Billboard Advertising Restrictions in the U.S.

Billboards remain one of the most effective forms of outdoor advertising in the United States. Large, eye-catching, and unavoidable, they can make a huge impact - but not every message is allowed. Advertising restrictions on billboards are regulated by federal law, state law, industry codes, and even private contracts with landlords and billboard operators. If you’re planning a billboard campaign, here’s what you need to know to stay compliant with billboard restrictions.

1. Tobacco Advertising: Completely Banned

Cigarettes and smokeless tobacco are prohibited nationwide on billboards. This restriction originates from the 1998 Master Settlement Agreement (MSA), which prevents all outdoor advertising for tobacco products, including billboards and transit signs. Tobacco advertising on billboards is considered one of the strictest advertising restrictions in the United States.

Key points:

• Nationwide ban under the MSA.
• Applies to all forms of outdoor advertising.
• Permanent restriction.

Source: Master Settlement Agreement, Section III(c)

2. Alcohol Advertising: Legal but Highly Regulated

Advertising alcohol on billboards is allowed, but strict regulations apply under federal and state law. Alcohol billboard ads are among the most regulated forms of billboard advertising due to legal and placement rules.

Federal rules include:

• The Federal Alcohol Administration Act (27 U.S.C. § 205(f)) prohibits false, misleading, or obscene ads.
• The Alcohol and Tobacco Tax and Trade Bureau (TTB) enforces these regulations under 27 CFR Part 5, Subpart H.

State restrictions:

• Many states ban alcohol billboards near schools, playgrounds, or churches.
• Some require responsible drinking messages.

Tip: Always check local placement restrictions before running alcohol billboard ads.

Sources: 27 U.S.C. § 205(f), 27 CFR Part 5

3. Cannabis Advertising: State-Specific Rules

Cannabis remains illegal under federal law (21 U.S.C. § 812), so billboard advertising is subject to state-level advertising restrictions.

Example: California

• Ads cannot be within 1,000 feet of schools, daycares, or youth centers.
• Ads cannot depict actual consumption.

Most other states with legalized cannabis adopt similar billboard restrictions, so compliance requires checking state-specific cannabis advertising laws.

Source: California Business & Professions Code § 26152(d)

4. Gambling Advertising: Responsible Messaging Required

There is no federal ban on gambling billboards, but regulations exist at the state level. These advertising restrictions often include responsible messaging and location rules.

Examples of restrictions:

• Ads must include responsible gambling disclaimers (“Bet Responsibly”).
• Often prohibited near schools or religious institutions.
• Inspired by 18 U.S.C. § 1304, which restricts lottery and gambling ads on broadcast media.

States such as Nevada and New Jersey have some of the strictest rules for billboard gambling advertising.

Source: 18 U.S.C. § 1304

5. General Billboard Content Rules

All billboard content, even for products outside tobacco, alcohol, cannabis, or gambling, must comply with the Federal Trade Commission Act (15 U.S.C. § 45). These advertising restrictions ensure that all ads are truthful and not misleading.

Requirements:

• Ads must be truthful and non-deceptive.
• Obscene or indecent content is prohibited.

Source: 15 U.S.C. § 45(a)(1)

6. Landlord and Billboard Operator Restrictions

Even if your ad is legal, the landlord or billboard owner can reject it. These billboard restrictions vary by site and contract.

Common restrictions include:

• Competitor bans: e.g., Hilton-owned sites may refuse Marriott ads.
• Category bans: Political, alcohol, cannabis, or adult content ads may be prohibited.
• Event-specific restrictions: “Clean zones” during major events like the Super Bowl.
• Transit restrictions: e.g., New York’s MTA bans alcohol ads on buses and subways.

7. Industry Standards: OAAA Code of Principles

Most large billboard companies are members of the Out of Home Advertising (https://staging.billboardsamerica.com/out-of-home-advertising) Association of America (OAAA), which sets industry standards beyond legal requirements. Their Code ensures compliance with advertising restrictions and billboard restrictions for sensitive categories.

Key commitments:

• Reject obscene, indecent, or offensive content.
• Comply with all federal and state laws.
• Apply special care to sensitive categories, including alcohol, cannabis, and political ads.

Source: OAAA Code of Industry Principles

8. The Bottom Line: Three Compliance Checks Before Running a Billboard Ad

Before launching your campaign, ensure your ad meets these three checks to comply with advertising restrictions:

1. Legal compliance: Federal and state regulations.
2. Landlord approval: Site-specific contractual rules.
3. Industry standards: OAAA Code compliance.

Following these three steps ensures your ad is safe, legal, and effective, avoiding penalties for violating billboard restrictions (https://staging.billboardsamerica.com/billboard-types).

FAQ: Billboard Advertising Rules in the U.S.

Q: Can you advertise alcohol on billboards?

A: Yes, but it must follow federal rules and state placement restrictions. Alcohol billboard ads require careful compliance.

Q: Are tobacco ads allowed on billboards?

A: No. Nationwide ban under the 1998 Master Settlement Agreement. Tobacco advertising is prohibited on all billboards.

Q: Can cannabis businesses advertise?

A: Depends on the state. Ads often cannot be near schools or youth centers.

Q: Is gambling advertising allowed?

A: Yes, but with disclaimers and placement rules at the state level.

Q: Are political ads allowed?

A: Yes, but disclosure of who paid for the ad is required, and landlords can restrict them.

Q: Can landlords reject ads?

A: Yes. Contracts may include competitor bans, category bans, or special restrictions.

Q: What industry body sets billboard standards?

A: The OAAA sets voluntary industry standards through its Code of Principles.