The Therapeutic Goods Administration (TGA) has fined Dispensed Pty Ltd $118,800 (US$78,300) for allegedly breaching national laws on the advertising of medicinal cannabis.
The regulator issued six infringement notices and a direction notice after finding the company promoted prescription-only products to the public through third-party websites and social media platforms.
Dispensed has paid the fines.
The TGA said the promotions included indirect references such as “plant medicine” and “cannabinoid-based therapies,” which are prohibited under the Therapeutic Goods Act 1989.
“The law prohibits the advertising of prescription medicines, including medicinal cannabis, to the public,” TGA said in a statement.
“Such advertising can create inappropriate demand and undermine the patient–doctor relationship.”
The direction notice compels Dispensed to cease all advertising activity, recover printed material still in circulation, and provide evidence of compliance.
Strict Rules on Cannabis Promotion
Medicinal cannabis can only be prescribed by a health professional, and its marketing is tightly controlled to protect patients from misleading claims.The TGA said treatment options must be decided in consultation with doctors or pharmacists, not driven by advertising.
Medicinal cannabis refers to prescription-only products containing cannabinoids—compounds found in the cannabis plant or made synthetically—used to treat specific conditions or symptoms.
In Australia, access is tightly regulated and only available under the supervision of a health professional.
They have been legally available in Australia via prescription since November 2016, with demand growing steadily.
More than one million prescriptions have been issued under the Commonwealth’s Special Access and Authorised Prescriber schemes.
The action against Dispensed follows the TGA’s updated advertising guidance published in December 2023, which warned the cannabis sector about strict compliance obligations.
Rising Demand, Rising Risks
The crackdown comes amid ongoing litigation against CDA Clinics QLD Pty Ltd, trading as CDA Express.That case, filed in the Federal Court in late 2023, alleges the clinic promoted therapeutic goods containing cannabidiol in breach of advertising laws.
The proceedings marked the culmination of a two-year investigation into the sector.
Solicitor Andrew Proudfoot notes in a blog the rapid expansion of medicinal cannabis in Australia, with more than 500 products on the market and a compound annual growth rate of 30 percent.
But with growth has come heightened scrutiny, as regulators attempt to balance legitimate medical use with the risks of aggressive marketing and consumer demand.
Proudfoot has argued that fierce competition in the sector has pushed some companies to cut corners.
