BLAW 225David Rapp03/03/17Advertisement regulations in RussiaOverview: The Russian Constitution guarantees common protection of competition, freedom of speech and thought, economic space, and ensures the right to freely receive, look for, transmit, distribute and produce information. This general rule, which was put in place by the primary Russian statute, constitutes and establishes the foundation of advertising regulation in Russia, which is described in more details in the Law “On Advertising”. The advertising Law is considered to be the most essential piece of federal legislation in the Russian advertising industry.The first article of the advertising Law gives a definition of it’s main goal, which is to facilitate the development of the market economy, based on ensuring common economic space and the principles of fair competition. In other words, the Advertising Law prevents misleading or false advertising by putting in place industry specific regulations and certain prohibitions over how businesses should treat their customers and how competitors may deal with each other. In 1995, at the beginning of the emergence of the Russian market economy, the very first Advertising Law was adopted. As the competitive environment became more and more important, the necessity for more sophisticated legislation became inevitable. Even if the legislature tried to consider the current economic situation at the time, the Advertising Law has undergone more than 300 amendments, since the date of its enactment. Because of a large number of questions posed by the Russian Supreme Arbitration Court (the SAC), relating to the enforcement of the Advertising law, certain Ruling were adopted in 2012 (the SAC Ruling). The SAC Ruling basically clarifies and emphasize on important legal issues, with a special emphasis on the specific types of advertising, the definition and concept of advertising, and naturally the arbitration courts enforcement of the Advertising Law. The state administrative body in charge of the enforcement of the Advertising Law is The Federal Antimonopoly Service of the Russian Federation (the FAS). Basically the FAS initiate administrative cases (ex officio), and also carry out inspections. If there is a violation of the Advertising Law, this results in administrative and civil liability for the concerned advertiser, advertising distributor and advertising producer. If that’s the case, the FAS initiate the administrative procedure and impose a fine on the infringer. If someone’s rights are infringed by an advertisement that is considered inappropriate, this person can apply to court and claim several different types of compensations for their losses including recovery of damages, moral damages, lost in profits, public refutation of false advertising. However, if there is a violation of the Advertising Law, the infringer is not subject to criminal penalties (imprisonment…).False advertising:In Article 5 of the Law, the overall requirements for advertising are set forth, and states that the advertising should not be misleading or false. Advertisement is considered false if the honor is denigrated, if it contains comparison of the advertised goods that are incorrect regarding other goods in circulation that are produced or sold by other manufacturers and sellers, if it advertises prohibited goods that have similar or identical trademark with other goods, or if the advertising is considered as an act of unfair competition.