about gala - International Advertising Association

ABOUT GALA

The Global Advertising Lawyers Alliance (GALA) is the leading network of

advertising lawyers in the world. With firms representing more than 90 countries,

each member has the local expertise and experience in advertising, marketing and

promotion law that will help your campaign achieve its objectives, and navigate the

legal minefield successfully. GALA is a uniquely sensitive global resource whose

members maintain frequent contact with each other to maximize the effectiveness of

their collaborative efforts for their shared clients. GALA provides the premier

worldwide resource to advertisers and agencies seeking solutions to problems

involving the complex legal issues affecting today’s marketplace.

For further information about GALA, please contact the relevant member directly or

GALA’s Executive Director, Stacy Bess at:

Global Advertising Lawyers Alliance

488 Madison Avenue, 10th floor, New York, NY 10022

Tel: 212.705.4895 | Fax: 347.438.2185

Email: [email protected]

www.galalaw.com

©2018 Global Advertising Lawyers Alliance

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TABLE OF CONTENTS

ABOUT GALA Page 1

ARGENTINA Page 7

AUSTRALIA Page 11

AUSTRIA Page 17

BELGIUM Page 21

BOLIVIA Page 25

BRAZIL Page 31

BULGARIA Page 37

CANADA 3

CHILE Page 47

CHINA Page 51

COLOMBIA Page 59

COSTA RICA Page 65

CROATIA Page 69

CYPRUS Page 73

CZECH REPUBLIC Page 77

DENMARK Page 81

DOMINICAN REPUBLIC Page 87

DUTCH CARIBBEAN Page 91

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ECUADOR Page 95

EGYPT Page 99

EL SALVADOR Page 103

FINLAND Page 107

FRANCE Page 113

GERMANY Page 119

GREECE Page 123

GUATEMALA Page 129

HONG KONG Page 133

HUNGARY Page 137

INDIA Page 143

IRELAND Page 153

ISRAEL Page 157

ITALY Page 161

JAMAICA Page 169

JAPAN Page 173

KENYA Page 177

LUXEMBOURG Page 183

MALAYSIA Page 189

MEXICO Page 193

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NETHERLANDS Page 197

NEW ZEALAND Page 203

NICARAGUA Page 209

NIGERIA Page 213

NORWAY Page 217

PANAMA Page 221

PARAGUAY Page 225

POLAND Page 229

PORTUGUAL Page 235

PUERTO RICO Page 241

ROMANIA Page 245

RUSSIA Page 249

SERBIA Page 255

SINGAPORE Page 260

SLOVAKIA Page 265

SOUTH AFRICA Page 270

SPAIN Page 275

SWEDEN Page 281

SWITZERLAND Page 285

TURKEY Page 291

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UKRAINE Page 299

UNITED ARAB EMIRATES Page 305

UNITED KINGDOM Page 309

UNITED STATES Page 317

URUGUAY Page 325

VENEZUELA Page 329

ZIMBABWE Page 333

LIST OF GALA MEMBERS Page 336

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Argentina

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SOCIAL MEDIA – ARGENTINA

1. Whatare themain socialmediaplatformsthatadvertisersuse in your jurisdiction foradvertising and marketing to consumers? Are there any important global social mediaplatformsthatarenotavailableforuse(orarenotwidelyused)inyourjurisdiction?

The most popular social media platforms used by advertisers are Facebook, YouTube andInstagram.OtherplatformsavailableinArgentinaareLinkedIn,Twitter,PinterestandSnapchat,whichareusedbymarketersdependingontheaudiencetheywanttotarget.

2. Whatarethemainlawsandregulationsgoverningadvertisingandmarketingviasocialmediainyourjurisdiction?

Argentina currently does not have statutory legal provisions that specifically govern socialnetworks. As a result, general rules contained in the Consumer Protection Law, CommercialLoyaltyLaw,UnfairCompetitionLawandtheregulationforspecificindustries,suchastobaccoandpharmaceuticalproducts,alsoapplytosocialmedia.

Inanyevent,advertisingandmarketingissuesaremostlylefttoself-regulationthroughtheEthicCodeoftheArgentineanSelf-RegulationBoard(‘CONARP’),togetherwithothercomplementarypapersissuedbyCONARP.Inthisregard,advertisingviasocialmediamustcomplywiththesameprinciplesaswouldmarketingthroughtraditionalmedia.

In 2017 CONARP published a paper which provides a brief introduction to best practice incommercial communications in social media. The paper emphasizes that, in all cases, onlinecommunicationsmustbelegal,truthful,honest,loyalandtrustworthy.

3. Whatarethemainself-regulatoryrulesonadvertisingandmarketingviasocialmediainyourjurisdiction?

It is important tomentionthatsocialmediaremainsbeyondthecontrolofENACOM(NationalEntityofCommunications),whichisadecentralizedandindependentbodywithintheNationalExecutive Power that safeguards the enforcement of the Law on Audiovisual CommunicationServicesNo26.522andimposesanyapplicablepenalties.

However,self-regulationisveryimportantinArgentina.AlladvertisersmustcomplywiththeEthicandSelf-RegulationCodeofCONARP,whichhasaSelf-RegulationCommission(‘SRC’)thatdealswithclaimsagainstpiecesofadvertising.

Inaddition,dependingonthetypeofproductorservicethatisadvertisedviasocialmedia,theregulatorysystemisappliedthroughdifferentbodies,forexample:• ANMAT (National Administration of Drugs and Food) regulates the advertising of food,

cosmetics,drugs,beverages,medicaldevicesandotherrelatedproductsandservices;• The Secretariat of Tourism regulates travel agency services, air companies and tourist

servicesingeneral;• Central Bank of the Argentine Republic regulates loan products, financial and banking

services;and• Chamber of Beer Merchandisers in Argentina (which has its own self-regulation rules)

concernsitselfwiththeresponsibleconsumptionofbeer.

Finally, note that any third party with a legitimate interest can file complaints against ads(includingsocialmedia)thatinfringetheapplicablelegalframework.

TherearethreewaystoreportthecontentofanadvertisementinArgentina,namely:

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(i) through an administrative procedure (for example, ANMAT (National Administration ofDrugsandFood)),

(ii) throughself-regulationproceduremanagedbytheself-regulationcommissionatCONARP,or

(iii) throughcourtaction.

4. What are the specific laws, regulations, and self-regulatory rules in your jurisdictionrelatedtoinfluencermarketingviasocialmedia?

Influencers’ activity is not specifically regulated by law. The use of hashtag disclosures is notrequiredbylaworregulations.However,CONARPsuggestmakingitcleartotheconsumerwhenabrandisdirectlyinvolvedinthirdpartyposts/communications,toguaranteetransparencyinadvertising.

5. What are the specific laws, regulations, and self-regulatory rules in your jurisdictionrelatedtonativeadvertisingviasocialmedia?

There are no specific laws or regulations with regards to native advertising via social media.However,transparencyshouldbetherule.Asageneralprinciple,advertisersshouldmakecleartotheiraudiencewheneditorialorentertainmentcontentconstitutesamarketingactiontopromoteaproductorservice.

6. What are the specific laws, regulations, and self-regulatory rules in your jurisdictionrelated to the use of user generated content when advertising and marketing via socialmedia?

Usergeneratedcontent(‘UGC’)isnotspecificallyregulatedinArgentina.AccordingtoCONARP´spaperondigitaladvertising,UGCcannotbeconsideredcommercialcommunicationunless it isreproducedbytheadvertisersintheirofficialsocialmediachannels.

7. What are the specific laws, regulations, and self-regulatory rules in your jurisdictionrelatedtoconductingsweepstakesandcontestsviasocialmedia?

Ifapromotion(contestorsweepstakes)isrunonsocialmedia,itisnecessarytocomplywiththeCommercial Loyalty Law and the Consumer Protection Law, together with any registrationrequirements,ifapplicable(dependingontheterritory).

8. Whataresomeotherimportantissuestoconsiderinyourjurisdictionwhenadvertisingandmarketingviasocialmedia?

Whenthinkingaboutadvertisingonsocialmedia,it’simportanttoalwaysrememberthatmanyofthesamerulesthatapplytootherformsofadvertisingalsoapplytosocialmedia.

9. Whatarethemostimportant,recentcasesrelatingtoadvertisingandmarketingviasocialmediainyourjurisdiction?

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Itisworthmentioningthatincaseofinfringements,mostofthetimemanylocalcompaniesandconsumers finda fastandsuitablesolutionbyreportingthe infringementdirectly to thesocialnetworkingservicecompanythroughthe‘noticeandtakedown’system.

CONARP also deals with claims against advertisements disseminated in traditional or digitalmedia,butrecentcaseshavenotyetbeenpublished.

10. Whataresomekey‘bestpractices’foradvertisingandmarketingviasocialmediainyourjurisdiction?

Traditionaladvertisingprinciplesapplytosocialmedia,namely:• tocommunicatetruthfulinformation,• toavoidmisleading/deceptivecommunications,and• torecognizethepersonalorpropertyrightsofothers.

TheseprinciplesarecontainedwithintheCodeofEthicsofCONARPandarealsolaiddownintheConsumerProtectionAct.

Themostimportantruleswhenadvertisingthroughsocialmediaareasfollows:• tocomplywithalllaws/regulationsandthird-partyrules(eg,Facebook/Twitter),including,

butnot limited to, rules re copyright, trademark,consumerprotection, privacy anddatasecurity;

• toobtainallrightstocopy,display,distribute,deliver,renderandpubliclyperformcontent,includingwithrespecttocommercialadvertising;andtorespecttheprivacyrightsofusers;

• tohaveasocialmediapolicyinplaceandmonitortheactivitiesofauthorizedsocialmediaagentsengagedontheadvertiser’sbehalf;

• torespecttheprivacyrightsofusers;• inthecaseofUGC,towatchoutforpotentialliabilityforcopyright,trademark,defamation,

privacy,publicityandfalseproductclaims;and• if a promotion (contest or sweepstakes) is run on social media, to comply with the

CommercialLoyaltyLawandtheapplicablelegalframework.

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Australia

A9R17a5stm_7vr7ru_5i0.pdf 1 5/23/2018 12:02:39 PMA9R1fynqqq_7vr7rw_5i0.pdf 1 5/23/2018 12:03:30 PM

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SOCIAL MEDIA – AUSTRALIA

1. Whatare themain socialmediaplatforms thatadvertisersuse in your jurisdiction for advertising and marketing to consumers? Are there any important global social media platformsthatarenotavailableforuse(orarenotwidelyused)inyourjurisdiction?

The top socialmedia platforms used by advertisers in Australia are (in approximate order ofpopularity): Facebook, YouTube, Instagram, WhatsApp, LinkedIn, Snapchat, Tumblr, Twitter,TripAdvisorandWeChat.AllglobalsocialmediaplatformsareavailableforuseinAustralia.

2. Whatarethemainlawsandregulationsgoverningadvertisingandmarketingviasocial mediainyourjurisdiction?

ThesamelawsandregulationswhichapplytoadvertisingandmarketinggenerallyinAustraliaalsoapplytosocialmedia.

Themain piece of consumer protection legislationwhich regulates advertising andmarketingclaims (including in social media) is the Australian Consumer Law (‘ACL’), contained withinSchedule 2 to the Competition and Consumer Act 2010. The ACL contains provisions which,amongst other things, prohibit persons and corporations from engaging in conduct which ismisleadingordeceptive,orislikelytomisleadordeceive.Inaddition,personsandcorporationsarealsoprohibitedfrommakingcertainfalseormisleadingrepresentations,includinginrelationtotestimonials.Ineithercase,civilremediesareavailable(includingrestrainingorders,correctiveadvertising,damagesandcivilpecuniarypenalties)and,forfalseormisleadingrepresentations,criminalsanctionsarealsoapplicablebywayoftheimpositionofsubstantialfines.

Asdiscussedbelow (atanswer9), theACLhasbeenapplied in respect ofadvertising in socialmedia, including,inparticular, inrespectofcommentsmadebythirdpartiesonanadvertiser'ssocialmediawebsite.

The government regulator and enforcer of the ACL, the Australian Competition and ConsumerCommission (‘ACCC’) has issued guidelines in respect of advertising on social media(see http://www.accc.gov.au/business/advertising-promoting-your-business/social-media). Inaddition, the ACCC has issued guidelines in respect of managing online reviews (seehttps://www.accc.gov.au/business/advertising-promoting-your-business/managing-online-reviews).

3. Whatarethemainself-regulatoryrulesonadvertisingandmarketingviasocialmediain yourjurisdiction?

Australia has an established advertising self-regulation system in place. The AustralianAssociation of National Advertisers (‘AANA’) has developed a number of advertising codes ofconduct which are binding upon members of the AANA, and generally complied with by thebroader advertising industry. The codes of conduct are not specific to the type of advertisingmedium used and so also apply to advertising andmarketing via social media. The codes ofconductareadministeredbyAdStandards(formerlycalledtheAdvertisingStandardsBoard).

The main code of conduct is the AANA Code of Ethics (see http://aana.com.au/content/uploads/2017/02/AANA-Code-of-Ethics.pdf). The AANA has also developed Best PracticeGuidelines for Responsible Marketing Communications in the Digital Space(see http://aana.com.au/content/uploads/2017/06/AANA_Best_Practice_Guide_Marketing_Digital_Sp ace.pdf), which guides the interpretation of the AANA Code of Ethics in the context of digitalmedia,including social media. More recently, the AANA released Best Practice Guidelines for Clearly

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Distinguishable Advertising (seehttp://aana.com.au/content/uploads/2017/01/AANA_Distinguishable-Advertising -Best-Practice-Guideline__Final.pdf),whichemphasizes theimportanceofensuring thatadvertising andmarketing communication, particularly on social media, is easily distinguishable.As discussedbelow, there have been a number of recent decisions by Ad Standards whichconfirm theapplicability of theAANA Code of Ethics to socialmedia including in respect ofusergeneratedcontent.

In addition, theCommunicationsAlliancehasdeveloped theCodeofPracticeContent ServicesCode 2008 (‘Content Services Code’) which applies to a broad range of internet contentservice providers who have an Australian connection, including content services providedthrough socialmedia.This codehas the forceof lawas it is registeredunder theBroadcastingServicesAct1992whichmeansthatabreachoftheContentServicesCodeamountstoabreachoftheAct.

The Content Services Code prohibits certain content such as content containing explicit sexualthemes or violence, detailed instruction on crime, violence or drug use, or material thatadvocates terrorist acts. It also places an obligation on these providers to promote onlinesafety, including theprovisionof informationandadvice toassistparents todealwithsafetyissuesassociatedwithand controlling access to content (especially chatservices) and theuseofwarningsandsafetyinformationforagerestrictedaccesscontent.

TheAssociation forData-drivenMarketingandAdvertising (‘ADMA’)alsohasalsodevelopedanextensive Code of Practice (2015) which regulates a range of its members' direct marketingactivities (including email and mobile marketing). ADMA is Australia's largestmarketingassociationandrepresentsmorethan600memberorganizations.

4. What are the specific laws, regulations, and self-regulatory rules in your jurisdiction relatedtoinfluencermarketingviasocialmedia?

There are no laws specifically related to influencermarketing. TheACL applies generally to alltypesofmarketingandadvertising.

TheAANA's Best Practice Guidelines for ClearlyDistinguishable Advertising apply to influencermarketing. Inrecentyears, therehasbeensignificantoverlapbetweeninfluencermarketingandnativeadvertising,whereinfluencersfailtodisclaimsponsoredcontentwhichhasbeenpaidforbyadvertisers.

5. What are the specific laws, regulations, and self-regulatory rules in your jurisdiction relatedtonativeadvertisingviasocialmedia?

There are no laws specifically related to native advertising. The ACL applies generally to alltypesofmarketingandadvertising.

In addition to the ACL, the AANA's Best Practice Guidelines for Clearly DistinguishableAdvertisingdirectlytargetnativeadvertising,

6. What are the specific laws, regulations, and self-regulatory rules in your jurisdiction related to the use of user generated content when advertising and marketing via socialmedia?

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Therearenolawsspecificallyrelatedtouseofusergeneratedcontentonsocialmedia.TheACLappliesgenerallytoalltypesofmarketingandadvertising.

However,thecourtshaveheld(seeAllergyPathwaycasebelowatanswer9)thatadvertiserswillbeheldliableforusergeneratedcontentonwebsitesandsocialmediasitesifthecontentcontainsrepresentationsthataremisleadingordeceptive,orlikelytomisleadordeceive,andtheadvertiserdoes not remove themisrepresentationswhen they become aware of them, or ought to havebecomeaware.


Therearenolawsspecificallyrelatedtoconductingsweepstakesandcontestsviasocialmedia.TheACLandlegislationonsweepstakesandcontestsingeneralwouldapply.


A general principle that underlies everything else is that all the laws, regulations and self-regulatory guidelines governing advertising andmarketing are also applicable to socialmediaadvertisingandmarketing.

The release of the newAANABest Practice Guidelines for Clearly Distinguishable Advertisingrecognizes that influencer marketing and native advertising have become more prevalent intoday’s society. It is important that companies using socialmedia advertising ormarketing inAustraliaareawarethatinfluencermarketingandnativeadvertisingarelikelytocontravenetheACLunlessappropriatedisclosureofcommercialarrangementsaremade.


(1) ACCCvMeritonPropertyServicesPtyLtd[2017]FCA1305(MeritonCase):IntheMeritoncase, the Federal Court found that serviced apartment property company, Meriton, hadengagedinmisleadingordeceptiveconductbydeliberatelypreventingguestsitsuspectedwouldgiveunfavorablereviewsfromreceivingTripAdvisor'sreviewpromptemail.Indoingso,Meritoneffectivelyminimizedthenumberofnegativereviewspostedonthesiteand,insomecases,affectedtherankingoftheirpropertiesonTripAdvisor.Meritonwasalsofoundtobeinbreachofmisleadingthepublicastothecharacteristicsandsuitabilityofitsservices.

(2) AustraliaPostCase:InDecember2014,AustraliaPostwas‘outed’byitsownsocialmediauserswhenitwasdiscoveredthatAustraliaPosthadpaidInstagraminfluencerstoadvertiseAustralia Post's brand and services without disclosing that fact. The influencers postedphotos of themselves at anAustralia Post branch, complimenting their services,withoutdisclosing that their endorsements had been sponsored by Australia Post. The lack ofdisclosure did not comply with the ACCC’s guidelines for online reviews and led tounfavorableonlinemediascrutinyandcriticism.

(3) ACCCvAllergyPathwayPtyLtd(No2)[2011]FCA74(AllergyPathwayCase):IntheAllergyPathwayCase,anumberoffalseormisleadingtestimonialsabouttheproductwerewritten

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andpostedbyclientsonAllergyPathway'sFacebook‘wall’.WhilstAllergyPathwaywasnotresponsiblefortheirinitialpublication,itwasneverthelessheldthatoncetheadvertiserhadbecomeawareofthefalsestatementshavingbeenplacedonitsFacebookorTwitterpage,andhaddecidednottoremovethem,itbecamethepublisherof(andresponsiblefor)thetestimonials. Allergy Pathway was therefore held responsible for the misleading ordeceptiveandfalserepresentationswrittenandpostedbyclientsonitssocialmediapages.The placement of a disclaimer by the advertiser on the website was not sufficient toovercomeliability.

(4) ASBCases: Thefindingthatadvertisersareresponsiblefortherepresentationsmadebythirdparties in user generated content has been echoed in anumber of determinationsbeforeAdStandards.

Incasenumbers0271/12and0272/12,AdStandardsconsideredcomplaintsinrespectofFacebookpagesforVictoriaBitter(‘VB’),apopularbrandofbeerinAustralia,andSmirnoff,avodkaproduct,respectively.

Inbothcases,itwasheldthatadvertisingonaFacebookpagewassubjecttotheAANACodeof Ethics. In addition, in respect of the complaint regarding the VB Facebook page, theadvertiserwasheldresponsibleinrespectoftheusercommentsandmaterialpostedontheadvertiser'sFacebookpage.Inthatcase,theadvertiserhadpostedanumberofquestionsinviting answers from the online community. The comments included derogatory andoffensivematerialwhichwasheldtobeinbreachoftheAANACodeofEthics.TheASBfoundthattheFacebooksiteofanadvertiserwasconsideredtobeamarketingcommunicationtooloverwhich the advertiserhas a reasonabledegreeof control, and that the site couldbeconsidered to draw the attention of a segment of the public to a product in a mannercalculatedtopromoteoropposedirectlyorindirectlythatproduct.Therefore,theASBheldthattheAANACodeofEthicsappliedtoboththecontentgeneratedbythepagecreatorandtothematerialandcommentspostedbyusersontheFacebookpage.Itshouldbenotedthatsocialmedia is an advertisingplatform that requires ongoing and regularmonitoring toensurethatoffensivematerialisremovedwithinareasonabletimeframeandthatcontentwithinaFacebookpageshould,likeallotheradvertisingandmarketingcommunication,beassessedwiththeAANACodeofEthicsinmind.

10. Whataresomekey“bestpractices”foradvertisingandmarketingviasocialmediainyourjurisdiction?

Somekeybestpracticesare:• Ensure thatadvertisingandmarketingcommunicationsareclearlydistinguishableto the

relevantaudiencebyprovidingprominentandvisiblecuestoenablethemtoimmediatelyunderstandtheyareengagingwithpaidcontent.

• EnsurethatthecontentofalladvertisingandmarketingcommunicationsadheretoAANACodes(forwhichseehttp://aana.com.au/self-regulation/codes/).

• Regularlyreviewusergeneratedcontentonadvertisers'websitesandsocialmediasitesandimmediatelyremoveusergeneratedcontentthatcontainsamisrepresentation.

• Donotmanipulateonlinereviews.

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Austria

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SOCIAL MEDIA – AUSTRIA


The common global social media platforms are used in Austria, most importantly Facebook,Instagram, Twitter and Snapchat as well as LinkedIn and its (mainly) German-speakingcounterpartXing.


Inprinciple,allexistinglawsconcerningadvertisingandmarketingalsoapplytoadvertisingandmarketingviasocialmedia.ThemainlawsaretheAustrian:• LawagainstUnfairCompetition;• LawonTradeMarkProtection;• MediaAct;• E-CommerceAct;• AudiovisualMediaServicesAct;• TelecommunicationsAct;• CopyrightAct;and• (asofMay2018)theEUGeneralDataProtectionRegulation(replacingthecurrentFederal

DataProtectionAct).


Self-regulatory rules in Austria are issued by the Austrian Ethics Council for Public Relations(Österreichischer PR Ethik Rat) and by the Austrian Advertising Council (ÖsterreichischerWerberat).Theserulesonlyhaverecommendatorycharacter.

The Austrian Advertising Council has issued the Advertising Industry Ethics Code coveringadvertisingandmarketingingeneral,setsbasicrulesofconductaswellasspecialrulesinrelationtogenderdiscriminatingadvertisements,children,elderlypeople,alcohol,tobaccoandautomotivevehicles.

ThemostnotablepublicationforadvertisingandmarketingviasocialmediaistheCodeofConductfor theEthics inDigitalCommunication thatis issuedby theAustrianEthicsCouncilforPublicRelations,settingout(non-binding)rulesandprinciplesforcommunicationinonlineandsocialmediachannels.


Therearenospecificrulesrelatedtoinfluencermarketingviasocialmedia;however,thegeneralprovisionsinrelationtoadvertisingandmarketingalsocoverinfluencermarketing,inparticular:• Advertisementsandpaidcontentneedtobelabelledinordertoberecognizableassuchby

therelevantconsumer,unlessitisclearwithoutdoubtthatitis‘paidcontent’.

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• AccordingtotheE-CommerceActitisalsonecessarytogivedetailsofthecompany/personthatinstructedtheinfluencerwiththeadvertisement.

• Influencerswithyoungfollowersneedtoconsider thatadirectexhortationaddressedtochildren to purchase goods or services is unfair according to the Law against UnfairCompetition.However,theprovisionofmereinformationaboutspecificgoodsorservicesdirectedtochildrenisnotanunfairpractice.


Again, in relation to native advertising, the general laws on advertising and marketing areapplicable(seeanswer4).Thus,theadvertisementsmustbeadequatelyidentifiable.

Therearespecificregulationsinrelationtovideos.Thenatureoftheadvertisementneedstobeeasilyrecognizable;andsurreptitiousaudiovisualcommercialcommunicationisprohibitedundertheprovisionsof theAudiovisualMedia ServicesAct. Further restrictions existwith regard toadvertisementsofspecificproducts(egtobacco,medicalgoods,alcoholicbeverages).


Sharing,orre-tweeting,usergeneratedcontentcanhavecopyrightimplicationsandmayviolaterightsoftheoriginator.Furthermore,usergeneratedcontentthatisbeingsharedinacommercialwayneedstobeclearedinordernottoinfringeanythirdpartyrights(egtrademarkrights).Again,all advertising and marketing needs to be transparent and recognizable as advertising andmarketingbytheconsumer.


TheE-CommerceActrequiressweepstakesandconteststoberecognizableassuchandneedtosetouttheirtermsandconditions.

Sweepstakesandcontestsdonotneedanypriorregistrationorapprovalbyanauthority.

Incaseswhereparticipantsofsweepstakesandcontestsneedtopayafee,theAustrianGamblingActrequirestheorganizertohaveagamblinglicense.


UnderAustrianlaw,ConsumerProtectionAssociationsaswellascompetitorscanfilecourtactionsagainstunfaircommercialpractices.

AccordingtotheAustrianGamblingAct,theorganizerofasweepstakeorcontestthatis(interalia)directed at Austria—even if there is no participation fee—needs to pay a tax of 5% of theworldwidetotalpotentialprizes.

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• The European Court of Justice (C-132/17) is currently dealing with the question as towhether the operator of a YouTube channel falls under the Audiovisual Media ServicesDirective (and its restrictions) that has been implemented in Austria by the AustrianAudiovisualMediaServicesAct.

• TheECJdecidedrecently(C-498/16)thatanAustrianconsumercanbringanactionagainstasocialmedianetwork(thathasnoseatorestablishmentinAustria)beforethecourtsinAustria;anddoesnotlosehisstatusasaconsumerevenifheispublishingbooks,givinglecturesetcaboutthistopic.


AnyadvertisingandmarketinginAustria(onlineandoffline)needstobeclearlyidentifiableassuchbytherelevantconsumer.Itneedstobetransparentandobjectiveandshallnotviolatethirdpartyrights.

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Belgium

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SOCIAL MEDIA – BELGIUM


ThemainsocialmediaplatformsthatadvertisersuseinBelgiumaregenerallythesameasthoseworldwide(Facebook,Instagram,YouTube,Twitter).AnyimportantglobalsocialmediaplatformisavailableforuseinBelgium.


Legalcontrolsapplytoadvertisingandmarketingpublishedthroughsocialmedia inmuchthesamewaythattheydoforofflineandotheronlinemediaplatforms.

Thisisthecaseinrespectofthelawsandruleson:• theprotectionofdistinctivesignssuchastrademarksandtradenames;• privacydata;• fairmarketpractices;• copyright;and• media.

Distinctive signs are trademarks, tradenames, company names, domainnames and names ofphysicalpersons.Article2.20.1oftheBeneluxConventiononIntellectualPropertyRightsgrantsanabsoluteprotectiontoidenticalsignsforthesameproductsandservices.Forsimilarsignsorforsimilarproductsandservices,theriskofconfusionisthedecisivefactor.Aprotectionforverywell-establishedtrademarkscancoveruseinrespectofotherproductsandservices.TheMarketPractices andConsumerProtectionChapterof theBelgianCodeonEconomicLawalsohas itscentralroleinthecontextofsocialmediaadvertisingregulation.ItimplementstheEUDirectiveonUnfairCommercialPracticesandhaschapterswithgeneralclauses,onmisleadingpractices,onaggressivepractices,onspecificactionsandomissionsandhasablacklistofclausesandpractices.

Again, theofflinerulesapply to thevirtualworldalikeand thenotionsofmarketpracticeandadvertisingareconstruedextremelywidely.Still,itisfeltthatmorespecificrulesonsocialmediaadvertising,givenitsoverwhelmingpresence,importanceanddistinctivefeatures,wouldbemorethanwelcome.


There is a striking lack of clear self-regulatory rules dealing specifically with advertising andmarketingviasocialmediainBelgium.Asisthecaseforlawsandregulations,itisfeltthatmorespecific self-regulatory rules on social media advertising, given its overwhelming presence,importanceanddistinctivefeatures,wouldbemorethanwelcome.


Again,therearenolawsorotherrulesdealingspecificallywithinfluencermarketing.However,asis the reality in other countries, covert advertising is clearly often present on social mediaplatformssuchasInstagram,FacebookTwitterandYouTube,whereusersandpageswhichhave

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garneredalargefollowingprovideanefficientwayforbrandstoreachtargetaudiences.But,justtaking,forexample,theBelgianregulationonunfaircommercialpractices,thiscoversissuesofmisleading omissions, misrepresentation, e-commerce and direct marketing, all of which arerelevant to influencermarketing. Even if only general rules exist, the black list of prohibitedpractices,whichdetailsthepracticesdeemedunfairinallcircumstances,providesforarobustsetofgeneralprinciplesapplicabletoinfluencermarketing.Itisthereforemorethanrecommendedtohighlightthesponsorednatureofcertaincontentbyusingwordingsuchas‘sponsoredby’or‘incollaborationwith’.


There are no specific laws, regulations or self-regulatory rules in Belgium related to nativeadvertisingviasocialmedia.

However,newapplicationsofadvertising,partiallyinnewmediaandformats,promptedtheself-regulatory organization, JEP, to issue recommendations on native advertising in 2016,emphasizing the importance of proper identification of advertising. Native advertising isunderstoodasbeingadvertisingcontent,thedesignandformofwhichcorrespondascloselyaspossiblewiththeformandcontentofthemediumitself.JEP’sRecommendationsconcernhowtoensurethataconsumercandistinguishbetweeneditorialcontentandadvertising.Referenceismadetotheexistingself-disciplinary(ieICCCode)andlegalrules.Morespecifically,JEPprovidesguidanceonhowtomakeitclearthatadvertisingisadvertising,andhowtomakeitrecognizableregardlessoftheformandmediumused.Theadvertiserhasalsotobeidentified.

Specialcautionisnecessaryfornativeadvertisinggearedtowardschildren/minorsoradvertisinginwhichtheyappear.Therecommendationrepeatsthegeneralrulesnottoexploitorabusetheirlackofexperienceinidentifying/spottingwhatisadvertising.

Incasesofdoubt,JEPoffersprioradvice(clearing).


Nospecificlaws,regulationsorself-regulatoryrulesexistontheuseofusergeneratedcontentwhen advertising via social media in Belgium. But, as is the casewith influencers and nativemarketing(seeanswers4and5above),thegeneralrulesapply.

Acompanymustnotpresentamessageasabeingaconsumerormarketrevieworinformationfromusers,aprivateblogoranindependentappraisal.Ifitdoesso,theadrunstheriskofbeingdisqualifiedasanunfairmarketpracticeormisleadingad,prohibitedbyArticle12.XIoftheCodeon Economic Laws. Somewebsites ormobile apps, such as Yelp and Trip Advisor, enable thepostingofappraisals.Ifwhatcomesacrossasanindependentappraisalis,infact,acovertad,thecompanyfraudulentlymisrepresentsitselfasaconsumer(infringementofArticlesVI.100-22and106-2oftheCodeonEconomicLaws).


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Nodifference in treatment ismadebetweenthe rules, conditionsand restrictionson lotteries,sweepstakesandcontestsintheclassicmediaandthoseconductedviasocialmedia.Underthestrictconditionsthatthereshouldbe:• afreemethodofentry(absenceofaconsiderationthatisputatrisk);and• asufficientlevelofrequiredinteraction,skillorinitiative,agameofchancecanbealegalpromotionalgameofchance.

Ifonlyaprizedrawdeterminestheoddsofwinning,aswithsweepstakes,thegamewillbetreatedasacriminallyprohibitedlotteryandcanbeprosecutedaccordingly.


• Acarefulfollow-upandregularvettingofthesocialmediaadsispartofthedutyofcareofanadvertiser;drawupapropersocialmediapolicy—inspirationandtoolsareavailableonthemainsocialmediaplatforms.

• Neverforgetthatcopyrightrulesalsoapplyonline.

• Donotoverlookthepotentialforanadministrativeaction,initiatedbythepublicservicesoftheBelgianEconomicInspection.


MostoftherelevantandimportantrecentcasesforBelgiumarefoundinjudgementsfromtheEuropeanCourtofJustice,suchas:• SvenssonvRetrieverSverigeAB(C-466/12,13February2014);• BestWaterInternationalGmbHvMebesandPotsch(C-348/13,21October2014);and• GSMediaBVvSanomaMediaNetherlandsBV(C-160/5,8September2016),allthreeontheconsentofright-holdersforhyperlinking.

CaselawonadvertisingviasocialmediahasstartedonlyveryrecentlyinBelgiumanditis,atthemomentofwriting,abitearlytoreportoncasesmadepubliclyavailable.


• Disclosetherelevantrelationshipandmakeitrecognizable.

• Nevermanipulatemessagesoropinionsinsuchawaytheaverageconsumercanbemislead.

• Neverincitekidsof12yearsoryoungerdirectlytomakeadvertisingforproductsorservicesonsocialmedia.

• Takeduecareandtakeyourresponsibility towards theuserwhogeneratescontentandtowards third parties seriously. This is an active obligation to duly inform, vet, control,follow-throughandintervene.

24

Bolivia

25

SOCIAL MEDIA – BOLIVIA


AsregardstheimportanceofsocialmediainBolivia,ontheonehand,itisimportanttostatethatone of the latest news stories in Bolivia regarding socialmedia has to dowith the (informal)announcementofPresidentEvoMorales,inwhichheindicatedthatthegovernmentwaspreparingtofacea‘digitalwar’viasocialmedia.FromMarch,socialorganizationswillbetrainedintheuseofsocialmediainordertodefendPresidentMoralesandthe‘ProcesodeCambio’(sloganusedbythe current government) in the war waged from these platforms (seehttp://www.paginasiete.bo/nacional/2018/2/13/guerra-digital-alista-talleres-hasta-bnker-cochabamba-169719.html).

The leaderof thecocagrowersof theTropicofCochabamba,LeonardoLoza, revealed thatsixtrainingworkshops had already been set up to train users how to use Facebook, Twitter andWhatsApp. Loza also stated that the trainers are ‘voluntary professionals’ related to thegovernment,whoteachforfree.Asatmid-February2018,2,000to3,000youngpeopleandunionleadershadreceivedthetraining(seehttp://www.paginasiete.bo/nacional/2018/2/13/guerra-digital-alista-talleres-hasta-bnker-cochabamba-169719.html).

However, one problem this announcement brings into focus is that in rural areas there is nouniversalinternetcoverageandnotalltheruralpopulationhasasmartphone;socurrently,thegovernmentislookingforawaytosolvethisproblem.

Moreover,itisimportanttonotethatthemonthlycontributionoftheCocaGrowersFederationsof Cochabamba for the development of this ‘war’ is Bs. 45,000 ($US 6,465 approx),while thenationalgovernmentsetabudgetthisyearofBs.5,000,000.00($US718,390approx)fortheSocialMediaOfficetofightthis‘digitalwar’.

