Brief on Amendments to the Russian Legislation on Advertising

On 1st July 2006 the new redaction of the Federal Law «On Advertising» came into force. The new Law confirms constitutional guarantees of a single economic space, freedom of economic activity and protection from unfair competition. It is a logical development of the system of Russian legislation on competition, providing comprehensive regulation of production, placement and distribution of advertising on the markets of the Russian Federation. 

While maintaining the principal conceptual approach to regulation of production, positioning and distribution of advertising, the Federal Law «On Advertising» contains a number of new provisions caused by the changes in the Russian economy.

The most significant amendments are as follows:

1) The concepts of advertising and social advertising have been changed. The Law also defines the type of information that cannot be classified as advertising;

2) The Law introduces the rules on preventing distribution of indirect advertising of the products that are subject to advertising restriction (alcohol products, beer, and tobacco products);

3) General advertising requirements are extended. In particular, it is forbidden to:

Indicate that the authorities approve the object of advertising;

Show smoking, or alcohol or beer consumption;

Use the images of medical and pharmaceutical workers, with some exceptions;

Indicate that the advertised products are manufactured using human fetus tissues;

State therapeutic claims for the object of advertising, except advertising of medicines;

4) The Law abolished the requirement on revealing information about licenses or mandatory product certification. At the same time, the Law extends liability for advertising non-certified products or activities carried out without obtaining an appropriate license;

5) For the first time, the Law introduces special requirements to advertising of:

Goods that are sold remotely;

Promotions;

Medications, medical equipment, or items of medical purpose;

Biologically active food supplements;

Services on effecting rent agreements, including perpetual maintenance agreements;

6) The Law tightens requirements to the volume of advertising in TV programmes. The overall advertising should not exceed 20% of the broadcasting time within every hour, and since 01.01.2008 - it should not exceed 15%;

7) The Law specifies the procedure for distributing outdoor advertising and installing advertising structures. Control over illegal installation of advertising structures is the prerogative of the local authorities;

8) The requirements to transport advertising have been changed. From 1st January 2007, it will be forbidden to use the means of transport as mobile advertising structures;

9) The Law tightens requirements to advertising of tobacco, tobacco products and smoking articles. From 1st January 2007, it will be forbidden to place such ads on advertising structures and means of transport of common use;

10) The Law specifies and considerably extends the requirements to advertising of financial services;

11) The Law changes the terms of reference of the antimonopoly authority on supervising advertising legislation, including the following ones:

Decision-making on public refutation of doubtful advertising (counter-advertising) is responsibility of the courts of law;

The antimonopoly authority receives new powers on issuing directions to other government agencies or local self-government bodies on abolishing or amending the acts that are in contradiction with the legislation of the Russian Federation on Advertising;

The antimonopoly authority саn petition to Arbitration Courts to recognize invalidity of regulations and non-statutory acts of the authorities and local self-government bodies as well as permissions to install advertising structures that breach advertising legislation. 

Enforcement of the new Law will ensure further development of the goods markets in the Russian Federation, the unity of its economic space as well as protection of consumer rights for fair, true and accurate advertising.