The development of market relations and tough competition require from manufacturers of goods and services to use all available means to announce themselves and their own product, so today advertising plays an important role in achieving the success of any company. What the legal aspects of advertising should be known to bring benefits for business?
Key vocabulary
The main regulatory legal act that regulates advertising activities in Ukraine is the Law of Ukraine “On Advertising” of 03.07.1996 No. 270/96-ВР (hereinafter − the Law).
What exactly is meant by advertising and who are the subjects of advertising activity in Ukraine? Answers to these questions can be found in Art.1 of the Law.
Thus, advertising is information about a person or a product, distributed in any form and in any manner or form and intended for formation and support awareness of consumers of advertising and their interest in these people or goods.
The subjects of advertising activity in Ukraine are an advertiser (a person who is a customer of advertising for its production and/or distribution), manufacturer of advertising (a person who is wholly or partly produces advertising), its distributor (a person who carries out the distribution of advertising) and consumers (indefinited range of persons to whom advertising is directed).
The legislation defines the basic principles of advertising: legality, accuracy, reliability, application of forms and means which do not cause damage to the consumer of advertising. Advertising should not undermine public confidence in it, contain information or images that violate the ethical, humane, moral norms, neglect rules of decency and must comply with the principles of fair competition, take into account the special sensitivity of children and not to cause harm to them.
What can not be used in the content of advertising?
Direct requirements to what is prohibited to use in the content of advertising, are provided for by Art.8 of the Law. In particular, it is prohibited:
- disseminate information on goods prohibited by law; contain discriminatory statements according to different characteristics, including those that discredit the goods of others;
- call for unlawful actions;
- use tools and technologies that influence upon the unconscious on consumers of advertising;
- use or imitate National Emblem of Ukraine, Ukraine National Flag, the sound of National Anthem of Ukraine, images of the state symbols of other states and international organizations;
- advertise products, which are subject to certification or licensing when their absence;
- contain images of an individual or use his/her name without the written consent of that person;
- imitate or copy text, images, music or sound effects used in the advertising of other products;
- promote services related to the concert and festival activities without information on the use or non-use of phonograms of performers of musical works;
- distribute advertising that contain elements of cruelty, violence, pornography, cynicism, humiliation of human dignity and honour;
- distribute advertising on the construction of a residential building without acquiring/obtaining an ownership rights or land plot use, the license to conduct construction activities, permission for construction of works or permit/license to provide financial services;
- distribute advertising services for divination and fortune-telling.
The law separately prohibits unfair advertisement (which is due to inaccuracy, uncertainty, ambiguity, exaggeration, omission, breach of the requirements regarding the time, place and method of distribution, misleads or can mislead consumers advertising, cause damage to individuals and state) and hidden advertisement (information about the person or product in program, broadcasts, if that information serves for advertising purposes and might mislead people as to the real purpose of these programs, broadcasts, publications).
Control and responsibility
Monitoring of compliance with the legislation of Ukraine on advertising on protection of consumers of advertising is entrusted to the State Service of Ukraine on safety of food products and Consumer Protection (hereinafter – Derzhprodspozhyvsluzhba) and its regional offices.
Responsibility of participants of advertising activity for violation of the advertising legislation is regulated in detail by the norms of Art. 20 of the Law and Procedure of imposition of fines for violating the advertising legislation approved by the Cabinet of Ministers of Ukraine dated 26.05.2004 No. 693 with subsequent amendments and supplements.