On theotherhand,wecanstate thatalso, throughthebookBoliviaDigitaleditedby theSocialResearchCenter(CIS)oftheVice-Presidency,withthesupportoftheUnitedNationsDevelopmentProgram(UNDP)andpublishedinMarch2017,itwasobservedthatBoliviansusesocialmediamoreforentertainmentandlessfordoingbusinessoreducation,whereonly12%usethemtoworkordobusinessviasocialmedia.

We do not have statistics about advertising and marketing through social media in Bolivia.However,thereisinformationfromasurveydonein2016andpublishedin2017bytheAgetic(AgenciadeGobiernoElectrónicoyTecnologíasdeInformaciónyComunicación),whichfoundthatonly6%ofpeopleusesocialmediatodobusiness;and4%tosellandbuyproducts.Therefore,inlightoftheabove,wecandeducethatin2016only10%(atmost)ofpeopleusedsocialmediatoadvertiseandmarkettheirproducts.

Thissurveyalsofoundthat,ingeneral,themainsocialmediaplatformsthatareusedbypeopleare:(i)Facebook94%;(ii)WhatsApp91%;(iii)YouTube40%;(iv)Twitter17%;(v)Instagram15%.TherearenosocialmediaplatformsthatarenotavailableinBolivia.


Therearenoimportantlawsandregulationsimposeddirectlyonadvertisingandmarketingviasocialmedia.However,someregulationcanbefoundthroughthefollowinglaws:

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• LawNo453(ConsumersProtectionLaw)(togetherwithitsadministrativeregulations,DS2130): through this law, a consumer may make a formal complaint about misleadingadvertisingviasocialmediaattheVice-ministryofConsumer’sRights;

• LawNo164(TelecommunicationsLaw):thislawregulatese-commerce;• LawNo060(GamingLaw)(togetherwithitsadministrativeregulationsDS2600):thislaw

defines ‘business promotion’, its application and exclusions. Also, this law creates theGaming Control Authority (Autoridad de Fiscalización del Juego) (‘AJ’) and states itsfunctions;

• SupremeDecreeNo2731:thisdecreecreatestheSocialMediaOffice;• SupremeDecreeNo1793:thisdecreeregulatese-commerceandstatestheconditionsfor

commercialadvertisingcommunications.• AJ-AdministrativeResolutionNo01-00001-17(‘AJRegulationsforBusinessPromotions’):

thisresolutionsetsouttherequirementsandprocedureforobtainingauthorizationsforthedevelopment of business promotions and formal duties that must be fulfilled. (egsweepstakes).

• ASFI-RegulationofAdvertising,PromotionandInformativeMaterialfortheStockMarketandFinancialServices(madebytheFinancialControlAuthority(AutoridaddeSupervisióndel Sistema Financiero (‘ASFI’)): this regulation sets out how advertising for financialservicescanbedonethroughtheinternetandsocialmedia.


There are no self-regulatory rules specifically related to advertising andmarketing via socialmedia.


Therearenolaws,regulationsorself-regulatoryrulesspecificallyrelatedtoinfluencermarketingviasocialmedia.


Therearenolaws,regulationsorself-regulatoryrulesspecificallyrelatedtonativeadvertisingviasocial media. However, according to the Criminal Code and Law No 045 (Racism andDiscriminationLaw),anypersonwhodisseminatesorprovokesracismanddiscrimination‘byanymeans’(suchasracistadvertisingviasocialmedia)willbepunished.


Therearenospecificlaws,regulationsorself-regulatoryrulesspecificallyrelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.

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There are no specific laws, regulations or self-regulatory rules directly related to conductingsweepstakesandcontestsviasocialmedia.However,therearegeneralregulations,notspecifictosweepstakesandcontestsviasocialmedia,whichapply.ThesearetheAJRegulationsforBusinessPromotionswhichsetoutthe‘general’proceduretoauthorizeabusinessactivity,andthereforetheprocedureforthedevelopmentofthesweepstakesandcontests,andtheawardingofprizes.


Aswementionedbefore,inBoliviatherearenospecificrulesimposeddirectlyonadvertisingandmarketingviasocialmedia,butisimportanttobearinmindthat,accordingtoLawNo045andtheCriminalCode, any advertising thatdisseminatesorprovokes racismordiscriminationby anymeansisforbiddenandpenalized.

Itisassumedthat‘byanymeans’canincludesocialmedia.


DespitethefactthatwedonothavecasesrelatingtoadvertisingandmarketingviasocialmediainBolivia,wecanstatethattherearecasesrelatedtosocialmediaandthecurrentgovernmentpolicy.

Inthissense, isimportanttobearinmindthatsocialmediahasplayedanimportantrôlesincePresidentEvoMorales lost theReferendumof21February2016. Since then, the government,throughSupremeDecree2731,hascreatedtheSocialMediaOffice,whosefunction,accordingtosomepoliticians, journalistsandactivists, is tocreate falseaccounts (‘trolls’) insocialmedia inorder to collect information from those peoplewho post contents against the government; topersecutepoliticalactivists,publishcontentagainst theoppositionandgroups thatareagainstPresidentMorales,interalia.

Also,wecanrefertoapoliticaleventinDecember2017,whereayoungmanpostedavideoonFacebook,underhispersonalaccount,regardingtheBolivianPresidentre-election,and,asaresultoftheFacebookpost,thegovernmentfiledacriminalcomplaintagainsthimandarrestedhimonthegroundsthatheprovokedviasocialmediarebellionagainsttheBolivianPresidentinrejectionof his re-nomination for President (see http://www.la-razon.com/nacional/Detienen-joven-sedicion-redes-sociales-revelarse-Evo-Bolivia_0_2829917027.html).


Thereareno‘bestpractices’foradvertisingandmarketingviasocialmediainBolivia.However,wecanstatethatinBoliviathemajority(80%approx)ofpeopleengagedintradeareengagedininformal trade, iecommercedevelopedbySMEsorsmalleconomies.Therearenostatistics inBoliviaaboutadvertisingandmarketingthroughsocialmedia.However,webelievethatSMEsandsmalleconomiesshouldusesocialmediaasamediumformassadvertisingandmarketingtheir

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businesses or products as they would thus have a greater reach and presence in nationalcommerce.

29

Brazil

31

SOCIAL MEDIA – BRAZIL


Importantsocialmediaplatforms,suchasFacebook,Instagram,LinkedIn,Twitteretc,availableinUnitedStatesandEurope,areavailableandwidelyusedinBrazil.Infact,BrazilisrankedthirdonnumberofFacebookusersasof January2018andrecognizedasa leadingcountry in termsofpresenceanduseofsocialnetworks.


InBrazil,therearenospecificlawsorregulationsaddressingissuesarisingoutofsocialnetworksservices or use. The social media environment is, nevertheless, subject to the same legal andregulatorycontrolasisapplicabletogeneralmarketingadvertising.Legalcontrolinthisregardismainlybasedon theConsumerDefenseCode(Law8,078/90)provisions,althoughtheFederalConstitution and other laws, such as the Criminal Code (Law 2,848/40), Civil Code (Law10,406/2002),IndustrialPropertyLaw(Law9,279/96),CodeofCivilProcedure(Law5,869/73),Statute of the Child and of the Adolescent (Law 8,069/90), Internet Act (Law12,965/14) andCopyrightsAct(Law9,610/98),arealsoapplicable.


Therearenospecificself-regulatorycontrolsapplicabletoadvertisingandmarketingviasocialmedia.However,Brazilhasanefficientandfullyfunctioningadvertisingself-regulationsystem,bywhichsocialmediaadvertiserscanbe,andhavebeen,challenged.

TheBrazilianAdvertisingSelf-RegulationCodewasestablishedin1978,andin1980theBrazilianAdvertisingSelf-RegulatingCouncil(‘CONAR’)wasfoundedasanon-governmentalorganizationcomposed primarily of advertising agencies whose mission included the enforcement of theBrazilianAdvertisingSelf-RegulationCode—especiallytherulesrelatingtoethicalmatters—andassuranceofafastandobjectivesolutionfordisputesinvolvingtheadvertisingindustry.

Although designed primarily as an instrument of self-discipline for advertising activity, theBrazilianAdvertisingSelf-RegulationCodeisalsousedbytheauthoritiesandcourtsasareferencedocument and treated as subsidiary legislation in the context of advertising and other laws,decrees,ordinances,rulesorinstructionsthataredirectlyorindirectlyaffectedbytheCode.

Any person or legal entitymay submit a complaint to CONAR regarding national advertising,regardlessofwhethertheadisaddressedtoconsumers,professionalsortobusinessentities.Oncethecomplaintismade,theBoardofEthicswillmeetandjudgeit,ensuringfullrightsofdefensetothe accused. If the complaint has merits, CONAR can recommend suspension of part of theadvertising or suggest corrections. In Brazil, self-regulation does not replace government andlegislative regulation, therefore, CONAR only implements administrative penalties: warning,recommendationforanamendmentorcorrectionofadvertising,etc.

Thus,ifthereisanyinterestinpecuniarycompensation,acourtactionwillhavetobefiled,basedon theBrazilianCivilCode. InBrazil, likeothercountries,advertisingissubmittedtoacontrolsystem that has a mixed nature: self-regulation (Brazilian Advertising Self-Regulation Code,

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CONAR) and legal (standardsof theConsumerDefenseCodeandother regulationsonspecificproductssuchassmoking,alcohol,drugs,therapiesandpesticideadvertisingregulations).


There are no specific laws, regulations or self-regulatory rules in Brazil related to influencermarketing.Ontheotherhand,theConsumerDefenseCodeandSelf-RegulationCoderequirethatall advertisingbe clearly identifiable as such andthis requirement is beingusedbyCONARtosuspendinfluencers’socialmediapoststhatdonotclearlydisclosethatthecontentinquestionissponsored.


Theanswertoquestion4alsoappliestonativeadvertising,althoughwearenotawareofspecificdecisionsissuedbyCONARonnativeadvertisingotherthanbyinfluencers.


ThemainapplicablelawsrelatedtotheuseofgeneratedcontentwhenadvertisingandmarketingviasocialmediaaretheConsumerDefenseCode,theInternetActandtheCopyrightsAct.

AsregardstheConsumerDefenseCode,itisimportanttobearinmindthatabusivecontractualprovisionsimposedagainstconsumersarenotenforceable.Thus,webelievethatacaseofmassexposureofusergeneratedcontentinanadvertisingcampaignwithoutadequatecompensationtotheusercouldbefoundtobeabusivebylocalcourts.Suchuseofusergeneratedcontentmustthereforebe allowedby the termsof useof the relevant social network aswellas specificallyagreedtobytheuser.

The Brazilian Copyrights Act determines that licenses and assignments of copyrights shall beinterpretedrestrictively,meaningthatsuchagreementsmustincludeaprecisedescriptionofalltypesofusewithintheirscope.

AccordingtotheBrazilianInternetAct,datasubjectsshallexpresslyoptintothecollectionandstorage of their data, as well as to the disclosure and transfer of their data to third parties.Moreover,itisunlawfultousepersonaldataifnotjustifiableinaccordancewiththepurposeofthecollection.


Under Decree Law 70,951/72 (regulating Law 5,768/71), promotions involving the freedistributionofprizes (contests, sweepstakesandgift certificates) require authorizationby theBrazilian National Savings Bank (known in Brazil as Caixa Econômica Federal) prior to beimplementedinBrazil.Suchpreviousauthorizationrequirementalsoappliestopromotionsviasocialnetworks.

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Inadditiontotheissuesmentionedinthepreviousanswers,itisworthnotingthattheNationalCinemaAgency(‘ANCINE’)istheregulatoryauthoritywithjurisdictionenshrinedinlawinrelationto the Brazilian audiovisual market. ANCINE’s Normative Instruction 95/2011 specificallyregulatesbroadcastingofaudiovisualadvertisementsinBrazilandrequirespreviousregistrationwith ANCINE of audiovisual ads prior to broadcasting in Brazil. As of July of 2018, suchrequirementwillalsoapplytobroadcastingofaudiovisualadsbymeansoftheInternet,whichincludesbroadcastingonsocialmedia.


Mostimportantcasesrelatingtoadvertisingandmarketingviasocialmediaaretheonesrelatedtoadvertisingviainfluencers.UntilrecentlytherehadbeennodecisionsissuedbyCONARinthisregard,butitisnowclearthatfailingtoclearlydisclosethatasocialmediapostissponsoredislikely tocause thesuspensionof thecampaignbyCONAR.For thisreason,CONARhasalreadysuspendedinfluencers’advertisingonfast-food,beer,afatburnerproductandothers.


BecauseConsumerDefenseCodeprovisionsareenforceableinBrazilinrelationtosocialmedia,itisimportanttoindicatethat:• BrazilianlawsandjurisdictionshallbeappliedincaseofalawsuitbasedintheConsumer

DefenseCodeprovisions;• consumersinBrazilaretreatedasindividualswhoareatacleardisadvantageinrelationto

companies ingeneral.For thisreason,under theConsumerDefenseCode,all contractualprovisionsandconflictsaretobeinterpretedashavingaclearbiastowardstheconsumer;

• consumersshallbeprotectedagainstfalseormisleadingads;• social network services providers and announcers are jointly liable in cases where

consumers’rightsareviolated;• theburdenofproofisplacedawayfromtheconsumer;serviceprovidersandannouncers

arerequiredtoprovideevidencetochallengeconsumers’claims;• althoughsocialnetworks’termsandconditionsandprivacypoliciesaresufficienttoregulate

theuseofusers’information,clearandcompleteinformationonhowthedatawillbeusedmustbeprovidedinwritingtodatasubjects,whomustthengiveexpressconsent.Ingeneralterms,it iswidelyacceptedthatdatasubjects’authorizationfortheuseoftheirpersonalinformationcanbegiventhroughaclick-to-acceptelectronicagreement,alongwith(ornot)aclick-to-acceptprivacypolicy.

RegardingtheBrazilianAdvertisingSelf-RegulationCode,itisworthtakingintoconsiderationthefollowingprinciples:• advertisementsshouldnotcontainanythingthatmayleadtocriminalorillegalactivitiesor

appearstopromote,enhanceorencouragesuchactivities;

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• no advertisement should promote or encourage any kind of racial, social, political,nationalityorreligiousoffenceordiscrimination;

• all advertisements must be prepared with due sense of social responsibility, avoidingemphasisanysocialdifferencesinadepreciativemanner;

• the advertiser, advertising agency andmedia are each liable towards consumers for alladvertisements;

• theadvertisingactivitiesdealtwithbytheCodemustalwaysbeostensible.Theindicationofthe service or product mark, trade name of the advertiser or use of elements clearlyassociatedtheretoareincompliancewiththeostensibilityrequirement;

• indirectadvertisingor‘merchandising’isalsosubjecttoallrulesoftheCode,especiallytotherequirementofostensibilityandadvertisingidentification;

• alladvertisingactivitiesmustrespectthedignityofthehumanbeing,privacy,institutionsandnationalsymbols,constitutedauthoritiesandfamily,aswellasalwaysaimtobenefitsocietyasawhole;

• no advertisement should contain statements or visual or audio presentations that mayoffendthedecencystandardsoftheaudienceitintendstoreach;

• advertisingmustnotexploittheconsumers’credulity,lackofknowledgeorinexperience;• advertisingmustnotcontainanythingthatmayinduceviolence;• advertisingmustnotexploitanytypeofsuperstition;• theadvertisementmustcontainatruthfulpresentationoftheproductoffered;• theadvertisementmustshowonlypersonalizedandgenuinetestimonials;• theadvertisementmustbeclearlyidentifiableassuch,whateveritstypeandwhateverthe

broadcastingmediummaybe;• comparativeadvertisementisaccepted,providedthatspecificrequirementsprovidedbythe

Codearefollowed;• in relation to children and teenagers, the efforts of parents, educators, authorities and

communityshallbeanaggregatingfactorfortheformationofresponsiblecitizensandawareconsumers;

• children and teenagers shall not appear in any ads that promote consumption of anyproductsandservicesincompatiblewithusebythemduetotheirage.

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Bulgaria

37

SOCIAL MEDIA – BULGARIA


ThemainsocialmediaplatformsusedbyBulgarianadvertisersareFacebook,Instagram,YouTubeandVBox7(a localvideosharingplatform).However,dependingonthe typeof theadvertisedproducts/services and the targeted audience, advertisersmay usemore specialized platforms,suchasLinkedIn.Generally,therearenolegalortechnicalrestrictionsthatlimittheaccesstoanyglobalsocialmediaplatforminBulgariaandallofthemareavailablefornormaluse.


Allthegeneraladvertisingandmarketingregulationsequallyapplytoadvertisingandmarketingviasocialmediaplatforms.

AdvertisingregulationinBulgariaisdispersedamongseverallegislativeacts,containingdifferentrulesdependingonthecommunicationchannelused.

Themain legislative act that sets forth the general framework forpresentationof commercialcommunication in good faith and prohibits misleading advertising content is the BulgarianProtectionofCompetitionAct(‘PCA’).ThePCAimplementsEUDirective2006/114/ECconcerningmisleading and comparative advertising, and its provisions are applicable to any kind ofcommercial communication, regardless of the communication channel. The Commission onProtectionofCompetition(‘CPC’)isthegovernmentalauthoritythatisvestedwiththepowertooverseeadvertisingandmarketingpractisesofcommercialentitiesandtoenforcethePCArules.

TheBulgarianElectronicCommerceAct(‘ECA’)implementsEUDirective2000/31/ECconcerningprovisionofinformationsocietyservicesande-commerceandregulates,interalia,certainaspectsofadvertisingthroughdigitalmeans.


The National Council for Self-Regulation (‘NCSR’), a member of the European AdvertisingStandards Alliance, is the most influential self-regulatory organization in Bulgaria, and mostadvertising andmedia agencies aremembers, togetherwith some of themajor advertisers inBulgaria. The NCSR has adopted the National Ethical Rules for Advertising and CommercialCommunication (‘NER’). The NER are applicable to all forms of promotional communicationregardlessofthecommunicationalchannel,includingmarketingandadvertisingviasocialmedias.

TheNERincludeachapterspecificallyaddressingidentificationofcommercialcommunications.Everycommercialcommunicationshouldbeclearlyrecognizableassuch,regardlessofitsformorthe communication channel used by the advertiser. The NER further state that where anadvertisement is broadcast on a platform that usually broadcasts news, editorial or personalcontent,itshouldbedesignedinsuchamannertobeclearlydistinguishableasanadvertisement.

EnforcementoftheNERisvestedwiththeEthicalCommitteeoftheorganization,whichreviewscomplaintsfromall interestedparties.ThedecisionsarebindingforthemembersoftheNCSR,however,untilrecently,compliancewiththosedecisionsdependedentirelyonthegoodwilloftheinfringer. The Radio and TVAct (that regulates among others certain aspects of TV and radio

38


advertising)nowprovidesthatallTVandradiooperatorsarerequiredtoobservethedecisionsofthecompetentbodiesoftheNCSRorfacemonetarysanctionsbytheCouncilforElectronicMedia.However,nosuchrulewithregardtoonlineadvertising,includingviasocialmediaexists.


Therearenospecificrules,lawsorregulationsrelatedtoinfluencermarketingviasocialmedia.

However,initscaselaw,theCPChasadoptedthepositionthatinfluencersshouldcomplywiththegeneralrulesonpresentationofcommercialcommunicationingoodfaithtotheextentthattheiractivityaimstopromotethebrandorgoodsofaspecificmerchant.Moreover,aviolationoftheapplicable rules committed by an influencer under certain circumstances could be attributeddirectlytotheundertakingwhoseproducts/servicesarepromoted(formoredetailsseeanswertoquestion9).

Inaddition,itshouldbenotedthatpursuanttotheprovisionsoftheECA,aninfluencershouldpromptlydisclosewhetherhis/heractivityaimstopromotecertainproductorservice.

Asnotedabove,theNERalsorequiresthatanyadvertisingcontentisclearlydistinguishableassuch.


Therearenospecificrulesorcaselawguidancerelatedtonativeadvertisingviasocialmedia.

Under the general rules, native advertising via social media should comply with the ECA’srequirementthatanycommercialcommunicationpublishedonlineshouldbeclearlydefinedassuchandthattheadvertisershouldbeclearlyidentified.Furthermore,theCPC’scaselawindicatesthat native advertising via social media should be in compliance with all general advertisingregulations,includinginparticular,theprohibitionagainstmisleadingconsumers.


Therulesgoverningtheuseofusergeneratedcontentformarketingpurposesdependonwhetherthecontentissubjecttocopyrightprotection.TheCopyrightandNeighboringRightsActprohibitstheuseoforiginalworkofauthorshipwithoutexplicitauthorizationbytheauthor.Theconceptof‘originalwork’coversanywork/productofliterature,artorsciencewhichistheresultoforiginalcreative work and is expressed inwhatevermanner and inwhatever form. If user generatedcontentcouldbeclassifiedasanoriginalwork,itsuseforadvertisingandmarketingpurposeviasocialmediaisallowedonlywiththeconsentoftheauthorobtainedinadvance.

Inaddition, theuseofusergeneratedcontent formarketingpurposesshouldbe incompliancewiththeBulgarianPersonalDataProtectionAct.PursuanttoArticle2ofthisAct,personaldatais‘anyinformationrelatedtoanindividualwhoisidentifiedoridentifiable,directlyorindirectly,byreferencetoanidentificationnumberortooneormorespecificfeatures’.Hence,inacasewhereuser generated content could be classified as personal data, the consent of the user has to beobtainedbeforethiscontentisusedformarketingpurposes.

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UnderBulgarianlaw,anygameorotheractivityinvolvingwageringastakewhereuponaprofitcouldbeachieved,orthestakecouldbelostqualifiesasaformofgamblingandisregulatedbytheBulgarianGamblingAct.Theterm‘stake’islegallydefinedas‘anypaymentofmoney,directlyorin the formofany tokens,coupons, tickets, telephone impulsesandothers, forparticipation ingamblinggameswithaviewtoreceivingaprofit’.Gamblinggamesinthe territoryofBulgaria,regardlessofwhethertheytakeplaceonlineorinbrickandmortarpremisesmaybeorganizedand held only with the prior authorization of the State Gambling Commission, which is thegamblingstateregulatoryauthority.

On the other hand,where a sweepstake or contest doesnot involvewagering a stake, and itspurposeisrathertopromotetheproductorserviceofaparticularproducerordistributor,itwouldnotbesubjecttoregulationbytheGamblingAct.However,thegeneralrulesonsalespromotionsetbythePCAhavetobeobserved.

Article 36(3) of the PCA prohibits the sale of goods or services if accompanied by an offer orpromiseofsomething,thereceiptofwhichdependson:• theresolvingofproblems,puzzles,answeringquestionsorriddles;• thecollectionofaseriesofcouponsetc.;or• gamesoffortunewithcashorobjectprizes,thevalueofwhichsignificantlyexceedsthepriceoftheproductorservicesold.

TheCPChasadoptedaformalcriterionastothemaximumvalueoftheprizeandhasruledthattheprize‘significantlyexceeds’thepriceofthegoodsorservicesoldwhereitsvalueexceedsmorethan100(onehundred)timesthepriceoftherespectiveproductorservice;andinanyevent,thevalueoftheprizeshouldnotexceedthesumof15(fifteen)minimumwages(currentlyBGN7,650,approx. EUR 3,911). The statutory prohibition relates to cases where the participation in apromotion/game(respectively,thechanceofwinningaprize)istiedtothepurchaseofaparticularproductand/orservice.Ifparticipationisopentoeveryone(forexamplebyonlineregistrationviasocialmedia)withoutanyrequirementforsubmissionofacodefromapurchasereceiptoranyother‘evidence’thataparticularproductorserviceispurchased,thestatutorylimitationsforthevalueoftheprizewillnotapply.However,itshouldbenotedthatanoptionforregistrationviasocial media, without requirement for a purchase to bemade, existing alongside a purchase-relatedenrolmentmechanism,doesnotreleasetherespectivecampaignfromthePCArestrictions.


TheCPChasestablishedthroughcaselawthatadvertisingandmarketingviasocialmediahastocomplywithalladvertisingregulationsthatareapplicabletoadvertisingviatraditionalchannels.Theauthority’spositionisthatsocialmediaposts,regardlessofwhetherpublishedontheofficialprofileoftheadvertiserorinaspecialprofilewhichisintendedonlyasanauxiliarychannelforcommunicationwithcustomers,havethepotentialtoreachunlimitednumberofpeople,sincetheyareeasilyaccessiblebyallinternetusers.Consequently,everypostonasocialmediaprofilemighthaveanadvertisingeffect if itpromotesacertainproduct/serviceor thebrandofaparticularcompany.Moreover, ithasheldthatsocialmediapostscanbeattributedtoanadvertisereven

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where theywerenotexpresslycommissionedandtheadvertiserdidnothavecontrolover theprofilewhere theywerepublished, butwhere theprofile ownerwasacting in theadvertiser’sinterest and the advertiserwas aware of the posts (formore details on this case see, further,answer9).

TheBulgarianauthoritieshaveadoptedaverystraightforwardapproachregardingfirms’officialprofilesonsocialmediaplatforms,holdingthattheprofileownerisnotreleasedfromliabilityfornon-compliantcommercialmessagessimplybecauseitdidnotexercisestrictprofilemanagement.Whereaccessforpostingisnotrestrictedtodedicatedmarketingofficersitisassumedthattheprofileowneragreesthateveryoneofitsemployees,and,indeed,everypersonthathaslegallyobtainedthepasswordfortherespectiveprofile,isauthorizedtopostonitsbehalf.Asaresult,allposts appearing on the profile are automatically attributed to the advertiser and the latter isresponsibleforeveryinfringementoftheapplicablerules,regardlesswhoistheactualauthoroftherespectivepost.


(1) In a recentdecision(CPCdecisionno1244/2017(Laptop.bg),appealpending), theCPCsanctionedanonlineelectronicgadgetsretailer(the‘Retailer’)forobtainingunfairbenefitfrom two video vlogsmade by a famous Bulgarian vlogger and posted on his YouTubechannel. In thesevlogs, thevloggermadeseveral insultingstatementsagainstoneof theRetailer’s competitors, claiming that its products are of very low quality, whilesimultaneously praising the Retailer and its products. In its investigation, the authorityfoundthattheRetailerhadnotcommissionedthevlogger,norrequestedhiminanyotherwaytoshootthevlogs,makeinsultingstatementsorevendiscussitscompetitor.ItwasalsoestablishedthattheRetailerdidnothaveanycontroloverthevlogger’schannelandwasnotinapositiontocancelorchangetherespectivevlogs.

Despitethelackofintentionorcontrol,theCPCstillheldthattheRetailercommittedanactofunfaircompetitionbecauseitwasawareoftherespectivevlogs,theirnegativeimpactonitscompetitoranditspotentialtoattractnewclientsfrustratedbythevlogger’sstatement,anditdidnotexpresslyandpubliclyrenouncethevlogger’sbehavior,and,inparticular,theinsultingnegativeclaimsmadewithrespecttothecompetitoranditsproducts.

(2) Withanearlierdecisionfrom2016(CPCdecisionno946/2016(Store.bg),appealpending)theCPCimposedsanctionsonanonlinebookretailerforpostsonitsFacebookpagethatwerefoundtobemisleading.Itannouncedthataspecificbookwasavailableexclusivelyviathe retailer’s online shop, which was not confirmed in the proceedings. The defendantexpressly argued that Facebook posts should not be regarded as advertising in its casebecause:(i) itsFacebookpagewasnotactivelyused,andithadonlyfewfollowers;(ii) thepagewascreatedasachannelfordirectcommunicationwithcustomersandwas

notintendedtobeaplatformforadvertising;(iii) thepostscouldnotbeattributedtothedefendant,becausetheaccessdetailsforthe

useraccountwereavailabletoallemployeesandtherewasnoaccesscontrol,soevenformeronescouldpost.

TheCPCdismissedallargumentsnotingthat:

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(a) everyFacebookpageiseasyaccessiblebyallplatformusersandthereforeithadthepotentialtoreachanunlimitedaudience;

(b) informationpostedonaFacebookpageiscapableofinfluencingthemarketbehaviorofcustomers,regardlessoftheintendedpurposeoftheuser;and

(c) thelackofrulesorcontroloverpostinginanofficialsocialmediaprofilemeansthattheadvertiserconcernedacceptsthateveryemployeemaymanagetheprofileorpostonitsbehalf,andtheadvertiseracceptstobeboundbysuchposts.

(3) In 2015 (CPC decision no 250/2015, upheld on appeal, cassation pending) the CPCsanctionedafoodproducerforpostingadsonitsFacebookpageusingtheimagesandnamesof famous Bulgarian athletes (Grigor Dimitrov and Tsvetana Pironkova—highly populartennis players) without their consent. The defendant argued that the purpose of thepublicationswastocongratulatetheathletesontheirsuccessesandtheimageswerefreelyavailableontheweb.However,theCPCruledthatthefactthattheimageswerepublishedonacorporateFacebookpageandwereaccompaniedbytheregisteredtrademarkoftherespective undertaking misled customers into believing that the athletes were brandinfluencersofthecompany.TheCPCnotedthatthesimpleuseofimagesofcelebritiesisnotaproblem,aslongasthereisnotrademarkpositionedonornearthephoto.However,whentheimageis‘branded’itbecomesmarketingmaterial,whichcreatestheimpressionthattherespectivepersonsupportstheproductsofferedunderthetrademarkpresent.Consideringthat the athletes never allowed such use of their images, the competition authorityconcludedthatthepracticerepresentedmisleadingadvertising.


Marketingandadvertisingactivitiesshouldbealwaysreviewedforcompliancewiththeapplicablestatutory and ethical rules. The fact that an ad ormarketing campaign is conducted only, orprimarily,viasocialmediaplatformsdoesnotreleasetheadvertiserfromthenecessitytocomplywith the regulatory requirements.Asnotedby theCPC, aPCA infringement canbe committedregardlessofthecommunicationchannelused—bothwhereacommercialmessageisbroadcastviatraditionaladvertisingchannelsandwhereitispostedonlyinasocialmediaprofile.Moreover,inallscenariosthepenaltycanbeverysevere—thePCAempowerstheCPCtoimposesanctionsofupto10%oftheadvertiser’sBulgarianturnoverfortheprecedingyear.

Sincepostingonofficialsocialmediaprofilesisautomaticallyattributedtothecompany,accesstocorporateaccountsshouldbestrictlymanaged,andonlydedicatedpersonnelshouldbeallowedto administer the information published therein. Care should be taken to ensure that theseemployeesoragentsarewelltrainedintheapplicableregulatoryrequirementsandawareoftheconsequencesofthepoststheymake.

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Canada

43

SOCIAL MEDIA – CANADA


ThemainsocialmediaplatformsforadvertisersinCanadaincludeTwitter,Snapchat,Instagram,Facebook,Pinterest,andYouTube.TherearenoplatformsthatarerestrictedinCanada.


TherearenoadvertisingandmarketinglawsspecifictosocialmediainCanada.Lawsofgeneralapplicationapply,regardlessofmedium.ThefederalCompetitionActprohibitsrepresentationsthatarefalseormisleadinginamaterialrespect,andalsogovernsdisclosuresandconductrelatedtocontests,sweepstakesandotherpromotions.Provincialconsumerprotectionlawsalsoprohibitunfairordeceptivepractices,suchasfalserepresentationsaboutaproductorservice.PrivacylawsincludethefederalPersonalInformationandElectronicDocumentsAct(‘PIPEDA’)andprovincialprivatesectorprivacylegislationthatissubstantiallysimilartoPIPEDA.Canada’sAnti-SpamLaw(‘CASL’),which governs the sendingof commercial electronicmessages,also applies to certainsocialmediainteractions.


TheCanadianCodeofAdvertisingStandardsisadministeredbyAdStandardsandappliestoallmedia,includingsocialmedia.


Canadahasnospecificlawsgoverninginfluencermarketing,andsothelawsofgeneralapplication(discussedabove)apply,asdoestheCanadianCodeofAdvertisingStandards.InOctober2016,AdStandardsintroducedanInterpretationGuidelinetotheCanadianCodeofAdvertisingStandards,expresslyrequiringthatthenatureandfactofanymaterialconnectionbetweentheendorserandtheadvertiserbehindthebrandbedisclosedinanytestimonial,endorsementorreview.


Canadahasnospecificlawsgoverningnativeadvertising,andsothelawsofgeneralapplicationapply,asdoestheCanadianCodeofAdvertisingStandards.Seepreviousanswersfordetail.


Canadahasnospecificlawsgoverningusergeneratedcontentinadvertisingandmarketing,andsothelawsofgeneralapplicationapply,asdoestheCanadianCodeofAdvertisingStandards.Seepreviousanswersfordetail.

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SOCIAL MEDIA – CANADA

Intellectualpropertyissuesareoftenaconcerninthecontextofusergeneratedcontent,andaregovernedinCanadabytheCopyrightActandTrade-marksAct.


Canada hasno specific laws governing the use of socialmedia platforms for sweepstakes andcontests. Lawsof general applicationwouldapply, including theCompetitionAct, theCriminalCode,and,inQuebec,theActrespectinglotteries,publicitycontestsandamusementmachines.


Certain products are specially regulated and subject to their own regimes as to what suchadvertising can, cannot, or must say. These include alcohol, drugs, natural health products,cannabis,and cosmetics.The same restrictionsapply to theadvertisingandmarketingof suchproducts,regardlessofmedium,andregardlessofwhetherapostismadebythebrandorbyaninfluenceronbehalfofabrand.


In October 2015, Bell Canada entered into a consent agreementwith the Competition Bureauunderwhichitpaidanadministrativemonetarypenaltyof$1.25Millionandagreedtoenhanceitscorporatecomplianceprogram.CertainBellemployeeshadpostedpositivereviewsonlineofBellcustomerapps,withoutdisclosingthattheywereemployees.

VariouscomplaintshavebeenlodgedwithAdStandards,andhavebeenresolvedwheninfluencersamended their posts to add ‘#ad’ or other similar indicators of the nature of the post andconnectiontothebrandinquestion.


• Disclosewhetherapostisadvertising(egwith‘#ad’)andmaterialconnectionsbetweentheendorser andadvertiser andanypost. It is generally acceptable to follow the guidelinesdevelopedbytheUSFederalTradeCommissioninmakingsuchdisclosures.

• Intellectualpropertyrightsmayapplytohashtags,bothintermsofclaimingrightsinnewtags, or the potential that use of a hashtag may infringe the rights of a third party.Consequently,hashtagsshouldbecleared.

• Linkstoanyterms,conditionsorrestrictionsshouldbeusedcautiously.Canadianregulatorswill considerthegeneral impressioncreatedbythepostitself,whichshouldstandon itsown.Disclaimersanddisclosuresmayelaboratebutmaynotbeusedtocorrectanotherwisefalse or misleading impression. Any link to material terms and conditions should beidentifiedassuch,andbenomorethanone‘click’away.

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Chile

47

SOCIAL MEDIA – CHILE


ThemainsocialmediaplatformsusedforadvertisingcampaignsinChileareFacebook,InstagramandTwitter.Otherplatforms,suchasPinterest,SnapchatandTumblraremorelikelytoappealtoveryspecificgroupsofconsumers,andarenotaswidelyusedforadvertisingpurposes.


Rules and regulations governing advertising andmarketing are scattered throughout variouspiecesoflegislation,includingtheConsumerProtectionLaw,andregulationforspecificindustries,suchastobaccoandpharmaceuticalproducts.Inthisregard,advertisingviasocialmediaistreatedmuchinthesamewayasofflinemarketingwouldbe.

