2011).
http://srph.it/pS4TNZ
