Medical marijuana businesses in the southern U.S. state of Mississippi don’t have the right to advertise on billboards or other places because marijuana itself remains illegal under federal law, an appeals court says.

The owner of a medical marijuana dispensary argued that the First Amendment protects the right to advertise because Mississippi law permits the sale of cannabis products to people with debilitating medical conditions. The state enacted its law in 2022.

A three-judge panel of 5th U.S. Circuit Court of Appeals on Friday rejected the arguments about advertising. They cited the federal Controlled Substances Act, which since 1970 has prohibited the manufacture, distribution, dispensing and possession of marijuana.

The federal law applies in all states, and Mississippi “faces no constitutional obstacle to restricting commercial speech relating to unlawful transactions,” the judges wrote.

The Mississippi attorney general’s office praised the court decision for upholding “Mississippi’s reasonable restrictions on advertising for medical marijuana dispensaries by print, broadcast and other mass communications,” said the office spokesperson, MaryAsa Lee.

Clarence Cocroft II operates Tru Source Medical Cannabis in the northern Mississippi city of Olive Branch. He sued the state in 2023 to challenge its ban on medical marijuana advertising on billboards or in print, broadcast or social media or via mass email or text messaging.

“Upholding this ban makes it incredibly difficult for me to find potential customers and to educate people about Mississippi’s medical marijuana program,” Cocroft said in a statement Monday. “I remain committed to continuing this fight so my business can be treated the same as any other legal business in Mississippi.”

The state allows medical marijuana businesses to have websites or social media accounts that provide information about their retail dispensing locations and a list of products available. It allows them to be listed in phone books or business directories and to display cannabis in company logos. The businesses can also sponsor not-for-profit charity or advocacy events.

Cocroft is represented by the Institute for Justice, a nonprofit libertarian law firm. The firm said Monday that it was considering its next steps in the lawsuit, including possibly asking the entire appeals court to reconsider the case or an appeal to the Supreme Court.

“Mississippi cannot on the one hand create an entire marketplace for the sale of medical marijuana, and on the other hand rely on an unenforced federal law to prohibit buyers and sellers from talking about it,” said Ari Bargil, an Institute for Justice attorney.