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Court orders Instagram to reinstate account of company selling cannabidiol-based products

A Brazilian court has ordered Instagram to reinstate the account of a company authorized by the Brazilian Health Regulatory Agency (Anvisa) to operate in the market for cannabidiol-based products intended for therapeutic purposes.

The ruling, issued by the 1st Civil Court of Curitiba, in the state of Paraná, confirmed a previous preliminary injunction requiring the account to be restored.

The company used its Instagram profile for institutional and scientific communications, commercial activities and interactions with customers and patients.

The case raises an important discussion regarding the limits of content moderation by digital platforms, particularly when the restriction affects an entire business account used as a relevant communication and operational channel.

What led to the dispute

According to the case records, access to the account was restricted in Brazil without the company receiving specific information identifying which publication had allegedly violated the platform’s rules.

The platform argued that the restriction followed a notification from Anvisa concerning potential irregularities in the advertising of Cannabis products, which are subject to specific Brazilian health regulations.

The court, however, found that the regulatory communication referred to the investigation of specific advertisements and did not require the complete suspension of the company’s account.

The judge acknowledged that digital platforms may establish terms of use, moderate content and restrict accounts that violate their policies. However, according to the ruling, such measures should comply with standards of transparency, information and proportionality.

Business account suspensions can have broader operational consequences

Social media platforms are no longer used exclusively for marketing.

For many companies, they have become channels for customer service, institutional communications, stakeholder engagement and, depending on the business model, commercial operations.

As a result, the full suspension of an account may create significant operational and reputational consequences.

This issue becomes particularly important for companies operating in regulated industries, where a publication that conflicts with advertising regulations, sector-specific rules or platform policies may result in moderation measures affecting a broader portion of the company’s digital presence.

Digital channel governance should therefore be considered part of corporate risk management.

Additional challenges for regulated industries

Healthcare, pharmaceuticals, financial services, telecommunications, insurance and other regulated industries are subject to specific rules governing advertising and corporate communications.

In the case involving cannabidiol-based products, the court expressly stated that reinstatement of the account did not authorize the company to disregard applicable health regulations concerning the advertising and direct commercial offering of Cannabis products.

Instagram may also require content adjustments and adopt further moderation measures in response to violations of its policies, provided that the standards identified in the ruling are observed.

The discussion, therefore, is not about eliminating platforms’ ability to moderate content. It concerns how moderation powers are exercised and whether measures affecting an entire business account are proportionate to the alleged violation.

Managing platform-related risks

Companies that rely on social media as part of their operations should consider maintaining records of published content, particularly in highly regulated sectors.

Advertising campaigns and institutional publications should also be reviewed for compliance with both applicable regulations and the platform’s own policies.

Organizations should also avoid excessive dependence on a single communication channel. Corporate websites, newsletters, CRM systems and other owned channels can help preserve relationships with customers and stakeholders if access to a social media platform is interrupted.

When an account is restricted, companies should document communications with the platform, administrative appeals and other attempts to resolve the matter.

Depending on the circumstances, the absence of a clear explanation and the impact of the restriction on business activities may also support a judicial challenge.

The Paraná ruling is a first-instance decision and should be considered within the specific circumstances of the case. Nevertheless, it highlights a broader issue for the digital economy: as private platforms become increasingly relevant to corporate communications and operations, transparency, proportionality and digital governance are becoming important components of business risk management.

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