Advertising country questions: Russia

ADVERTISING COUNTRY QUESTIONS: RUSSIA This document is published by Practical Law and can be found at: uk.practicallaw.com/9-616-5599 Request a free trial and demonstration at: uk.practicallaw.com/about/freetrial RESOURCE INFORMATION RESOURCE ID 9-616-5599 RESOURCE TYPE Practice Note STATUS Law stated as at 1-Jun-2015 JURISDICTION Russian Federation Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. Russia-specific information concerning the key legal issues that need to be considered when designing an advertising campaign. This Q&A provides country-specific commentary on Advertising: international overview, and forms part of our international sales and marketing transaction guide. Elena Polevaya, Baker Botts LLP ADVERTISING REGULATION 1. How does national law regulate the advertising industry? The principal sources of regulation for the advertising industry in Russia are statutory and by means of self-regulation. STATUTORY REGULATION The main federal legislation regulating the advertising industry is Federal Law No. 38-FZ “On Advertising” dated 13 March 2006 (the Law on Advertising). The Law on Advertising is designed to facilitate the development of the market economy according to the principles of fair competition, and to ensure common economic space. Its main goals are to ensure that advertisements are fair and truthful, to prevent violations of the advertising legislation and the dissemination of inappropriate or misleading advertising. The Law on Advertising: • Applies to advertising distributed in the territory of the Russian Federation irrespective of its place of production. • Regulates different areas of the advertising industry, setting up specific regulations for products including alcoholic beverages, tobacco and pharmaceuticals. • Covers different methods of advertising, including television and radio advertising, print media, outdoor advertising and online advertising. The legal issues arising in connection with the production, placement and dissemination of advertising are also addressed by other statutes, including: – Federal Law No. 135-FZ “On the Protection of Competition” dated 26 July 2006. – Federal Law No. 149-FZ “On Information, Information Technologies and Protection of Information” dated 27 July 2006. – Federal Law No. 15-FZ “On the Protection of Public Health from Exposure to Environmental Tobacco Smoke and the Consequences of Tobacco Use” dated 23 February 2013. – Federal Law No. 39-FZ “On the Securities Market” dated 22 April 1996. – Federal Law No. 353-FZ “On Consumer Credits (Loans)” dated 21 December 2013. – Federal Law No. 436-FZ “On the Protection of Children from Exposure to Information Causing Harm to their Health and Development” dated 29 December 2010. – Federal Law No. 73-FZ “On Cultural Heritage Items (History and Cultural Monuments) of the Peoples of the Russian Federation” dated 25 June 2002. – Law of the Russian Federation No. 2124-1 “On Mass Media” dated 27 December 1991. – Decree of the Russian Federation President No. 161 “On the Guarantees of the Rights of Citizens to the Protection of their Health When Disseminating Advertising” dated 17 February 1995. – Decision of the Russian Federation Government No. 508 “On the Approval of Rules for Consideration by the Antimonopoly Authority of Cases Based on a Breach of the Russian Federation Laws on Advertising” dated 17 August 2006. 2 Practical Law Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA SELF-REGULATION The principal form of non-statutory regulation is industry self-regulation. The self-regulation institutions serve as supplementary regulators in the market, alongside the state authorities. The Law on Advertising defines self-regulated organisations as association of advertisers, advertising producers, advertising distributors and other entities established as associations, unions or non-commercial partnerships for the purpose of representing and protecting the interests of their members and developing requirements for compliance with the ethical standards in the advertising industry, and monitoring such compliance (Art. 31 of the Law on Advertising). The law confers the following rights to self-regulated organisations: • To represent their members’ interests before the competent authorities. • To consider breaches on advertising-related matters. • To appeal regulatory acts before a competent court. • To impose a range of penalties on their members, including expulsion, as provided by the organisation’s internal regulations. • To develop rules of professional conduct and to introduce such rules to their members. • To monitor the professional conduct of their members in connection with the requirements of the advertising laws and with professional ethics. • To consider complaints against their members. • To develop entry requirements for prospective members. • To gather, process and maintain information on the activity of their members. • To keep their members’ register. The main sources for the establishment of selfregulated organisations in Russia are codes of professional conduct for the relevant industries and industry standards and regulations. These rules do not replace state regulations, but work as part of the legislation and complement it. In particular, in 1995 a number of representatives of the Russian advertising business signed a document of adherence