Draft Law of Ukraine

"On Amendment of the Law of Ukraine On Advertising"

The author of the draft proposes to state the Law  “On Advertising” in new wording.

The draft provides for introduction of a number of new definitions and alteration of those currently used. According to the author of this draft the concept ‘advertising’ shall be understood as any information about a person or goods meant for consumers of the advertisements distributed by advertising facilities in order to give them idea of the person or goods in question or keep the consumers interested in these matters. However, the initiator of the draft proposes to delete from the definition such goal of advertising as profit orientation. The legislator makes it clear that advertisements shall be distributed by advertising facilities.

Among the new terms proposed for introduction in this draft are “sales promotion”, or “promotion”.

Pursuant to this draft law, the Law “On Advertising” shall govern legal relationships arising from distribution of information reflecting social events, interests of political parties, religious and public organizations and/or meant for maintaining thereof. According to the above draft such kind of advertising shall be regarded as ordinary advertising.

The new norm established in this draft stipulates that prices for advertising shall be free and shall not be regulated by the state bodies. It should be mentioned that now, in keeping with the regulations set forth by the Laws “On Advertising”, “On TV and Radio Broadcasting” and “On the National Council of Ukraine on TV and Radio Broadcasting”, ceiling tariffs on some TV and radio commercials are established by the National Council of Ukraine on TV and radio broadcasting.

This draft clarifies regulations governing issues of advertising identification and sets forth requirements for comparative advertising (Articles 11 and 13 of the draft).

This draft provides for removal of a number of limitations on TV- and radio advertising. According to this draft, in particular, films lasting over 45 minutes may be interrupted by commercials, commercials may be shown in programs for children (under 14). The draft law stipulates that commercials may occupy up to 20 percent of one-hour airtime.

It is proposed to clarify rules of exterior advertising and to elaborate detailed regulations for transport advertising. The draft law provides for a series of new limitations on advertising medicines, medical equipment, medical services and food products.

According to this draft, neither tobacco products, nor trademarks the said products are sold under, shall be advertised on TV and radio. At the same time alcohol advertising may take place on TV and radio from 10 p.m. to 4 a.m.

TV- and radio programs sponsored by trademarks of alcohol and tobacco products may be broadcasted from 10 p.m. to 4 a.m. It is also proposed to set forth requirements for promotion of tobacco and alcohol products.

It is suggested to specify norms with regard to responsibility for violation of advertising legislation.

This draft, on the whole, is aimed at expanding advertising market and settling problematic advertising-related matters.