Thedefinitionprovidedbythelawofwhatconstitutes‘advertising’doesnotdistinguishbetweenanyparticularforms,consideringthatanysuitablemeanistreatedequallybythelaw.Consumersthat are misled through social media marketing campaigns, or who find a particular onlineadvertisement offensive have the same rights to demand the termination of that particularmarketingcampaignastheywouldwithanyofflineissue.


TheChileanCodeofAdvertisingEthics(‘CCAE’)isenforcedbytheCouncilforSelf-regulatingandEthical Advertising (‘CONAR’), a non-profit organization which essentially acts as a court ofarbitrationthatresolvesdisputesorcomplaintsregardingdecencyissues,interalia.Accordingtothe CCAE, advertisingmust respect the values, rights, and principles stated in Chile's PoliticalConstitution,especiallyregarding familymoralsandvalues,whilstalsorecognizing freedomofspeechasapillarofadvertising.

CONAR’smembersincludeadvertisingagencies,organizationalgroupsofindependentadvertisersandvariousmedia, suchas televisionnetworks, radiostations,magazinesandnewspapers.Bypayingtheirmonthlymembershipfees,theycanelectthemembersoftheBoardofDirectors,andcanfilecomplaintsforanybehaviorthatcontradictstheCode’sregulations.ThesecomplaintsarehandledfirstbytheBoardofDirectors,withappealtoCONAR’sAdvertisingEthicsCourt.SanctionsimposedbyanyofthesearebindingformembersofCONAR,andmayrangefromthetemporaryinterruptionofanadvertisingcampaigntotheexpulsionofamember.

Inaddition,theAssociationofDirectandDigitalMarketing(‘AMDD’)hasissuedaCodeofEthicsandSelf-Regulation.However,thisCodedealsmostlywithcommercialcommunications,suchastelemarketingandpromotionalemails,andexplicitlyexcludessocialmediamarketing.


Influencermarketingviasocialmediaisnotspecificallyregulatedassuchinourjurisdiction.

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However,theCCAEdoesregulatetestimonials,whichcanbeassimilatedtoinfluencermarketing.The Code acknowledges that a public person can develop goodwill that could be used withadvertising purposes. In this regard, if the person providing the testimonial has a pecuniaryinterestinthecompanythatheissupporting,thismustbemadepublic.


Nativeadvertising,viasocialmediaoroffline,isnotspecificallyregulatedinChile.However,thegeneralrulescontainedinCCAEandtheConsumerProtectionLawmustbefollowed,namely,theneed toprovide accurate andverifiable information andadvertisingmustnot seek tomisleadconsumers.


Usergeneratedcontent isregulatedby IntellectualPropertyLawandrulesregardingpersonalimage and goodwill. Authors have rights over their creations. As such, they can prevent theirunauthorizeduse inadvertisingcampaigns.Hence, it ismandatory for theadvertiser toobtainauthorizationfromtheuserswhogenerate thematerial, inorder tobeenabled to include it inadvertising.


Chileanlawdistinguishesbetweengamblinggamesandgamesofskills,theformerbeingthosewhichresultsdependmostlyonchanceandthelatterreferringtogamesinwhichthephysicalormentalabilitiesoftheplayershaveapredominantrole.Consequently, inordertoensurethatasweepstakeorcontestisnotmistakenforagameofchance,itishighlyrecommendedtoalwaysinclude skill-basedquestions.This same recommendation applies to sweepstakes and contestsmadethroughsocialmediaplatforms.


Most rules regarding offline advertising are also applicable to campaignsmade through socialmedia.TheCCAEdoesnotdifferentiatebetweentheplatformsonwhichtheadvertisingisplaced;inconsequence, theCode isapplicablealmost in itsentirety toadvertisingviasocialmedia. Inpractice, local courts and self-regulatingbodieshave applied sanctions against advertisementsmadethroughsocialmedia.

Theaddedcomplexityinsocialmediaarisesfromthefactthatsomeadvertisersmaybeactingfromforeignjurisdictions,andiftheadvertisingmaterialislocatedonserversthatarenotwithintheterritoryofChile,inpracticeitwouldbeverydifficulttoenforceajudicialruling.

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In 2016, CONAR ruled against an automotive retailer after it tweeted an advertisementencouraging consumers touse the company’s SUV todriveoff-roadacrossaprotectednaturalreservearea.The tweetupsetvariousenvironmentalgroupswho filedacomplaintagainst theadvertiserbeforeCONAR.

In its decision, CONAR stated that the advertisement released through the tweet was againstArticle1oftheCCAEbecauseitdidnotrespectthelaws,values,rights,andprinciplesstatedinChile'sConstitution(thenaturalreserveareawasdeclaredvehicle-freebylaw);andagainstArticle27 that states ‘advertising will not encourage behaviors that harm the environment’. Theadvertiserwasforcedtoremovethetweetandtoissueapublicapology.


Otherthanthegeneralrulespreviouslydescribed,wewouldaddthefollowingas‘bestpractices’:• Alwaysobtain thenecessaryauthorization fromtherelevantentitieswhenusing images,

content,musicandgoodwillfromthirdpartiesinamarketingcampaign.• If the socialmedia campaignwill use personal data frommemberswho use thatmedia

platform,makesurethatyouhaveobtainedthenecessaryconsent,orcanapplyanexceptiontothatconsent,ifneeded.

• Ithasbecomeincreasinglymoreimportanttobeawareofculturalandsocialsensitivitieswhenpreparinganadvertisingcampaign.Consideringtheviralnatureofsomecampaigns,itisgoodpracticetoreviewcontenttoconformtocurrentsensitivities.

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China

51

SOCIAL MEDIA – CHINA


ThemainsocialmediaplatformsthatadvertisersuseinthePeople’sRepublicofChina(‘PRC’)foradvertisingandmarketingtoconsumersincludetraditionalsocialmediaplatformssuchasWeiboandWeChat;livestreamingplatformssuchasDouyuTVandPandaTV;otherconsumerplatformssuchasTaobaoand JD;andnewsmediaplatformssuchasToutiao,which featuresocialmediasections.

Twitter,FacebookandInstagramarealsopopularinChina,butcannotbeaccessedwithoutaVPN,meaningtheirreachableaudienceislimited.


TherearenolawsorregulationsspecificallydirectedatadvertisingandmarketingviasocialmediainthePRC.However, therearegenerallawsonadvertisingandmarketing, suchas the InterimMeasuresfortheAdministrationofInternetAdvertisingissuedinJuly2016(‘InterimMeasures’)anddirectedatadvertisingandmarketingviatheinternetwithinthePRC.

Thekeyprovisionsapplicabletosocialmediaadvertisementsunderthesegenerallawsinclude:(a) Articles5and6oftheInterimMeasuresimposerestrictionsoncertaincontent,respectively:

(i) No entity or individual may publish any advertisement for over-the-countermedicationortobaccobymeansoftheinternet.

(ii) No advertisement in the following areas may be published without passing anexamination of an advertising examination authority as stipulated by law andregulation:medicaltreatment,medication,foodforspecialmedicalpurposes,medicalapparatuses,pesticides,veterinarymedication,dietarysupplementsorotherspecialcommoditiesorservices.

(b) Article 8 of the Interim Measures requires that an internet advertisement be clearlyidentifiableasanadvertisementtoconsumers.Moreover,advertisementspublishedontheinternet,suchaspop-upwindows,mustbeclearlymarkedwitha‘close’signtoensurethattheymaybeclosedbytheuserwithasingleclick.

(c) Article16oftheInterimMeasuresbansthefollowinginternetadvertisingactivities:(i) providingorusing any application, software, orhardware to intercept, filter, hide,

speedup,forwardorotherwiseimpacttheauthorizedadvertisementofanotherparty;(ii) usingnetworkpathways,networkequipmentorapplications todisrupt thenormal

data transmission of advertisements, alter or block authorized advertisements ofotherpartiesorloadadvertisementswithoutauthorization;and

(iii) using false statistical data, relayingmisleading information regarding the value ofadvertisingoverinternetmediums,andconveyingincorrectpriceinformationseekingtoinfluenceordamagetheinterestsofotherparties.

(d) Furthermore,theInterimMeasuresspecifycertainresponsibilitiesforonlineadvertisementpublishers,specificallyrequiringthatinternetadvertisementpublishersmust:(i) establishandmaintainanacceptableregistration,examinationandfilemanagement

systemforinternetadvertisingbusiness,includingexamining,verifyingandrecording

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the name, address, and contact number of each advertiser and other identifyinginformation,whileregularlymaintainingandupdatingregistrationfiles;

(ii) verify related supporting documents, confirm advertisement contents, not design,produce, or publish any advertisementwith nonconforming content orwithout allnecessarycertificationdocuments;and

(iii) be staffed with advertisement reviewers that have knowledge of advertisementregulationsand,whereconditionspermit,implementaseparatefunctionalbodyforreviewinginternetadvertisements.

(e) TheAnti-UnfairCompetitionLaw(revised2017)providesregulationsforfalseadvertising,specificallyrequiringbusinessoperatorsnotto:(i) promotethroughcommercialmeanstheperformance,function,quality,salesstatus,

userevaluation,oraccoladesreceivedrelatedtoproductsandservicesinafalseormisleadingmannerorotherwiseattempttomisleadconsumers;and

(ii) assist another business operator with its commercial promotions in a false ormisleadingmannerbywayoforganizingfalsetransactionsorothermeans.

(f) The Advertising Law (revised 2015) provides restrictions on advertisements for certaintypesofproducts,specifically:(i) Publication in mass media or in public places of advertisements for infant dairy

products,consumableliquidsandotherconsumableproductsclaimingfullorpartialsubstitutionofbreastmilkisprohibited.

(ii) Anyadvertisement formedical treatment,pharmaceuticalsormedicaldevicesmaynotcontain:• anyassertionorguaranteeofefficacyorsafety;• anystatementontherateofcureorothereffectiveness;• comparison with the efficacy or safety of other pharmaceuticals or medical

devicesorwithothermedicalinstitutions;• useofadvertisementendorsementsortestimonials;or• otheritemsasprohibitedbylawandadministrativeregulations.

(iii) Anadvertisementforrealestatemustprovideauthentichousingsourceinformationandindicatethebuildingorroomdimensions,andmaynotcontain:• anypromiseofappreciationorinvestmentreturn;• an indication of the project locationwith reference to the amount of time it

wouldtaketotraveltoagivenlocation(s);• violationoftherelevantnationalprovisionsonpriceadministration;or• misleadingpublicityonanytraffic,commercial,culturalandeducationfacilities,

andothermunicipalamenitiesthatareplannedorunderconstruction.(iv) Advertisementsinvolvinghealthsupplementsmaynotcontain:

• anyassertionorguaranteeofefficacyorsafety;• anyassertionofthepreventionoforcuringofdisease;• anyclaimorhintthattheproductadvertisedisnecessarytosafeguardhealth;• comparisonwithpharmaceuticalsorotherhealthsupplements;• useoftheadvertisementendorsementsortestimonials;or• otheritemsasprohibitedbylawsandadministrativeregulations.Advertisementsinvolvinghealthsupplementsmustbeclearlymarkedwiththewords‘thisproductisnotasubstituteformedication’.

(v) Itisprohibitedtoposttobaccoadvertisementsinmassmediaorinpublicplaces,viapublicmeansoftransportoroutdoors.

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(vi) Advertisementsinvolvingalcoholmaynotcontain:• instigationtodrinkorpromotionofexcessivedrinking;• anyrepresentationsoftheactofdrinking;• anyindicationofconductingactivitiessuchasdrivingacar,orsteeringaboator

airplane;or• anyexpressorimpliedstatementsthatdrinkinghastheeffectsofeliminating

stress,anxietyorenhancingstrength.(g) TheAdvertisingLawalsoprovidesthatendorserswhomakeendorsementsortestimonials

forproductsorservicesinadvertisementsmayonlydosobasedonfactualinformationandnotmakeendorsementsortestimonialsforproductsorservicesthathaveneverbeenusedoracceptedbytheendorserhim/herself;moreover,minorsundertheageoftenmaynotbeusedasadvertisementendorsers.

(h) Lastly, the China Cyberspace Administration published four applicable administrativeprovisions in2017withwhichadvertisersshouldmonitorcompliancewhenengaging inuser comment follow-up services, internet forumand community services, internet chatgroups,orofficialmediaaccounts:(i) TheAdministrativeProvisionsonInternetFollow-upCommentServicesprovidethat

services related to following up on or responding to online comments must alsostrictlyverifytheidentificationinformationofregisteredusers,establishandimproveauser informationprotection system, establish and improve an internet followupcomment review and administration system for real-time monitoring of usercomments,andoccurrenceofanyemergencysituations,etc.

(ii) TheAdministrativeProvisionson InternetForumandCommunityServicesprovidethat internet forum and community service providers must assume primaryresponsibility for establishing and improving real time information verification,emergency response capabilities and personal information protections as well asother information security administration systems to institute preventative safetymeasures with employed professionals and necessary technical support forperformingtheseduties.

(iii) TheProvisionsontheAdministrationofInformationServicesProvidedthroughChatGroupsontheInternetrequirethatprovidersverifytheidentificationinformationofusers of information services through internet chat groups and take necessarymeasurestoprotectusersafetyandpersonalinformation.

(iv) TheAdministrativeProvisionsontheInformationServicesProvidedthroughOfficialAccountsof InternetUsers require thatprovidersreviewuser information such asaccountinformationandqualificationsforandscopeofservices,categorizeusers,andfilesuchinformationwiththelocalcyberspaceadministrator;andfurtherestablishadatabasewithrespecttoregisteredpersons,publishedcontent,thenumberofpeoplesubscribingtoagivenaccount,andthenumberofpeoplereadingtherelevantarticlespublishedbytheofficialuseraccounts,andimplementspecificmanagementsystemsforofficialuseraccountstobefiledwiththeCyberspaceAdministration.


TheChinaAdvertisingAssociation(‘CAA’),thelargestadvertisingassociationinChina,publishedthe Industrial Self-Regulatory Rules and Self-Regulatory and Exhortation Rules on 12 January

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2008,followedbytheSelf-RegulatoryConventionon19April2016.TheserequirealladvertiserstocomplywiththeAdvertisingLaw.

In addition, certain social media platforms have promulgated their own internal rules onadvertisement publication. For example, Weibo published the Filing Plan of Advertising andPromotiononWeiboinApril2016,requiringadvertiserstofiletheiradvertisingandpromotionactivitiesandconductforWeibo’sapproval.WeChatalsopublishedRulesontheUseofWeChatMomentson15March2015,whichprohibitsfalseadvertising,andadvertisingongoodsthatarenotrelatedtotheidentityoftheWeChatofficialaccount.


Althoughinfluencermarketinghasbecomeincreasinglypopular,currentregulationsinthePRCdonotyetexplicitlyaddressthisarea.Therefore,regulationofinfluencersprimarilycomesfromtheadvertisingandinternetlawsofgeneralapplicabilitymentionedabove.Themostrelevantoftheseinclude:• prohibiting the use of endorsements or testimonials for certain products including

medicationandhealthsupplements(Article16ofthePRCAdvertisingLaw);• prohibitingminorsundertheageoftenfrombeingusedasendorsers(Article38ofthePRC

AdvertisingLaw);• prohibitingendorsementsortestimonialsforproductsorservicesthathaveneverbeenused

oracceptedbytheactualendorser(Article38ofthePRCAdvertisingLaw);and• mandating that endorsers bear joint liability with the advertiser if the endorsed

advertisementconstitutesfalseadvertisementandcausesdamagetoacustomer(s)(Article56ofthePRCAdvertisingLaw).

Theseareapplicabletoadvertisementsofallkinds, includingbutnotlimitedto,advertisingviasocialmedia.Also,ifauserpublishesapaidpost,itisconsideredanadvertisement,andshouldbeidentifiedassuch.


Accordingtothelatestlegislation,nativeadvertisingshouldbeclearlyidentifiedas‘advertising’(andnot‘promotion’)andbedistinguishablefromothercontent.

Article14oftheAdvertisingLawprovidesthatnomassmediamaypublishanadvertisementinthe guise of a news report. Any advertisement published via mass media must be markedconspicuously as an ‘advertisement’ so as to distinguish it from other non-advertisementinformationandavoidmisleadingconsumers.

Article 7 of the Interim Measures provides that an internet advertisement must be clearlyidentifiabletoconsumersasan‘advertisement’.

6. What are the specific laws, regulations, and self-regulatory rules in your jurisdictionrelated to the use of user-generated content when advertising and marketing via socialmedia?

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UsergeneratedcontentthatiscopyrightedbytheuserisprotectedunderthePRCCopyrightLaw.Generally,UGCplatformsrequestusersuploadingUGCcontentstogranttheplatformanexclusivelicense to use such content. Thus a license from the user and/or the UGC platform should beobtainedbeforeanyuseofsuchcontent.

UsergeneratedcontentthatcontainspersonalinformationandprivateinformationisprotectedundertheLawofthePRContheProtectionofConsumerRightsandInterests,CyberSecurityLawand the Provisions on Protection of Personal Information of Telecommunication and InternetUsers.Hence, ifathirdpartyusesusergeneratedcontentinanotherformbasedonpermissiongranted in user terms or another agreement, it is generally advisable to delete any personalinformationsuchasnames,addresses,contactinformationetctoavoidanyriskofinfringement(unlesswrittenauthorizationisobtained).


TherearenospecificrulesonsweepstakesandcontestsviasocialmediainChina.Relevantrulesarescatteredinvariousregulations,suchastheprovisionsoftheRegulationsonAdministrationof Lotteries, which are applicable to the issue and sale of lottery tickets, the Anti-UnfairCompetitionLaw,whichisapplicabletosaleswithaprize,theCircularonSpecificRectificationWorkingPlanonInternetFinancialAdvertisingandConductingFinancialActivitiesintheNameofInvestment& Financing, and even the PRC Criminal Law regardingprohibition of illegal fundraising.

Inparticular,Article10oftheAnti-UnfairCompetitionLawprovidesseverallimitationsonsaleswithrewards;namelythatabusinessoperatorofsalesrewardactivitiesmaynotengageinsaleswithprizesattached:• withoutexpresslyspecifyingtheprizetypes,termsforcollectingprizes,theamountsofcash

orthegoodsasprizes,orotherrelatedinformationaffectingprizecollection;• inafraudulentmannerbyfalselyclaimingtheexistenceofprizesorintentionallycausing

internally-chosenpersonstowintheprizes;or• in the formof a luckydrawwhere the amountof thehighestprize exceedsCNY50,000

(approxUS$7,800).


Advertisements distributed via social media or any internet platform are regulated under anumberoflaws(seetheanswer2).Inparticular,advertisersshouldbemindfulof:• Article7oftheInterimMeasuresprovidesthatpaidsearchadvertisementsmustbeclearly

distinguishedfromnaturalsearchresults.• Article 8 of the Interim Measures provides that advertisements must be published or

distributedbymeansof the internetwithoutaffecting thenormaluseof thenetworkbyusers.Advertisementspublishedoninternetpagesintheformofpop-uporotherformsshallbeclearlymarkedwitha‘Close’signtoensureuserscanclosetheadvertisementwithoneclick.Noentityorindividualmayinduceuserstoclickonthecontentofanadvertisementthrough deceptivemeans. No entity or individualmay attach advertisements or links toadvertisementsinane-mailsentbyauserwithouthispermission.

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Asidefromtheabove,eachsocialplatformhasitsownrulesastoadvertisingandmarketing,andusuallyrequiresthecreationofaccount.Inthisregard,certainplatforms,suchasWeChat,requirethatanyofficialaccountaccessible fromChinamustbeownedbyPRCcitizensorPRCentities.Therefore,a foreigncompanycannotregisteranofficialaccountdirectly toconductmarketingactivitiesinthePRC.ItwouldneedtoeithersetupaPRCentity,suchasaWFOE,orengageaPRCentitytoconductthesocialmediamarketingactivityonitsbehalf.


Recently, several advertisers posted advertisements on their official WeChat accounts whichviolated the PRC Advertising Law. These publishers were punished by local authorities. Forexample,MarlboropostedcoverttobaccoadvertinginarticlesitpublishedonitsWeChatofficialaccount‘MarlboroFansClub’severaltimesinasingleyear.ItwasfinedCNY1million(approxUS$155,000)bytheBeijingAdministrationforIndustryandCommerce,Chaoyangdistrictbranch.


UnderstandChinesecultureandfollowtherelevantregulations.Engagelocalcounseltoreviewadvertisementcontentandform,especiallyanythathasbeentranslatedfromanotherlanguage.

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Colombia

59

SOCIAL MEDIA – COLOMBIA


ThemainsocialmediaplatformsthatadvertisersuseinColombiaforadvertisingandmarketingtoconsumersareFacebook,Instagram,Snapchat,Pinterest,TwitterandYouTube.


ThemainlawsandregulationsgoverningadvertisingandmarketingviasocialmediainColombiaarethosegoverningadvertisingandpublicityingeneral.

TwolawsregulateadvertisingandmarketinginColombia.(a) Law 1480 of 2011 (‘Consumers Protection Statute’). This law regulates the kind of

informationthattheconsumermustreceivewithintheadvertisementinordertoobtainthefullfactsabouttheproductorservice.Accordingly,itestablishesthreespecificrequirementsasto:• minimuminformation,• accuratecontentoftheinformationand;• publicinformationofprices.Italsosetsoutobligationsontheadvertiser,wherebytheadvertiserwillbeliablefortheinformationgivenabouttheproductorservice.

(b) Law256of1996regulatesunfaircompetitioninColombia.Thislawstatesthatanyactwhichisconfusingandmayleadconsumersintoerrorisprohibitedandconsideredunlawful.

Finally,itisimportanttomentionthattheSuperintendenceofIndustryandCommerce,whichisthecompetentnationalauthorityregardingthesematters,has thepower toanalyzemarketingconductonacase-by-casebasis,inordertodetermineanybreachoftheadvertiser’sobligations.


The Unión Colombiana de Empresas Publicitarias (‘UCEP’), is a conglomerate of advertisingcompanies, that, in conjunction with la Asociación Nacional de Anunciantes (‘ANDA’) and theInternationalAdvertisingAssociation(‘IAA’),createdtheNationalCommissionforSelf-RegulationAdvertisement(‘CONARP’) toregulateadvertisingfromanethicalperspective.This is theonlyindustrycodeofpracticethatcomprisesdifferentprofessionalassociations.

CONARPhasissuedanddevelopstheethicscodeforadvertisementactivities.ThecodeiscalledtheColombianSelf-RegulatoryCodeonAdvertisementandappliestomembersorsubscribersandtheiremployees,contractorsorsuppliersofadvertisingservices.

The Colombian Self-Regulatory Code on Advertisement entitles CONARP to make judgmentsagainstanadvertiserbasedonethicalconsiderationsandadmonishprivatelyorpubliclythoseresponsible for advertising that violates an ethical standard and inform the competent publicauthoritieswhentheadvertisementunderreviewbreachesColombianlaw.

Concerning marketing via social media, the principles applicable are truthfulness, decency,honesty,goodfaith,andsocialresponsibility.

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Therearenospecialrulespertainingtousingsocialmediaforadvertising.Thegeneralrulesofadvertisingapplytoinfluencermarketingaswell.

Thegeneralrulesstatethatallrelevantinformationmustbedisclosed,andthattheadvertisementmustbeclear,truthful,adequate,timely,verifiable,understandable,accurateandsuitablefortheproductsorservicesthatareoffered.

TheSelf-RegulatoryCodeonAdvertisingcontainsachapteronsocialmediaadvertising,whichindicatesthatsuchadvertisingmustrespectindividuals,groupsandassociationsandshouldhaveacceptablestandardsofcommercialbehavior.

Itisamandatoryruleforalladvertisementsthattheperson,companyorentitythatisofferingthegoodsorservicesmustbeclearlyindicatedforconsumerinformation.

Asregardsinfluencermarketing, itmustbeclearwhetherthetestimonyisanendorsement,anindependentopinion,abelief,oranexperience.

Liability for the testifier’s claims or opinions can be joint and several if advertising rules arebreached.


Therearenospecialrulespertainingtousingsocialmediaforadvertising.Thegeneralrulesofadvertisingapplytonativeadvertisingaswell(seeanswer4).

As regardsnative advertising, the consumermustbeproperly informedthat the content is anadvertisementandnotaregularpost.


Recently, the Colombian Superintendence of Industry and Commerce issued a legal opinionintendingtoclarifythescopeofliabilityofsocialnetworkswhentheyareoperatedbytheusersasasellingplatform.Themainpointsare:• Anadvertiserisliabletoconsumers,sincetheregulationreferstothemanufacturerand/or

provider which advertises the goods or services. However, the platform on which theadvertisementispromotedwouldbeliableinacasewhereitispossibletodemonstratebadfaith or guilt on the part of the social network (in this case), concerning the deceitfuladvertisement.

• TheColombianSuperintendenceofIndustryandCommerceconsideredthatsocialnetworksdonothavea commercial interest, but asocial one.Hence, it is notpossible for a socialnetworktodetermineoraffectaconsumerinitsdecision-makingprocess.

• If social networks act as advertisers, then the Consumer Protection Statute would beapplicabletothem,notonlyasaplatformonwhichtheadvertisementispromoted,butasamanufacturerand/orprovider.

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• If a user commercializes goods or services, only the user would be liable forwhat it isadvertised,associalnetworkscannotberesponsiblefortheusegiventotheaccounts.

This is not a decision per se, and curiously enough it is not binding for the ColombianSuperintendenceofIndustryandCommerce.Nonetheless,itisthelatestopinionissuedrelatedtousergeneratedcontentwhenadvertisingandmarketingviasocialmedia.


Therearenospecialrulesrelatedtoconductingsweepstakesandcontestsviasocialmedia.Thegeneralrulesofadvertisingapply.Hence,theremustbeclarityintermsofthemode,timeandplaceof the promotion. The terms and conditions of the promotion should be easily accessible toconsumers.

Ifthepromotiondoesnotinvolvechance,noauthorizationfromanyregulatoryentityisneeded;nonetheless,thepromotionandtermsandconditionsmustcomplywithalltherequirementsoftheConsumerProtectionStatute,whichisthegoverninglawofthepromotion.

Ifitisachance-basedpromotion,authorizationisneeded.

Itisimportantthatalladvertisementpiecesincludealltheconditionsofthepromotion(ietheymust include all the conditions relating to time, mode and place of the promotion), as theinformationprovidedtotheconsumershouldbecompleteandclear.

The terms and conditionsmust be legible (ie the font sizemust be large enough to allow theaverageconsumer toread themwithouthaving tomakeaneffort).TheSIChasemphasized inrelationto‘fineprint’that,whilethereisnorequirementforittobeacertainsize,thetermsandconditionsshouldbeanormalandreadablesize.

ThetermsandconditionsandthewholeoftheadvertisementmustbeinSpanish.


Themostimportantissueistocomplywiththegeneralrules.Hence,allrelevantinformationmustbedisclosedandmustbeclear,truthful,adequate,timely,verifiable,understandable,accurateandsuitablefortheproductsorservicesthatareoffered.


Therehavebeenlegalopinions;however,therehasbeennorecentdecisioninwhichadvertisingandmarketingviasocialmediaisthemainelement.


Thekey‘bestpractices’areto:• beloyaltoconsumers;• avoidanymisleadinglanguageordoubleentendre;and

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• ensurecompliancewithboththeConsumersProtectionStatuteandLaw256of1996.

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Costa Rica

65

SOCIAL MEDIA – COSTA RICA


The main social media platform used by advertisers in Costa Rica is Facebook. Twitter andInstagramarealsoused,butonamuchsmallerscale.


Advertisinginsocialmediamustalwaysbeidentifiedassuch,andthenameoftheadvertisermustbementioned.

Inaddition,advertisingviasocialmediaisregulatedinthesamewayasinanyothertraditionalmedia.Insummary,thebasicprinciplesoftruthfulnessanddecencyapply.

Althoughnotexpresslyregulated,certainsubjectsdeservespecialattentionduetothenatureofsocial media. These include privacy and protection of intellectual property, in which generalregulations—andtheirinterpretation—havebeenadaptedtosocialmediaandnewtechnologies.

Moreover,therearecriminalpenaltiesforsomeoftheso-called‘e-crimes’.Theseincludeidentitytheft,phishing,andthelike.


Therearenoself-regulatorycontrolsonadvertisingviasocialmedia.


Although influencers are not expressly mentioned, the E-commerce Regulation states that alladvertisingusingelectronicmediamustbeclearlyidentifiedandtheadvertisermustbeexpresslymentioned.Thisdirectlyaffectsinfluencermarketing.


There are no express regulations relating to native advertising via socialmedia, although thegeneraldutytoidentifyadvertisingmayalsoapply.


Therearenospecificrulesonusergeneratedcontent.Generalregulationsrelatingtointellectualproperty,imagerights,misleadingadvertisingetcwillapply.

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SOCIAL MEDIA – COSTA RICA


Therearenospecificrules forsweepstakesandcontestsviasocialmedia.However,ConsumerProtectionLawsareveryspecificinthisarea,andtheyapplytoallpromotionsincludingsocialmedia. These regulate, inter alia, language requirements, disclosures, rules for raffles, consentrequirementsetc.


Inadditiontotheresponsetoquestion2,anotherrelevantrulemaybethe‘safeharbor’regulation,which regulates and clarifies the duties and liability of service providers for online copyrightviolations.

Thisregulationappliestoprovidersofvariousservicesrelatedtotheuseoftheinternet,suchashosting,searchengines,ISPs,andthelike.Inessence,theregulationestablishestheconditionsthatserviceprovidersmustcomplywith inorder to limit their liability forcopyright infringementsmadeusingtheirsystems.Also, it createsaprocedure thatmustbe followedwhenacopyrightviolationisfound,whichincludestheissueofareporttotheserviceproviderandnoticetothepotentialinfringer,anddetailssomeremediesandmeasurestobetaken,whichmayincludetheremovalofcontentsfromasite,denialofaccesstocertainservices,closureofexistingaccountsetc.


Mostexistingdecisionsinvolvingsocialmediarelateeithertodefamationthroughsocialnetworks,ortotheadmissibilityasevidenceofstatementsmadeinthecontextofasocialnetwork.

Asrelevantdevelopments,weforeseeastrengtheningoftheregulationsrelatedtodataprotection.Also, itmaybeexpectedthatweseemoregeneralregulationsbeingappliedtocasesinvolvingsocialmedia,ratherthananexpressregulationofthisactivities.


Aswithanyotherinternationalmediaandformsofadvertising,advertisersshouldbeawareoflocalinterpretationsofthelawandtrendsintheenforcementpolicies.Althoughthewrittenrulesaresimilarasinothercountries,theirinterpretationissometimesdifferentinthelocalcontext.

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Croatia

69

SOCIAL MEDIA – CROATIA


According to publicly available data, the most popular social media platforms in Croatia are:Facebook (2 million local users), Instagram (0.9 million local users), Google+ and YouTube.Twitter, PinterestandSnapchat, althoughverypopularglobally, arenot aspopular inCroatia.LinkedIniscommonlyusedforbusinesspurposes.Thesesamesocialmediaplatformsarethemostpopularamongadvertisersforadvertisingandmarketingtoconsumers.

Thereareno importantglobalsocialmediaplatformsthatarenotavailable foruse(orarenotwidelyused)inCroatia.


TheregulationsthatapplytoadvertisingingeneralinCroatiaapplytoadvertisingandmarketingvia social media as well. These include, primarily, the Prohibited Advertising Act and theConsumersProtectionAct.Inaddition,theCroatianMediaActandtheElectronicMediaActmayapply,wheretheadvertisingisanelectronicformat.

However,thegeneralimpressionisthattheregulationsinforcehavebeenlesseffectiveagainstunlawful advertising online than in other circumstances. The reason for that is probably thedifficulty of finding the actual source of unlawful advertising online. The same problems alsoappearinsocialmediaadvertising,althoughsocialmediahasnotbeenthemainonlinechannelinCroatia in terms of advertising products and services, at least as far as local producers andtrademarkownersareconcerned.


TheCroatianAssociationofCommunicationsAgencies(‘HURA’)haspublishedanAdvertisingandMarket Communications Code of Conduct, which is applicable to social media advertising. Itregulates,interalia,honestyandtransparencyinadvertising,aswellasthesocialresponsibilityentailed in the profession. One of the subjects covered in the Code is the regulation of directmarketing,aswellasadvertisingvia theuseof thedigital interactivemedia. It isbasedontheprincipleoffulldisclosuretoconsumersandbreachoftheCodecarriesthepossiblesanctionofterminationofthead.Specialfocushasbeenputonthesafetyofinternetusers,especiallywheretheuser(suchaschildren)ortopicraisedissensitive.


Influencermarketingisnotregulatedbyanyspecificlaws,regulationsorself-regulatoryrulesinCroatia.However,itisthoughtthat,wheremarketingisinelectronicformat,theprovisionsoftheCroatianMediaAct apply, underwhich an advertisement is definedas ‘apaidnotification, thepublicationofwhichisorderedbyanaturalorlegalpersonwiththeaimofimprovingthesalesofgoodsorservices,publicimage,etc’.

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NativemarketingisnotspecificallymentionedinlawsorregulationsinCroatia.Asisthecaseforinfluencermarketing,itisthoughtthatthedefinitionof‘advertisement’intheCroatianMediaActiswordedinawaywhichwouldentailawiderangeofpractices,includingnativeadvertisingviasocialmedia.


Usergeneratedcontentisa‘greyarea’inlocaladvertisinglaw.Usergeneratedcontentoftendoesnotfallwithinthedefinitionofadvertisingunderlocallaws.Asaresult,eachcaseshouldbetreatedandevaluatedindividually.


ContestsinCroatiaaredividedbetweenthosewhichareluck/chance-based,iedependentona‘subjective criterion’, and thosedependentonan ‘objective’ criterion,which arenot asstrictlyregulated.

Contestswithasubjectivecriterionarestrictlyprescribed,andtheorganizermustfulfilaseriesofformalitiesandobtainanauthorizationissuedbytheCroatianMinistryofFinance.

Forcontestsdependentonanobjectivecriterion,theorganizerisrequiredtostatetherulesofthecontest,aswellasthepromisedprize,withoutleavinganyroomforinterpretation.


Themostimportantthingtobeconsideredisthetypeofproductorservicebeingadvertised.InCroatia, several laws and regulations prescribe goods and serviceswhich are prohibited frombeingadvertised(egcigarettes,weapons,ammunition,pyrotechnicdevices),oradvertisementofwhichisrestrictedbyaspecialsetofrules(egmedication,alcoholicbeverages).Thisisapplicabletoanytypeofadvertising,includingadvertisingviasocialmedia.


Wearenotawareofanyjudgment/decisionspecificallyrelatingtotheadvertisingandmarketingviasocialmedia.


Advertisingandmarketingviasocialmediaisarelativelynewconceptinthemediaenvironmentandevenmoresointhelocallegalsystem.Asaresult,’bestpractices’havenotyetbeendeveloped.

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Thesizeofourcountry,whichisinproportionwiththenumberofitsinhabitantsandthesizeofthemarket,shouldbetakenintoconsiderationinthisrespect.

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Cyprus

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SOCIAL MEDIA – CYPRUS


ThemainsocialmediaplatformsusedbyadvertisersareFacebook,InstagramandTwitter.