to the 1937 Code of the International Chamber of Commerce. The Code of Advertising Business Practice and Rules dated 14 November 1997 was subsequently developed and signed. The Russian Code of Advertising and Marketing Communication Practice was introduced in March 2012. The aim of the Code is to establish high ethical standards for the advertising business, and to ensure that these standards are followed by all those involved in the advertising process. In addition to provisions of applicable laws, the Code reflects additional requirements on the use of scientific and technical data and terms, and the running of promotional events. The Code also clarifies requirements relating to the content of marketing communications. The final version of the Code has been approved by the Federal Antimonopoly Service. It is not binding on all the entities involved in advertising, but participants can opt to abide by the Code and use it as a basis for their advertising activity.  2. What obligations or standards do national codes of advertising impose upon advertisers? The Law on Advertising imposes an obligation on advertisers to be truthful and accurate. False or misleading advertising is prohibited (see Question 9 and Question 10). There are other general requirements. Advertising should not: • Induce to commit unlawful acts. • Incite violence or cruelty. • Bear resemblance to road signs or otherwise threaten the safety of motor, rail, waterborne or air traffic. • Induce negative attitudes or criticise people who do not use the advertised goods. • Contain information of a pornographic nature. • Use foreign words or expressions which can result in a distortion of the content of the advertisement. • State that the advertised goods are approved by state authorities or local self-governing authorities, or by state officials. • Display images of smoking or the consumption of alcoholic beverages. • Use images of medical or pharmaceutical staff (with certain exceptions). • Display prices in foreign currency without an indication of the equivalent amount in rubles. • State that the advertised goods have been produced using human embryonic tissues. • State that the advertised goods have curative properties, in other words produce positive effects on a disease, except in relation to pharmaceutical products, medical services, including preventive and diagnostic techniques, medical rehabilitation and medical products. Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com Practical Law 3 or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA • Use strong language, obscene or insulting images, comparisons and expressions, including in respect of an individual’s sex, race, nationality, profession, social class, age and language, official state symbols (flags, emblems, hymns), religious symbols, cultural heritage items (historical and cultural monuments), and cultural heritage items included in the World Heritage List. Other prohibitions relate to, among other things, subliminal advertising, advertising placed in educational materials and advertising aimed at children. In addition, certain goods or services cannot be advertised, including: • Narcotic drugs and psychotropic substances. • Explosive substances and materials, with the exception of pyrotechnic products. • Human organs and/or tissues. • Goods subject to state registration, certification or licensing if no such authorisation has been obtained. • Tobacco and tobacco products. • Services connected to the medical termination of pregnancy. The Law on Advertising also sets special requirements in relation to certain methods for the dissemination of advertisements such as: • Advertising in TV and radio programmes and broadcasts. • Advertising in periodical print publications. • Advertising in film and videos. • Advertising disseminated via telecommunication networks. • Outdoor advertising. • Advertising on means of transportation. There are also special requirements relating to specific industry sectors (see Question 14).  3. What procedures exist for complaining against an advertisement? What sanctions can be imposed for infringements of advertising codes or laws? A complaint procedure against an advertisement can be initiated before different state authorities, depending on the nature of the complaint. FEDERAL ANTIMONOPOLY SERVICE (FAS) Category of disputes. FAS considers disputes relating to breaches of Russian laws on advertising, with the exception of disputes which fall within the jurisdiction of the courts (see below). If the complaint relates to an advertisement which failed to highlight the harmful effects of tobacco, it is possible to apply both to FAS and to Roskomnadzor (Federal Service for Supervision of Communications, Information Technology and Mass Communications). Claimants. FAS can initiate a case ex-officio, or following a submission from the public prosecutor, the state authorities, individuals or legal entities. Competence. FAS is entitled to bring an action against infringers, consider relevant administrative cases and hold infringers administratively liable. It can carry out inspections and issue mandatory orders to advertisers, advertising producers and distributors. Appeal. The orders and rulings of FAS can be appealed in court. STATE COURTS Category of disputes. The state courts can hear administrative liability claims in connection with illegal