State Platform Compliance & Regulatory Standards · Merch Marketing
Merch Marketing LoyalThread™ + GrowthStitch™ Effective: February 12, 2026

State Platform Compliance
& Regulatory Standards

State-specific compliance guardrails built into Merch Marketing's loyalty and marketing platform for licensed cannabis entities — covering LoyalThread™ (loyalty + rewards) and GrowthStitch™ (communications + automation).

Universal Controls → Disclaimer →

Not legal advice. Final compliance responsibility remains with the licensed entity. State rules may change — clients should consult qualified counsel before launching campaigns.

Section 1

Purpose

Because loyalty programs and promotional communications connected to licensed cannabis entities are treated as advertising and promotional activity, our platform includes state-driven guardrails to support compliant program operation.

21+ Age Gating No Youth Targeting No Medical Claims No Free Cannabis Consent & Suppression Logging Audit Export Readiness
State Profile
⬛ Michigan — Engineering Base Build

Michigan

Michigan is our base compliance profile. All loyalty program surfaces are treated as cannabis advertising. Every other state profile builds on top of this foundation.

Age Restrictions

  • Participation limited to individuals 21+.
  • Age-gated enrollment required before program access.
  • Digital destinations connected to the program follow adult advertising standards.

Advertising & Promotional Guardrails

  • Audience composition must reasonably ensure no more than 30% of the audience is under 21.
  • No medical or therapeutic claims; no disease treatment or cure claims.
  • No youth-appealing designs; avoid cartoons, toys, childlike themes.
  • No depictions of overconsumption or intoxication.

Proof of Purchase Rewards

  • Points awarded after consumer submits proof of purchase (unique code or receipt).
  • Post-purchase issuance only — not at point of sale.
  • Fraud controls: one-code-one-redemption, rate limits, anomaly review workflow.

Rewards & Redemptions

  • Allowed: non-cannabis merchandise, experiences, digital perks.
  • Prohibited: free cannabis products, cannabis giveaways, zero-dollar cannabis line items.
  • Discount rewards (if used) must be executed as a retailer sale and must not net cannabis to free.

SMS & Email Communications

  • Marketing SMS requires prior express written consent with opt-out instructions.
  • Email must include unsubscribe functionality.
  • Consent artifacts are stored with timestamps and suppression propagates across automations.

Logging & Audit Readiness

  • Consent artifacts: form snapshot, IP, user agent, timestamp, disclosure text version.
  • Campaign records: audience composition proof, creative approval notes, publish dates.
  • Accrual and redemption ledgers; code validation logs; export pack generation.
State Profile
⬛ Illinois

Illinois

Illinois follows the Michigan base build with additional creative, placement, privacy, and activation requirements.

Creative Restrictions

  • No cannabis leaf or bud imagery in advertising or promotional materials.
  • No depictions of consumption.
  • No youth-appealing designs — cartoons, toys, candy-style graphics, childlike language.
  • No medical or therapeutic claims.

Placement Restrictions

  • Advertising cannot be placed within 1,000 feet of schools, playgrounds, parks, libraries, or childcare facilities.
  • Campaign placement should be reviewed for proximity compliance before launch.

Retail Privacy Posture

  • The program must not require PII capture at point of sale.
  • Points can be earned via consumer submission of proof-of-purchase after purchase, respecting anonymous purchase rules.

In-Store Activations

  • If in-store promotional events occur, dispensaries may need to file vendor notice at least three business days in advance.

Note: All Michigan prohibitions remain in effect, including no free cannabis, no zero-dollar cannabis line items, and retailer-executed discount validation.

State Profile
⬛ Nevada

Nevada

Age Restrictions

  • 21+ participation required.
  • Age-gated landing pages required.

Advertising Requirements

  • No targeting of minors.
  • No medical or therapeutic claims.
  • Advertising must not be false or misleading.
  • Outdoor and placement restrictions may apply depending on venue.

Rewards & Redemptions

  • Allowed: non-cannabis merchandise; properly structured retail discounts.
  • Prohibited: free cannabis products; cannabis giveaways.
  • Redemption must comply with retail sale limits.

Communications & Privacy

  • SMS requires prior express written consent.
  • Email must include unsubscribe.
  • Maintain consent and communication logs; data protection and breach rules apply.

Sweepstakes / Chance Promotions

  • No cannabis prizes.
  • No Purchase Necessary method required where sweepstakes are used.
State Profile
⬛ Washington

Washington

Age Restrictions

  • Participation limited to 21+ with age-gated digital access.

Advertising & Promotions

  • No targeting minors.
  • No medical claims.
  • Strict outdoor advertising restrictions apply.
  • Retailers may have restrictions on advertising price promotions in certain formats.

Rewards & Redemptions

  • Allowed: non-cannabis merchandise; retail discounts compliant with Washington pricing rules.
  • Prohibited: free cannabis products; cannabis samples.
  • Programs must not encourage overconsumption and must respect retail sale limits.