Advertisingviasocialmediaiscurrentlytreatedinthesamewayasotherkindsofadvertising.Therefore,therearenospecificlegalcontrolsthataddressadvertisingandmarketingviasocialmedia. In Cyprus, the dominant advertising legislation is the Control of Misleading andComparativeAdvertisingLaw(92(I)/2000)andtheUnfairBusiness-to-ConsumerPracticesLaw(103(I)/2007).

It is worthmentioning that the Competition and Consumer Protection Service (‘CCPS’) is thecompetentauthorityresponsiblefortheenforcementofthelawonmisleadingandcomparativeadvertisingaswellasthelawonunfaircommercialpractices.TheroleoftheCCPSistomonitorthemarket in order to ensure that clear andadequate information is provided to consumers,protectingconsumers’economicinterestsandimprovingconsumers’education,informationandawarenessoftheirrights.

Additionally, in relation to socialmediamarketing, the general law in the areasof intellectualproperty,contractanddataprotectionarealsorelevantwherebyadvertisementsplacedonsocialmediawillalsohavetoobservethetermsofuseofthesocialmediaused.

Consumersthataremisledthroughasocialmediamarketingcampaign,orfindaparticularonlineadvertisement offensive, have the right to file a complaint through the Cyprus AdvertisingRegulationOrganization(‘CARO’)(seefurtheranswer3)oralternativelytotheCCPS.


Cyprushasanestablishedadvertisingself-regulationsysteminplace.Themainbodyresponsiblefor the self regulationof advertising across allmedia isCARO.CARO isa voluntary, non-profitorganizationandamemberoftheEuropeanAdvertisingStandardsAlliance.ItsaimistopromoteethicalstandardsinadvertisinginCyprusthroughindustryselfregulationaccordingtoCypriotlegislationanditsownCodeofConductandguidancenotes.TheCodeofConductfollowsthecodeoftheInternationalChamberofCommerce.

TheCodeofConduct isnotspecific tothe typeofadvertisingmediumused,andthereforealsoappliestoadvertisingandmarketingviasocialmedia.Itsmembersareadvertisingcompaniesandthe media, including broadcasting channels, newspapers and websites. Where CARO hasdeterminedthatanadvertisement isnotcompliantwithCypriot legislationor itsownCodeofConduct,itcanrequestthewithdrawaloftheadvertisementoritsamendment,and,inthecaseofnon-compliance,itwillrequestthehostoftheadvertisementtowithdrawit.


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Therearenospecificlawsorregulationsthataddressadvertisingandmarketingviasocialmediaor specifically in relation to influencer marketing. Consequently, the generic advertisementlegislationandCARO’sCodeofConductandguidancenotesmaybeapplicable.Seefurtheranswers2and3above.


As mentioned above, there are no specific laws or regulations that address advertising andmarketingviasocialmediaorspecificallyinrelationtonativeadvertising.Accordingly,thegenericadvertisementlegislationandCARO’sCodeofConductandguidancenotesmaybeapplicable.Seefurtheranswers2and3above.


As mentioned above, there are no specific laws or regulations that address advertising andmarketing via social media or specifically in relation to the use of user generated content.Consequently, thegenericadvertisement legislationandCARO’sCodeofConductandguidancenotesmaybeapplicable.Seefurtheranswers2and3above.


Cyprusdoesnothaveanygenerallawgoverningtheoperationofsweepstakeseithergenerallyorin relation to social media. With respect to contest laws, it is worth mentioning that this isregulatedbytheLotteriesLaw(Cap74)which,amongstotherthings,prohibitsusinganewspapertoconductcontests.


Asmentionedaboveinanswer2thelawandregulationsdonotspecificallyaddresssocialmediaadvertising but the overarching general principles and prohibitions apply nonetheless whenadvertisingthroughsocialmedia.Specifically,advertisersshould:• ensuretheveracityoftheadvertisement;• ensurethattheadvertisementistruthfulandhonest;• avoid misleading advertising whether this manifests through inaccuracies, ambiguity,

exaggerationorotherwise;• avoidcommunicationswhichcontainanythingthatislikelytocauseseriousorwidespread

offencetomorals;and• ensuretheyhaveintheirpossessionevidencetosubstantiateallclaimspriortopublishing

anadvertising.

Whenperformingcomparativeadvertising,advertisersshouldensurethatthecomparison:

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• doesnotdiscreditordenigrate the trademarks, tradenames,otherdistinguishingmarks,goods,services,activitiesorcircumstancesofacompetitor;

• does not take unfair advantage of the reputation of a trademark, trade name or otherdistinguishingmarkofacompetitororofthedesignationoforiginofcompetingproducts;

• doesnotpresentgoodsorservicesasimitationsorreplicasofgoodsorservicesbearingaprotectedtrademarkortradename;

• does not create confusion among traders, between the advertiser and a competitor, orbetween the advertiser’s trademarks, tradenames, otherdistinguishingmarks, goodsorservicesandthoseofacompetitor.

In relation to marketing directed towards consumers, this should be conveyed in a clear,understandable manner, whatever form or medium used. The advertisement must not bemisleading;theconsumermustbeallowedtocomprehendthequalitiesandoffersofthemarketedproduct. Specifically, advertisers should avoid advertising that could mislead the averageconsumerastotheexistenceofanover-advantageousoffercapableofinducingatransactionaldecision that would not otherwise be exercised, or engaging in practices that could misleadconsumersastotheactualproductprice,themannerinwhicheachproductpricewasreachedandtheexistenceofaspecificpriceadvantage.

Further,itisadvisablethatadvertisersshouldobserveCARO’sCodeofConductand,especially,theguidancenotespublishedinrelationtoadvertisementsrelatingtochildren,alcoholandfoodingeneral.

CARO’smainprinciples,asstatedintheirCodeofConduct,arethatadvertisementsshould:

• be‘legal,decent,honestandtruthful’;• be‘preparedwithasenseofresponsibilitytoconsumersandsociety’;• ‘respecttheprincipleoffaircompetition’;and• ‘dealfairlywithconsumers’.

CAROalsoofferstheserviceofreviewingadvertisementsbeforetheyarepublishedinordertodetermineanylikelihoodofviolationofitsCodeofConduct.


Nocaseshavebeenreferred toor triedbytheCypriotcourtstodate inrelation toadvertisingthroughsocialmedia.However,arecentdecisionwasmadebyCARO(judgmentdated28April2017) in relation to an advertisement posted on the Facebook page of the fast food CypriotcompanyPicomatrixLtdtradingasRoosters,whichsellsroastedchicken.Thecomplainantsstatedthattheadvertisementpromotedsexistbehavior,stalking,andrepresentedthefemalebodyinamannerwhichisinsultinganddegrading.

CAROagreedwiththecomplainantsandspecificallynotedthatthefactthatthisadvertisementwasdisplayedonFacebook,which allows for auser tounfollowawebsite, didnotnegate thegeneralobligationadvertisershaveinnotoffendinggendersthroughtheiradvertisements.


Pleaseseeanswer8aboveinrelationtobestpracticesforadvertisingthroughsocialmedia.

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Czech Republic

77

SOCIAL MEDIA – CZECH REPUBLIC


The main social media platforms used by advertisers in the Czech Republic, are definitelyFacebook,InstagramandYouTube.Alsoused,butlesspopular,areLinkedIn,Google+andTwitter.Othersocialmediaplatformuseismarginal.However,wearenotawareofanyimportglobalsocialmediaplatformwhichisnotavailableforuseintheCzechRepublic,thoughinsomecasesthepagesare not completely translated to local language (ie Czech) or otherwise locally adapted, forinstance.


ThereisnospeciallegislationwhichonlydealswithadvertisingandmarketingviasocialmediaintheCzechRepublic.Advertising in general (and therefore also advertising via socialmedia) isregulatedbytheActonAdvertisingRegulation(ActNo40/1995Coll).

OtherimportantlawsregulatingadvertisingingeneralaretheCivilCode(whichdealsinparticularwithunfaircompetitionandpersonalityprotection)andtheCopyrightAct(governingtheuseofcopyrightworks).

Self-regulatoryrulesof theadvertisingorganizationsare includedin theAdvertisingCode(thepresent version is from2013).TheAdvertisingCodedoesnothave thepowerof law,but it iswidely respected by all the members of the Advertising Council which issues the Code. TheAdvertisingCodealsodoesnothavespecificprovisionsonadvertisingviasocialmedia.

In2003, theEthical Codeof InternetAdvertisingwasdrawnup.ThisCodealsodoesnothavepoweroflawandfunctionsonlyasaself-regulatorydeviceofCzechinternetadvertisers.InthecaseofthisEthicalCode—unlikeinthecaseoftheAdvertisingCodeabove–thereisnobodywhichoverseesadherencetotheCode.

Also, social networks operators usually issue their own ‘ethical codes’ for their members.Naturally, in these cases, it is only theoperators themselveswhomonitor, control andupholdcompliancewithsuchcodes.


The Act on Advertising Regulation contains general rules on advertising in all types ofcommunications media (ie the press, magazines, motion pictures, video-on-demand services,software,radioandTVbroadcastingetc).ThereareseveralsupervisorybodieswhichhelpensurethattherulessetdownbytheActareadheredto.Sincethereisnoestablishedspecialbodytoexclusivelysupervise‘socialmedia’,thebasicsupervisorybodiesaregenerallytheregionalTradeLicensingOffices.

The self-regulatory Advertising Code sets down rules on advertising in all types of‘communicationsmedia’ (asdefined in thebroadsenseabove)andthereforealsocoverssocialmedia. A body within the Advertising Council called the Arbitration Committee monitors theCouncil’smemberstoensurethattheyabidebythestandardssetoutbytheAdvertisingCode.TheCommitteehasunofficial,butwidely-respectedauthoritytogivearulinginquestionablecases.

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Everybody(bothlegalentitiesandthepublic)hastherighttofileacomplainttotheCommitteeconcerningapparentlyunethical(ieCodebreaching)advertisement.

Asalreadymentioned,theEthicalCodeofInternetAdvertisingdoesnothaveanybodytooverseeadherencetoitsprinciples.


Toourknowledge,therearenolaws,regulationsorself-regulatoryrulesintheCzechRepublicspecifictoinfluencermarketingviasocialmediaatpresent.


Toourknowledge,therearecurrentlynospecificlaws,regulationsandself-regulatoryrulesintheCzechRepublicgoverningnativeadvertisingviasocialmedia.However,onthegenerallevel,nativeadvertising, in the form of product placement in online videos, is regulated by act number132/2010,Coll.onAudiovisualMediaServicesonDemand;thisregulationisagenerally-faithfuladoptionoftheAudiovisualMediaServicesDirective(Directive2010/13/EU).

Inaddition, insocialmedia(asinallother formsofmedia), surreptitiousaswellassubliminaladvertisingisforbidden.


The Czech Republic has quite literally adopted the legislation contained in the E-CommerceDirective (Directive 2000/31/EC), by Act No 480/2004 Coll. Thismeans, basically, that in theCzechRepublic—asinotherEUcountries—theusersthemselvesareresponsibleforanycontenttheygenerateon-line,unlessithappenstobeoneofthecaseswhentheresponsibilityof(generallyhosting)serviceproviderarises.

Otherwise,therearecurrentlynospecificlaws,regulationsandself-regulatoryrulesintheCzechRepublicconcerningthisissue.


There was fairly strict regulation of consumer sweepstakes (in the sense of games aimed atconsumers,basedonchanceratherthanskill)intheCzechRepublicbefore2017.However,since1 January2017thisregulationwasrevokedby thenewGamblingAct (ActNo186/2016Coll),whichnowregulatesonly‘classic’gambling.

Thereforetherearenospecificlaws,regulationsandself-regulatoryrulesintheCzechRepublicatpresentwhichdealwithconductingsweepstakesandcontestsviasocialmedia.

However, some of the socialmedia providers have some ‘internal’ rules of their own, like thedocument called ‘Facebook Page Guidelines’, which deals also with conducting contests viaFacebook.

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Webelieve therearenosuch issues thatwouldbespecific just to the jurisdictionof theCzechRepublic.


Therehavebeenseveralinterestingdecisionsinthepastyearsdealingwithadvertisementsontheinternet—decidedbycourtsaswellasbytheself-regulatorybody.

However, to our knowledge, none has dealt specifically with advertising via social media.Moreover, inallcases,thedisputesmainlyconcernedthecontentoftheadvertisement,notthetypeofmediabywhichitwasdistributed.


As with all other types of advertisements, social media advertisements are governed by thefollowingbasicprinciples:• Theadvertisementmustnotbeinbreachofanylaw(egtheCopyrightAct,theCivilCode

etc).• The advertisement must not be hidden (surreptitious or subliminal). This principle is

particularlyimportantintheareaofsocialmedia,wherecertainadvertiserscantryto‘hide’theiridentity(forinstancebypretendingtobeFacebookorTwitterusers).

• Theadvertisementmustnotbothertheconsumer(spamsetc.).• Theadvertisementmustbe‘decent’,ieitshouldbeincompliancewithgoodmorals.• Theadvertisementmustnotencourageaggressiveorhealth-threateningbehavior.• Specialrulesapply,toadvertisements,eg,forchildren,orthosepromotingtobaccoproducts,

alcoholicproducts,pharmaceuticalproducts,foodorgunsandammunition.

Apartfromabidingbytheserules,everyadvertiserusingsocialmediashould(fromthemarketingpointofview)carefullyconsiderthetargetaudiencefortheadvertisingandadjustthecontentoftheadvertisement to itsaudience(eg thepossibleuseofvulgarities),andmake thecontentasinteractiveaspossible(whichisalsoawaytowatchoverpotentiallyillegalorotherwiseharmfuluser-generatedcontent).

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Denmark

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SOCIAL MEDIA – DENMARK


Socialmediaplatformsarenot onlyused to share experiences and recommendationsbetweenfriendsonline.Thesocialmediaplatformsarealsousedbyawidevarietyofdifferent typesofcompaniestoadvertisetheirproductsorservicesandinsomeinstancesbyaninfluencer.

AstatisticalanalysisbytheDanishwebsitewww.bureau.dkshowshowusersspreadacrosssocialmediasin2017.

67% of theDanish population is on Facebook, 25% on Snapchat, 24% on Instagram, 24% onLinkedIn,10%onTwitterand9%onPinterest.

WithsuchahugepercentoftheDanishpopulationonFacebook,itisobviousthatadvertisersalsousethismediaplatformformarketingtoconsumers.In201764%ofDanishcompaniesareactiveon social medias in accordance with statistics published by Statistics Denmark (the centralstatistical office in Denmark). Especially Facebook and LinkedIn are the main social mediaplatformsusedbythecompanies.

AllglobalsocialmediaplatformsareavailableinDenmark.


UnderDanish law, the legalcontrolsgoverningadvertisingandmarketingviasocialmediaareidenticaltotheregulationsgoverningtraditionaladvertisingandmarketing.ThemainlawsandregulationsinDenmarkare:• theMarketingAct: thisisthemainlawgoverningmarketinginDenmark.Itregulatesall

typesofmarketingincludingE-commercemarketing.TheMarketingActhasrecentlybeenrevisedsoastofullyimplementtheUnfairCommercialPracticesDirective(2005/29/EC).

• theE-CommerceAct:thisalsoregulatesmarketingmadethroughe-commerceactivities.• Furthermore,thegenerallawsonintellectualpropertyrights,suchastheDanishTrademark

ActandtheDanishActonCopyrightalsoapply.Theseallowholderstotakeactionagainstanymisuseofintellectualpropertyrights.

Assoft law,theguidelinesandcommentsissuedbytheDanishConsumerOmbudsmanandthenon-statutoryregulationbytheDanishAlcoholAdvertisingBoardareveryrelevantsourcesoflaw:• The Danish Consumer Ombudsman issues guidelines and guidance papers concerning

specificormoregeneralmarketingissuesonaregularbasis.Theseguidelinesarefollowedwhen analyzing whether or not a specific ad is violating any provision in the DanishMarketingAct,astheguidelinesdescribeindetailthedifferentrelevantmarketingtopicsinDenmarkandtheregulationofthem.

• In2012,theConsumerOmbudsmenofthethreeNordiccountriesissuedapositionpaperregardingtheregulationofsocialmediaplatforms,andthispositionpaperiswidelyapplied.

• The non-statutory regulation by theDanish Alcohol Advertising Board regulates alcoholadvertisementindetail.

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There isnospecificself-regulatorybodyrelatedtoadvertisingandmarketingviasocialmedia,exceptforthoserelatedtoalcoholadvertisement.

The Danish Consumer Ombudsman is an independent public authority which supervisescompliancewithDanishmarketinglaw.Bybeinganindependentauthority,theOmbudsmancanprioritizetheinstitution’sworkandactivitiesaccordingtoresourcesandneeds.

TheOmbudsmanhasissuedguidelinesforbloggersandforadvertisingandmarketingviasocialmedia.


Allmarketingdirectedatconsumersmustbedesignedtobeclearandeasytounderstandandtheinformationprovidedmustbesufficientandnotmisleading,sothattheconsumerisabletoassessthemarketedproductandanyoffersorpromotionalmeasures.

Accordingto theMarketingActalladvertisementmustbeclearlymarkedassuch;andthusallinfluencerswhoperformsponsoredactivitiesmustclearlyindicatethenatureoftheiractivity,ieadvertisement.Thesponsormustsecurethattheadissufficientlymarkedassponsoredorpaidforcontent.Thecompanybehindtheadisresponsibleunderfairlystrictstandardsforsecuringthatthebloggermarksthesponsoredblogsasanad.However,ifthisisnotdone,despitetheeffortsperformedbythecompany,thecompanywillnotbeheldliable.

Whetherablogisconsideredanaddependsupontheagreementbetweenthecompanyandtheblogger.Thequestionisnotwhetheranagreementhasbeenmadeornot.Thesimplefactthatasponsorgivesagiftormakesaproductavailableforthebloggermayresultintheblogbecominganad.


There are no specific laws regulating native advertisement other than the general prohibitionvestedintheMarketingActagainstcovertadvertisement.

Itisthusageneralrequirementthatadvertisementstandsapartfromthecontent,andsonativeadvertisementmaybeillegaltotheextentthatthecommercialintentbehindtheadvertisementisnotcleartotheconsumer.


UnderDanishlawtherearenospecificlaws,regulationsorself-regulatoryrulesrelatedtotheuseof user generated content when advertising and marketing via social media. However, theConsumerOmbudsmanhas,in2015,issuedguidelinesregulatingusergeneratedcontent.

The legal controls governingusergenerated contentare identical to the regulations governingtraditionaladvertisingandmarketing.Thus,iftheuserhasbeenpaidbyacompany,orotherwise

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receivesbenefitsforgeneratingthecontent,thismustbecleartotheconsumer.Otherwise,theusergeneratedcontentmaybeconsideredanillegalcovertadvertisement.


Sweepstakeswheretheresultispartlyorfullydependentonchance,andwhereparticipationisdependent on payment of a sum, require a license from theDanish Gambling Administration.Sweepstakesthatdonotrequirepaymentofastakedonotrequiresuchapermit.Totheextenttheoutcomeisdependentfullyorpartlyonchance,theholdermust,however,registerwiththeTaxAdministrationandpaytaxontheprizemoney.

Iftheoutcomeofthegameisfullydependentonskills,itisneithernecessarytoregisterwiththeGamblingAdministrationnortheTaxAdministration.

InaccordancewiththeDanishMarketingAct,companiespromotingasweepstakemustalwaysdisplaythetermsofthesweepstakeinaneasy-to-understandandclearmanner.Therulesmustbe easily accessible to the participant. Misleading and inadequate display of the rules andconditionsisillegal.


It isimportantthatthecommercialintentofthecommunicationmustalwaysbedisplayedinaclearmanner,sothattheconsumerisinnodoubt.

Furthermore, it is importanttoremember that theclaritywithwhich information(suchasthetermsofasweepstake,orthecommercialintentoftheadvertiser),mustbedisplayedwillvary,dependingon themanner inwhich theadvertisementappears. If thead isonlydisplayedverybriefly,therequirementsarestricterthanifthecontentisnotmomentary.

Moreover,itshouldbenotedthatadvertisementinafeedwillnotbeconsideredspam.Onlywhentheadisdirectedataperson’smailboxormessengeraccountwillthecontentwillbeconsideredspam,andthen,onlytotheextentitisnotsolicited(seefurther,answer9).


(a) RegardingtwoFacebookpagesTwonewsbusinesseshadcreatedtwoFacebooksiteswhere thebusinessessharedtheirownarticles;however,itwasnotclearthatthebusinesseswerebehindthesites.IfareaderclickedonalinksharedontheFacebookpage,thereaderwastakentotheentirearticleonthenewsbusiness’sownwebsite.TheDanishOmbudsmanfoundthatitshouldappearfromthefrontpageofeachsitewhowasbehindthepages.

(b) RegardingmarketinginnewsfeedsonFacebookTheConsumerOmbudsmanwasaskedto indicatewhether itwas legaltocopyLinkedInusers’e-mailaddressesinordertousesuche-mailaddressestodirectadvertisingtotheirnewsfeedsonFacebook.TheOmbudsmanindicatedthatnewsfeedsarenotprivateandthustheactivitywasnotspam.However,therecipientshouldbeallowedtoeasilydiscontinuethefeed.(30June2016)

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(c) RegardingabloggerexposingaproductTheDanishOmbudsmanhasalsofoundthatapostingbyabloggerwhogaveexposuretoaproductwasacovertadsincetheblogpostwasnotmarkedasanad.Priore-mailsexchangedbetweenacompany(viaanadvertisingagency)andabloggerconstitutedanagreementthatthebloggershouldmentionthecompany’sproductsintheblogger’sInstagram.TheDanishConsumerOmbudsmanfoundthatthiswasaviolationoftheDanishMarketingAct.

(d) RegardingadvertisementofacontestonInstagramAnonlinestoreheldacontestonInstagram.TheprizewasindicatedtobeanoriginalTrianglbikini. However, the winner of the contest was sent a copy. The Danish ConsumerOmbudsman found that the marketing of the contest was misleading. The reason, theOmbudsman stated, for its decision was that the marketing of the contest gave theparticipantsareasonableground forbelieving that therewasapossibilityofwinninganoriginalTrianglbikini.ThebikiniintheInstagrampostlookedlikeanoriginalandthetextaccompaniedthepicturedidnotmakeitclearthatitwasacopy.(22January2015)


Whenconsumersseeanadvertisement,theymustbeawarethatitisanad,nomatterwhatformittakesandnomatterwhatmediumitappearsin.Bythisatransparencyiscreatedandconsumersrealizethatthereisacommercialinterestbehindthetextandimages.

Thus,whenmarketinginDenmark,businessownersmustmakesurethattheiradsareidentifiedas such. Social media is primarily perceived as a platform where individuals can exchangeinformationwitheachother.Therefore,businessesandtradersusingsocialmediaformarketingshouldpayparticularattentiontothefactthatitmustbeveryclearwhetherornotitisanad.Theoverarchingpurposeoftherequirementforidentificationisthatthereistransparencyandthatusers of social media can see when they are exposed to marketing or other commercialcommunication.

Inrelationtobloggersandinfluencers, it isimportantthatthecommercialintentiscleartotheconsumer. It issufficient if this isexplainedorclearlyappears fromthecontext. Ifthere isanydoubtwhetherthisclearlyappears,theConsumerOmbudsmanrecommendsthattheinfluencerorbloggerprovides this informationdirectly in connectionwith the ad, eg ‘Advertisement for[companyname]’.

Iftheadvertisementistargetedatminors,stricterrulesapply.Insuchcasesitisveryimportantthattheminorsareawarethattheadvertisementisactuallyanadvertisement.

As explained by the Ombudsman in its paper on the common position on advertising andmarketing,thevolumeofadvertisingonsocialmediahasgrownsignificantlyinrecentyears.Duetothefactthattheplatformsaremainlyusedbyprivateconsumerstoexchangeinformationwitheachother, companieswhousessocialmedia formarketing shouldpayparticularattention tohighlightingthefactthattheirpurposeistopromotetheirgoodsorservices.Itisveryimportantthatconsumersarenotexposedtohiddenadvertising.

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Dominican Republic

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SOCIAL MEDIA – DOMINICAN REPUBLIC


In theDominicanRepublic, all socialmediaplatformsareusedby advertisers.Twitter is usedmainlyonlyforlargebusinessadvertising(egtelecommunicationcompanies,banks).FacebookandInstagramaremorepopularformediumandsmallbusinesses.

The ‘live’ functionof the socialmediaplatforms is verypopular in theDominicanRepublic; inaddition,brandsarestartingtousethemobilegameplatform(‘advergaming’).


The Antitrust Law forbids misleading or confusing advertising and contains rules on unfaircompetition. The Consumer Protection Law contains rules and guidelines for advertising andpromotions in general, that also apply to the internet and social media, like trustworthyinformation.Intellectualpropertylaws(trademarksandcopyright)alsoapply.


Thealcoholindustry(beerandrumproducers)hasself-regulatoryrules.Thedocumentscontainsimilarruleson:• astothelegalagetoconsumealcohol(theyencourageaminimumagelimitof18);• nottopromoteviolentbehaviors;• totrytoavoidtheprojectionofstereotypesofsuccessfromtheconsumptionofbeerorrum;

and,veryimportantly,• torespecttheimageofthewomaninadvertisingandpresentations.

In theDominicanRepublic, there isnoCONARor auto-regulationbody thatworksorenforcesthese Rules, and there are no self-regulatory rules for general advertising outside the alcoholindustries.


There are no specific rules for influencermarketing via social media. The unfair competitionregulationscontainedintheAntitrustLawmustapply.


Thereisnoregulationatallonnativeadvertising.TheunfaircompetitionregulationscontainedintheAntitrustLawmustapply.

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SOCIAL MEDIA – DOMINICAN REPUBLIC


There is no specific regulation on the use of user generated content. The unfair competitionregulations,ConsumerProtectionLawandCopyrightLawapply.


Promotions,sweepstakesandcontestshavespecificregulationsundertheConsumerProtectionLaw. Registration with the Dominican Consumer Protection Agency (Proconsumidor) ismandatory.

8. Whataresomeotherimportantissuestoconsiderinyourjurisdictionwhenadvertisingandmarketingviasocialmedia?• IntheDominicanRepublicthereisdataprotectionlegislationbuttherearenoregistrations

ornotificationtocomplywith.• The Consumer Protection Agency regularly enforces the regulation of registration of

promotions.


• AnairlinehasbeensanctionedbyProconsumidor,theConsumerProtectionAgencyforfalseadvertisinginsocialmediamessages.InatradefairinthecityofSantiago,theairline,DR,announcedflightsfromUS$39.Theadsaid:‘COMEBEFORETHEOFFERSGOFLYINGAWAY…!!!’Theproblemwasnotthetagline,butratherthatflightswereoverthepriceannounced.

• NewsjackinghasbeensuccessfullyusedintheDominicanRepublic.


KeybestpracticesintheDominicanRepublicinclude:• theuseofa‘communitymanager’forsocialmediaplatforms;• toregisterpromotionsandsweepstakeswiththeConsumerProtectionAgency;and• tocheckspecificregulationoncertainproducts(breastfeedingproducts,alcohol,cigarettes,

etc).

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Dutch Caribbean

91

SOCIAL MEDIA – DUTCH CARIBBEAN


The main social media platforms used by advertisers in the Dutch Caribbean are Facebook,WhatsAppandYouTube.


Therearenospecificlawsorregulationsgoverningadvertisingandmarketingviasocialmedia.The general laws apply, mainly the E-Commerce Ordinance and the Civil Code, where digitalmarketingisconcerned.


Therearenoself-regulatoryrulesonadvertisingandmarketingviasocialmedia.


Therearenospecificlaws,regulationsorself-regulatoryrulesrelatedtoinfluencermarketingviasocialmedia.Thegenerallawsapply.


Therearenospecific laws, regulationsorself-regulatoryrulesrelated tonativeadvertisingviasocialmedia.Thegenerallawsapply.


Therearenospecificlaws,regulationsorself-regulatoryrulesrelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.Thegenerallawsapply,mainlytheE-CommerceOrdinanceandtheCivilCode,wheredigitalmarketingisconcerned.


Therearenospecificlaws,regulationsorself-regulatoryrulesrelatedtoconductingsweepstakesandcontestsviasocialmedia.Thegenerallawsapply,mainlytheE-CommerceOrdinanceandtheCivil Code, where digital marketing is concerned. The sweepstakes and contests must berecognizableassuch,theconditionstoparticipatemustbeabletobefulfilledeasilyandmustbedetailedandclear.

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SOCIAL MEDIA – DUTCH CARIBBEAN


Whenadvertisingandmarketingviasocialmedia,itisimportanttoconsider:• clearidentificationoftheadvertiserandproductsandservicesadvertised;• provisionofaclearandsimplewayfortheconsumertoobjecttoreceiptofadvertising;• identificationoftheregiontowhichtheadvertisementpertains;• intellectualproperty;• privacy;and• misleadingadvertising.


Therearenocasestoreport.


Itisrecommendedtofollowtheinternationallyacceptedrulesofgoodpractice.

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Ecuador

95

SOCIAL MEDIA – ECUADOR


Facebook, Instagram,Twitter,LinkedInandSnapchatare themainsocialmediaplatformsthatadvertisersuseinEcuadorforadvertisingandmarketingtoconsumers.

There is no legal restriction for access to any important global social media platforms in ourjurisdiction.


Theregulatoryschemethatgovernsadvertisingandmarketingisdispersedamongstseverallawsthatregulatetheseareas,including:(a) LawforConsumerProtection,(b) CommunicationLaw,(c) AntitrustandMarketLaw,(d) OrganicHealthLaw,and(e) BylawfortheControlandAuthorizationofAdvertisingandPromotionofProcessedFood.

However,therearenolawsfocusingspecificallyonsocialmedia.

Generalprinciplesapply,amongthemostimportantofwhichare:• theinformationprovidedbytheadvertisementmustbetruthful,clear,timelyandcomplete;• aprohibitiononmisleading,false,denigratory,orabusivepublicity,and• aprohibitionofcomparativeadvertisementregardingnon-comparableaspects,aswellasspecificrulesregardingchildren,alcoholandtobacco.


Themainself-regulatoryrulesonadvertisingandmarketingaretheEthicandSelf-RegulatingCodeandtheStatuteoftheEcuadorianAssociationofAdvertisers(‘AEA’).

Althoughselfregulationdoesnotreplacegovernmentandlegislativeregulationandisnotlegallybinding, the Ecuadorian Supreme Court, in an antitrust case, has accepted the applicability ofethicalcodesaccordingtoaspecificindustry(seeCaseNo7-IX-96,OfficialRegisterNo78,3-VI-97).


Thereisnoruleinourlegislationthatspecificallyregulatesinfluencermarketingviasocialmedia.Suchpracticemustcomplywiththegeneralprinciples(astowhichseeanswer2).


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TheCommunicationLawandtheLawforConsumerProtectionspecificallystatethatanytypeofadvertisingcontentmustbeclearlyandfullyidentifiedassuch;thisincludesnativeadvertising.


ThereisnospecificregulationonUGC;however,itmustcomplywiththegeneralprinciples(astowhichseeanswer2).


Sweepstakes and contests, in general, are regulated through the Law of Sales by Lot and itsRegulations;and,theInstructionsfortheInterventionoftheGeneralPoliceIntendants.


As there isno specific legislationor regulation regarding advertising andmarketing via socialmedia,thegeneralrulesofadvertisingandmarketinglawapply(astowhichseeanswer2).


Therearenorelevantrecentcases,judgmentsordecisionsrelatingtoadvertisingandmarketingviasocialmediainourjurisdiction.


(1) OneofthekeybestpracticestotakeintoaccountpriortoadvertisingorpromotingthroughsocialmediainEcuadororthroughanEcuadorianentityorwithpresenceinEcuador,istoconsiderthecontentofArticle98oftheCommunicationLaw:

‘Productionofadvertising:AdvertisementthatisinanywayperformedinEcuadorthroughthemediamustbeproducedbynaturalpersonsorlegalEcuadorianentities,andamajorityoftheshareholdersmustbeEcuadorianpersonsorforeignerslegallysettledinEcuador,andatleast80%ofthepeopleorentitiesinvolvedintheproductionoftheadvertisementmustbeEcuadorianpersonsorforeignerslegallyresidentinthecountry.Thispercentageincludeshiredprofessionalservices.The import of advertising materials produced outside the country by foreigncompaniesisforbidden.For the purposes of this law, production of advertising shall be understood astelevision and movie theater commercials, radio spots, photography for staticadvertising,orotheraudiovisualpiecesusedforadvertisingpurposes.

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Advertisementsthatdonotcomplywiththeseprovisionsmaynotbebroadcastandthenaturalorlegalpersonthatorderstheplacementoftheadshallbepunishedwithafineequalto50%oftheamountcollectedbytheplacementofsuchadvertisement.In the caseof a static advertisement, the finewillbe charged to the company thatbroadcaststheadvertisement.Internationaladvertisingcampaignsintendedtopromotetherespectandexercisingofhumanrights,peace,solidarityandhumandevelopment,areexempted fromtheprovisionsofthisarticle.’

NOTE: ‘50% of the amount collected by the placement of such advertisement’, could beinterpreted as the ‘benefits’ due to ad placement, in the form of economicbenefits/revenue/profit,whichwouldbeveryburdensome.

(2) The Regulatory Statute to the Communication Law (2014) also provides that allphotography to be used to advertise products or services in Ecuador must betaken/producedbyEcuadoriannationalsorforeignersresidingregularlyinEcuador.Theonlyexceptionstothisruleare:(a) photos or images to advertise foreignmovies or audiovisual productions; artistic,

cultural or sporting events that take place abroad; touristic destinations abroad;fictionaloranimatedcharactersprotectedbyintellectualpropertyrights;and

(b) upto20%ofthephotographiccompositionsdestinedtomakevisiblethepeopleorpersonalities(celebrities)thataretheinternationalimageoftheproductmaymakeuseofimagesproducedabroad.

(3) The Regulatory Statute to the Communication Law also provides that all audiovisualadvertisingbroadcastonEcuadorianterritorycanonlyincludesequences,scenesorimagesproducedabroad,forupto20%ofthetotallengthofthead,whenadvertising:(a) foreignmoviesoraudiovisualproductions;(b) artistic,culturalorsportingeventsthattakeplaceabroad;(c) touristicdestinationsabroad;(d) productsorservicesusingcelebritiesthataretheinternationalimageoftheproduct;

or(e) usingsequencesofplacesandobjectsthatarenotinEcuador,thatreducetoseconds

scenesthatinrealtimecantakedays,weeksormonthstobefilmed.

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Egypt

99

SOCIAL MEDIA – EGYPT


ThemostpopularandfrequentlyusedsocialmediaplatformsinEgyptareFacebook,WhatsApp,YouTube, Twitter, Instagram, Snapchat and LinkedIn. There are other social media platformsavailableinEgyptwhichareuncommon,suchasTumblr,Flickr,Quoraaswellassomepersonalblogs.

TherearenospecificplatformswhichareblockedinEgypt.However,itisimportanttonotethatduringtimesofpoliticalunrestitiscommonforFacebookandotherplatformstobeblocked.


ThereisnospecificlawwhichgovernssocialmediainEgypt.However,theEgyptianGovernmentisdiscussingsuchmatterandplanning toissueanew lawtogovern theusageofsocialmedia,whichmaybeissuedduring2018.