outdoor advertising or illegal use of a means of transport as a mobile advertising structure; civil liability claims for breaches of advertising laws; and appeals of decisions of the lower courts and of FAS and Roskomnadzor. Claimants. The public prosecutor, state and municipal authorities, individuals and legal entities. Competence. The courts can impose civil liability for an infringement of the advertising laws (see below) and administrative liability only in connection with illegal outdoor advertising or illegal use of a means of transport as a mobile advertising structure. Appeal. Court decisions can be appealed in a superior court. LOCAL EXECUTIVE BODIES, POLICE AND PUBLIC PROSECUTOR’S OFFICE It is also possible to report an administrative advertising offence to the local executive authorities, police or public prosecutor’s office. These authorities will then refer the complaint to the competent body for consideration. Russian law provides for civil and administrative liability for the infringement of advertising laws by advertisers, advertising producers and distributors. ADMINISTRATIVE LIABILITY Infringements of the advertising regulations may result in administrative fines against the infringer (advertisers, advertising producers and distributors) as stipulated by the Russian Code of Administrative Offences. The individual’s responsibility must be proven (Article 2.1 of the Russian Code of Administrative Offences). 4 Practical Law Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA INFRINGEMENTS OF THE ADVERTISING REGULATIONS Depending on the nature of the infringement, the average fine for individuals ranges between RUR 2,000 and 5,000 (as at 14 May 2015, US$1 was about RUR50), for officials between RUR10,000 and 20,000 and for legal entities between RUR100,000 and 500,000. Higher fines are imposed on the advertising of narcotic drugs and infringements connected with outdoor advertising. Depending on the infringement, the average fine for individuals varies between RUR1,000 and 5,000, between RUR30,000 and 50,000 for officials and between RUR500,000 and 1 million for legal entities. INFRINGEMENTS OF THE ANTITRUST REGULATIONS Fines for officials range between RUR12,000 and 20,000, and between RUR 100,000 and 500,000 for legal entities. CIVIL LIABILITY Infringers (advertisers, advertising producers and distributors) may be subject to civil liability as stipulated by the Russian Civil Code. A person whose rights are infringed by an inappropriate advertisement may apply to court and claim: • Compensation for damages, including lost profit. • Compensation for harm inflicted to the health of individuals and/or to the property of individuals or legal entities. • Compensation for moral damages. • Public repudiation of a false advertisement. After FAS has established the facts and has issued an order to the infringer, it can also apply to court and demand public repudiation of the false advertisement at the advertiser’s expense. CONTROLS ON ADVERTISING METHODS 4. How does national law control product placement and editorial advertising? In general, product placement and editorial advertising are not regarded as advertising, and they are therefore outside the scope of the Law on Advertising, provided that the information they contain is organically integrated into, for example, a movie, TV programme or published article (Article 2.2 (9) of the Law on Advertising). However, the question of whether or not a reference to goods is organically integrated into a movie, TV programme or published article and, therefore, whether it falls within the scope of the Law on Advertising must be looked at on a case-by-case basis. This is done by analysing to what extent the content of the advertisement is directly linked to the plot of the film or the subject of the editorial. In cases where the primary aim of showing the goods was to attract consumers’ attention, create interest in the goods and promote them in the marketplace, the courts have held product placement or references to goods in printed publications to constitute advertising.  5. Does national law permit subliminal advertising? Subliminal advertising is not permitted. The dissemination of subliminal advertising (advertising that produces an effect on the conscience of consumers without the consumers being aware of it, including effects resulting from the use of special video inserts (double sound recording) and other means) is not allowed in radio, TV, video, audio or movie products or any other products (Article 5.9 of the Law on Advertising). In practice, subliminal advertising has been interpreted by the courts as advertising that affects consumers without them being aware of it, or which contains hidden impulses that affect the unconscious human perception.  6. How does national law regulate the use of billboards and other forms of outdoor advertising? The Law on Advertising lists the following forms of outdoor advertising: panels, billboards, building wraps, banners, electronic screens, projection equipment, air-balloons, aerostats and other technical facilities. Actions related to the installation (assembly), operation and dismantling of these items are regulated in detail. Outdoor advertising is prohibited on road signs and their poles, on any other traffic control devices and on cultural heritage items. Requirement to enter into to an agreement to install outdoor advertising. Installation of an outdoor advertising facility must be carried out under an agreement between the owner of the advertising (advertising distributor) and the owner of the land, building or other real property. Installation on a block of flats also requires consent from all owners. Requirement to obtain an installation permit. A permit must be issued by the local official body on whose territory it is proposed to install and operate the facility. After the expiry of the relevant permit the owner must dismantle and remove the facility. Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com Practical Law 5 or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA The official body may refuse to issue a permit if the facility: • Does not meet the technical requirements. • Breaches the traffic safety regulations. • Does not complement the style of the existing buildings. • Breaches the requirements of Russian laws on cultural heritage items (historical and cultural monuments) and on their protection and use. • Breaches the requirements of the Law on Advertising on contractual arrangements between the owner of the land and the advertising distributor (see above). Requirement for the outdoor advertising owner to dismantle the advertising structure. Outdoor advertising structures must be dismantled by the actual owner. If the owner fails to dismantle within the prescribed period, the duty will pass to the owner of the real property on which the structure is installed, or the dismantling will be subsequently carried out using local budgetary funds. However, the advertising owner is under an obligation to repay the expenses incurred in connection with the dismantling.  7. How does national law regulate the use of aerial advertising? Advertising with air-balloons, aerostats and other similar aircraft is defined as outdoor advertising. This type of advertising is subject to the general advertising requirements, and also the outdoor advertising regulations (see Question 6).   CONTROLS ON ADVERTISING CONTENT 8. How does national law regulate price advertising and display? In general, advertisements should not contain misleading information about the price of the goods, the payment procedure, discounts, tariffs and other purchase terms for the goods (Article 5.3 (4) of the Law on Advertising). The price should be indicated in Russian rubles and, if necessary, may additionally be stated in a foreign currency (Article 5.7.1 of the Law on Advertising). The Law on Advertising also contains special rules on the advertising of financial services, in particular services relating to credits or loans. If this type of advertisement contains at least one term on pricing, it should also contain all the other terms and conditions determining the end-price of the credit or loan, to be determined in compliance with Federal Law No. 353- FZ “On Consumer Credits (Loans)” of 21 December 2013. 9. How does national law regulate the use of false information in advertising? Use of false information in advertising is not permitted. The following categories of advertisements are considered false (Article 5.2. of the Law on Advertising): • Advertisements containing an incorrect comparison of the advertised goods with other manufacturers’ or other sellers’ goods available on the market (see Question 11). • Advertisements of a defamatory nature, liable to harm the integrity, dignity or business reputation of a person, business or legal entity, including a competitor. Information will be deemed false if the all of the following criteria are fulfilled (Article 7 of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated 24.02.2005 No. 3 “On the Court Practice in Cases Relating to the Protection of Honor and Dignity of Physical Persons and Business Reputation of Physical Persons and Legal Entities”): – The information has been made available to the public (for example by dissemination in the press or on the Internet, in a radio or television broadcasting, or by any other means of communications); – The information is defamatory (for example it consists of an allegation that a physical person or legal entity has breached the law, committed a dishonest act, behaved wrongly or unethically in private or in public) and is capable of damaging the dignity or business reputation of a physical person or a legal entity. – The information is false (a statement about facts or events which did not take place at the time alleged in the disputed information). If any one of these criteria is not met, there is no infringement (Article 7 of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated 24.02.2005 No. 3 “On the Court Practice in Cases Relating to the Protection of Honor and Dignity of Physical Persons and Business Reputation of Physical Persons and Legal Entities”). If the advertisement is deemed to cause harm to the integrity, dignity, or business reputation of an individual or legal entity, a court may order refutation of such information and compensation of losses and moral harm (Article 152 of the Civil Code of the Russian Federation). The aggrieved party is not under an obligation to prove that any unfavorable consequences occurred as a result of the distribution of a defamatory advertisement, the fact of the distribution is sufficient. • Prohibited advertisements designed to promote prohibited products, including disguised