Rescheduling 101: Where Things Stand
When the U.S. Department of Health and Human Services (HHS) recommended that cannabis be moved from Schedule I to Schedule III of the Controlled Substances Act, it marked a seismic moment for the industry. The Department of Justice (DOJ) followed by submitting a Notice of Proposed Rulemaking in May 2024, kicking off the formal rescheduling process.
As of mid-2025, hearings and public comments have been ongoing, with industry stakeholders both hopeful and skeptical about the DEA’s final decision. While the timeline is uncertain, most experts agree: cannabis is heading toward Schedule III.
That shift won’t make cannabis fully legal nationwide, but it could dramatically reshape how brands market and advertise in the years ahead.
What Schedule III Means for Cannabis Marketing
Currently, cannabis advertising is severely restricted. Platforms like Meta, Google, and mainstream publishers largely refuse cannabis ads due to its Schedule I status. Rescheduling to Schedule III would bring cannabis under the same regulatory framework as other controlled but prescribable substances, such as ketamine or anabolic steroids.
Here’s what that could mean for cannabis brands:
- Loosening of outright bans. Federal recognition may persuade media platforms to accept cannabis ads, especially in medical or educational contexts.
- FDA oversight. Like prescription drug ads, cannabis marketing could face stricter disclosure and compliance requirements, with clear emphasis on health claims, side effects, and responsible use.
- Access to mainstream media. For the first time, cannabis brands may gain a foothold in television, national magazines, and streaming services—an unprecedented leap for visibility.
This doesn’t mean free rein. If cannabis is treated like other Schedule III drugs, promotional content will be carefully monitored. But moving from prohibition to conditional permission represents a historic turning point.
The Financial Factor: Goodbye, 280E
Perhaps the biggest game-changer for cannabis advertising under Schedule III is financial. Right now, cannabis businesses are shackled by IRS Code 280E, which prevents them from deducting basic business expenses—including marketing.
If cannabis is rescheduled, 280E would no longer apply. Suddenly, brands could write off advertising costs like any other company, freeing up millions of dollars to reinvest in marketing, creative campaigns, and cultural storytelling.
For media outlets, agencies, and culture-driven platforms like Honeysuckle, this could create an influx of new ad spend and partnerships. The cannabis industry’s creative economy might finally get the fuel it deserves.
Industry Pushback and Uncertainty
Of course, rescheduling is not without controversy. Some cannabis companies argue that the DEA has shown bias, even accusing the agency of having “an unalterably closed mind” toward meaningful reform. Legal challenges are ongoing, and shifting political winds could delay or alter the final outcome.
In other words: brands should prepare for change, but recognize that the rules may continue to evolve. Agility and awareness will be as critical as compliance.
Brand Opportunities in the Compliance Era
For cannabis marketers, Schedule III opens new doors—but it also demands a new kind of strategy. The smartest brands will see this as more than just a compliance challenge; they’ll see it as a chance to lead culture.
- Education with authenticity. Like pharmaceutical ads, cannabis marketing may need to highlight science and wellness. But unlike pharma, cannabis has always thrived on storytelling rooted in community, music, art, and lived experience. The winning formula will be blending fact with culture.
- Mainstream crossover. With access to bigger media channels, brands must learn to speak not only to core consumers but also to the curious, new audiences exploring cannabis for the first time.
- Thought leadership. Companies that actively engage in public conversations about policy, ethics, and the cultural meaning of cannabis will earn trust, credibility, and backlinks from major outlets.
In short: advertising in the rescheduling era won’t just be about compliance—it’ll be about creativity.
What Cannabis Companies Should Do Now
Even before the DEA finalizes its decision, cannabis businesses can prepare:
- Invest in compliance systems. Prepare for DEA registration, FDA-style labeling, and strict recordkeeping.
- Build flexible messaging. Develop campaigns that can shift between digital-native storytelling and regulated, FDA-adjacent ad formats.
- Plan budgets strategically. With 280E relief on the horizon, expect to allocate more resources to advertising in 2026 and beyond.
- Center culture, not just products. Regulations may shape the words—but culture shapes the impact.
A Chance to Rewrite the Playbook
Rescheduling cannabis to Schedule III won’t instantly solve every advertising challenge. But it will mark the beginning of a new era where brands can tell their stories with more freedom, legitimacy, and financial backing than ever before.
For years, cannabis companies have relied on grassroots tactics, guerilla marketing, and culture-first creativity to survive. Now, with mainstream access potentially on the horizon, they have the opportunity to rewrite the advertising playbook.
The challenge is clear: embrace compliance without losing authenticity. For brands that get it right, this isn’t just a regulatory shift—it’s the cultural moment they’ve been waiting for.
At Honeysuckle, we believe the future of cannabis advertising won’t just be about following the rules. It will be about shaping culture, telling stories that matter, and ensuring cannabis finds its rightful place in the broader media landscape.