There are no self-regulatory rules specifically regarding advertising and marketing via socialmediainEgypt.However,therearesomegeneralrulesgoverningtortandwillfulmisconductinthe Egyptian Civil Code and Egyptian Commercial Law which apply in all matters includingadvertisingandmarketingviasocialmedia.


Therearenolaws,regulationsorself-regulatoryrulesregardinginfluencersmarketingviasocialmediainEgypt.

However, Article 163 of the Egyptian Civil Code provides that ‘a person committing any faultcausingharmtoanotherisobligedtocompensateforthedamagessuffered’.Thus,threeelementsmustbepresentforliabilityintorttoarise:• faultorerror,• damagetoanother,and• acausalconnectionbetweenthefaultandthedamage.

Also,Article66oftheEgyptianCommercialLawprovidesthat:1 ‘All act contravening the customs and norms observed in commercial dealing shall be

consideredanillegalcompetition.Inthatshallbeincludedinparticular,theencroachmenton a thirdparty’s trademarks, his commercial name, the letters patent, or his industrialsecretswhichhepossessestherighttoinvest,andinstigatingtheworkersinhistradingtostoreordivulgehissecrets,orquitworkingforhim,andalsoallactorclaimthatresultsincausingconfusiontothetradingstoreorhisproducts,orinweakeningtheconfidenceinitsownerorthoseinchargeofitsmanagement,orinhisproducts.

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2 Allillegalcompetitionshallforceitsperpetratortocompensatetheharmensuingtherefrom.The court shall, in addition to the compensation, have the power to pronounce a rulingorderingtheremovaloftheharmandthepublicationofasummaryofthesentenceattheexpenseofthejudgmentdebtorinadailynewspaper.’

ItcanbeassumedthattheseArticlesapplytobloggersandsocialmediainfluences.


There areno specific laws, regulationsor self-regulatory rules to governadvertising via socialmediainEgypt.However,LawNo120of1982prohibitsanypersonwhoisnotregisteredintheCommercialAgentsandBrokersRegistertoworkinthefieldofmarketingandadvertisement.

Moreover,registrationintheCommercialAgentsandBrokersRegisterisstrictlyprohibitedforanyoneotherthanEgyptiannationalsorpeoplewhohaveheldEgyptiannationalityformorethan10years.


Scenes of adultery or offensive, abusive or defamation contents are forbidden in any kind ofadvertising ormarketing.Moreover, it is prohibited to advertise for any terrorist group, anti-regimepropagandaorillegalprotestsagainstthegovernment.


There are no specific laws, regulations or self-regulatory rules governing sweepstakes andcontentsviasocialmediainEgypt.However,theCompetitionOrganizingLawappliesgenerallytocompetitionsandcontests.


In the event of forcemajeure or an emergency, theEgyptian authorities andgovernmentmaysometimescutoffallnetworksandallmeansofcommunication.See,forexample,whathappenedduringthe25thJanuaryrevolution.


Themostrecentcaserelated toadvertising ingeneralwasDecisionNo322017 issuedby theCouncilofStatetostopbroadcastingVodafone’slastcommercialforhavinginappropriatescenesandlanguage.

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102

El Salvador

103

SOCIAL MEDIA – EL SALVADOR


FacebookisthemostpopularsocialmediaplatforminElSalvador,followedbyInstagram.Mostplatformsareavailable,butTwitterisnotwidelyusedtoadvertisebecauseitonlysendslinks,andmostpeopledonotliketoreceiveadvertisinglinks.


Therearenolawsorregulationsspecificallygoverningadvertisingandmarketingviasocialmedia.However,therearecertainrestrictionsbywayofconsumerprotection,andonregardingmatterssuchasregulationofdrugs(medicines).


TheCodeofAdvertisingEthics(whichistheself-regulatorycodeinElSalvador)onlyappliestoformalbusinesses.


Therearenolaws,regulationsorself-regulatoryrulesrelatedspecificallytoinfluencermarketingviasocialmedia.


Therearenolaws,regulationsorself-regulatoryrulesrelatedspecificallytonativeadvertisingviasocialmedia.


There are no laws, regulations or self-regulatory rules related specifically to user generatedcontentviasocialmedia,otherthanthosethatregulatetheapplicationsinwhichtheinformationisplaced.


Sweepstakes and contests (including raffles, draws, lotteries, etc)which are to takeplace atanational level in El Salvador are regulated by the Ministry of Government (Ministerio deGobernaciónyDesarrolloTerritorial).

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SOCIAL MEDIA – EL SALVADOR

Authorization of such Ministry must be requested before any contest may be launched oradvertised,andretroactiveauthorizationcannotbeobtained.

AuthorizationoftheMunicipalCityHallofthetownwherethecontesttakesplaceorwheretheprizeisdeliveredisalsorequired.


• Faircompetition;and• IntellectualProperty.


Noinformationisavailable

10. Whataresomekey‘bestpractices’foradvertisingandmarketingviasocialmediainyourjurisdiction?• Becreative;• Usesimplelanguageandcontent;• Createyourownhashtags—donotcopythem;• Beconsistentandupdatethecontentregularly;• Generate a new approach including attractive visual aspects, authentic and realistic

photographsandvideos,peopleinrealsituations.

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Finland

107

SOCIAL MEDIA – FINLAND


All themainsocialmediaplatforms,suchasFacebook, Instagram,Twitter,YouTube,Snapchat,BloggerandLinkedIn,aswellasvariousforumsites,areusedforconsumermarketinginFinland.


Advertisingandmarketinginsocialmediaarebasicallygovernedbythesamelawsastraditionaladvertisingandmarketing,withsomeadditionalprovisions.ElectroniccommerceandmarketinginFinlandaremainlyregulatedbythefollowingActs:• ConsumerProtectionAct,• UnfairBusinessPracticesAct,• ActontheProtectionofPrivacyinElectronicCommunications,and• PersonalDataAct.

LegislativechangesrelatingtotheEUdataprotectionreformshouldbetakenintoaccount,aswellasintellectualpropertylawsregardingtheuseoftrademarksandcopyrightprotectedmaterialinmarketingviasocialmedia.

InadditiontotheActs,electroniccommerceandmarketingareregulatedbygeneralguidelinesgiven by regulatory authorities. The main regulatory authorities controlling advertising andmarketing via socialmedia inFinlandare theConsumerOmbudsmanand theDataProtectionOmbudsman.TheConsumerOmbudsmansupervisesthelawfulnessofmarketing,andcanbothinterveneinspecificcasesandissuegeneralguidelines.Asregardsmarketinginsocialmedia,themostrelevantguidelinesare theGuidelinesonPrinciples inso-called ‘TellaFriend’Marketing(issuedin2008,reviewedin2015),theGuidelinesonRecognizabilityofMarketinginBlogs(2013),andtheGuidelinesonMarketingSweepstakes(issuedin2011,reviewedin2015).Inadditiontothese,therearedifferentguidelinesforspecificindustries.LegaldisputesconcerningadvertisingandmarketingareresolvedintheMarketCourt.

In 2010, the Nordic Consumer Ombudsmen issued a position on electronic commerce andmarketing,andin2012,issuedasupplementalpositionspecificallyonsocialmediamarketing.Thepositionsconsistofrecommendationsandobligatoryrequirementsthatarebasedonlegislation.TheConsumerOmbudsmenhavenottakenastandonwhethercompanies’actionsareagainstthelaw if the recommendations are not followed. The issue is evaluated case by case. The 2010position includes centralnormsandprinciples that companiespracticing consumer commerceshould follow inorder to fulfill therequirementsofgoodmarketing.Thesupplement issued in2012concentratesondiscussinghowspecificmarketingrequirementsaremoredifficulttofulfilin social media (eg banner marketing and ensuring that certain marketing does not reachchildren).ThesupplementalpositionalsoincludesanAppendixstatingtheOmbudsmen’sopiniononwhatisconsideredaselectroniccommunicationinFacebook.

The Nordic Consumer Ombudsmen have also, in 2016, issued guidelines concerning covertmarketing. The guidelines emphasize the effect of social media on covert marketing and theimportanceofmakingtheadvertisingnatureofanyadvertisementsonsocialmediasitesandblogscleartotheconsumerstheverymomenttheyarefacedwiththeadvertisement.

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In addition to international self-regulation, electronic advertising and marketing is also self-regulated on a national Finnish level through several organizations. For example, the Finnishdivision of the European Interactive Advertising Bureau (‘IAB Finland’) and The FinnishAssociation of Marketing Communication Agencies periodically provide standards andrecommendations formarketing professionals. The Council of Ethics in Advertising, operatedunder the Finnish Chamber of Commerce, provides statements on the ethical acceptability ofadvertisementsoradvertisingpractice.


Influencermarketingisgovernedbythesamelawsandregulationsassocialmediamarketingingeneral,andisalsosubjecttospecificself-regulatoryguidelinesandstatementsoftheCouncilofEthics inAdvertising.TheConsumerOmbudsmanhas, inparticular, commentedon theuse ofinfluencermarketingviablogs.TheGuidelinesonRecognizabilityofMarketinginBlogs(2013)underlines the responsibility of advertisers to prevent covert marketing and to inform theirbloggerpartners.ProfessionalbloggersarealsoboundbythenormsoftheConsumerProtectionAct,whilehobbybloggersarenotboundbythemarketingregulations,creatinganevenbiggerresponsibilityfortheadvertisertoabidebytherules.IABFinlandhasissuedguidelinesonhowtocollaboratewithpopularYouTubers.


IABFinlandhasissuedself-regulationguidelinesonnativemarketing.As forallmarketingandadvertising, native advertising should be recognizable as a marketing message, and thecompany/persononwhosebehalfthemessageissentshouldbeclear.


Currentlytherearenospecificguidelinesrelatingtotheuseofusergeneratedcontent.However,it isadvisable togetanexpressconfirmation fromthecontentgenerator,oftenaconsumer,ofhavingreadandacceptedpotentialtermsandofhavingobtainedconsentfromthepeoplepresentinphotos.However,theliabilitybetweenthecontentgeneratorandtheadvertiser,forexampleasregardscopyright-protectedmaterial,isnotcompletelyclearasthereiscurrentlynoFinnishcaselawonthematter.

Advertisersareadvisedtokeepaneyeonsocialmediafanpagesusingthecompany’sbrandinordertoensurethatthereisnoconfusionontheoriginofthematerial,buttoactwithcautionsothatanystepstakenarenotseenasthecompany’seffortstocontrolthediscussionstooheavily.


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Asregardscontestsandsweepstakes,thesamelawsapplytothedigitalenvironmentastothenon-digitalone,suchasconsumerprotectionanddataprotectionregulations.Naturally,advertisersmustalsofollowtherulesoftheplatformused.Generally,asregardscontestsandsweepstakes,itshouldbenotedthatthetermsofthecompetitionshouldbeclear,easytounderstandandeasilyaccessible.

Therecanbenochargeforentryintocontestsorsweepstakes;butapreconditionthataproductmustbeboughtinordertotakepartisallowedaslongasthereisnoextrasurchargeforenteringthecontest.


The following issues are importantspecifically inrelation to advertising andmarketing takingplaceviasocialmedia:• Whenacompanycreatesacompanyprofile,pageorthelikeinsocialmedia,thecompany

needstomakesurethatthepagecontainsrelevantidentificationinformationinorderforconsumersandauthorities tobeable tocontact thecompany ifnecessary.Thecompanyname,address,emailaddressandcompanyidentificationnumberareconsideredsufficientinformation.

• Themostrelevantissueinelectronicmarketingisthatthemarketingshouldberecognizableasamarketingmessage,andthatthesenderorthecompany/persononwhosebehalfthemessageissentisclearlynotedinthemessage.Therefore,marketingcannotbeexecutedinamannerthatwouldsuggestthemessagewasproducedbyaprivateperson.Ifaprivateperson does communicate amarketingmessage in return for a payment or benefit, theprivatepersonissimilarlyobligedtoindicatethecompanyonwhosebehalfthemessageiscommunicated.Inthesamemanner,arepresentativeofacompanymustmakeclearthatamessageissentonthecompany’sbehalf.

• Sendingconsumerselectronicmessagesorsocialmediamessagesisalsoregulatedbylaw.Aprivateperson cannotbe contactedby an electronicmessageunlesshe/shehas givenhis/herprior,expressconsenttoreceivemarketingmessagesfromtherelevantcompany.Thepermissiontosendmarketingmessagestoaprivatepersoncannotbeobtainedthroughanelectronicmessage,butneedstobeobtainedpriortosendingeventhefirstelectronicmessage.Also, ineachmessageitisnecessarytospecifyhowthepersoncanunsubscribefromreceivingmarketingmessages.

• Itshouldalsobenotedthatmarketingmethodstypicalspecificallytosocialmedia,suchasbanners, must also fulfill marketing legal requirements, irrespective of possible limitedspaceorotherrestrains.


Nojudgments/decisionsdirectlyconcerningadvertisingandmarketingviasocialmediahaveyetbeenmadeinFinland.However,theCouncilofEthicsinAdvertisinghasissuedafewstatementson ethical acceptability of marketing on social media. The statements include statements onrecognizability of advertisements in blogs and on YouTube channels (see, eg, decisions MEN1/2017 and 13/2016), and the Council has recently given multiple remarks in cases where

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advertisinghasbeendoneviapopularYoutubersbutwhereithasnotbeensufficientlyclearforwhomthemarketinghasbeencarriedout(seedecisionsMEN37/2017and38/2017).


Asmentioned above, the key requirement for allmarketing is that its nature as amarketingmessagemustalwaysberecognizableirrespectiveoftheforum,includingallthevariousformsofsocial media. Advertisers should be especially careful of covert marketing and aware of theconsumer-protectiveregulation.

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France

113

SOCIAL MEDIA – FRANCE


AllsocialmediaplatformsareavailableforuseinFrance.Advertisersuse,inparticular,Facebook,TwitterandInstagram.


Thereisnospecificregulationdedicatedtosocialmedia,butratherrulesapplyingirrespectiveofthemediaused,suchas:• ConsumersCode(deceptive,misleadingandcomparativeadvertising);• IntellectualPropertyCode(trademarks/copyrightsinfringements);• CivilCode(therightsofindividualstotheprotectionoftheirimage);• LawofAugust4,1994(providingforamandatoryuseoftheFrenchlanguageinanywritten,

spokenandaudiovisualadvertising.TheuseoftheforeignlanguagewithatranslationintoFrenchistolerated).

Thereis,however,alawdedicatedtoe-commerce,datedJune21,2004,(‘E-CommerceLaw’)whichaddressessomespecificitiesoftheactivitiescarriedoutthroughInternet(liabilityoftheserviceproviders,theconclusionofonlineagreementsandsoon).

Thislawalsosetsoutgeneralruleswhicharethesameasthoseappliedinthe‘realword’,suchastherequirementtohavetheads,whatevertheirformat(pop-ups,adbannersandsoon),identifiedassuchandthereforeclearlydistinguishedfromnon-commercialinformation(Section20oftheE-CommerceLaw).

TheConsumerCodewasamendedbyalawdatedMarch14,2016,wherebyitnowcontainsthefollowingrule:

‘acommercialpracticewhichaimsat[…]usingeditorialcontentinthemediainordertopromote a product or a service is deemedmisleading if the advertiser has paid for thiscontentwithoutclearlyinformingtheconsumerthatitispaid-forcontent,inthecontentatstake,inwriting,withimagesorsoundsclearlyunderstandablebytheconsumer’

(SectionL121-411°oftheConsumerCode).


TheFrenchself-regulatoryagency,AutoritédeRégulationProfessionnelledelaPublicité(‘ARPP’)has issued a Recommendation dedicated to digital ads. This Recommendation also containsAnnexesprovidingformorespecificguidelinesforspecifictypesofadvertising/marketingactivity,suchascommunicationcarriedoutbyinfluencers(introducedinApril2017),nativeadvertisingandsoon.

Asageneralrule,marketingcommunicationsandadvertisingshouldbeclearlydistinguishableassuch, whatever their form. That identification can be achieved by any means whereby theconsumercanclearlyandimmediatelyunderstandthatthemessageisanad.

Twoinstancesmustbedistinguished:

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• Thecasewherethecommercialnatureofthemessageisobvious,eitherbecauseitusesacommonadvertisingformatorbecauseofthecontentitself:inthiseventthereisnoneedforanidentificationofthecommercialnatureofthemessage.

• The casewhere the commercial natureof themessage isnot obvious. In this event it isrecommendedtoaddaclearnoticeidentifyingthecommercialnatureofthemessage.Whenthemessageissurroundedbynewsoreditorialcontent,itshouldbepresentedinawaythatitisinstantlyrecognizableasanadvertisement.Thenoticemustbereadableoraudible,andintelligible.


French law is not specifically focused on influencers. But the general obligation to identify acontentasanadisapplicabletoanycontentpostedbyaninfluencerwhichcanbedeemedanad(Section20oftheE-CommerceLaw,SectionL121-411°oftheConsumerCode).

TheARPP’sRecommendationondigitaladsprovidesthat,whenaninfluencerhasnoobligationtopromoteabrandoraproduct(ieanadvertisersendsproductstoaninfluencerwhoisfreetotalkabout this product, or not, in his/her social network), there is no commercial collaborationbetween the influencer and the advertiser. It is deemeda ‘press relationship’,as it is commonpracticeinthe‘realworld’betweenanadvertiserandjournalists/thepress.

Whentherearemutualundertakingsbetweentheinfluencerandtheadvertiser,therelationshipisdeemedacommercialcollaboration,whichmustbeidentifiedassuchinthecontentpostedbythe influencer (eg: “#sponsored”, “#in collaboration with etc). However, the influencer is notobliged to comply with the ARPP’s Recommendation (such as the prohibition on presentingdangerousbehavior, theprohibitiononpresentingsomeoneeating in frontofaTVscreenetc)becausethecontentisnotqualifiedasanad.

Commercialcollaborationscanbequalifiedasan‘ad’whenthefollowingthreecriteriaaremet:• compensation is offered by the advertiser (payment or any other compensation such as

gifts),• thereiseditorialmonitoringoftheadvertiser,includingapriorreviewofthepost/message,

and• there is promotion by the influencer of a product or service of the advertiser (speech,

messageorimagewithapromotionalpurpose).

Whenthecommercialcollaborationisqualifiedasanad,theobligationtoidentifythecommercialnatureofthemessageapplies(eg:‘#ad’,‘#sponsored’,‘#incollaborationwith’andsoon),buttherearealsootherobligationsimposedontheinfluencer.TheARPP’sRecommendationappliestothecontentpostedbytheinfluencer,insofarasthecontentisqualifiedasanad.


Frenchlawisnotspecificallyfocusedonnativeadvertising,butthereisthegeneralobligationtoidentifythecommercialnatureofthemessagewhenitisintegratedintoeditorialcontent.

TheARPP’sRecommendationondigitaladsaddressesnativeadvertisinginitsAnnex.

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The Recommendation defines native advertising as covering a group of various advertisingformats,whichuse(orlooklikeasmuchaspossible)thedesignandformofthewebsiteonwhichthey are inserted/published, and adapt themselves to the experience of the user. Suchcommunication must be clearly and immediately identified as an ad. The ARPP recommendshighlightingthesponsoredcharacterofthecontentthroughtheuseofexplicitreferencessuchas«advertising»,«sponsoredby»,or«inpartnership/collaborationwith».Suchreferencesmustbereadable,oraudible,andbeunderstandable/clearenough,sothattheadvertisingcharacterofthecommunicationmayimmediatelybeunderstood.

Asageneralrule(applicabletoanytypeofad),thecontentoftheadmustbehonestandtrue.


Frenchlawisnotspecificallyfocusedonusergeneratedcontent.

Thereare, however,general principlesgoverning the assignmentofcopyrightsonawork (thegeneratedcontentoftheuser).Inparticular,theassignmentofcopyright(orlicensing)mustbe:• foralimitedduration,• foradefinedlistofmediaand• withadefinedterritorialscope.

Thetypesofright(reproduction,representationetc)whichareassigned/licensedmustalsobeidentified.

ThemoralrightoftheauthorisperpetualinFrance(alreadydeemedapublicorderrulebyFrenchcourts).

TheARPP’sRecommendationondigitaladsprovidesthat,whenusersareinvitedtocreatecontentforadvertisingpurposes(eg,anadcreationcontestsetupona‘UserGeneratedContent’videoplatform),theprinciplessetoutintheRecommendationwillhavetobecompliedwith,eg,throughamoderationofthecontributionsbytheadvertiser.


Thegeneralrulesonsweepstakesandcontestsapplywhenthepromotionisadvertisedorcarriedoutthroughsocialmedia.


It is important to consider the protection of personal data, particularly in view of theimplementationinFranceoftheGeneralDataProtectionRegulation(‘GDPR’)on25May2018.


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Thereareafewcasesaddressingadvertisingandmarketingviasocialmedia.

Relevantcasesincludethefollowing.

(1) OnNovember17,2017,theCourtofAppealofParisconsideredthatithasjurisdictionoveradisputeconcerningtheinfringementofcopyrightscommittedontheFacebookpageoftheTVshow‘theVoice’broadcastontheBelgianTV(namelytheuse,forthecreditsoftheTVshowandbroadcastontheFacebookpageoftheshow,ofapieceofmusiccomposedbyaFrenchband‘Anstonvilla’).TheCourtofAppealtookintoaccountthefactthattheFacebookpageinquestionwasavailableinFrancesothat,accordingtotheCourtofAppeal,Francewastheplacewheretheharmfuleventoccurred(inaccordancewithSection5-3ofCouncilRegulation 44/2001/EC of 22 December 2000 on jurisdiction and the recognition andenforcementofjudgmentsincivilandcommercialmatters).

(2) On3July2013,theCourdecassationconfirmedthedecisionoftheCourtofAppealofPariswhichsanctionedtheviolation,byanalcoholicbeverages’manufacturer(PernodRicard),oftherulesapplicabletotheadvertisingofalcoholicbeverages.Theadcampaignconcernedincludedtheofferofanapp,tobedownloadedforfree(butwhichrequiredtheusertohaveaFacebookaccount),allowingtheusertoseethevideooftheRicardadcampaign,butalsotodownloadcodesleading tococktailsrecipesusing thealcoholicbeverageRicard,tobepublishedontheuser’sFacebookwall.The Cour de cassation approved the decision of the Court of Appeal of Paris whichconsideredthat,despitethefactthattheuserwassharingthemessageoftheadvertiseronhis/her Facebookwallwith his/herFacebook friends, themessage remainedan ad, andsubject,assuch,totheFrenchHealthPublicCodewhich,inparticular,prohibitsonlineadsforalcoholicbeverageswherethewebsitesatstakearedestinedtoyoungpeople.TheCourtofAppealnotedinparticularthattheuse,intheadcampaign,oftheHashtag(«#»)references was aimed at targeting young consumers who were interested in the newtechnologies.


Somekey‘bestpractices’inFranceareto:• clearlyidentifythemessageasanad,• ensure that youngpeople are protected (limitation of access, protection of the image of

youngpeople/childrenetc),and• ensurethatthemessageistrueandaccurate.

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Germany

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SOCIAL MEDIA – GERMANY


InGermany,themost-usedsocialmediaplatformsforadvertisingandmarketingtoconsumersareFacebook,YouTubeandInstagram.Thus,themainsocialmediaplatformsareallavailableforuseinGermany.


Thereisnodistinctionmadebetweenadvertisingandmarketingpublishedthroughsocialmediaorthroughotherchannels.AnyadvertisingdirectedtorecipientsinGermanymustcomplywiththeGerman fair traderules.Anyreviewofsuchadvertisingwouldcoverat least the followingaspectsofGermanadvertisinglaw:• ActagainstUnfairCompetition,• distantsellingrules,• consumerprotectionrules,• labellingrequirements,• clearanceofthirdpartyrights(egtrademarks,companynames,designs,etc.).

Moreover,furtherrequirementsmustbemetinspecificindustrysectors,suchaspharmaceuticaladvertising,tobaccoandalcoholadvertising,foodadvertisingetc).SincesocialmediaplatformsareconsideredtelemediaforthepurposesoftheGermanTelemediaAct,aspectsofdataprotection(governedbytheGermanFederalDataProtectionAct)anddirectmarketingcomeintoplayaswell.On25May2018,theEuropeanGeneralDataProtectionRegulation(‘GDPR’)willcomeintoeffect;to be followed by the Privacy Regulation which will provide more guidance on electroniccommunication(coveringsocialmediaplatforms).


Therearenospecificlegalbodiesofimportanceregulatingsocialmediaadvertising,nor,indeed,‘offline’advertising.


TherearenospecificlawsorregulationsinGermanyregardingcertaintypesofmarketing.Insteadsome general rules, like those set up in the Act against Unfair Competition, are applied to alldifferentmarketingtechniques.Inthecaseofinfluencermarketingviasocialmedia,eg§5aVIoftheActagainstUnfairCompetitiondemandstheadvertisingcharacterofcontenttobedisclosed.ThesamerequirementcanalsobefoundintheGermanTelemediaActaswellastheInterstateBroadcastingAgreement.


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Therearenospecificlawsorregulationsrelatedtonativeadvertisingviasocialmedia.Thegeneralruleshavetobeapplied(seequestion4).Furthermore,iftheadvertisingcontentisembeddedinaneditorialmedium,ithastobewellseparatedfromeditorialcontent,sothattheconsumermightnotbedeflectedfromdetectingtheadvertorialpurposeofthecontent.


Therearenospecificlawsorregulationsrelatedtouser-generatedcontentwhenadvertisingandmarketingviasocialmedia.Thegeneralruleshavetobeapplied(seequestion4).


Germanregulationsregardingtheconductofsweepstakesandcontestsviasocialmediaareveryliberal compared to regulations in some other EUmember states. Themost important aspectregarding sweepstakes and contests in Germany is to carefully separate them from fee-basedgambling.Thelatterisgovernedbystrictregulations;andthereforeanykindofparticipation-feeshouldbeavoidedwhileconductingasweepstakeorcontest.

With regard to the latest changes in the Act against Unfair Competition, a link between asweepstakeandapurchaseofaproductisnolongerprohibitedperse(duetoEUjurisdiction).Ingeneral, sweepstakes and contests in social media are not subject to any kind of registrationrequirementnoranylimitationregardingtheprize.

Following the judgmentof theHigherDistrictCourtBerlin (FileNo5U156/14,8April2016),wherethemessengerappWhatsAppwasorderedtoprovideitstermsandconditionsinGerman,itcouldbepossiblethatinthefuturethetermsforparticipationinsweepstakesandcontestsmustalsobeprovidedinGerman.

As for all marketing actions, the advertising character of the sweepstake or contest must bedisclosed.

Ifthesweepstakeorcontestcollectsdatafromtheusers,arespectivedataprotectiondeclarationandtheuser’sconsentarerequired.


Typically, advertising and marketing law is enforced in the civil courts, upon the action of acompetitor,aqualifiedconsumeror industrytradeassociation.Theprocedurewouldinvolveaceaseanddesistletterand—ifdonequickly(insomecourts,within1monthoffindingoutabouttheexistenceofthead)—anapplicationforapreliminaryinjunctioniftheceaseanddesistletterisnotcompliedwith.Thissystemallowsveryfastreactionstounfairadvertisingandmarketingstrategies.Furthermore,acompetitorbringingasuccessfulactioncandemandreimbursementforallhiscostsregardingtheceaseanddesistletterandthecourtproceedings.

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AccordingtothejudgmentoftheHigherDistrictCourtBerlin(FileNo5U156/14,8April2016)socialmediaplatformtermshavetobeavailableinGermanlanguage.ThejudgementitselfonlyreferstothepopularmobilemessengerapplicationWhatsApp,butcanbeappliedtoothersocialmediaplatformsaswell.

As regards the ever-present requirement to disclose the advertorial character of socialmediacontent,thejudgementoftheHigherDistrictCourtCelle(FileNo13U53/17,8June2017)wasthe first court decision to address and request such disclosure in the context of influencermarketingcontent.


Somegeneralbestpracticeregardingsocialmediamarketingincludestheprovisionofanimprintwithallnecessarycontactdataofthehost,followingthegeneraladvertisingrulesoftheActagainstUnfairCompetitionandclearingthirdpartyrights.

Socialmediamarketingbestpracticemust include the surveillanceof commercial activities ofemployees, for which the employermight be held responsible and therefore should carefullyexamine.

Amorespecificexampleforbestpracticeinsocialmediamarketingcanbefoundinthefieldofadvertisingalcoholicbeverages,forwhichtheGermanAdvertisingStandardsCouncil(‘GASC’)hasissuedafour-step-guideline:(a) Commercial communication for alcoholic beverages in social media must not be aimed

directlyatminorsandthereforeadvertisersshouldmakeuseofanyplatform-inherentage-limit-featurestopreventminorsgainingaccess.Ifsuchfeaturesarenotavailable,theGASCrecommendsanageindicationthatthefollowingcontentis‘exclusivelyintendedforpersonslegallypermittedtopurchaseandconsumealcohol’.

(b) The sharing of alcohol advertising content to minors should be blocked, if technicallypossible.Ifnot,anoticeorageindicationasmentionedaboveshouldbeincluded.

(c) User Generated Content uploaded into a company’s digital channel should be regularlycheckedand,ifnecessaryforlegalreasons,deleted.

(d) Lastly, themanufacturers of alcoholic beverages should set a high level of transparencyregardingtheirownchannelsbystatingtheirresponsibilityfortheincludedcontent.Thisalsohelpstodistinguishofficialsitesfromfansites.

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Greece

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SOCIAL MEDIA – GREECE


All important social media platforms are available in Greece. The main platforms used byadvertisersinGreeceare:Facebook,Twitter,YouTubeandInstagram.


In Greece, social media have become the new, alternative and absolutely dynamic way ofcommunication,interactionandinterconnectionofpeople,bothatapersonalandbusinesslevel.AccordingtotheDigitalEconomyandSocietyIndex2017,68%ofindividualsinGreeceusesocialnetworks, while approximately 4 million Greeks are Facebook members. In view of this, theportionofadvertisingthatisdoneviasocialmediainGreeceisexpectedtoincreasesignificantlyovertime.

In the context of Greek legislation, there is no specific regulation governing advertising andmarketingviasocialmedia;rather,theyaregovernedbytheprovisionsofthelawsappliedforadvertising/marketingingeneral.

Consequently,themaininstrumentforimposingcontrolsonadvertisingandmarketingviasocialmedia is theGreekConsumerProtectionLaw(LawNo2251/1994,asamended).Article9(1)astipulates that ‘advertising isany communicationof anykindof form,used in the context ofacommercial, industrial, handicraft, professional activity in order to promote sales of goods orservices’. The Consumer Protection Law, inter alia, regulates distance selling and marketing,misleadingandcomparativeadvertising,unfairandaggressivecommercialpractices.

AbasicprincipleofGreeklaw,whichhasagreatimportanceinthefieldofadvertisingviasocialmedia,isthattheadvertisementsshouldbeclearlyidentifiableassuch.Withregardtocommercialcommunicationswhicharepartof,orconstitute,aninformationsocietyservice,thisprincipleissetoutinarticle5aofPresidentialDecreeNo131/2003(whichimplementedintoGreekLawtheE-CommerceDirective(Directive2000/31/EC)).

Furthermore, and with the purpose of protecting the personal data and privacy interests ofindividuals,specificcontrolsareimposedbytheGreekLawfortheProtectionofPersonalDataandPrivacy in theElectronicTelecommunicationsSector(LawNo3471/2006),whichmaybealsoapplicable in the area ofmarketing and advertising via socialmedia. The issue of ‘unsolicitedcommunications’isspecificallytreatedinArticle11ofLawNo3471/2006,whichprovidesthatthe subscriber’s/user’s prior consentmust always be obtained,when using automated callingsystemswithorwithouthumanintervention,facsimileorelectronicmailforthepurposeofdirectmarketing of goods or services or any other advertising purposes. Furthermore, Law No4070/2012,whichamendsArticle4ofLawNo3471/2006,explicitlystipulatesthatanystorageof information, or access to information which is already stored on a computer system (ieinstallationof‘cookies’)isallowed,providedonlythatthesubscriber/userhasbeenspecificallyinformedandhasgrantedhis/herpriorconsent.Withthisamendment,Greeklegislation—beingcompatiblewithrelevantEUlegislation—hasadoptedthe‘opt-in’regimeonthismatter,accordingtowhichavalidinformedconsentoftheindividual/subscriberisalwaysrequired(incontrastwiththe‘opt–out’regime,whichhasbeentraditionallyfavoredbyadvertisers).

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It isworthnoting that thegeneralprovisions included inotherGreek laws(suchastheUnfairCompetition Law, Intellectual Property Law, lawson defamationprohibitions etc) could be ofparticularimportanceintheareaofadvertisingviasocialmedia,asinallotherareasofadvertising.


Inadditiontolegislation,self-regulationalsoplaysanimportantroleinthecontrolofadvertisingviasocialmedia.

Generally speaking, the self regulation of advertising industry in Greece is handled by theRegulation of Communication Council (‘SEE’)which is amember of the EuropeanAdvertisingStandards Alliance (‘EASA’). SEE was founded by the Hellenic Association of Advertising andCommunicationAgencies(‘EDEE’)andtheGreekAdvertisersAssociation(‘SDE’).

SEEmonitorscompliancewiththeHellenicCodeofAdvertising—CommunicationPractice,whichwasbasedontheICC’sConsolidatedCodeofAdvertisingandMarketingCommunicationPractice.ApartfromtheGeneralProvisions,theHellenicCodeincludesaspecialchapteronadvertisingandcommunicationusingelectronicmediaandthetelephone(chapterD).

Inaddition,inDecember2017,SEEpublishedtheDigitalMarketingCommunicationsBestPracticebasedonEASA’sDigitalMarketingCommunicationsBestPractice.Itisimportanttohighlightthatdigital marketing communicationsmust not only be in accordancewith the DigitalMarketingCommunicationsBestPracticebutalsowith theHellenicCodeofAdvertising—CommunicationPractice,whichsetsoutthemainprinciplesandguidelinesimplementedinallformsofadvertisingandmarketingcommunications,includingthedigitalones.

Themain aim of the recently publishedDigitalMarketing Communications Best Practice is toclarifywhetheraformofdigitalcommunicationconsistsamarketing/advertisingcommunicationsubjecttothecontrolofSEEornot.

In addition, Digital Marketing Communications Best Practice makes clear that marketingcommunicationsviasocialmedia:• fallintothescopeofself-regulation,• shouldrespecttheprinciplesandgeneralprovisionsoftheHellenicCodeofAdvertising—

CommunicationPracticeand• aresubjecttothecontrolofSEE.However,otherformsofcommunication,suchaseditorial

content, independent review websites, User Generated Content which has not beendistributedorapprovedbytheadvertiser,arenotconsideredmarketingcommunicationsandareoutsidetheremitofself-regulation.

Under Article 1.6 of Digital Marketing Communications Best Practice, the distinction in socialmedia betweenmarketing communications and editorial content should be clear. It should beobvious to the consumer that a message constitutes a marketing communication and suchcommunicationmustnotfalselyclaimorgivethemisleadingimpressionthattheadvertiserisaconsumer.Theidentificationofanadvertisementassuchcanresultfromdifferentelements,suchasthelay-outorthecontentofthewebpage,theuseofidentifiersetc.

According to Article 1.8 of DigitalMarketingCommunications Best Practice, the rule of lawfulcollectionofusers’personaldataisalsoapplicableindigitalmarketingcommunications.

