Update, November 14th, 2025: The OCM passed the amended marketing and advertising regulations initially proposed in 2024.
There’s never a dull moment in the New York cannabis industry, but recent developments have been especially exciting. The New York State Cannabis Control Board (CCB) voted to loosen some marketing regulations in the Empire State.
As cannabis marketers, we applaud this rule change. We are thankful to the regulators who understand that less restrictive marketing rules are key to combating the unlicensed market, keeping shoppers from crossing state lines, and allowing retailers to compete fairly and compliantly in an industry that's growing ever more competitive.
We have been vocal supporters of this rule change. CannaContent founder and content strategist Stella Morrison submitted her support for the proposed amendments to the New York State Office of Cannabis Management (OCM) as part of their initial public comment period.
Here’s what you need to know going into 2026.
What do the changes to part 129 of the cannabis marketing rules say?
Some of the key changes approved by the Cannabis Control Board include:
- Allowing sales and loyalty -- more on that below!
- Allowing billboards in very limited circumstances, as long as the content only includes permitted content as defined by the CCB
- Requiring inclusion of the New York State HOPEline phone number, text number, and website or QR code in advertisements
- Promotional items must be "unbranded."
What's the deal with sales in New York dispensaries in 2026?
The amendment to 129.3 brings a long-awaited change to the state's marketing rules: allowing retailers to run sales and discounts and to advertise said sales. Price reductions, bundles, and coupons are all permitted going into 2026.
Sale prices cannot be below market value, and sales cannot be structured in a way that evades collecting the necessary taxes on products.
The CCB continues to prohibit licensees from giving away free or donated cannabis products.
What’s the deal with customer loyalty programs at New York dispensaries in 2026?
The November 2025 amendment to Part 129.3 of the Cannabis Law allows dispensaries to run points-based reward systems and customer loyalty programs.
While there may have been good intent behind such a restriction initially, it hampered New York dispensaries’ ability to compete with the many unlicensed (and illegal) cannabis shops throughout the city. Additionally, some customers drive for hours to shop at cannabis businesses in nearby states, where sales are one factor that affects the overall price of cannabis.
We are eager to see the effect of loyalty programs and points-based reward systems on New Yorkers' cannabis shopping habits.
Which parts of New York's cannabis marketing rules remain unchanged?
Some of the elements that remain unchanged in New York's cannabis marketing rules include:
- Licensees must be able to prove that their audiences are 21+, even if engaging with an agency, freelancer, or other type of advertiser
- Merch can only be sold in adult sizes
- Companies may sponsor community events, athletics, and similar events, as long as the sponsorship conforms to the state's requirements
- Vehicle advertisements, like taxi-top ads and car wraps, are prohibited
- Out-of-home (OOH) ad placement restrictions remain in place. Sports stadiums, events that accept state funding, malls, and arcades are among the several places where license-holders cannot advertise.
Changes to cannabis packaging rules
The PMLA changes were not limited to marketing regulations. Part 128 of the laws, which pertain to packaging, was revised as well. The full rules can be found on the OCM's website.
Our position on New York cannabis customer loyalty programs
At CannaContent, we continue to support rule changes that would allow dispensaries to offer coupons and discounts, as well as operate customer loyalty programs and points-based reward systems.
The excerpt below comes from Stella’s initial letter to the OCM, which still holds true going into 2026.
Just like grocers, airlines, and coffee shops, dispensaries are dependent on customer retention and repeat shoppers for success. Around 80% of revenue is driven by 20% of customers, according to a deeply-held and long-followed tenet called the “Pareto Principle.” In fact, an increase in customer retention of just 5% can significantly boost profits, by at least 25% by some estimates. For dispensaries, that means building a committed customer community may mean the difference between success and failure.
This is where a loyalty program comes into play. Seven out of 10 shoppers prefer to spend their dollars with retailers that offer loyalty programs. In the eyes of consumers, dispensaries are no different than any other retailer that offers points or member perks in exchange for their business. Customers expect sales, coupons, and loyalty programs, and many of them do not understand why these incentives are not offered by dispensaries in New York State. This not only creates confusion, but may inadvertently drive business outside the regulated market.
Loyalty programs and points-based reward systems are very successful in other adult-use markets. On average, loyalty program participants in other states spend $45 more (“ticket size”) than those who do not participate in a loyalty program. Dispensaries with reward programs in leading states like Colorado and Washington realize increased basket size, or how much customers purchase per shopping trip, by about 35% on average. That increase is excellent for licensed retailers, New York brands, and the communities that benefit from the generated tax revenue. New York State dispensaries can easily realize the same success as retailers in Colorado and Washington if the proposed changes to 129.2 are adopted.
Learn more about New York's cannabis marketing rules
Loosening marketing restrictions comes at a crucial time in New York's industry. There are 500 active retail licenses in New York as of November 2025, and that number is expected to keep growing.
Clearly defined, sensible marketing restrictions open opportunities for retailers and brands to compete in a growing market. Sales and loyalty programs entice New Yorkers to shop in New York. The CCB achieves this while centering the importance of marketing only to adult audiences. It's a welcome change going into 2026, and one that we look forward to implementing with our clients across the state.
Ready to implement a loyalty program at your dispensary? Reach out to CannaContent. Our award-winning firm has extensive experience working with retailers in New York State and has been an active part of New York's cannabis community since our founding in 2017. Schedule a no-obligation consultation.
How to submit your comments to the Office of Cannabis Management
Initial comments on the proposed amendments to 129.2 were accepted through October 28th, 2024, but it’s never too late to voice your opinion on any matter the OCM is deliberating. Here are the steps we followed to write our letter:
The proposed amendments to 129.2 are not a done deal. If you approve of the OCM’s proposed changes, use your voice to share with regulators that you are in favor of their suggestions.
1. Review the proposed changes.
Our team viewed the changes on the OCM’s website, and we formed our opinion on what the OCM proposed to do.
2. Write your letter.
Don’t just write “yes, I agree,” and move on. The OCM recommends that your letter clearly state which section of the law you’re commenting on and justifying your comment through data, personal experience, sound reasoning, or similar reasoning. We took this approach when writing our letter in support of the changes to the OCM’s marketing regulations proposed in 2024.
Read the OCM’s recommendations in full.
3. Send your letter.
Comments on the proposed regulations can be submitted by email to: [email protected] or mailed to New York State Office of Cannabis Management, P.O. Box 2071, Albany, N.Y. 12220.
Support New York’s licensed and legal industry. Support sales and loyalty programs.
As cannabis marketers, we know how important discounts and loyalty programs can be to a brand’s success. Considering the challenges of acquiring and retaining customers realized by all businesses — and the more limited resources dispensaries can leverage overall due to state regulations and federal Prohibition — dispensary marketers should be able to use as many strategies as they can to compliantly grow their customer base. We’re hoping for a New York cannabis industry that has these tools at its disposal.