advertising of banned goods. In a bid to sidestep the rules on prohibited advertisements some advertisers, 6 Practical Law Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA seeking to promote a product whose advertising is strictly controlled, will advertise it using a similar or identical trade mark on a different type of product – one that is not governed by strict regulations. For example, outdoor advertising of alcoholic products is banned under Article 21.5 (2) of the Law on Advertising. Accordingly, outdoor advertising of water under the trade mark of the alcoholic product, so that consumers will not associate the advert with the carrier product (water), but with the banned product (alcohol) is considered false advertising. • Comparative advertising that amounts to an act of unfair competition under anti-monopoly laws. Based on the definition of “unfair competition”, for an advertisement to be treated as an act of unfair competition, the following conditions must be fulfilled: – The advertising activity is aimed at obtaining business advantages. – It is inconsistent with the law and business practices, as well as the principles of good faith, reasonableness and fairness. – It has caused actual losses or has potential to cause losses to other business entities (competitors), or actual harm or potential to cause harm to their business reputation. Unfair competition includes, among other things, the following activities (Article 14 of Federal Law dated 26 July 2006 No. 135-FZ “On the Protection of Competition” (the Competition Law)): – The distribution of false, inaccurate or distorted information which can cause losses to a business entity or harm its business reputation. – Misrepresentation as to the nature, method and place of manufacturing, consumer properties, quality and quantity of the goods or in relation to then goods’ manufacturers. – Incorrect comparison of the goods that a company manufactures or sells with the goods manufactured or sold by other business entities. It is important to note that the same prohibitions in relation to the distribution of false information, misleading of consumers, and incorrect comparison are also contained in (Article 5 of the Law on Advertising on false advertising, see above). However, violations in connection with unfair competition and false advertising entail different administrative liability (see Question 3).  10. How does national law regulate misleading advertising? Misleading advertising, defined as advertising that contains false statements, is prohibited. An advertisement is misleading if it contains, among other things, untrue information about (Article 5.3. of the Law on Advertising): • The merits of the advertised goods. • Any characteristics of the goods. • The range and list of parts of the goods. • The price, terms of payment, level of discount, rates, and other purchase terms. • The terms for delivery, replacement, repair, and maintenance. • Warranty obligations of the goods’ manufacturer or seller. • IP rights. • Rights to use official state symbols (flags, coats of arms, anthems) and symbols of international organisations. • Official or public recognition for the goods, such as medals, prizes, diplomas or other awards received. • Recommendations by individuals or legal entities. • The results of research or testing. • The grant of additional rights or advantages to the purchaser of the advertised goods. • The market demand for the advertised goods or other goods. • The volume of production or sales of the advertised goods or other goods. • The rules and periods of a tender, game, or other similar activity. • The rules and periods of risk-based games and betting. • The information source to be disclosed under federal laws. • The manufacturer or the seller of the advertised goods. 11. How does national law regulate comparative advertising? Comparative advertising is permitted as long as it does not contain an incorrect comparison of the advertised goods with other goods produced by other manufacturers or sold by other sellers, or makes dubious claims about the advantages of the advertised goods over competitor products (Articles 5.2 (1) and 5.3 (1) of the Law on Advertising). The Advertising Law does not define the meaning of “incorrect comparison”. A review of relevant case law indicates that a comparison has been held to be incorrect if such a comparison, for example: Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com Practical Law 7 or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA • Causes consumers to develop a negative perception of a competitor’s goods. • Is capable of misleading consumers. • Is based on doubtful characteristics of the goods. • Is based on inaccurate information. • Has no documentary support. • Is based on a description of the merits of the advertised goods based on a single criterion, while a set of criteria should have been applied to ensure objectivity. A decision of the Higher Court of Arbitration of the Russian Federation (No. 58 of 8 October 2012) has further clarified the concept of incorrect comparison. It held that, since advertising must be accurate and therefore lead consumers to develop an accurate perception of the goods, comparisons must be made with reference to specific criteria, and must have objective confirmation parameters. This requirement applies both to the information on the advertised