As Instagram Bans Curaleaf’s Main Account, Will Twitter Step In To Fill The Social Media Void For Cannabis?

Instagram has reportedly banned Curaleaf Holdings Inc.'s (OTCQX:CURLF) primary active account, citing a breach of its community guidelines.

"Per a source familiar with the decision, Instagram banned @Curaleaf_Inc's main active account within the past hour," recently tweeted Grant Smith Ellis. The company has faced social media bans before, “but it happening today will sting.”

Per a source familiar with the decision, Instagram banned @Curaleaf_Inc's main active account within the past hour.
This is not the first time the firm has been banned on social media, but it happening today will sting. pic.twitter.com/GYZdo2OI5A

— Grant Smith Ellis (@GrantSmithEllis) March 29, 2023

Curaleaf responded to the ban, which it noted was, unfortunately, a fairly common occurrence in the cannabis industry.

"Curaleaf has operated our Instagram profile with industry best in class standards including an age gate of 21+, so only adults can follow and engage with our content. We strictly follow the platform’s policies and we are currently in the process of appealing the suspension of our account," Curaleaf told Benzinga in a statement. "This specific incident, we believe, is the result of a targeted attack by specific individuals who have demonstrated a consistent intent to harm our reputation and business. We are working closely with Meta to file an appeal and get our profile operational again."

While Instagram suspending cannabis-related accounts is not new, there is evidence to suggest that it is becoming more common.

The Instagram account of Cannabis Business Times has been inactive since June 8 due to a violation of Instagram's terms. Despite multiple attempts to challenge the suspension and a review by Instagram, the account was deemed to have violated community standards and was disabled indefinitely.

Ryan Meyers, senior director of consumer engagement at multi-state cannabis operator Cresco Labs Inc (OTCQX:CRLBF), noted that the issue of social media account suspensions have been ongoing. According to Cannabis Business Times, Meyers estimated that Cresco Labs' brand accounts have been suspended approximately a dozen times.

Will Twitter Spark A Change In The Industry?

Elon Musk, CEO of Tesla, Inc (NASDAQ:TSLA) and Twitter Inc (TWTR), made headlines last month by allowing ads for CBD and THC products on Twitter. This decision represents a massive change that put the social media app on the frontiers of cannabis advertising, which will no doubt be huge.

“Twitter is forcing other social media cos to rethink their business models,” tweeted Sechrist, adding that Twitter is scheduled to speak at the BzCannabis conference in Miami on April 11-12.

Twitter execs, Alexa Alianiello (Twitter U.S. Sales & Partnerships) and Rohan Routroy (Twitter NEXT) will share more insights on how to plug into the platform and connect with a leaned-in customer in their featured keynote session at Benzinga's upcoming Cannabis Capital Conference.

This story is ongoing, so stay tuned for updates. 

Image Credits: Rawpixel.com and Bukhta Yurii on Shutterstock Edited By Benzinga