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(1) Laws:Influenceradvertisingviasocialmediaiscontrolledbythefollowinglegalprovisions:(a) Allmarketing communications should be clearly identifiable as such (Article 5a of

PresidentialDecree131/2003)and(b) Marketingcommunicationsmustnotfalselyimplyorclaimthattheadvertiserisacting

asaconsumer(Article9fofLawNo2251/1994asamended)

(2) Self-RegulatoryRules:Itshouldbeobvioustotheconsumerthatamessageconstitutesamarketing communication and such communication must not falsely claim or give themisleading impressionthattheadvertiser isaconsumer(Article1.6ofDigitalMarketingCommunicationsBestPractice).


(1) Laws:Nativeadvertisingviasocialmediaissubjecttotherequirementsofthelawsreferredtoinanswer4(1)above.Morespecifically,thefollowingpracticesareprohibitedbecausetheyareinallcircumstancesconsideredmisleading:(a) usingeditorialcontentinthemediatopromoteaproductwhereatraderhaspaidfor

thepromotionwithoutmakingthatclearinthecontentorbyimagesorsoundsclearlyidentifiablebytheconsumer;or

(b) falselyclaimingorcreatingtheimpressionthatthetraderisnotactingforpurposesrelatingtohistrade,business,craftorprofession,orfalselyrepresentingoneselfasaconsumer.

(2) Self-RegulatoryRules:Thedistinctioninsocialmediabetweenmarketingcommunicationsandeditorialcontentshouldbeclear(Article1.6ofDigitalMarketingCommunicationsBestPractice).The basic principle thatmarketing communications should be clearly distinguishable assuch,whatever their formandwhatever themediumused, is also stipulated inarticle9(GeneralProvisions)oftheSelf-RegulatoryHellenicCodeofAdvertising—CommunicationPractice.Article9clarifiesthatacommunicationpromotingthesaleofaproductshouldnotbedisguisedas,forexample,marketresearch,consumersurveys,usergeneratedcontent,privateblogsorindependentreviews.


Article 1.7 of Digital Marketing Communications Best Practice provides that user generatedcontent(‘UGC’)isnormallyoutofthescopeofselfregulationandcanbedealtwithasfreedomofspeech; but it can be considered as advertising communication if specific criteria aremet. Inestablishing whether a given case of UGC should be regarded as a digital marketingcommunication,andconsequently fallwithintheSEEremit,SEEexamines if theadvertiserhasordered, adopted, approved, recognized, accepted, spread or actively promoted the UGC.(Examplesofadopting/approving/acceptingofUGCare‘liking’,‘retweeting’,‘sharing’,oritsuseinothermeansofcommunication).Incaseswheretheanswertotheabovequestionis‘yes’,theUGC

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underconsiderationconstitutesamarketingcommunication;andSEEisentitledtoreviewit.IfSEEconcludesthattheUGCbreachesitscode,theadvertisershouldtakeallreasonablestepstoamendorremoveit.Ontheotherhand,iftheansweris ‘no’,theUGCisconsiderednottobeadigitalmarketingcommunicationandthereforefallsoutsideSEE’sremit.

IncaseswhereanadvertiserorabrandownerconcludesanagreementwithusersforcreatingUGC,whichhecouldcontrol, inexchange for financialorother formofcompensation,theUGCshouldbealwaysconsideredasmarketingcommunication.


Accordingtoarticle5dofPresidentialDecreeNo131/2003,whichimplementedintoGreeklawtheE-CommerceDirective,promotionalcontestsorgamesshouldbeclearlyidentifiableassuch.Moreover, the conditions for participation should be presented clearly and in detail and theconsumersshouldhaveaneasyaccesstothem.

ItshouldbenotedthatthespecialchapteronSalesPromotions(ChapterA)oftheHellenicCodeofAdvertising—CommunicationPractice,whichprovidesgeneralrulesconcerningpresentationofpromotionalconteststoconsumers,alsoappliestocontestsviasocialmedia.


Theaboveruleswillalsoapplytonew,emerging,socialmedia.


InGreece,nocourtjudgmentsnordecisionsoftheself-regulatoryforum(ieSEE)havesofarbeenissuedrelatingtothefieldofadvertisingviasocialmedia.TheexistingcourtjudgmentsinGreecerelate to the violationofpersonality rights (mainlydefamation)andviolationof personaldatalegislationperformedviasocialmedia.


The key best practices for social media advertising are included in Digital MarketingCommunicationsBestPracticerecentlyissuedbySEE.

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Guatemala

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SOCIAL MEDIA – GUATEMALA


ThemainsocialmediaplatformsusedinGuatemalaforadvertisingandmarketingtoconsumersareFacebookandYouTube;TwitterhasasteadyfollowingandWaze(theapp)andPinterestaregainingsignificanceforsuchapurpose.

Practicallyallsocialmediaplatformsareavailabletothepublic;however,notallofthemarewidelyused.Lookingatstatisticsinordertodeterminemostpopularplatformsorappsbasedonnumberofusers,itisclearthatsomeplatformsarenotwidelyusedinthecountry,suchasWeChat,QQ,QZoneandSinaWeibo.


There is no specific law regulating advertising in general, nor for socialmediamarketing andadvertising in particular. However, principles and norms that apply to traditional advertisingshouldbeobservedwhenitcomestosocialmediaadvertisementandmarketing.TheConsumers’Protection Act (and its bylaw) refers to certain characteristics and data to be observedwhencommunicating information to consumers (such as truthfulness, clarity). The Consumers’ProtectionActalsoexpresslyprohibitsdeceitfuladvertising.

AnotherlawthatcontainsprovisionsapplicabletoadvertisingandmarketingistheCommercialCode,whichexpresslyprohibitscomparativeadvertisementandreferstootherformsofconductthatareconsideredunfaircompetition.

Forcertainregulatedproducts,suchastobacco,alcoholicbeveragesandpharmaceuticalproducts,advertisingandmarketingisregulatedundertheHealthCodeanditsbylaws.

Asforsocialmedia,eventhoughthereisnotyetaspecificlawregulatingpersonaldataprotection,therearecourtdecisionsthatshouldbefollowed,particularlyinrelationtoconsiderationsastodataprivacyandrightofintimacyandinformedconsent.

Finally, it is importanttobearinmindthatintellectualpropertylawsaretobeobservedwhenadvertisingandmarketingviasocialmedia.


Therearen’tanyspecificself-regulatoryrulesonadvertisingandmarketingviasocialmediainGuatemala. However, there is an Advertising Ethics Code subscribed by the Association ofAdvertisersofGuatemala,theGuatemalanUnionofAdvertisingAgencies,theMediaChamberofGuatemalaandthe IndependentMediaCouncil. TheCode, drawnup in1999,provides that itscontentwillapplytoany ‘advertisingmedia thatmayexistinthe future’;andthereforecoverssocialmediaaswell.


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There is no specific regulation related to influencermarketing via socialmedia. However, theprinciplesandnormscontainedintheConsumers’ProtectionAct(which,interalia,forbiddeceitfuladvertising/marketing)andtheCommercialCodeareapplicable,aswellasthosespecificnormsapplicableto‘regulatedproducts’.Inthecaseoftobaccoandalcoholicbeverages,theprovisionsofthe Health Code state that advertising/marketing for such products cannot show directconsumptionoftheproductsoruseacertaincategoryofpeoplefortheirpromotion.


Therearenolaws,regulationsorself-regulatoryrulesinGuatemalaspecificallyrelatedtonativeadvertisingviasocialmedia.Therefore,thegeneralprinciplesandprovisionscontainedinthelawscitedaboveinanswer2mustbeobserved(ietherequirementsthatsuchadvertisingshouldnotbedeceitful,oftruthfulness,andofnocomparativeadvertisement).


UserGenerateContent(‘UGC’)isnotspecificallycoveredinlegislationcurrentlyinforce.UseofUGC by thirdparties is, nevertheless, subject to consent. However,whilst it is not specificallyregulated, UGC is by nomeans exempted from the provisions andprinciples contained in theCommercialCode,theConsumers’ProtectionAct,theHealthCodeandthelawsprovidingfortheprotectionofintellectualproperty,andevenrelevantprinciplesandprovisionscontainedinthecriminalcodeandinterpretationsthathaveresultedfromthecourts’decisionsregardingprivacyandpersonalrights.


There is no specific regulation for sweepstakes and contests via social media. Regulationsapplicabletotraditionalmeansapply;thisincludestheneedtotranslatecertaininformationintoSpanishif thecontestorsweepstake isinadifferentlanguage.SweepstakesandcontestsmustobservetheprovisionsoftheConsumers’ProtectionAct(anditsbylaw),theCommercialCodeandDecreeNo1610.Forpurposesofcontrolandpublicinformation,sweepstakesandcontestsmustbe submitted for approval (authorization) by a government agency; such approval is neededbefore the sweepstake or contest can be publicized via social media platforms (thoughexceptionallythelaunchmaytakeplacecontemporaneouslywithfilingforapproval).


Issuestoconsiderinclude:• copyrightandotherIPclearance;• reviewrisksforambushmarketing/unfaircompetition;• clearclaimstobeincludedintheadvertisement;and• culturalandreligioussensitivity.

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Therehavebeennorelevantcasesinvolvingsocialmedia;althoughtherehavebeencourtcasesoncomparativeadvertisement.

10. Whataresomekey‘bestpractices’foradvertisingandmarketingviasocialmediainyourjurisdiction?• Clearthecontent/visualsforIPreasons,conductreasonsandwhenapplicable,regulatory

reasons.• Engagewiththeaudience/public,interactwiththem,reply.• Checkrecentstatsandtendenciesonhowusersareperceivingadvertisingandmarketingin

socialmedia.Currently,peopleinthecountrydislikeinvasiveadvertisingdisplay(suchaspop-ups); conversely, ‘information’ is the main reason that motivates locals to checkadvertisinginsocialmedia,soitissuggestedthatoneshouldworkinprovidingactualandinnovativeinformation.Recentsurveysshowthat21.7%ofusersdonotlikeadvertisingonthe internet, the number grows to 23.9%when it comes to Facebook. However, 36.7%(internet in general) and 36.9% (Facebook in particular) of users do like advertisementwhencheckingtheinternet/socialmedia.

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Hong Kong

133

SOCIAL MEDIA – HONG KONG


TheprincipalsocialmediausedinHongKongareFacebook,Instagram,TwitterandWeChatfromChina.

Wheresocialmediacarryadvertisements,therelevantlawsofHongKongapplicabletoadvertisingapplywithoutexceptiontothesocialmediaadvertisingchannel.

HongKongcherishesfreedomofexpressionandthereisnolegislationgoverningadvertisementchannelsperse,withtheexceptionofradioandtelevisionbroadcasting.

There are elements of personal data privacy law, as provided in the Personal Data (Privacy)Ordinance, which directly bear on advertisements; and the Trade Descriptions Ordinancesanctionsfalsetradedescriptions,whetherinrespectofgoodsorservices.

However, theBroadcastingOrdinancespecificallyprovides that the internet isnotabroadcastmedium;andsosocialmediacommunicationontheinternetisnotsubjecttobroadcastinglicensesandcontrols.


In the main, Hong Kong adopts the ‘hands off’ approach to freedom of expression, which isdemonstrated by the broad self regulation of advertisements, which, with certain legislatedexceptions, reliesupontheobservanceby theadvertising industryof thecodesofpracticeandguidelinespublishedbytheAssociationofAccreditedAdvertisingAgencies(‘theAssociation’).The4As’CodeofPractice(‘the4As’Code’)ispublishedbytheAssociationasaself-discipliningbodyand all members of the Association are required not to contravene and to comply with theprovisionsof the4As’ Codeonpainof penaltyprovided for in the4As’ Code.Accordingly, thefrontline of code observance is the membership of the Association’s individual members aretherebyconstrainedtoadheretotheprinciplesofthe4As’Code.

Whetherornotcommunicatedthroughsocialmediaorinanyotherway,specificordinancesapplytospecificadvertisingchannels.Relevantordinancesare:• theDangerousDrugsOrdinance,• thePharmacyandPoisonsOrdinance,• theAntibioticsOrdinance,• theCompetitionOrdinance,• theControlofObsceneandIndecentArticlesOrdinance,• theSmoking(PublicHealth)Ordinance,• theUndesirableMedicalAdvertisementsOrdinance,• theUnsolicitedElectronicMessagesOrdinance,• thePublicHealthandMunicipalServicesOrdinance• theBroadcastingOrdinanceand• theCommunicationsAuthorityOrdinance.

UndertheBroadcastingOrdinance,theCommunicationsAuthoritypublishestheGenericCodeofPractice on Television Advertising Standards, the Generic Code of Practice on TelevisionProgrammeStandardsandtheRadioCodeofPracticeonAdvertisingStandards.

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TheTradeDescriptionsOrdinanceheavilypenalizesfalsetradedescriptionswiththeHongKongcourtsabletolevyfinancialpenaltiesand/orimprisonment.


Seeanswer2forthemainself-regulatoryrulesonadvertisingandmarketingviasocialmediainHongKong.


Pleaseseeanswer2fortheoutlineofthespecificlaws,regulationsandself-regulatoryrulesinHongKongrelatedtoinfluencermarketingviasocialmedia.Particularreferenceshouldbemadeto the functions of native advertising and restriction upon the avoidance of responsibility foradvertisedcontent.


While there is no specific law directed at control and regulation of native advertising, it isimportant that consumers are clearly aware of the full extent of the merger of the pureadvertisementelementandtheeditorialcontentinaplatformpublication.Thelegalprovisionsreferredtointheanswertoquestion2aboveapplyequallytotheproductplacingelementofthenativeadvertisingwork.


Alltheprovisionsoflawreferencedintheanswertoquestion2relatetotheuseofusergeneratedcontent.


Whether conducted through socialmedia or otherwise, any sweepstakewill be caught by thedefinition of ‘lottery’ if it involves a game of chance. A lottery requires an official license andregistration of (inter alia) a specific Hong Kong party to take responsibility for all aspects ofadministrationandpotentialdifficulty.


Theimportantissuesaresummarizedabove.

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Therehavebeennorecentcasesconcerningsocialmedia.


Bestpracticesunderthe4As’Codeisforadvertisingtoavoiddoinganyofthefollowing:• createfalse,deceptiveorunjustifiedexpectationsoffavorableresults;• imply the ability to influence any court, tribunal, regulatory agency or similar body or

official;• makeunjustifiedclaimstobeanexpertorspecialistinaparticularfield;• containpurportedstatementsoffactwhichcannotbeverified,orwhicharemisleadingby

reasonofthecontextinwhichtheyappear;• containtestimonialsorendorsements(subjecttocertainexceptions);or• contain any other representation that could be likely to cause a reasonable person to

misunderstandorbedeceived.

Also,regardshouldbegiventotheTradeDescriptionsOrdinance-seeanswer2.

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Hungary

137

SOCIAL MEDIA – HUNGARY


Advertisers in Hungary primarily use Facebook and Instagram for advertising andmarketingpurposes;however,LinkedIn,Twitter,YouTube,Snapchat,Flickr,FourSquareandotherpopularservicesareavailableandwidelyusedaswell.WearenotawareofanymajorglobalsocialmediaplatformsthatwouldnotbeavailableinHungary.


Thereisnospecificlegislationforadvertisingandmarketingviasocialmedia;thegeneralrulesandlawsonadvertisingareapplied.Themainlawsregulatingadvertisingandmarketingare:• Act XLVIII of 2008 on the Basic Requirements and Certain Restrictions on Commercial

AdvertisingActivities(‘AdvertisingAct’)and• ActXLVIIof2008ontheProhibitionofUnfairTradePracticeswithConsumers(‘UCPAct’)whichshallbeappliedjointlywiththeTerms&Conditionsoftheactualsocialmediaplatform.


Self-regulationplaysanimportantroleinHungary.TheSelf-RegulatoryAdvertisementBoardisaHungarianentityaimedatpromotingself-regulationamongstadvertisers.TheBoardhasadoptedtheHungarianCodeofAdvertisingEthics(‘CodeofAdvertising’),thepurposeofwhichistoprovideadditionalrulesandclarificationswhenapplyingtherathergeneraladvertisementlaws.

The Code of Advertising contains specific provisions on digital advertising (including onlinebehavioral advertising, unsolicited targeted advertising, digital advertising to minors, etc). Inconnection with advertising via social media, it states that it is even more necessary to payparticular attention to the requirement that advertisements and their commercial nature areidentifiableassuchandmustavoidcreatingtheimpressionthatanadvertisementisanopinionofaconsumeroranindependentbody.

Inaddition,inthecaseofsocialmedia,itisnecessarytotakeintoconsiderationtheCodeofContentProviders,adoptedbytheHungarianAssociationofContentProviders.


Therearenospecificlawsorself-regulatoryrulesregardinginfluencermarketingviasocialmedia.However, due to the growing importanceof this subject, theHungarianCompetitionAuthority(‘HCA’)hasissuedaninformationpaperregardingthisissue.WiththisinformationpapertheHCAintendstohelpincreasetheawarenessofconsumersbydemonstratinghowthesecontentscanbepublishedproperlyinlinewithinternationallegalpracticeandguidelines.TheHCAalsostartedtoinvestigate certain Hungarian influencers in order to ensure compliance with itsrecommendations.

TheHCArecommendationsare:

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• It is important that consumers are able to distinguish independent content from paidcontent.Thereasonforthisisthatpaidcontentdoesnotreflecttheindependent,neutralopinion,style,orspontaneousreflectionoftheauthor,orpublisher;onthecontrary,theireconomicinterestsareinthebackground.Forthisreason,paidcontentisconsideredtobeanadvertisementandcanbemisleadingtoconsumers.PublishingsuchonlinecontentcanbeconsideredtobeanunfaircommercialpracticeandcanbesubjecttoaprocedureoftheHCA.

• An‘influencer’canbeanybodywhoisabletoexerciseinfluenceoverconsumersandtoshapetheviewsofconsumersinthedigitalenvironment.Influencersarenotjustpublicfigures,butcanevenbeunder-agebloggers,vloggers,YouTubersetc.

• Considerationreceivedforpostsmaybemoney,butitalsocanalsotaketheformofotherincentivesforwhichoneshouldnormallypayconsideration.Thecasewhenpartiesprovideeachotherwithmutualservices(‘barter’)isalsoaformofconsideration.

• Theundertakinginwhoseinterestthesaleofacertainproductispromotedisresponsiblefor publishing this content. Therefore, not only the influencer, but the manufacturer,distributorandthecooperatingagenciesandofficesmaybeheldliableforthiscommercialpractice.

• Tocomplywiththelaw,itshouldbeindicatedinthepostthatitispaid,sponsoredcontent,in a clear, noticeable, easily understandable and emphasizedway. Also, the post shouldprovideareal,actual,credibleandfairpictureoftheproductortheservice.Furthermore,thebusinessrelationshipshouldbemarkedinthesamewayonthesameplatform.Themarkshouldclearlyappeartoconsumerswithouttheneedforthemtomakeanysearchortakeanyotheraction,evenifthecontentistoolongtobeseenbyconsumersonthescreenatfirstsight. The business relationship should be indicated as being directly connected to thecontentconcerned.Itshouldalsobenotedthatdifferentplatformsprovidedifferentwaysofpublishingthesemarks,egthereisthe‘brandedcontenttag’onFacebook.

• Ifmainlyvisualcontent,onlyshorttextcontentandhashtagsignsareusedonacertainsocialmediaplatform(egInstagram),thefollowingmarksshouldbesufficient:#Advertisement,#Advertising,#Paidcontent,#Sponsoredcontent,andthenameandcommercialtrademarkof the concerned company could alsobemarked. The hashtag relating to the sponsoredcontent should beput first, before every other hashtag.However, if there ismainly textcontentpostedonthegivenplatform(egFacebook),merelyusinghashtagsisnotsufficient.Itisnotnecessarytomarktheexactregisterednameofthecompany,butthebrandnameshouldbemarked,possiblytogetherwiththetrademarkofthecompany.

• Thefollowingmarksareunlikelytomaketheexistenceofthebusinessrelationshipclearforconsumers,andare thereforenotsufficient inorder tocomplywith the law:#Thankyou#partner,#Promotion.Itisalsoinsufficienttopublishthebusinessrelationshipinahiddenform,eginfootnotes,orinotherpartsofthetextwhichareunlikelytobereadbyconsumers.Merelyshowingalinkleadingtothewebsiteoftheadvertiser,ormerelygivingthenameofthecompany,isnotsufficient.

• Itissuggestedthatadvertiserspreparetermsofcontract,systemsandprogramswhichcanensurethattheinfluencerswithwhomtheyareinabusinessrelationshipgetfamiliarwiththelegalrequirementsregardingtheseposts,sincetheymaybeheldliableforsuchpostsifthey have participated in forming the content and the form of them. Amonitoring andreportingsystemshouldalsobeconsidered.

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TherearenospecificlawswithrespecttonativeadvertisingviasocialmediainHungary;however,the Code of Advertising provides some relevant provisions. Unsolicited advertising which isaddressed individuallymayonlybedistributedviadigitalmedia if the content or offer canberelevanttotheconsumer,andthecompanyprovidestheconsumerwithaclearandsimplewaytoexpressthathe/shedoesnotwanttoreceiveanysuchadvertisementinthefuture.

ItisalsoimportanttonotethatinHungary,asageneralrule,directmarketingisgovernedonanopt-inbasis,meaningthatadvertisingbydirectmarketingmaybesentelectronicallyonlywiththeprior(electronicorwritten)consentoftheconsumer.


According to a recent decision by the Constitutional Court of Hungary, the entity operating awebsitehasanobjective liability for anypotentiallyunlawful commentsbyusers even if suchcomments are moderated. This decision naturally caused quite an uproar among contentproviders, who feared that this could have a significant impact on free speech in the onlineenvironment.

However,basedontheactualpracticeofthecourts,itisquiterarethatthecourtsactuallyobligetheoperatorofawebsitetopaydamagesinrespectofacommentgeneratedbyauser.

Initsdecision,theConstitutionalCourtalsomadeadistinctionbetweenawebsiteoperatedbyacontentprovider(eganewsportal)andWeb2.0platforms(egFacebook),arguingthat‘thereisaseriousdifferencebetweencontentthatappearsonawebsitethatiseditedbyanoperatorandthatappearsonWeb2.0,meaningsocialmediaplatforms[...].Thelatterhasnoeditor,thusitdoesnothaveapurposetoinformorsimilar:itspurposeistoprovideameansofcommunicationanddiscussionamongthemembersofagroupontheinternet.’

Onthebasisoftheabove, itcouldbearguedthatthestrictrulesonliabilityforusergeneratedcontentdonotapplyforsocialmedia,howeverthereis,unfortunately,stillalevelofambiguityinthisquestion.


Therearenospecificregulationsregardingsweepstakesandcontestsviasocialmedia.

GamblingisgenerallyastatemonopolyinHungary,theonlyexceptionsareprizedraws.A‘prizedraw’ isapromotion inwhichacustomerwhohaspurchasedgoods—withouthaving topayafurtherfee—hasachancetowinprizesiftheticketreceivedatthetimeofthepurchaseisdrawnduringapublicdraw.

According to theCodeofAdvertisingEthics,consumersmustbe informedabout therulesofacontest,including:• thedetailedrulestoparticipateintheprizepromotion,

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• any costs associated with participation over and above the usual (base telephone fee,postage),

• thenature,valueandnumberoftheprizesandanypossibilityofacashprizesubstitution,• incaseofaskillcontest,thenatureofthequestionsandthecriteriaofjudgment,• theselectionprocedurefortheawardofprizes,• closingdateofthecompetition,• whenandhowtheresultswillbemadeavailable,• whetherthebeneficiarymaybeliabletopaytaxasaresultofwinningaprize,• thetimeperiodduringwhichprizesmaybecollected,• whereajuryisinvolved,thecompositionofthejury,• anyintentiontousewinnersorwinningcontributioninpost-eventactivities,and• theexactplaceandtimeoftheopendrawwinningprocedure.

Therulesoftherelevantsocialmediasitemustalsobetakenintoconsideration.


Anadvertisementmaynotabusethetrustofconsumers,andmaynotmakeuseoftheirlackofexperience,knowledgeorcredulity.

Thefollowinginformationshouldbepresentedclearlyandunambiguouslyinconnectionwithanyelectronicadvertisement(includingadvertisingbothviatheinternetandemail):

(a) theadvertiser,orpersononwhosebehalftheelectroniccommunicationistransmittedbywayofelectronicmailorequivalentindividualcommunication,shouldbeclearlyidentifiable(assoonastheadismadeaccessibletotherecipient);

(b) promotionaloffers,suchasdiscounts,premiumsandgiftsshouldbeclearlyidentifiableassuch,includingtheconditionswhicharetobemettoqualifyforthem;

(c) promotional competitions or games should be clearly identifiable as such, including theconditionsforparticipation.

The advertiser, the provider of electronic communications, and the publisher of electroniccommunications will be jointly liable for any infringement of the provisions contained inparagraphs(a)and(b).Liabilityforanyinfringementoftheprovisionscontainedinparagraph(c)lieswiththeadvertiser.

Ineverycase,contentprovidersshallbeastransparentwiththeirusersaspossiblewhenitcomestoidentifyingwhichlegalornaturalentityoperatestheservicebeingused,andwhetheritscontentbelongstothecategoryofedited,paid,orusergeneratedcontent.

Paidandunpaidcontentmust,ineverycase,beseparatedbythecontentproviderasclearlyaspossible.


TherehavebeenthreerecentcaseswheretheHCAimposedanobligationonthecompanywhichadvertiseditsproductviaasocialmediainfluencerwithoutcallingtheattentionoftheconsumers

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tothefactthattheywereseeingpaidadvertisementsonInstagramandFacebook.ThecompaniessubjecttoinvestigationundertooktoactinaccordancewiththeinformationpaperissuedbytheHCA(seeanswer4).

ItisalsoimportanttonotethattheHCAplaysaveryactiveroleinmonitoringadvertisementsandinitiates a large number procedures ex officio when it detects that an advertising might bemisleading. Its procedures usually endwith the imposition of a fine that can have significantfinancial consequencesdue to the fact that themaximum fine it can impose is10%of thenetturnoverofthepreviousyear.


The Self-Regulatory Advertising Board is the main platform for professional consultations,including settlement of conflicts, the giving of prior professional opinion and the raising ofcomplaintsagainstaspecificadvertisement.Asaconsequence,thisentitysubstantiallyformsthebestpracticesintheareaofmarketingviasocialmediaaswell.Ifanadvertiserisunsureaboutwhetheraspecificadvertisement,communicationorcommercialpracticeiscompliant,itisbesttoseek legaladviceand/orcontacttheSelf-RegulatoryAdvertisingBoard foraprioropinion, thelatterofwhichcouldprove tobeamitigatingcircumstance incaseofasubsequentprocedurecarriedoutbytheHCA.

Furthermore, as advised above, the HCA has recently issued an information paper regardinginfluenceradvertisementwithsomeactualrecommendations(astowhichseeanswer4).

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India

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SOCIAL MEDIA – INDIA


ThemajorsocialmediaplatformsthatadvertisersuseinIndiaforadvertisingandmarketingtoconsumers include Facebook, Twitter, Instagram, LinkedIn, YouTube, Pinterest, Google Plus,Tumblr,BharatStudent,Flickr,Snapchat,Reddit,MySpaceandWhatsApp.

Asfarasweareaware,therearenoimportantglobalsocialmediaplatformsthatarenotavailableforuse(orarenotwidelyused)inIndia.


Themain laws and regulations governing advertising andmarketing via socialmedia in Indiainclude:• provisionsof the IndianPenalCode:noobscene,sexuallyexplicit,violentorscandalous

content should be present anywhere. Defamatory or derogatory remarks against anycommunity,religionandsectioninIndiaarealsoprohibited.Thereshouldnotbeanythingdetrimental to the sovereigntyandsecurityof Indiaand its friendly relationswithothercountries.

• InformationTechnologyAct2000: thisActmakes it anoffense topublish informationwhich is obscene in nature. Section 67 of the Act provides that whoever publishes, ortransmits,orcausestobepublishedintheelectronicform,anymaterialwhichislasciviousorappealstotheprurientinterest,orifitseffectissuchastotendtodepraveandcorruptpersonswhoarelikely,havingregardtoallrelevantcircumstances,toread,seeorhearthemattercontainedorembodiedinit,shallbepunishedwithimprisonmentandfine.

• ConsumerProtectionAct1986: thisActisalsoapplicabletoadvertisingandmarketingthroughsocialmediawhichisfalseandfrivolousasittermssuchpracticesas‘unfairtradepractices’which isnotallowedunder theAct.Further, theAct alsoprohibits advertisingwhichdisparagescompetitors‘productorservices.

• generalintellectualpropertylaws:intellectualpropertylawssuchas,IndianTrademarksAct, IndianPatentsActandCopyrightActdealwithprotectionof intellectualproperty inadvertisingandmarketingthroughsocialmedia.

• IndianContractAct1872:thisActprovides(inSection11)whoiscompetenttocontract:‘Everypersoniscompetenttocontractwhoisoftheageofmajorityaccordingtothelawtowhichheissubject,andwhoisofsoundmindandisnotdisqualifiedfromcontractingbyanylawtowhichheissubject’.

• Indecent Representation of Women (Prohibition) Act 1986: this Act prohibits thedepictionofanymannerofthefigureofawoman,herformorbodyoranypartthereofinsuchawayastohavetheeffectofbeingindecent,orderogatoryto,ordenigrating,women,orarelikelytodeprave,corruptorinjurethepublicmoralityormorals.

• ConsumerProtectionBill2018: thiswas introducedby theGovernmentof IndiaintheIndian Parliament in the first week of January. The bill seeks to replace the ConsumerProtectionAct1986.TheConsumerProtectionBill2018proposestheestablishmentofaCentralConsumerProtectionAuthority(‘CCPA’)toregulatemattersrelatingtoviolationofrightsofconsumers,unfairtradepracticesandfalseormisleadingadvertisementswhichare

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prejudicial to the interests of public and consumers. The bill also proposes amonetarypenaltyandbanoncelebritiesforendorsingfalseandmisleadingadvertisements.


Self-regulationplaysanimportantroleinregulatingadvertisingandmarketingviasocialmedia.The Advertising Standards Council of India (‘ASCI’), an autonomous body formed to regulateadvertisements in India, has laiddownaCode forregulationofadvertisements in India(‘ASCICode’).ThisCode,althoughnotspecificallyfocusedonsocialmedia,hasapplicabilitytoadvertisingandmarketingviasocialmediaaswell.Thoughnotatparwithlaw,theCodehasbeendesignedasper the requirementsof lawand, in fact, complements legaland statutory controls.Hence, theprovisionsoftheCodeshouldbeobservedbyanycompanyandoranadvertiserinconsonancewithlegalprovisionswhileadvertisingproductsorservicesinIndiathroughsocialmedia.

TheASCICoderequiresthat:• thereshouldbetruthfulnessandhonestyinclaimsmadeinadvertisements,• anadvertisementshouldnotoffendpublicmorals;• anadvertisementshouldnotpromoteproductswhicharehazardoustosocietyorindividual

and• anadvertisementshouldnotleadtounfaircompetitionetc.

TheASCICodeisrecognizedbySupremeCourtofIndiaandotherministriesanddepartmentsinIndia.

Thepurposeof theCode is tocontrolthecontentofadvertisements,nottohamperthesaleofproductswhichmaybefoundoffensive,forwhateverreason,bysomepeople.Provided,therefore,thatadvertisements for suchproductsarenot themselvesoffensive, therewillnormallybenogroundforobjectiontothemintermsofthisCode.

TheConsumerComplaintsCouncil (‘CCC’)hasbeenappointedbyASCIboard. Itdeliberatesoncomplaintsreceivedfromconsumersandindustryagainstadvertisementswhichareconsideredtobefalse,misleading,indecent,illegal,leadingtounsafepractices,orunfairtocompetition,andconsequentlyincontraventionoftheASCICode.


The ASCI Code provides that testimonials, endorsements or representations of opinions orpreference of celebritiesmust reflect genuine, reasonably current opinion of the individual(s)makingsuchrepresentations,andmustbebaseduponadequateinformationaboutorexperienceoftheproductorservicebeingadvertised.‘Celebrities’aredefinedintheCodeasfamousandwell-knownpeoplewhoarefromthefieldsofentertainmentandsportsandwouldalsoincludeotherfamousandwell-knownpersonalitiessuchasdoctors,authors,activists,educationistsetcwhoarecompensatedforappearinginadvertising.Itisalsospecifiedthatcelebrityshoulddoduediligencetoensure thatalldescription,claimsandcomparisonsmade in theadvertisementswhich theyappearinorendorsearecapableofbeingobjectivelyascertainedandcapableofsubstantiationand should not mislead or appear deceptive. Celebrities should not participate in anyadvertisementofaproductortreatmentorremedy,advertisingofwhichisprohibitedundertheDrugs&MagicRemedies(ObjectionableAdvertisements)Act1954ortheDrugs&CosmeticAct

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1940andRules1945.Norshouldtheyparticipateinanyadvertisementsforproductswhich,bylaw,requireahealthwarningsuchas‘isinjurioustohealth’intheiradvertisingorpackaging.

Incaseswherebrandshaveeditorialcontroloverthepostsofinfluencers,itisadvisabletodeclaresucheditorialcontrolbyindicatingthatpostsaresponsoredorareamarketingcommunicationofthebrand.


TherearenospecialguidelinesorregulationstodealwithnativeadvertisingorsponsoredcontentinsocialmediainIndia.Inabsenceofthese,generalguidelinesapplicabletoothermediaapply,namely,cleardemarcationbetweenadvertisementsandeditorialcontent,ensuringtruthfulnessandhonestyofrepresentationsandadherencetotheprinciplesoffreeandfairjournalism.

Thedemarcationof theadvertisement fromother content in India isdoneby indicating thataparticularpieceissponsoredcontent,animpactfeatureoradvertisement.Thesedisclaimersarespecifically required where the general public is likely to mistake an advertisement as maincontentofaparticularmedia.Anyomission,suchasnon-disclosureofthesponsored/advertisingnatureofpost,wouldbeconsideredtobemisleadingconsumers.Additionally,adequatedisclosureordisclaimersastowhoissponsoringthecontent,maybeprovided.

TheASCICodeChapter1.4stipulatesthatadvertisementsshallneitherdistortfactsnormisleadtheconsumerbymeansofimplicationsoromissions.

Also, theASCIhas issuedguidelines fordisclaimersmade insupporting, limitingor explainingclaimsmadeinadvertisements,whereinitisspecifiedthat‘adisclaimershouldnotattempttohidematerialinformationwithrespecttotheclaim,theomission/absenceofwhichislikelytomaketheadvertisementdeceptiveorconcealitscommercialintent’.


Indiadoesnothave any specific rules/legislationpertaining to socialmediaoruser generatedcontent(‘UGC’)inparticular.OnceUGCisownedbyabrandoradvertisers,theyhavetoensurethatitcomplieswithallthelawsandregulationsthatgovernadvertisingonsocialmedia.ThemostimportantlawinthisregardistheInformationTechnologyAct2000,whichmakesitanoffensetopublish information which is obscene in nature. Section 67 of the Act provides that whoeverpublishesortransmitsorcausestobepublishedinelectronicformanymaterialwhichislasciviousorappealstotheprurientinterest,orifitseffectissuchastotendtodepraveandcorruptpersonswho are likely, having regard to all relevant circumstances, to read, see or hear the mattercontainedorembodiedinit,shallbepunishedwithimprisonmentandfine.Further,advertisersincorporatingUGC into their advertisingon socialmedia should ensure that the contentbeingpostedisresponsible,andnotmisleading,harmfuloroffensive.Theyshouldalsoensurethatthecontentisaccuratewiththeevidencetoprovethesamewhenrequired.