goods and the competitors’ goods. As a result, a comparison of the advertised goods with other goods, for example, by using the words such as “the best”, “the first”, or “number one” should include a reference to a specific comparison criterion accompanied by objective evidence. An advertisement lacking objective evidence of superiority will be considered misleading not just in relation to the advertised goods, but also, impliedly, in relation to other manufacturers’ or sellers’ goods available on the market. It follows that, when analysing information provided in the advertisement, the courts should hold the advertiser liable for false statements not only with respect to the advertised goods but also with respect to the goods of the competitors. Therefore, an advertisement can be considered false even if incorrect statements are made with regard to the competitors’ goods. An incorrect comparison in an advertisement can also be treated as a form of unfair competition under Article 14.3 (1) of the Competition Law which prohibits unfair competition (see Question 4.) 12. Can an advertisement create a contract between the advertiser and the buyer of the product advertised? The general rule is that no contract arises between the advertiser and the buyer because an advertisement is not an offer but just an invitation to make offers (Article 437 of the Civil Code of the Russian Federation). However, in some cases an advertisement can be deemed a public offer and, accordingly, if such offer is accepted the advertiser and the buyer will be under an obligation to perform the resulting contract. If an advertisement directly states that it is an offer, or contains all the material terms of a contract (the goods/services and the price) and also expresses the intention of the advertiser to enter into a contract on the terms stated in the offer with anyone who may accept it, it can be considered a public offer. For example, a court has held that product catalogues were not advertisements but rather an offer to enter into a contract for distance sale of goods because they included all the material terms of a contract of sale. In another dispute the court explained that a reference to the minimum price of the goods advertised should not be treated as a declaration of one of the material terms of a contract of sale because the price for the goods in that case did not apply to a specific model of the goods, and, accordingly, the advertisement placed by the company could not be treated as a public offer within the meaning of Article 437 of the Civil Code of the Russian Federation. 13. How does national law regulate the use of obscene or indecent material in advertisements? The use of obscene or indecent material in advertisements is prohibited by the Law on Advertising. The list of prohibited materials is quite broad and covers, among other things, use of strong language, obscene or offensive images, comparisons and expressions, in relation to sex, race, nationality, profession, social class, age, and language, official state symbols (flags, emblems, hymns), religious symbols, cultural heritage items (history and cultural monuments) of the Russian Federation, and cultural heritage items included in the World Heritage List. In addition, there is a separate prohibition on the use of any pornographic materials in advertisements. In practice, when considering cases on the use of obscene or indecent material in advertisements, the courts look to ascertain if general moral principles have been disregarded. INDUSTRY-SPECIFIC REGULATION 14. Does national law legislate or regulate advertising in any specific industry sectors? The Law on Advertising contains special requirements and restrictions on advertising distribution methods and places, and the content of advertisements in relation to the following categories of goods: • Alcoholic products. 8 Practical Law Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA • Medicinal products, medical devices and medical services, methods of prevention, diagnosis, treatment and medical rehabilitation, types of alternative medicine. • Biologically active additives and food additives, baby food products. • Products for military purposes and weapons. • Risk-based games, betting. • Financial services and securities. • Services involving the conclusion of leasing contracts, including contracts finalising life long maintenance of a dependent. • Mediators’ activities in connection with the management of the mediation process. RESTRICTIONS ON ADVERTISING TO CHILDREN 15. Does national law regulate advertisements directed at children? The Russian Federation has legislated specifically to protect minors against unscrupulous advertisers. The provisions of the Law on Advertising mirror the provisions of Federal Law dated 29 December 2010 No. 436-FZ “On the Protection of Children from Information Causing Harm to their Health and Development.” Special provisions address the production, placement and distribution of advertising targeted at children. Article 6 of the Law on Advertising provides that marketing communications addressed to children must not: • Discredit parents or teachers, or undermine the trust that minors have in them. • Encourage minors to persuade their parents or others to purchase the advertised goods. • Cause minors to develop a distorted perception about the accessibility of the goods