Communications & Privacy

  • Marketing SMS requires consent; email requires unsubscribe.
  • Maintain consent records and suppression lists; privacy and breach laws apply.

Sweepstakes

  • No cannabis prizes; No Purchase Necessary entry required.
State Profile
⬛ New Jersey

New Jersey

Age Restrictions

  • Participation limited to 21+.
  • Age-gated digital properties required.

Advertising & Promotions

  • No targeting minors.
  • No youth-appealing imagery.
  • No medical claims.
  • Audience composition must reasonably limit under-21 exposure.

Rewards & Redemptions

  • Allowed: non-cannabis merchandise; discounts executed as retailer sales.
  • Prohibited: free cannabis products; cannabis samples.
  • Fraud controls must be in place; loyalty must not circumvent retailer sale rules.

Communications & Privacy

  • Marketing SMS requires prior express written consent; email includes unsubscribe.
  • Consent and opt-out records maintained; privacy laws apply.

Sweepstakes

  • No cannabis prizes; No Purchase Necessary required.
State Profile
⬛ New York

New York

Age Restrictions

  • Participation limited to 21+ with age-gated landing pages.

Advertising & Warning Requirements

  • Audience standard: advertising must be reasonably expected to reach an audience at least 90% aged 21+.
  • Required warning format: prescribed warning box and rotating health statement required on qualifying materials.

Placement Restrictions

  • No billboards.
  • No advertising on public transit.
  • No placement within 500 feet of schools, parks, playgrounds, libraries, or childcare centers.

Rewards & Redemptions

  • Allowed: non-cannabis merchandise; discounts structured within state pricing rules.
  • Prohibited: free cannabis products; cannabis samples; discounts below regulatory floor.
  • Taxes must be calculated on the pre-discount price.
  • Apparel must be adult sizes only and sold only at licensed premises if applicable.

Communications & Privacy

  • Prior express written consent required for marketing SMS.
  • Advertising restrictions apply to email and digital messaging; warnings required on qualifying materials.
  • Maintain consent and suppression logs; data protection and breach rules apply.

Sweepstakes

  • Must include No Purchase Necessary method; official rules required; cannabis cannot be a prize.
State Profile
⬛ Oregon

Oregon

Oregon follows the Michigan base build with Oregon-specific changes for marketing channels, public property distribution, privacy rights, and redemption monitoring.

High-Impact Compliance Switches

  • Maintain under-30% minor audience standard for advertising.
  • Block distribution of handbills on public property.
  • Disable broad SMS promotional campaigns by default.
  • Allow only app-based push or email marketing unless explicitly approved after legal review.
  • Enforce no cannabis giveaways, including samples.
  • Add Oregon privacy rights handling under state consumer privacy law.

Communication Controls

  • SMS promotional flows default OFF and require an explicit compliance override toggle.
  • Campaign setup includes channel classification; SMS blocked unless transactional or legally approved.

Redemption & Overconsumption Monitoring

  • No redemption path may generate a zero-dollar cannabis line item.
  • Velocity monitoring for excessive redemptions to avoid perceived overconsumption promotion.
  • If discount rewards exist, ensure retailer POS executes the transaction and respects purchase limits.

Oregon operational checklist: no broad SMS plan, no public-property flyers, privacy request workflows enabled, no cannabis prizes, and redemption logic never nets cannabis to free.

Section 2

Universal Platform Compliance Controls

Across all supported states, LoyalThread™ and GrowthStitch™ implement a baseline set of controls and audit practices regardless of state-specific configuration.

Consumer & Program Controls

  • 21+ age gating across program surfaces and linked destinations.
  • No youth targeting; no youth-appealing creative patterns.
  • No medical or therapeutic claims in program content or messaging.
  • No free cannabis giveaways, no cannabis samples, no cannabis prizes.
  • Proof-of-purchase validation with fraud controls and anomaly review.
  • Retailer-executed discount validation; prohibitions on zero-dollar cannabis line items.

Communications & Audit Controls

  • Consent ledger for email and SMS with timestamps and channel-specific consent status.
  • Global suppression propagation — one opt-out suppresses across all automations.
  • Campaign compliance metadata including audience composition and placement checks.
  • Creative lint rules for prohibited claims and restricted visuals (state-dependent).
  • Audit exports: member list, consents, accrual and redemption ledgers, campaign records.

Reminder: Platform controls support compliance but do not replace legal review. Clients must ensure final creative, placements, warnings, and promotion mechanics meet current state requirements before launch.

Section 3

Important Disclaimer

  • This page is provided for informational purposes only and is not legal advice.
  • Final compliance responsibility remains with the licensed entity.
  • State regulations may change; clients should consult qualified legal counsel before launch.
  • Where state rules require specific warnings, placements, or pricing mechanics, clients must confirm current requirements with counsel.

For compliance inquiries contact [email protected]. For our full legal documents see Disclaimer, Privacy Policy, and Terms of Service.

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