AsregardstheliabilityofsocialmediaplatformsforhostingUGC,therearespecificprovisionsinthe Information Technology Act 2000. Section 79 of the Information Technology Act, 2000specifiescaseswhereanintermediary(ieanypersonwho,onbehalfofanother,storesortransmitsamessageorprovidesanyservicewithrespecttothatmessage)isliableornot:

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(a) Anintermediaryisnotliableforanythirdpartyinformation,data,orcommunicationlinkmadeavailableorhostedbyhim,if:(i) the functionof the intermediary is limited toprovidingaccess toacommunication

system over which information made available by third parties is transmitted ortemporarilystoredorhosted;or

(ii) the intermediary does not initiate the transmission, select the receiver of thetransmission,andselectormodifytheinformationcontainedinthetransmission;

(iii) theintermediaryobservesduediligencewhiledischarginghisdutiesunderthisActandalsoobservessuchotherguidelinesastheCentralGovernmentmayprescribeinthisbehalf.

(b) Theintermediaryisliableif:(i) theintermediaryhasconspiredorabettedoraidedorinduced,whetherbythreatsor

promiseorauthorizeinthecommissionoftheunlawfulact;(ii) uponreceivingactualknowledge,oronbeingnotifiedbytheappropriateGovernment

or its agency that any information, data or communication link residing in orconnected to a computer resource controlledby the intermediary is beingused tocommit theunlawfulact, the intermediary fails toexpeditiously removeordisableaccesstothatmaterialonthatresourcewithoutvitiatingtheevidenceinanymanner.

The Information Technology (Intermediary Guidelines) Rules 2011 provide a due diligenceframeworktobeobservedbyintermediariesunderSection79.


TodatethereisnolegislationinIndiawhichspecificallyregulatessweepstakesandcontestsviasocialmediaorotherwise.Therefore,forlegallyreviewingofficialrulesofaparticularsweepstakeorcontestinIndia,thefollowingstatutes/regulationsoflaw,interalia,arenormallyconsideredandreviewed.

(1) TheIndianContractsAct1872(forwhichseeanswer2)

(2) TheCompetitionAct2002providesfortheestablishmentofaCompetitionCommissionto:(a) preventpracticeshavingadverseeffectoncompetition,(b) promoteandsustaincompetitioninmarkets,(c) protecttheinterestsofconsumersand(d) ensurefreedomoftradecarriedonbyotherparticipantsinmarketsinIndia,andformattersconnectedtherewithorincidentalthereto.Section3oftheCompetitionAct2002barsanyagreementwhichcausesorislikelytocauseanappreciableadverseeffectoncompetitionwithinIndia.

(3) ThePrizeCompetitionAct1955providescontrolandregulationoverprizecompetitions.‘Prizecompetition’ isdefined inSection2(d)asanycompetition(whethercalledacross-wordprizecompetition,amissing-wordprizecompetition,apictureprizecompetitionorbyanyothername)inwhichprizesareofferedforthesolutionofanypuzzlebaseduponthebuildingup,arrangement,combinationorpermutation,ofletters,words,orfigures.TheActwillnotcomeintoplayifthesweepstakeorcontestdoesnotinvolvethesolutionofsuchapuzzle.

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(4) Section 2(b) of the Lotteries (Regulation) Act 1998 defines ‘lottery’ as ‘a scheme, inwhateverformandbywhatevernamecalled,fordistributionofprizesbylotorchancetothoseparticipating in the chancesof aprizebypurchasing tickets’. If the sweepstakeorcontestdoesnotinvolveanypurchaseoftickets,theActwillnotapply.

(5) UndertheTamilNaduPrizeSchemes(Prohibition)Act1979,prizeschemesarebannedin the stateofTamilNadu.A ‘prize scheme’ is defined in Section2(b)as any schemebywhatevernamecalledwherebyanyprizeorgift(whetherbywayofmoneyorbywayofmovableorimmovableproperty)isoffered,orisproposedtobegivenordeliveredtooneormorepersonstobedeterminedbylot,draworinanyothermannerfromamongpersonswhopurchaseorhavepurchasedgoodsorotherarticlesfromshops,centersoranyotherplacewhatsoeverspecifiedbythesponsorsoftheschemeoronanyeventorcontingencyrelativeorapplicabletothedrawingofanyticket,lot,numberorfigureinrelationtosuchpurchaser.ThisActmaynotbeapplicableiftheprizesofferedarenotrelatedtothesaleofanyproductorarenotcontingentuponanykindofpurchase.

(6) PublicGamblingAct1867:thisActprohibitstheactivityofgambling,whereitisbeingdoneasabusiness to earnprofits;andprovidespunitiveprovisions formaintainingpremisesknownas ‘common gaming houses’ for the purpose of carrying out gambling activity orgameswheretheelementofchanceispresent.‘Commongaminghouse’isdefinedas‘anyhouse,walledenclosure,roomorplaceinwhichcards,dice,tablesorotherinstrumentsofgamingarekeptorused for theprofitorgainof thepersonowning,occupying,usingorkeepingsuchhouse...whetherbywayofchargefortheuseoftheinstrumentsofgamingorofthehouse...orotherwise’.IetheActstrictlyprohibitsgamblinginanyform,whichwouldcoverevenonlinegamingsiteswhichprovidetheirservicesforafeeorsubscription.ForthisActnottoapply,achance-basedprizedrawwouldneednottobeconductedforthepurposesofprofitorgainbywayofchargeforuseandtherewouldneedtobenowagering/bettingformoney/money’sworth,whichisanessentialpartoftheactofgambling.

(7) Statutes relating to intellectual property rights, including theCopyrightsAct1957, thePatentsAct1970,theDesignsAct200andtheTrademarksAct1999:Thesestatutesdealwithownershipandassignmentofintellectualproperty,aswellasuseoftheintellectualpropertyofthirdpartiesinrelationtosweepstakesandcontests.

(8) OneoftheprimeobjectsoftheConsumerProtectionAct1986istopromoteandprotecttherightsoftheconsumerssuchastherighttoseekredressagainstunfairtradepractices.BySection2(1)(r),(3)‘unfairtradepractice’meansatradepracticewhich,forthepurposeofpromotingthesale,useorsupplyofanygoodsorfortheprovisionofanyservice,adoptsanyunfairmethodorunfairordeceptivepracticeincludinganyofthefollowingpractices,namely:(a) theofferingofgifts,prizesorotheritemswiththeintentionofnotprovidingthemas

offeredorcreatingimpressionthatsomethingisbeinggivenorofferedfreeofchargewhenitisfullyorpartlycoveredbytheamountchargedinthetransactionasawhole;or

(b) the conduct of any contest, lottery, game of chance or skill, for the purpose ofpromoting,directlyorindirectly,thesale,useorsupplyofanyproductoranybusinessinterest.

(9) TheConstitutionofIndiainPartIIIenshrinesrightswhicharedescribedasFundamentalRightsandunderArticle19(1)(a)allcitizensshallhavefreedomofspeechandexpression,which implies the right to express one’s thoughts and ideas freely via anymedium. ButArticle19(2)imposesreasonablerestrictionsontheexerciseoftherightconferredinthe

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interesttoprotectthecountry’sintegrity,security,publicorder,moralityanddecencyandtopreventcontemptofcourt,vulgarity,incitementtoanoffenceanddefamation.

(10) UndertheIndianPenalCodenoobscene,sexuallyexplicit,violentorscandalouscontentshouldbepresentanywhere.Defamatoryorderogatoryremarksagainstanycommunity,religionandsectioninIndiaarealsoprohibited.ThereshouldnotbeanythingdetrimentaltosovereigntyandsecurityofIndiaanditsfriendlyrelationswithothercountries.

(11) TheInformationTechnologyAct2000definesvariousoffencessuchas:(a) tamperingwithcomputersourcedocuments;(b) computer-relatedoffences,suchasunauthorizedaccesstocomputer,obtainingdata

fromacomputerwithoutpermission,introductionorcausetobeintroducedanyvirusintoanycomputer,causingdamage,disruptionetcinanycomputersystem;

(c) sendingofoffensivemessagesthroughcommunicationserviceetc;(d) violationofprivacy;(e) publishingortransmittingobscenematerialinelectronicform;(f) publishingortransmittingofmaterialcontainingsexuallyexplicitact,etc;(g) publishingortransmittingofmaterialdepictingchildreninsexuallyexplicitact,etcin

electronicform;(h) breachofconfidentialityandprivacy;(i) disclosureofinformationinbreachoflawfulcontractetcandprescribespunishmentfortheseoffences.

(12) InformationTechnology(Reasonablesecuritypracticesandproceduresandsensitivepersonaldataorinformation)Rules2011:UndertheInformationTechnologyAct2000(asamendedin2008),ruleshavebeenframedmakingregulationsforprocessing/handlinginformationtoprovideforpolicyofprivacyanddisclosureofinformation;fortakingconsentfrom the provider of sensitive personal data or information regardingpurpose of usagebeforecollectionofsuchinformation;reasonablestepstobetakenbythebodycorporatetoensurethatprovideroftheinformationhasknowledgeaboutthecollectionofinformation,thepurposeofcollection,intendedrecipientoftheinformation,nameandaddressofagencycollecting information and retaining information; providing facility for correction oramendmentofthepersonalinformation;providingoptiontotheprovideroftheinformationtonotprovidethedataorinformationsoughttobecollectedaswellastowithdrawconsenttoprovide informationgivenearlier;priorpermissionofproviderof the information fordisclosureof such information to thirdparty inabsenceof any contract toprovide suchinformationtothirdparty;provisionfortransferofinformationcollectedbybodycorporateinIndiatoanyotherbodycorporateorpersoninIndiaorlocatedoutsideIndia;provisionofreasonablesecurityandprocedures.

(13) TheEmblemsandNames(PreventionofImproperUse)Act,1950forbidstheimproperuseofcertainemblemsandnamesforprofessionalandcommercialpurposes.

8. Whataresomeotherimportantissuestoconsiderinyourjurisdictionwhenadvertising andmarketingviasocialmedia?

Theregulationofadvertisementsonsocialmedia/digitalplatformsisnotuniforminIndia,duetoalackofspecificlawsorregulationsforsuchadvertisements,aswellasthelackofanestablishedenforcement mechanism in the context of social media/digital platforms. There is no clear-cutdemarcation as to what is acceptable on social media; and the fact remains that socialmedia/digitalplatformsprovidetremendousfreedominthecontextofcreativelicensesto

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companies/brands. At the very least, social media/digital platform are much less policed.Many companies are taking advantage of the fact that advertising on social media/digitalplatformisregulatedmoreliberallythanthatinmainstreammedia.

However,thefourgeneralprinciplesfollowedbyASCIincontextofadvertisementsshouldbeobservedwhenadvertisingandmarketingviasocialmedia.Theyare:• honestrepresentationsofadvertisements(ieadvertisementsshouldbetruthfulandhonest

toconsumersandcompetitors);• advertisementsshouldbenon-offensivetopublic(ietheyshouldbewithintheboundsof

generallyacceptedstandardsofpublicdecencyandpropriety);• advertisementsshouldnotportrayharmfulproducts/situationsandshouldnottobeused

indiscriminatelyforthepromotionofproductshazardousorharmfultosocietyortoindividuals,particularlyminors,toadegreeunacceptabletosocietyatlarge;and

• advertisementsshouldbefairincompetition(ietheyshouldnotbederogatorytocompetitionandshouldnotbeaplagiarism).


TherearenoCourtdecisionsregardingadvertisingonsocialmediainIndia.However,hereisabriefdiscussionofafewinstancesofadvertisinginsocialmedia:

• InNovember2017,NokialinkedupwithoneofthetoponlinecontentcreatorsofIndiafortheir digital ad campaign. The digital advertisement video revolved around the issue ofspendingmoretimewithfamilyratherthantheirsmartphones.Theadvertisementvideohasmorethan30millionviewsonYouTube.ThedigitaladvertisementcampaigndidagoodjobinraisingawarenessabouttheNokiacomebackinIndia.

• InApril2016,taxiaggregatorOlawasforcedtopulldownanadvertisementfromitsofficialYouTubechannelafteracontroversyeruptedover itonsocialmedia.Theadvertisementtitled‘MicroStories:TooexpensivetotakeGFoutonadate?’wasreleasedinApril2016.Theadvertisementfeaturesaguywalkingthroughamarketwithhisgirlfriend,whereheisbeingforcedtostopateveryshopandpayforthethingsshebuys.Theadvertisementendswiththeboyturningtothecameraandsaying‘MerigirlfriendchaltihaiRs.525perkm,butOlaMicrochaltihaisirfRs.6perkm’(‘ItcostsmeRs.525perkmwithmygirlfriendbutOlaMicrorunsatjustRs.6perkm’).However,dueto‘sexist’remarks,theadvertisementdidnotgodownwellwiththeTwitterusers,whoslammedOlafortheadvertisementbeinga‘sexistportrayalofwomen’.FollowingoutrageonTwitter,OlapulledtheadvertisementfromitsYouTubechannel.

• In2015,onlineshoppingportal,Myntra’s,advertisementfilmonsocialmediaforAnouk,aclothingbrand,brokenorms,creatingrippleswithalesbianstoryline.WhileadvertisinginIndia is still quite conventional, airing such advertisements on social media instead ofconventionalmediaisawaytoescapescrutiny,whichconventionalmediaissubjectedtobypublicatlarge.Ifthisadvertisementhadbeenpublishedortelecastinconventionalmedia,therewouldhavebeenprotestandwould,inallprobability,beenpulled,butonsocialmediaitwasacceptedandevenappreciatedandtherewasnobacklashagainstthisadvertisement.

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There is no specific code of best practice for advertising and marketing via social media orotherwiseinIndia.Inviewofabsenceofanyspecificcode,webelievetheprincipleslaiddownintheASCICodeservesasmodelguidelinesforadvertisersandmarketersforallmedia.ThisCodehasbeendrawnupbypeopleinprofessionsandindustriesinorconnectedwithadvertising,inconsultationwith representatives of people affected by advertising, and has been accepted byindividuals, corporate bodies and associations engaged in or otherwise concerned with thepracticeofadvertising,withthefollowingasbasicguidelines,withaviewtoachievetheacceptanceoffairadvertisingpracticesinthebestinterestoftheultimateconsumer:• to ensure the truthfulness and honesty of representations and claims made by

advertisements,andtosafeguardagainstmisleadingadvertisements;• toensurethatadvertisementsarenotoffensivetogenerallyacceptedstandardsofpublic

decency;• tosafeguardagainst the indiscriminateuseofadvertising for thepromotionofproducts,

whichareregardedashazardoustosocietyortoindividualstoadegreeorofatypeandwhichisunacceptabletosocietyatlarge;and

• toensurethatadvertisementsobservefairnessincompetitionsothattheconsumer'sneedto be informed of choices in the marketplace and the canons of generally acceptedcompetitivebehaviorinbusinessisbothserved.

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Ireland

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SOCIAL MEDIA – IRELAND


ThemainsocialmediaplatformsusedbyadvertisersinIrelandareFacebook,Twitter,Instagram,SnapchatandYouTube.Therearenorestrictionsonuseofanyparticularplatform.


ThechieflegislationrelevanttoadvertisementsinIrelandistheConsumerProtectionAct2007,which sets out various rules applicable to claimsmade about goods and services. It protectsconsumersfrommisleadingadvertisements.AlltypesofcommunicationsthatpromotegoodsorservicesarecoveredbytheAct.Itcontainsrestrictionswhichareapplicabletoonlineadvertising.

In Ireland, there are restrictions on unsolicited directmarketing by fax, telephone, automatedcallingsystems,ShortMessagingService(‘SMS’),emailandMultiMediaServiceundertheDataProtectionActs1988–2003.

SocialmediaandthelawisstilllargelyuntestedintheRepublicofIreland.Thelawsinrelationtoprivacy, defamation and copyright are particularly relevant in relation to advertising andmarketingonsocialmedia.Personalinformationcollectedfromusersonlineispersonaldata;andthelegalcontrolsinrelationtothisareaaregovernedbytheDataProtectionActs1988–2003.TheePrivacy Regulations 2011 (Statutory Instrument 336 of 2011) deal with data protection forphone,e-mail,SMSandinternetuse.

Thelawofdefamationisalsobeingusedasamethodofcontrollinguseofsocialmedia;andthatcanimpactadvertisers.TheDefamationAct2009doesnotdealspecificallywithuser-generatedsitessuchasTwitter,FacebookorYouTube;however,adefamedpartyhasonecauseofactionformultiple publications, and this is important in respect of a defamatory statement which ispublishedontheinternet.Whereadefamedpartyisunabletoidentifytheauthorofadefamatorystatementontheinternet,theinternetserviceproviderorthesocialmediaserviceprovidermaybeheldliableratherthantheauthor.Again,advertisersneedtobeawareofthis,particularlyiftheyallowpublicationofusergeneratedcontentontheirownwebsitesoronsocialmediapagessuchasaproductFacebookpage.


TheAdvertisingStandardsAuthorityof Ireland(‘ASAI’) isanindependentself-regulatorybodyestablished by the advertising industry in Ireland to regulate commercial marketingcommunications. It publishes a Code of Standards for Advertising, Promotional and DirectMarketing(‘ASAICode’).

TheASAIhasextendedtheCodetoincludemarketingcommunicationsonadvertisers’socialmediaprofilepagesandothernon-paid-forspaceonlineaswellasviraladvertising.Theextensiontotheremit of the Code took effect on 2nd January2013. If an advertiser, in the case ofmisleadingadvertising,doesnotadheretotheadjudicationoftheASAIitcanreferthemattertotheNationalConsumerAgency.

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NoneotherthanthegeneralASAICodeandthelawshighlightedabove.


NoneotherthanthegeneralASAICodeandthelawshighlightedabove.


TheextensionoftheremitoftheASAICodetoincludesocialmediahasraisedthequestionastowhether user generated content (‘UGC’), should be considered as amarketing communicationfallingwithintheremitoftheCode.Iftheanswertoeitherofthefollowingtwoquestionsis‘yes’,andthecontentisdeemedtobeamarketingcommunication,thentheUGCdoesfallwithintheremitoftheCode:• DidtheadvertiseroriginallysolicitthesubmissionofUGCfromindividuals,thenadoptand

incorporateitwithintheirownmarketingcommunications?or• Didanindividualprovidetheadvertiser,onanunsolicitedbasis,withmaterialwhichthe

advertiser subsequently adopted and incorporated within their own marketingcommunications?


Thesamerulesapplyforasweepstakeorcontest,regardlessofwhetheritisconductedbysocialmediaornot.TheASAICodeandthelawshighlightedabovewillapply.

Also,ifthecontestinvolvesapurchasetoenter,then,unlessthereisaskilltestforentry,itmayfallwithinthedefinitionofa‘lottery’containedintheGamingandLotteriesActs1956–1986,inwhichcasealotterylicensewouldberequired.


TheASAICodeis‘appliedinthespiritaswellasintheletter’.TheCoderequiresthatallmarketingcommunicationsshouldbe‘legal,decent,honestandtruthful’andshouldbe‘preparedwithasenseofresponsibilitybothtotheconsumerandtosociety’andshould‘conformtotheprinciplesoffaircompetition as generally accepted in business’. Marketing communications should not bemisleadingandshould‘containnothingthatislikelytocausegraveorwidespreadoffence’.TheCode sets outanumberof general rulesandprincipleswhich are supplementedbyadditionalrequirementsforparticularproductsorsectors.Forexample,specificprinciplesarecontainedintherulesoftheCodewhichrelatetomarketingcommunicationswhichaddressorincludechildren.All of the rules in the ASAI Codewill apply tomarketing communications that fallwithin theextendeddigitalremit.

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Since the introductionof theDefamationAct2009, the law forofflinepublicationalso appliesdirectlytoonlinepublications;andtheActhasbeenusedandrelieduponinsocialmediaclaims.InarecentIrishcase,aprominentbusinessmanreceivedanapologyandreachedanout-of-courtsettlementafterdefamatorycommentswerepublishedabouthimonthesocialmediasite,Twitter.Again,advertisersneedtobearthisriskinmindparticularlyiftheyallowusergeneratedcontentontheirsites.

TheupdatetotheASAICodeextendingittoallformsofsocialmediahasseenvariouscomplaintsraisedinrelationtosocialmediamarketing.In2017thereweretwoseparatedecisionsoftheASAIComplaintsCommitteeregardingtheuseofSnapchatandproperdisclosureofsponsored‘snaps’.AspartofitsdecisiontheComplaintsCommitteeissuedaremindertoadvertisersthattheonusisonthemtoensuretheirmarketingcommunicationsarecompliantwiththeASAICodeevenifthecommunicationisviaathirdpartyonsocialmedia.


Best practice is to adhere to the same principles as would apply for traditional marketingcommunications.Avoidingmisleadingcommunicationiskeyasthisisthemostcommoncomplaintraised in relation to social media advertising and marketing. Full disclosure of ‘paid for’ orsponsoredpostingsorcontentisalwaysbestpractice.

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Israel

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SOCIAL MEDIA – ISRAEL


The main social media platforms in Israel used by advertisers are primarily Facebook andYouTube. Snapchat is becoming increasingly popular among young users. It is interesting tomentionthatTwitterhasnotbecomeverypopularinIsrael.AlltheimportantglobalsocialmediaplatformsareavailableforuseinIsrael.


The main legal controls on advertising and marketing via social media in Israel are thoseprescribedintherelevantlawsandregulations,namelytheConsumerProtectionLaw1981(‘CPL’)and itsderived regulations.TheCPLand its regulationsprovideprohibitions, instructions andguidelinesastothemannerinwhichonecanmarketandadvertisegoods.

Obviously,theCPLgovernsallmethodsofadvertisingandmarketing,includingadvertisingandmarketing via social media. Other relevant laws which are often relevant to advertising andmarketing via socialmedia include the TrademarkOrdinance, the Commercial Torts Law, thePrivacyProtectionLawandtheProhibitionofDefamationLaw.


Advertising,initsentirety,isnotgovernedbyasingleself-regulatorybody.Thedifferentlaws(inthe form of primary legislation), establish regulatory mechanisms headed by the differentgovernment ministries. As an example, the Consumer Protection Law (‘CPL’) empowers theMinisterofIndustryandCommercetosetregulationsrelatedtoconsumerprotection.Inaddition,theCPLformedandempowersaConsumerProtectionCommissioner,whoenforcestheCPLanditsregulations.

Itshouldbenoted,thatthedifferentministersaremainlyconcernedwithlegislationandnottheday-to-daycontroloverthemannerinwhichthelawsandregulationsareenforced.Inpractice,the courts are the primary bodies which enforce and interpret the various advertising andmarketinglaws,includingthoserelevanttosocialmedia.


AccordingtoSection7aoftheCPL,apersonmaynotrepresenthimself,directlyorindirectly,asaconsumeradvisororprotector,ifheisactingforthepurposeofprofitorhisactionsarebasedoneconomicconsiderationsorsponsoredorfundedbyacommercialbody.

Although Section 7a is not directly linked to social media, it is very relevant to influencermarketing.


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Section7oftheCPLprohibitsadvertisementswhichmaycausereasonableviewersnottorealizethat they are actually viewing an advertisement. An advertisement which is structured as anarticle,oritem,withoutclearlystating‘advertisement’,isregardedasamisleadingadvertisement.


Sections7and7aoftheCPL(astowhichseeanswers4and5above)applytousergeneratedcontent.


In Israel, skill-based contests, provided that the skill element ismore dominant than the luckelement,arelegalandcommon.Askill-basedcontestmaybeconductedviasocialmediaplatforms.

Sweepstakesarepermittedprovided theyadhere to theGeneralLicense toConductDraws forCommercialAdvertising(‘GeneralLicense’).Thus,aslongasthedraw’sobjectiveisadvertisingandpromotionanditisconductedinaccordancetotheGeneralLicense,itwillbelegalinIsraelandmaybeconductedviasocialmedia.

AccordingtheGeneralLicense,adrawmustbesupervisedbyadrawsupervisor(‘supervisor’).ThesupervisormustbeanIsraelilawyeroraccountant.ThesupervisormustregisterhimselfasthedrawsupervisorattherelevantIsraeliauthoritywithintheIsraeliMinistryofFinanceandensurethatthedrawadherestoallthetechnicalitiesoftheGeneralLicense.Namely,hemust:• reviewthetermsandconditions,• publishtheterms,andthechances/oddsofwinning,• supervisetheactualdraw(ifrelevant/whennotaninstantaneouswin)and• confirmthatthegifts/prizesaredistributed(atleast80%ofprizes).


There are no specific laws and regulations specifically targeted at social media. The generalprinciplesofmarketingandadvertisingapply.

Firstandforemost,theCPLanditsregulations,combinedwithallotherrelevantlaws,prohibitmisleading and confusing consumers. Additionally, the following main principles apply toadvertisingandpromotionsinIsrael,inclusiveofsocialmedia.

Adsandpromotionsmustnotmisrepresentorconfuseconsumersasto:• qualityandsubstanceofthegoods/services;• components,measurements,weightofthegoods;• dateofsupply;• methodofuseandhandlingofthegoods;• identityofmanufacturer,theimporterandserviceprovider;and• tradename.

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Thelawsandregulationsrelatingtothepromotion,saleandadvertisingoftobacco,alcoholandpharmaceuticalsarequitestringentanddetailed:• PursuanttotheLimitationofTobaccoAdvertisementAct1983,it isprohibitedtomarket

tobacco products with accompanying free prizes, gifts or the right to participate in asweepstake or competition. The Consumer Protection Regulations (Advertisements andMarketing Methods Targeted at Minors) 1991 prohibit advertisements and marketingmethodswhichencourageminorstoconsumealcoholicbeveragesandtheuseofcigarettesorothertobaccoproducts.

• Pursuant to the Ministry of Health’s Procedure No 24, it is prohibited to advertiseprescriptionmedicinesinanymannerwhatsoever.

Obviously,advertisingandmarketingtobacco,alcoholandpharmaceuticalsviasocialmediaaresubjecttotheabove-mentionedlawsandregulations.


Inrecentyears,an increasingnumberofcourt judgmentsmentionsocialmedia inone formoranother. However, there has not been any substantial judgment relating to advertising andmarketingviasocialmedia.


Themostimportantthingforadvertiserstokeepinmindisthatthegenerallawsandregulationswhichapplytoadvertisingalsoapplytoadvertisingandmarketingviasocialmedia.Forexample,thestringentadvertisinglawsthatapplytoalcoholandtobaccoapplytoallplatforms,inclusiveofsocial media platforms. Therefore, advertisers which intend to advertise, via social media,‘sensitive’ goods and services, such aspharmaceuticals, tobacco andalcohol, should seek legaladvicebeforedoingso.

AlladvertisersshouldbeawarethattheCPLanditsderivedregulations,firstandforemost,protectconsumers against deception and confusion. Thus, an advertiser should take care not to givemisleadingorfalseinformation.

Finally, there have been rulings inwhich the courts have stated that the advertiser’s physicalpresenceisirrelevantwhendeterminingifIsraelilawapplies.IfIsraelirecipientsaretargetedbythesocialmediaplatform,Israelilawwillapply.

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Italy

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SOCIAL MEDIA – ITALY


Facebook,Instagram,Twitter,YouTube,SnapchatandMyspacerankamongthemainsocialmediaplatformsusedbyadvertisersforadvertisingandmarketingtoconsumers(seealsothestatementoftheItalianCompetitionAuthority(‘AGCM’)of24July2017‘InfluencerMarketing:advertisingmustalwaysbeclearlyrecognizable’).


InItalythereisnospecificlaworregulationdesignedtoregulateadvertisingandmarketingviasocialmediaassuch.Accordingly,theseactivitiesaresubjecttogeneralrulesapplyingtoconsumerprotectionandcommercialcommunication,aswellasthoseprovisionsthatmaycomeintoplaywith respect to online platforms. Several bodies of rules have then to be taken into account,including:• the‘ConsumerCode’(LegislativeDecreeno205of6September2005),thatwasamendedin

2014toimplementDirective2011/83/EUonconsumerrightsandlaysdowntheprinciplesgoverning B2C relations that may affect commercial communication. In particular, theConsumer Code provides for a set of rules concerning false/misleading advertising andunfaircommercialpractices;

• Legislative Decree no 145 of 2 August 2017, governing misleading and comparativeadvertising;

• theCivilCode,whichcontains,interalia,someprovisionsonunfaircompetition;• the‘E-CommerceDecree’(LegislativeDecreeno70of9April2003),thatimplementedE-

CommerceDirective(2000/31/EC)inItalyandsetsforth,interalia,theliabilityexemptionsapplicabletodigitalplatformsthatmerelyactashostingprovider;

• the‘DataProtectionCode’(LegislativeDecreeno196of30June2003),bywhichDirective95/46/ECwastransposedintotheItalianlegalorder.However,pleasenotethattheDataProtectionCodewillbesignificantlyamendedasresultoftheapplicationoftheGeneralDataProtectionRegulation(Regulation2016/679).

Inadditiontotheabove,specificrestrictionsmayapply,whereprovidedbylaw,tothemarketingoradvertisingofparticularcategoriesofproductsorservices.


The most important set of self-regulatory rules is enshrined in the Self-regulatory Code onCommercialCommunication(the‘Code’),whoseapplicationandenforcementisadministeredbytheInstituteforAdvertisingSelf-regulation(‘IAP’).IAPisaprivateassociationrepresentingthevarious actors involved inmarketing andadvertising, including firms that invest inmarketing,agenciesthatcreateadvertising,andmediathatdistributeadvertising.

The Code applies to marketing communication, ie advertising and all other forms ofcommunicationincludingcorporateandinstitutionalmessageswhoseaimistopromotethesaleofgoodsorservices,aswellassocialmarketingcommunication.

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It includes a set of rules of conduct (articles. 1–6), some rules for specific types ofproducts/services or sale systems (articles 17–28-ter), provisions defining the institutionalframework(articles29–35),rulesgoverningproceduresandprovidingforsanctions(articles35–42),aspecialprocedureforthepromotionofcreativeideas(articles43–45)andad-hocnormsconcerningsocialadvertising(article46).

Interalia,theCodesetsforthtwokeyprovisions:• Article4providesforthattestimonialsandotherformsofendorsementofaproduct,having

apromotionalnature,shouldberecognizableassuch.• Article7generallyrequiresthatmarketingcommunicationisclearlyrecognizableassuch,

alsowheniscarriedoutthroughmeansorformsofcommunicationwhereothertypesofcontentarecirculated.

In addition to the Code, the Digital Chart was adopted by the IAP in 2016. This documentspecificallyaddressesthekeylegalaspectsraisedbytheuseofonlinemediaformarketingandadvertising purposes. The objective of the Digital Chart is to conduct a survey of the mostcommonly-usedformsofmarketingcommunicationonlineandinthedigitalcontextingeneral.Moreindetail,theChartisdividedintoseveralchapters,focusingrespectivelyon:endorsement;nativeadvertising;socialnetworksandcontent;sharingin-app;advertising;advergames.

Inaddition,specificbodiesofrulesmaybeadoptedbythevariousauthoritieswhoseregulatorypowers may affect social media, including the Italian Competition Authority, the Italian DataProtectionAuthorityandtheItalianCommunicationAuthority.


Section4of theCode regulates theuseof testimonials andendorsementshavingpromotionalpurposes, ie it regulates every statementmadebyusersof the relevantproduct relating to itsqualityorfeatures.

Incaseswheretestimonialsareinvolved,theadmust:• makeclearitspromotionalnature:theconsumerneedstobeabletodistinguishbetween

users’ideasandexperiencesandthepromotionalmaterials;• beauthentic:theadvertisermustprovideconsumerswithdetailssoastoallowthemto

reachthegiverofthetestimonialdirectlyandverifywithhim/herthecontentoftheads;• beaccountable:thetestimonialsshallbemadeingoodfaithwithoutanyoverestimationas

tothequalityorfeaturesoftherelevantproduct;• furthermore,asageneralruletheadshouldbereal:thetestimonyshouldbemadebyusers

oftheproductorbypersonswhohaveactuallyexperiencedtheuseoftheproduct.

Inadditiontotheabove,theroleofinfluencermarketingisspecificallyaddressedbytheDigitalChart, within the ‘Endorsement’ section. Influencers are defined as figures ‘who are able toinfluenceconsumersinchoosingaproductandexpressopinionsaboutabrand’.TheDigitalChartprovidesthat‘whencommentsoropinionsexpressedbyacelebrity,influencerorbloggeraboutaproductorbrandhavethecharacteristicsofamarketingcommunication,theyaresubjecttoSelf-RegulatoryCodeapplication’.

Also, the Chart states that, if not made clear by the context, the promotional purpose of thecommentoropinionmustbedisclosedtotheuserinanappropriatemannerinaccordancewithArticle7oftheCode.Althoughthereisnospecificorcompulsorywayformakingsuchdisclaimer

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tousers,thepromotionalnatureofcontentpostedonsocialmediacanbedisclosedthroughtheuseofwordingsuchas ‘Advertising’, ‘Promotedby’, ‘Sponsoredby’, ‘inpartnershipwith’, tobeplacedatthetopoftherelevantpost.Additionally,thesewordsmustbeincludedamongthefirstthreehashtags:#Advertising,#Sponsoredbyor#adfollowedbythenameofthe#brand.

However,incaseswheretherelationshipbetweentheinfluencerandtheadvertiserislimitedtotheadvertiseroccasionallysendingproducts freeor inexchange fora limitedamount,and theinfluencer names these products, uses them or displays them on socialmedia, this disclosurenoticeisnotrequiredandcanbereplacedbythesimplewording:‘productsentby’.


AspecificsectionoftheDigitalChartisdevotedtonativeadvertising;andfocusesinparticularonthree forms: in-feed units, paid search units and recommendation widgets. Like influencermarketing, native advertising is subject to the Code, most notably Article 7, which requirescommercialcommunicationbeingclearlyidentifiableassuch.Inorderforthisrequirementtobemet,differentwordingmaybeuseddependingonthespecifictypesofnativeadvertising:• in-feedunits: thepromotionalnaturemustbedisclosedby theuseofwordingsuch as:

‘Advertising’, ‘Promoted by’, ‘Sponsored by’, ‘Sponsored Content’, ‘Sponsored Post’,‘Presentedby’. Thewording shouldbeof adequate size andbeplaced inanappropriateposition,combinedwithspecificgraphicarrangements,egtheuseofframesand/orshadingand/ortexthighlighting;

• paidsearchunits:techniquestomakethepromotionalnaturerecognizableincludetheuseofa‘shading’effect(byaddingashadowand/orhighlightingthetext)andtheuseofwordingthatexplicitlyandunambiguouslyinformsusersthatthecontenthaspromotionalnature(eg‘Advertising’), to be displayed in appropriate size, close to the results of the sponsoredsearchandplacedina‘user-friendly’position;

• recommendation widgets: the Digital Chart includes among the options as to how todisclosethepromotionalnatureofthisformofadvertisingthefollowing:o theuseofwordinginformingusersthattheboxcontainssponsoredcontent,o showingtheAdvertiser’snameorlogoalongsidethecontent,and/orawarningthat

thecontentissponsored;o theuseofwordingsuchas‘Advertising’,‘Promotedby’,‘Sponsoredby’;o also,ifthecontenthasbeendevelopedbyanintermediary,theuseofwordingsuchas

‘By’or‘Contentofferedby’.


