Dispensary Rewards Programs in Minnesota: What the Advertising Rules Say

Why rewards at a cannabis store look different

A coffee shop can text you a punch-card reminder without a second thought. A Minnesota cannabis retailer can't treat its messages that casually. Customers sometimes ask why. The answer starts with Minn. Stat. 342.64, the state's advertising statute for cannabis and hemp businesses.

One correction first: that statute doesn't mention loyalty or rewards programs at all. It regulates what an advertisement may say, where it may run, and who may receive it. This article walks through those rules and how they reach a rewards program's messages, then says plainly what the law leaves open. It describes rules. It isn't an offer, and it makes no claim about any product. For adults 21 and older.

What 342.64 covers

The statute applies to cannabis businesses, hemp businesses, and other persons advertising these products. Under subdivision 1, an advertisement may not:

• contain false or misleading statements;
• make unverified health claims;
• promote overconsumption;
• depict a person under 21 consuming the product;
• appeal to people under 21, for example with cartoons, toys, animals, or children;
• show alcohol or people drinking it.

An advertisement must also carry the impairment and health-risk warning that the Office of Cannabis Management (OCM) specifies.

The other subdivisions deal with delivery. Outdoor advertising is prohibited, with an exception for up to two fixed signs on the building or property (subd. 2). No advertisement may run in a medium where 30 percent or more of the audience is reasonably expected to be under 21, judged by reliable, current audience data (subd. 3). Unsolicited internet pop-up advertisements are prohibited (subd. 4).

Why a rewards message counts as advertising

The next question is whether a message about a rewards program is "advertising" at all. OCM's guidance memo GM-2025-07 cites the statutory definition: any written or oral statement, illustration, or depiction intended to promote sales. It covers print, radio, television, online, and social media.

That definition is about intent, not format. A message whose purpose is to bring customers back to buy is promoting sales, whether it sits on a sign, in an email, or inside an app. Reading it that way, the content limits above apply to rewards messaging too: no overconsumption themes, no health claims, nothing aimed at under-21 audiences, and the required warning.

The memo also says that failing to include the warnings may lead to enforcement, including penalties or license suspension or revocation. The stakes are real. That's one reason stores keep their messages plain.

Messages to individual customers: age affirmation

A rewards program works by knowing who a customer is, so it tends to produce direct messages. This is where subdivision 5 matters. Before an advertiser sends a direct, individualized communication, or runs a dialogue it controls, it must use age affirmation to confirm the recipient is 21 or older. The statute accepts user confirmation, birth date disclosure, or a similar registration method.

The OCM memo states the same rule in one line: age verification of 21+ must be used before sending any direct advertising. Subdivision 6 adds a related limit for phones and other location-based devices. Advertisements directed at them are prohibited unless the device owner is 21 or older.

This sits on top of the age check at the counter. Under Minn. Stat. 342.27, subd. 4, employees verify age before a sale, which is the same check described in what happens on a first visit. The advertising rule extends the 21-and-older principle to what a store sends out.

Where the free-product rule lives

People often assume 342.64 is the statute that limits samples or rewards of product. It is not. The prohibition on giving product away is in the retailer statute, 342.27, subd. 12(3). It says a retailer shall not give away immature cannabis plants or seedlings, cannabis flower, or cannabis products. The same clause covers lower-potency hemp edibles and hemp-derived consumer products.

The same section lets a store display one sample of each product, but a display sample cannot be sold (subd. 5). Gifting between individuals is a separate question under a different section, covered in what Minn. Stat. 342.09 allows for gifting.

Keep the two statutes apart. 342.64 limits how a store communicates. 342.27 limits what a store may hand over. A rewards program has to fit inside both.

What the statutes do not say

Neither 342.64 nor 342.27 addresses points, tiers, or price discounts, and the OCM advertising memo does not either. A reader should not assume a particular rewards design is allowed or barred based on those texts alone. Where the law is silent, this article stays silent too. It won't guess.

Two practical points follow. The rules also change, so a program that fits today's guidance should be checked against OCM's current guidance memos. And a specific program design, such as what it offers and how it is described, is a question for a Minnesota cannabis attorney or for OCM directly. Everyday matters like how payment works at a Minnesota dispensary are covered in their own guides.

The short version

342.64 is not a rewards rulebook. It controls how a cannabis store may speak: what the message may contain, where it may run, who may receive it, and which warning it must carry. Anything that promotes sales falls under that, rewards messages included. The ban on giving product away sits in a different section, and the questions about points and discounts are not answered in the sources reviewed here.

Frequently Asked Questions

Does Minn. Stat. 342.64 mention loyalty or rewards programs?

No. It sets rules for advertising content and delivery. It does not use the words loyalty or rewards, and neither does the OCM advertising guidance memo.

Do messages about a rewards program need the OCM warning?

OCM defines advertising as any statement or depiction intended to promote sales. A rewards message that promotes sales falls within the advertising rules, including the required impairment and health-risk warning.

Can a store text a customer about their account?

Direct, individualized messages require age affirmation that the recipient is 21 or older first. Advertisements directed at location-based devices are barred unless the owner is 21 or older.

Where can I get a firm answer on a specific program design?

The Office of Cannabis Management publishes guidance memos, and a Minnesota cannabis attorney can review a specific program before it launches.

For adults 21 and older only. Cannabis products have not been analyzed or approved by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. Keep out of reach of children. Do not operate a vehicle or machinery after use. This article is general information about products sold in Minnesota, not medical advice; talk to a licensed clinician about your health.