for a family on an average income. • Cause minors to believe that the advertised goods would put them at an advantage compared with their peers. • Cause minors who do not have the advertised goods to develop an inferiority complex. • Display minors in dangerous situations, including situations that encourage to engage in behavior which poses a threat to their life and (or) health. • Understate the level of skills that the minors of the targeted age group need to correctly use the advertised goods. • Cause minors to develop an inferiority complex due their physical appearance. • The Law on Advertising also prohibits the placement of advertising in textbooks, study materials, and other educational literature, and regulates the distribution of advertising in children’s and educational television programs and within children’s educational and health organisations. • In addition information materials for children (printed editions, television programs, video games, theatrical performances and any other information materials addressed to children) are subject to mandatory classification by age categories, from 0+ to 18+ years. • Finally, advertising which includes information related to use of narcotic substances, alcohol or tobacco, justification of unlawful conduct, threat to life or health, obscene language or information of pornographic nature cannot be distributed to children. PROTECTION AND USE OF INTELLECTUAL PROPERTY RIGHTS 16. How is copyright protected under national law? Are advertising slogans protected by copyright under national law? Copyright is regulated by the Civil Code of the Russian Federation, Part IV. Copyright protection does not extend to all advertising slogans, but only to those with the prescribed requisites for protection. Accordingly, an advertising slogan must be: • An independent result of creative efforts by the author, which implies novelty, uniqueness and originality. • Expressed in tangible format, including written or oral form, in the form of an image, an audio or video recording and so on. If this is the case, an advertising slogan will enjoy the protection granted by Article 1259 of the Civil Code of the Russian Federation on copyright.  17. How are trade marks protected under national law? Is there any form of protection for unregistered trade marks, for example, under unfair competition or passing off laws? Trade marks are regulated by the Civil Code of the Russian Federation, Part IV. Reproduced from Practical Law, with the permission of the publishers. For further information visit practicallaw.com Practical Law 9 or call +44 20 7542 6664. Copyright ©Thomson Reuters 2015. All Rights Reserved. ADVERTISING COUNTRY QUESTIONS: RUSSIA Russia has adopted a first-to-file system, which awards trade mark rights to the first applicant. As a result, trade mark rights can be acquired in Russia through registration only, but not due to prior use. Third party use of an unregistered trade mark may constitute unfair competition when such use is capable of misleading consumers as to the identity of the producer of the goods or services (Article 14.1 of the Competition Law). When judging infringement of unregistered trade marks, the courts also apply Article 10 bis of the Paris Convention for the Protection of Industrial Property, which prohibits “all acts of such a nature as to create confusion by any means whatever with the establishment, the goods, or the industrial or commercial activities, of a competitor”. Public opinion surveys are frequently used in these cases to prove that the use of the unregistered trade mark may create a risk of confusion. An unregistered trade mark may also serve as a basis for cancellation of a similar registered mark, if registration is deemed an abuse of rights or unfair competition. In addition, trade mark registration can be challenged on the grounds that consumers are misled as regards the manufacturer of the goods (Article 1512 of the Civil Code of the Russian Federation). 18. Can a trade mark registered in the name of a third party be used in comparative advertising? Where such use is permitted, will there be any copyright issues? Use of a trade mark of a third party in a comparative advertisement is not prohibited, as long as the advertisement does not contain an incorrect comparison (see Question 11). If a trade mark can also be regarded as a copyright protected work (for example, an original drawing or slogan), the aggrieved party can also bring a claim based on copyright. ENDORSEMENTS AND THE USE OF PEOPLE IN ADVERTISEMENTS 19. What action lies for using an individual’s name or image without consent? In general, an individual’s name or image cannot be used for advertising purposes without prior consent. In the event of a breach, the individual concerned may bring a civil liability suit and claim, among other things, compensation for moral damages. ADVERTISING COUNTRY QUESTIONS: RUSSIA Legal solutions from Thomson Reuters Thomson Reuters delivers best-of-class legal solutions to help you practise the law, manage your organisation and grow your business. Our solutions include Practical Law, Westlaw UK, Sweet & Maxwell and Lawtel, and a series of software solutions including Serengeti, Solcara and Thomson Reuters Elite, intelligently connect your work and your world with our content, expertise and technologies. Find out more at legal-solutions.co.uk