The Digital Chart provides that user-generated content (including text messages, comments,picturesandvideos)whichconstitutespurelyanexpressionofthought,non-solicitedopinionsoruserpreferencesdoesnot fallwithin thescopeofcommercialcommunicationand, thus,of theCode.If,onthecontrary,user-generatedcontentisaimedatinfluencingconsumers’preferencesbypromotingbrandsorproductsbasedonanagreementwithanadvertiseroranyotherthirdparty,theCodewillapply.Insuchacase,Article7oftheCoderequirestheappropriatestepstobe

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takenforthepromotionalnatureofthecontenttobedisclosed,includingthosesetoutinanswer4.


UnderItalianlawa ‘prizecompetition’isapromotionalactivitywherethewinningoftheprizedependsuponchanceortheability/skillsoftheentrants.Prizecompetitionsareheavilyregulatedin Italy under the Presidential Decree of 26 October 2001, no 430 (the ‘Decree’) and theInterpretativenotesandtheFrequentlyAskedQuestions,bothissuedbytheMinistryofEconomicDevelopment(‘FAQ’)shouldalsobeconsulted.AnumberofrequirementsmustbefulfilledpriortolaunchingaprizecompetitioninItaly(whetherviasocialmediaornot),including,eg:• theappointmentofarepresentativeinthenationalterritoryfortaxpurposes,• thecompetition’sTs&CsmustbesenttotheMinistryofEconomicDevelopmentatleast15

(calendar)daysbeforethestartingdateofthecompetition,• thepaymentofabondtotheMinistryofEconomicDevelopmentequaltothetotalvalueof

theprizes,• thedistributiontonot-for-profitorganizationsofanyprizenotattributed(ornotclaimed),• theprohibitionofcashprizes.

Further,where,inordertoenteracompetition,anentrantneedstohaveasocialmediaaccountor,intheabsenceofone,needstoopenone,theFAQsetoutsomeadditionalrequirements:• theservercontainingandmanagingalldataregardingtheprizecompetitionmustbelocated

in Italy (or, if the server is located abroad, a proper mirroring system, with specificrequirements,sendingalldataregardingtheprizecompetitiontoaseverlocatedinItaly,mustbeimplemented);

• inthecaseofprizecompetitionsrunonline(egviasocialplatforms),theownerofthesocialplatform (eg Facebook, Instagram, etc) could qualify as ‘co-promoter’ insofar as themechanicsofthecompetitionalsoindirectlypromotetheuseofthesocialplatform,beingthe exclusiveway to entry into the competition. Under Italian law, all co-promoters arejointly liable to theparticipants in connectionwith the competition(eg in respect of thefulfillmentoftherelevantformalrequirements).Inordertoavoidthepossibilitythattheownerofthesocialplatformcouldbedeemedco-promoteroftheprizecompetition,itwouldbenecessaryto:o arrange alternative ways other than the social platform in order to enter the

competition(suchasanad-hocbuiltmicrosite);ando restricttheeligibleentrantsonlytopeoplealreadyregisteredonthesocialplatform

atthestartingdateofthecompetition—inthiscase,thepromotershallensurethattheregistrationtothesocialnetworkoccurredbeforethestartingdateofthecompetition,thereforeit isadvisablethattheOfficialRulesexpresslyprovideforthepromoter’srighttorequestevidenceofentrants’registration.

Inaddition:• prize competitions carriedout via a socialplatformshall complywith the rulesonprize

competitionsissuedbythesocialplatform.

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Inadditiontotheabove,itisworthnotingthattheItalianCommunicationAuthorityhasrecentlylaunched an investigation into influencermarketing practices carried out on social media, byurgingtherelevantstakeholderstocomplywiththeprovisionsoftheConsumerCodeinrespectoftheneedtotakeproperstepstorevealthenatureofthemessage,whetherornotitisbasedonanexistingcommercialrelationship,andalsowhenitderivesfromthefreeprovisionofbrandedgoodstotheinfluencer.

Furthermore,asnotedabove,socialmediamaybesubjecttogeneralprovisionsenshrinedintherelevantresolutionsissuedby:• the Italian Communication Authority, most notably with regard to audiovisual media

services,and• theItalianDataProtectionAuthority,eginrespectofprofilingorpracticesthatinanyway

consistof/requirethetargetingofusers.


(1) AGCMdecisionnoPS9030In2015AGCMsanctionedanonlineoperatorofpennyauctionsfor,interalia,publishinganonlinewebsitehavingpromotionalnaturebutpresentedasablogpage.Throughthe’blogpage’, the operator played the role of a consumer who talked enthusiastically of hisexperience with the penny auctions service. While the proceedings were on-going, theoperatormodifiedthelandingpageoftheblogbyaddinginthefootnotethedisclaimer‘Thisarticleisadvertorialandnotfornews’.TheAGCM,however,consideredtheadmisleadingsincethedisclaimerwasnotenoughtomakeconsumersawareofthepromotionalintentoftheinformationincludedinthearticlesinceit:(a) wasnotwellmarked;and(b) waslocatedinanextremelymarginalpositiononthewebpage.TheoperatorwasthereforeorderedtopayanoverallpenaltyofEuro300,000.00.

(2) IAPdecisionno66/2016In 2016, IAP considered some ‘in-feed units’ concerning online trading published by anoperatoronathirdpartywebsite.Byclickingonthesein-feedunits,theuserwasredirectedtosomearticlesconcerning thesuccessfulexperienceofdifferentconsumerswithonlinetradingwhichhadanobviouspromotionalcontent.TheIAPfoundthein-feedunits(andtherelatedarticles)tobemisleading,giventhattheirpromotionalintentwasnotdulynoticedand consumers were led to believe that the articles reported real experiences. As aconsequence,theIAPorderedthewithdrawaloftheseads.

(3) AGCMdecisionno25288

In 2014 the AGCM started proceedings against an app developer and several digitalplatformswhichofferedforfree-download(andadvertisedas‘for-free’)avideogame-appwithoutspecifying—in theapp’sdescription—that ‘in-app’purchaseswerenecessary inordertoprogressinthegame.TheAGCMregardedsuchconductasanunfaircommercial

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practice since the average consumer was not enabled to take a fully aware commercialdecisiononthedownloadoftheapp.

TheproceedingswereconcludedonJanuary25,2015withtheimplementationofadhocundertakingsbyboththeappdeveloperandthedigitalplatforms,whichwereregardedbytheAGCMassuitabletoremovetheunlawfulnessoftheconduct.

Basicallyandinteraliatheprofessionalsundertook:(a) touse the ‘for-free’wordingorsimilarwordingsonly incaseofappswhichdonot

allow‘in-app’purchases;(b) incaseofappswhichallow‘in-app’purchases,tointegratethe‘for-free’wordingby

inserting a relevant wording (having the same graphical prominence) aimed atspecifyingwhichpartoftheappthe‘for-free’wordingrefersto;

(c) toclarify,intherelevantinformativepagesoftheonlinestore(andoftheappitself,bytheapp’sdeveloper),thattheappallows‘in-app’purchasesandtoprovidearangeoftherelevantprices;

(d) tochangetheonlinestore’ssettingsinordertopreventconsumersfrombeingallowedto make purchases without inserting the password already entered for a recentpurchase.

Inlightoftheseundertakings,nopenaltieswereimposedonthetraders.


SincethepurposeoftheDigitalChartistoconductasurveyofthemostcommonly-usedformsofmarketingcommunicationonlineandinthedigitalworldingeneral,andtoestablishcriteriafortheacknowledgementofmarketingcommunicationsincompliancewithArticle7oftheCode,itcanbeconsideredthemostauthoritativesourceofbestpracticeforadvertisingandmarketingviasocialmedia.

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Jamaica

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SOCIAL MEDIA – JAMAICA


ThemainavailableplatformsareFacebook,Instagram,Twitter,YouTubeandGoogleAds.


Therearenolawswhichspeakspecificallytoadvertisingviasocialmedia.However, legislationsuchasFairCompetitionAct,ConsumerProtectionAct,SaleofGoodsAct,theStandardsActandtheTelevisionandSoundBroadcastingRegulationsoutlineprinciplesofadvertisingwhichapplytobothtraditionalandonlinemedia.


Theself-regulationsystemsforadvertisingarebasedontheJamaicanCodeofAdvertisingPractice(‘JCAP’)andtheCodeofMarketingCommunicationPractices(‘MCAP’)whichcomplementcurrentadvertisinglaws.TheseCodesoutlinebasicrulesforadvertisingintraditionalmediawhichcanalso apply to socialmedia.MCAP outlines general rules governingmarketing communicationswhichcoveradvertisingviatheinternetand,thoughnotexpressly,socialmediasuchasFacebook.TheCodeappliestoallmembers’brandmarketingcommunicationstoconsumers,regardlessofthemediumused.


Therearenolaws,regulationsorself-regulatoryrulesinJamaicaspecificallyrelatedtoinfluencermarketingviasocialmedia.


There areno laws, regulationsor self-regulatory rules in Jamaica related specifically tonativeadvertisingviasocialmedia.


Thereareno laws, regulationsorself-regulatoryrules in Jamaica inrelation tousergeneratedcontentwhenadvertisingviasocialmedia.


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SOCIAL MEDIA – JAMAICA

TheBettingGaming&LotteriesActandattendantregulations.


Alladvertisementsandmarketingcampaignsmustbehonest,truthfulanddecentandshouldnotcontravene any law. They should not mislead the consumer or be deceptive in any respect.Comparativeadvertisementsmustbefairandmustnotmisuseorinfringeanother’sintellectualpropertyrights,suchastrademarks,tradenamesandcopyrightcontent.Writtenpermissionmustbesoughtfromindividualsinordertousetheirimagesinadvertisements,particularlywhereanyendorsementcouldbeimplied.Advertisementsshouldnotcontainorrefertoanytestimonialorendorsementunlessitisgenuineandrelatedtothepersonalexperienceofareasonableperson.


TelevisionJamaica(TVJ)vCVMTelevisionLTd(CVI)(CD00112of2015)

AlthoughthiscasedoesnotdealdirectlywithadvertisingormarketinglawitisthefirstJamaicancasewhichisinstructiveonthecourt’sinterpretationofthedoctrineoffairuse/fairdealinginthecontextofbroadcastingandsocialmedia.InthiscaseTVJsuedCVMforbreachesofitsexclusiverights to broadcast the 2015 World Athletic Championships which it had acquired from theInternationalAssociationofAthleticsFederations(‘IAAF’),ownerofthecopyright intheevent.CVMcarriedportionsoftheeventinitsregularnewsprogrammeNewsWatchandalsothroughanewlydevelopedprogrammecalled‘ReturntotheNest’.CVMalsopostedmaterialfromtheIAAFLiveStreamonitsFacebookpagewhichwasaccessibleviaFacebookandTwitter.CVMclaimeditsusewas for thepurposeof reporting current events, and invokedthe fairdealingdefenseandclaimeditneverusedtheTVJfeed,onlytheIAAFLiveStream.

Thetrialjudge,SykesJ,foundthatsomeoftheusesbyCVMwerenotfairdealing,henceitbreachedTVJ’sexclusiverights,whilesomewereprotectedbythedefenseoffairdealing.ThepartieshavefiledanAppealandCounter-AppealbeforetheCourtofAppealJamaica.


Alladvertisementsandmarketingcampaignsmustbehonest,truthfulanddecentandshouldnotcontraveneanylaw.

Advertisersshould:• seekpermissiontouseimagesofindividualsandcopyrightcontent;• ensure proper use of another’s trademark or trade namewhen employing comparative

advertising,• obtainpermissionwhenfeaturingsomeone’spictureortestimonial;and• refrainfromsendingadspromotingsexualactivitiesastheybreachtheObscenePublications

Act.

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Japan

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SOCIAL MEDIA – JAPAN


ThemainsocialmediaplatformsthatadvertisersuseinJapanare:Facebook,Twitter,Instagram,LINE,LinkedIn,SnapchatandWeChat.

ManyimportantglobalsocialmediaplatformsareavailableforuseinJapan.


AdvertisingactivitiesaregenerallyregulatedinJapanunder:• theActagainstUnjustifiablePremiumsandMisleadingRepresentations(‘AUPMR’),• theActonSpecifiedCommercialTransactions(‘ASCT’),• theMedicalCareAct,• theActonPharmaceuticalsandMedicalDevices(formerlythePharmaceuticalAffairsAct),

and• theHealthPromotionAct.

Therearenospecificlawsregulatingadvertisingandmarketingviasocialmedia.

There is also a ‘fair commission code’ applicable to advertising, and a number of advertisingguidelinesissuedbygovernmentbodiesresponsibleforspecificindustries.


TheWOMJGuideline,preparedbytheWordofMouthJapanMarketingAssociationin2017andtheMoralManifestoforInternetAdvertisingandGuidelineforPublicationpreparedbytheJapanInteractiveAdvertisingAssociationin2015arethemainself-regulatoryrulesonadvertisingandmarketingrelatedtosocialmediainJapan.


TherearenospecificlawsorregulationsrelatedtoinfluencermarketingviasocialmediainJapan.The WOMJ Guideline indirectly mentions influencer marketing, although it does not define‘influencer’.


TherearenospecificlawsorregulationsrelatedtonativeadvertisingviasocialmediainJapan.TheMoralManifestoforInternetAdvertisingandGuidelineforPublication(seeanswer3above)requiresthenatureofadvertisingtobestatedclearly,usingwordssuchas ‘advertising’, ‘PR’or‘AD’.

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Therearenosuchspecificlaws,regulationsorself-regulatoryrulesinJapan.


SweepstakesaregenerallyregulatedundertheAUPMR;andthisisalsotrueofasweepstakeviasocialmedia.Under theAUPMR, thePrimeMinister (actually theMinisterofConsumerAffairsAgency)maylimitthemaximumvalueofaprizeorthetotalvalueofprizes,thekindofprizesorthemethodofofferingprizes,ormayprohibittheofferingofaprizeinanycaseinordertopreventtheunjustinducementofcustomerstoenterintoacompetition,etcandtoencouragevoluntaryand rational decision-making by consumers. A sweepstakewould constitute a competition forthesepurposes.

TheAUPMRappliestoaprizeifitis:• financialgain,suchasgoodsormoney,• offeredtoinducecustomers,or• relatedtoatransactioningoodsorservicesprovidedbyacompany.


Ifadvertisingandmarketingviasocialmediaisrelatedto• healthcareormedicalcare,or• creditorfinancialproducts,specific lawsand regulations such as theAct onPharmaceuticalsandMedicalDevices andtheFinancialInstrumentsandExchangeActwillapply.

The Act on Pharmaceuticals andMedical Devices prohibits false or exaggerated advertising inrelation tothename,effectorefficiencyofmedicines,quasi-drugs(whoseeffecton thehumanbodyismilderthandrugs)andcosmetics,medicalequipmentandregenerativemedicalproducts.

TheFinancialInstrumentsandExchangeActrequiresabusinessoperatoroffinancialinstrumentstoindicatecertaininformationinadvertising,suchas:• thenameortradenameofthefinancialinstrumentsbusinessoperator;• the fact that the financial instruments business operator is authorized as a financial

instrumentsbusinessoperator,anditsregistrationnumber;and• matters concerning the contents of the financial instruments business conducted by the

financialinstrumentsbusinessoperator.


‘Stealthmarketing’usinginfluencerviasocialmediaiscriticized.

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Awebauctionsite(PennyAuction)usedmanyinfluencers(entertainers)topromoteitsauctionserviceandmanyentertainersusedwordofmouthinrelationtoPennyAuctionregardlessofthefactthattheyactuallydidnotusethesite.PennyAuctionusedfraudulentmethodsintheauctions,andbidders,whohadtopayasmallamountinvirtualcurrencytoenterintothebidding,wereneversuccessfulinabid.OperatorsofPennyAuctionwerearrestedforfraudandmanyinfluencerswereinvestigatedbythepoliceandhadtorefrainfromactivitiesasentertainersforawhile.


Itisjustasimportanttomakethenatureofadvertisingandmarketingclear,andnottomisleadcustomers,inadvertisingandmarketingviasocialmediaaswellinadvertisingandmarketingviaothermedia.Inaddition,ifadvertisingandmarketingisrelatedtoaspecificarea,suchashealthor financial services or products, it is important to complywith laws and regulations for thatspecificindustry.

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Kenya

177

SOCIAL MEDIA – KENYA


Themain social media sites in Kenya are Instagram, Facebook, Twitter,WhatsApp, YouTube,LinkedInandSnapchat.

SocialmediasitesthatarenotwidelyusedareWeChat,Weibo.


Kenyadoesnothavespecificstatutesandregulationsgoverningadvertisingandmarketingviasocial media. There are, however, a number of statutes which contain general provisions onadvertising.Theprovisionsofthesestatuteswouldapplytoadvertisementsonsocialmedia.Suchstatutesinclude:• theAlcoholicDrinksControlActNo4of2010;• theConsumerProtectionActNo46of2012;• theCompetitionActNo12of2010;• TobaccoControlActNo4of2007;• thePharmacyandPoisonsActCAP244;• theFood,DrugsandChemicalSubstancesActCAP254;• theElectionsActNo24of2011;• theFilmsandStagePlaysActCAP222;• theAdvocatesActCAP17;and• theAccountantsActNo15of2008.

Thereisalsosubsidiarylegislationthataffectsmarketingandadvertising,namely:• theGuidelinesforAdvertisingandPromotionofMedicinesandMedicalProductsinKenya;• theCodeofPromotionalPracticesforPharmaceuticalRepresentatives;• theAdvocates(MarketingandAdvertising)Rules;and• theConsumerProtectionGuidelines.

TheCompetitionActhasseveralobjectives,oneofwhichistoprotectconsumersfromunfairandmisleadingmarket conduct.TheActhasprovisions thatprohibitmisleading informationbeinggiven to customers. The Competition Authority of Kenya developed the Consumer ProtectionGuidelineswhichwererevisedinDecember2017.Section15oftheseGuidelinesstate:

‘Anystatementrepresentingasupplier’sproductsorservicesshouldbetrue,accurateandabletobesubstantiated.ItisaviolationoftheActforasuppliertomakestatementsthatareincorrect or likely to create a false impression,whether intentional ornot.This includesadvertisementsorstatementsinanymedia(print,radio,television,socialmediaandonline)or onproductpackaging,andany statementmadeby aperson representinga supplier’sbusiness.’

TheConsumerProtectionAct,whichwaspassedin2012,isaimedatprotectingconsumersfromunfair trade practices. This Act prohibits false, misleading or deceptive representations beingmadetoconsumers.

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The Communications Authority of Kenya has also issued Guidelines on Prevention ofDisseminationofUndesirableBulkandPremiumRatePoliticalMessagesandPoliticalSocialMediaContentviaElectronicCommunicationsNetworks.TheseguidelineswerespecificallydevelopedinJuly2017tocontrolthepoliticalpropagandathatissharedonsocialmediaduringtheelectionperiod.ThiswasdoneinconsiderationoftheGeneralElectionsinAugust2017.


There is a Code of Advertising Practice and Direct Marketing which was developed by theAdvertisingStandardsBodyofKenya(‘ASBK’).TheASBKwasformedbytheMarketingSocietyofKenyaandtheAssociationofPractitioners inAdvertising,andtheCodeapplies tomembersofthesebodies,thoughisnotcompulsory.AccordingtothisCode,advertisementsshouldbelegal,decent,honestandtruthful.EventhoughtheCodedoesnotmakespecificreferencetosocialmedia,weareoftheviewitsprovisionswouldapplytoadvertisingandmarketingonsocialmedia.


In Kenya there is no single Act of Parliament that regulates advertising and influencers inmarketing. However, the provisions of various Kenyan statutes on advertising apply. TheConsumerProtectionAct2012Section12prohibitsfalserepresentation.Thissectionstatesthatitis anunfairpractice for aperson tomakea false,misleadingordeceptive representation.TheCompetitionActandtheConsumerProtectionGuidelinesdevelopedbytheCompetitionAuthorityofKenyaalsoprovidethatincorrectstatementsandstatementsthatarelikelytocreatea falseimpressionshouldnotbepublishedonanyprintmediawhichincludessocialmedia.

TheCodeofAdvertisingandDirectMarketinghasasectionontestimonials.ThisCodeprovidesthattestimonialsshouldbebasedonpersonalexperience.Influencersshouldthereforeactuallyusethegoodswhichtheyaremarketing.


Therearenospecificlawsthatarerelatedtonativeadvertisingthroughsocialmedia.


Therearenospecificlawsrelatedtousergeneratedcontent.SuchmaterialneedstobeinlinewiththeConsumerProtectionActandtheCompetitionAct,whichprohibitfalsestatementsmadetoconsumersasadvertisements.Inaddition,thetermsandconditionsofuseapplicabletothevarioussocialmediaplatformswouldapplytousergeneratedcontent.


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TheBetting,LotteriesandGamingActappliesinrelationtosweepstakesandprizecompetitions.Section2oftheActdefinesalotteryto‘includeasweepstake,araffleandanyschemeordeviceforthesale,gift,disposalordistributionofanypropertydependinguponortobedeterminedbylotorchance,whetherbythethrowingorcastingofdice,orbythewithdrawingoftickets,cards,lots,numbersor figures,orbymeansofawheel,orotherwisehowsoever’.According to thisAct,alotteryshouldonlybepromotedorconductedinaccordancewiththeAct.ThismeansthatoneshouldprocurethenecessarylicensefromtheBettingControlandLicensingBoard.

Thislawwouldalsoapplytosweepstakesthatareconductedoversocialmedia.TheAct,interalia,makes it an offence for person to print or publish or cause to be printed or published anadvertisementorothernoticeoforrelatingtoanunauthorizedlotteryoroforrelatingtothesaleofaticketorchanceinanysuchlottery.


InKenyathemainissuesrelatingtosocialmediahavebeeninrelationtodefamation,privacyandhatespeech.Advertisementsshouldnotbeoffensiveorpromoteethnicviolence.


In 2017 therewas a case (Constitutional PetitionNo 468 of 2017, Katiba Institute v PresidentsDeliveryUnit&3others[2017]eKLR).ThepartiesinthiscaseweretheKatibaInstitute,anNGOinKenya,andthePresident’sDeliveryUnit(PDU)and3others.ThePDUisacenterwhoseprimarydutyistoimprovetheco-ordinationofNationalGovernmentflagshipprogramsandtomonitor,evaluateandreportontimelyfulfilmentofprojectsoftheGovernmentindevelopmentpriorities.Onvariousdatesin2017,thePDUpublishedadvertisementsinthemedia,throughbillboardsandthrough other platforms including socialmedia using the tags#GOKDELIVERSand#JUBILEEDELIVERS.ThepetitionerrequestedthePDUforinformationonhowmanyadvertisementshadbeen published, through what media, schedules and dates when it was done, copies of thedocumentsadvertised,totalcostincurredandtherelevantgovernmentaccountingoffice(r)andtheindividualorgovernmentagencythatmetthecost.ThePDUdidnotgivethemthisinformationthereforethepetitionersoughtcourtintervention.

Thecourtconsideredthatthemainissuefordeterminationwasthepetitioners’righttoaccessofinformation.ItfoundthatthePDU,asagovernmentagency,wasunderbothaconstitutionalandlegalobligationtoallowthepetitionertoaccesstheinformationinitspossessionwhichisheldonbehalfofthepublic.

This case demonstrates that members of the public can make requests for information onadvertisementsthatgovernmentagenciesrunondifferentplatforms,includingsocialmedia.


Therearenospecific‘bestpractices’foradvertisingandmarketingviasocialmediainKenya.SomeofthebestpracticesinrelationtoadvertisinggenerallyaresetoutintheCodeofAdvertisingandDirectMarketingandtheConsumerProtectionGuidelines,namely:

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• Advertisementsshouldbelegal,decent,honestandtruthful;• Advertisements should not attack, discredit or disparage other products, services,

advertisers or advertisements either directly or indirectly. Businesses are allowed tocompare goods and services in other markets on price, quality etc, as long as thosecomparisonsarenotfalseormisleadingandappropriatelycomparetheproducts;

• Advertisersmustensurethattheiradvertisementsdonotsocloselyresembleanyexistingadvertisement,localorinternational,thatitmisleadsorcausesconfusiontothepurchaserorconsumer;and

• Advertisementsshouldnotmake falseormisleadingrepresentationsaboutproductsandservices.

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Luxembourg

183

SOCIAL MEDIA – LUXEMBOURG


ThemainsocialmediaplatformsusedbyadvertisersinLuxembourgforadvertisingandmarketingtoconsumersareFacebook,Instagram,LinkedIn,Twitter,Pinterest,Snapchatamongstothers.

AllimportantglobalmediaplatformsareavailableforuseinLuxembourg.


Advertisingandmarketingviasocialmedia isnotregulatedassuchbutmustcomplywith thefollowinglawsgoverningadvertisingandmarketingingeneralinLuxembourg:

(a) The Luxembourg Consumer Code prohibits unfair commercial practices (commercialpractices can include advertising or marketing). An example of an unfair commercialpracticewouldbemisleadingoraggressivecommercialpractices,committedbyatraderanddirectlyconnectedwiththepromotion,saleorsupplyofaproducttoconsumers.Acommercialpracticeisespeciallyregardedasmisleadingif,initsfactualcontext,itcausesorislikelytocausetheaverageconsumertotakeatransactionaldecisionthathe/shewouldnothavetakenotherwise,anditinvolvesanymarketingofaproduct,includingcomparativeadvertising,whichcreatesconfusionwithanyproducts,trademarks,tradenamesorotherdistinguishingmarksofacompetitor(ArticleL122-2(2),a).Also, in any circumstances, commercial practices are considered as unfair if they useeditorial content in the media to promote a product where a trader has paid for thepromotion without making that clear in the content or by images or sounds clearlyidentifiablebytheconsumer(advertorial)(ArticleL222-4).

(b) ThevariousLuxembourglawsandregulationswhichregulatemorespecificallyadvertisingfor food,alcohol,drugs, financialproducts,gamesofchanceorwhicharedirectedatchildren(includingtheLawof27July1991onelectronicmedia,andtheRegulationof5April2001fixingtherulesapplicabletocommercialcommunicationinaudiovisualmediaservices)

(c) Rulesapplyingtoonlinebehavioraladvertising:thisisnotregulatedassuch,butthelawof30May2005laysdownspecificprovisionsfortheprotectionofpersonswithrespecttotheprocessingofpersonaldataintheelectroniccommunicationsectors.Thislawaimstostrengthentransparencyandfairusestandardsparticularlyasregardstheuseofcookies,where:(i) priorconsent(‘optin’)isneededfortheuseofcookies,unlessthecookieisstrictly

necessaryfortheprovisionofaservicetothatsubscriberoruser;(ii) subscriberorusermustbeprovidedwithclearandcomprehensiveinformationabout

thepurposeoftheprocessingand,particularly,theidentityoftheadvertisingnetworkproviderandthatthecookiewillallowtheadvertisingprovidertocollectinformation;

(iii) browsersettingscanbeusedasameanstoobtainconsent,buttheconsentmustbe‘prior’totheuseofacookie.

Criminalsanctionscanbeincurredfornon-compliance.

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ALuxembourgCodeofEthicsinAdvertising(CodededéontologiedelapublicitéauLuxembourg)(‘Advertising Code of Ethics’) has been enacted by the Luxembourg Council for Advertising(ConseildelaPublicitéduGrand-DuchédeLuxembourg),anot-for-profitassociationofprivatelawformedbythemajorplayersactiveinthefieldsofmarketingandcommercialcommunicationinthecountry.

Members of the Luxembourg Council for Advertising (firms, associations and organizationsrepresentative of the advertising sector) undertake to respect the Advertising Code of Ethics,whichsetsoutnon-compulsorygeneralguidelinesrelatingtoadvertising(onprinciplessuchasloyalty, honesty, veracity, decency, protection of privacy, etc), but also specific guidelinesregarding children, alcohol and drugs. The Advertising Code of Ethics is based on generalprinciplesoftheICCCode.

The Commission luxembourgeoise pour l’Ethique en Publicité (‘CLEP’), an independentcommissioncreatedbytheLuxembourgCouncilforAdvertising,regulatestheapplicationoftheAdvertisingCodeofEthics.TheCLEPcanadvisetheadvertisingcommunityandhandlecomplaints.Itcanalsoactonitsowninitiativeandaskformodificationsto,ordecidetoban,anadvertisement.

ComplaintsregardingadvertisingcanalsobereferredtothefollowingLuxembourgauthorities:• IndependentAuthorityfortheAudiovisualSector,whichiscompetentonlyforaudiovisual

advertising;• Luxembourg Consumers' Association, which is competent in matters relating to the

infringementofregulationsregardingadvertisingtoconsumers.


Thereisnospecificlaw,regulationorself-regulatoryrulerelatedtoinfluencermarketingviasocialmediainLuxembourg.However,thegeneralrulesgoverningadvertisingdiscussedinanswer2mayalsobeapplicabletoinfluencermarketingviasocialmedia.


Thereisnospecificlaw,regulationorself-regulatoryrulerelatedtonativeadvertisingviasocialmediainLuxembourg.However,thegeneralrulesgoverningadvertisingdiscussedinanswer2mayalsobeapplicabletonativeadvertisingviasocialmedia.


There is no specific law or regulation relating to the use of user generated content whenadvertisingandmarketingviasocialmediainLuxembourg,butLawof30May2005(astowhichseeanswer2at(c)above)applies.Moreover,theEuropeanGeneralDataProtectionRegulation2016/679/EUwillapplyfrom25May2018.

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Inaddition,thereareprovisionsaboutonlinebehavioraladvertisingintheAdvertisingCodeofEthicswhichspecifythattheuseofcookiesmustbesubordinatedtotheauthorizationoftheuser.Allusersmusthavetherighttoaccess,modify,rectifyanddeletepersonaldataconcerningthem.


Thereisnospecificlaw,regulationorself-regulatoryrulerelatingtoconductingsweepstakesandcontestsviasocialmediainLuxembourg.

Sweepstakesandcontestsviasocialmediamustcomplywith theLawof20April1977on theexploitation of games of chance and bets relating to sporting events (as amended) and itsimplementingregulations.

GamesofchancearegenerallyprohibitedunderLuxembourglawregardlessoftheirmedium.

Thereare3exceptionstothisprincipleandthereforethreekindsofinstantwinlotteriesthatcanbeadvertised:(a) Promotional games, sweepstakes and raffles exclusively organized for commercial

propagandapurposesarenotconsideredasgamesofchance;(b) InstantwinlotteriesorganizedbytheLuxembourgNationalLottery(LoterieNationale);and(c) Lotteriesandrafflesfullyorpartiallyofpublicinterest.

Claiming,inacommercialpractice,toofferacompetitionorprizepromotionwithoutawardingtheprizesdescribedorareasonableequivalent,orthatproductsareabletofacilitatewinningingamesof chance are especiallydeemed tobeunfairpractices (Article L122-4of LuxembourgConsumerCode).

Articles301–304ofLuxembourgPenalCodeprovidepenalsanctions.


(1) IPRights/AmbushmarketingAcompetitormaybringanunfaircompetitionclaimbeforethecourtsifsomeoneactinginthesamefieldofactivitydoesnotcomplywithadvertisinglawandregulation.Acourtmayorderthedefendanttostoptheinfringingadvertisingandtopaytheclaimantdamagesascompensationforthelosssuffered.Theclaimantmayalsofilesummaryproceedingsaskingthejudgetoorderthecessationoftheinfringingadvertising.FailuretocomplywithsuchaninjunctionmayleadtoacriminalfinerangingfromEUR251.00–120,000.00.

In the eventof the illegitimateuseof a trademark inadvertising (eg, illegal comparativeadvertising)thetrademark-ownermaybringproceedingsforinfringementofitsintellectualproperty,askingforaninjunctionpreventingtheuseofitstrademarkaswellasdamages.

Insomecircumstanceswhennointellectualpropertyrightsexist,acompanymayalsobringanactionagainstanotherwhenthelattertriestotakeadvantageofthereputationtheformercompanyhasacquiredortheinvestmentithasmade.

(2) Determinationoftheliabilitiesbetweentheauthor,theeditororthebroadcasterTheLuxembourgLawof8June2004relatingtoFreedomofSpeechinthecontextofmediadetermines the liabilities between the author, the editor or the broadcaster of any

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informationgivenbywayofanytypeofmedia(eitherfactual,opinionorideas).ThebreachoftheprovisionsoftheFreedomofSpeechLawmayleadtobothcivilliabilityandcriminalliabilityeitheroftheauthorofthepublication,ifknown,oroftheeditororthebroadcaster.Inaddition,anyadvertisermaybeheldliableforstatementsmadebyusersonitswebsiteorsocialmediapage,butonlyinlimitedcases.Insuchcases,theadvertisercanberegardedasawebhost,whichmeansthatitwillonlybeheldresponsiblefortheinformationstoredif:• theinformationstoredisobviouslyillicitoriftheadvertiserhasbeenmadeawareof

itsillicitcharacter,and• itdoesnotactquicklytoremovetheinformationormakeaccesstoitimpossiblefrom

themomentitbecomesawareorshouldhavebecomeawareoftheillicitcontent.


TherearenocasesrelatingtoadvertisingandmarketingviasocialmediainLuxembourg.


TipsforAdvertisingandmarketingviasocialmediaare:• Makeadvertisingandmarketingeasilyrecognizable;• Donotusesubliminaltechniques;• Monitorthecontentandthecommercialmessage;• Avoidmakingfalseormisleadingstatements

• Avoidmakingprohibitedsolicitations• Treadcautiouslywithtestimonials,endorsements,andratings;and• EnsureyouareGDPR(ieGeneralDataProtectionRegulation2016/679/EU)compliantas

regardsprofilingandonlinebehavioraladvertising.

187

Malaysia

189

SOCIAL MEDIA – MALAYSIA


SocialmediaplatformspreferredbyadvertisersareFacebook, Instagram,WeChatandTwitter.However,wearenotawareofanyimportantglobalsocialmediaplatformsthatarenotavailableforuseinMalaysia.


Atpresent,therearethreelawsgoverningonlineadvertisingandmarketinginMalaysia;namely:• theMalaysianCommunicationsandMultimediaContentCode(‘MCMC’),• theAnti-FakeNewsAct2018and• theConsumerProtectionAct1999.


TheMCMCandtheConsumerProtectionAct1999areself-regulated.Amemberofthepublicmaylodgea complaintagainst advertiserswhoseadvertising content isnot in compliancewith thelaws.

UndertheMCMC,amemberofthepublicmayfirstlodgeacomplaintdirectlywiththecontentprovider or service provider. Any unresolvedmattermay then be referred to the ComplaintsBureau.

Under the Consumer Protection Act 1999, a consumer may also lodge a complaint with theConsumerTribunalforanylosssufferedonanymatterconcerninghisinterestasaconsumer.

‘Content’,asdefinedbytheMCMC,includesanysound,text,stillpicture,movingpictureorotheraudio-visualrepresentation,tactilerepresentationoranycombinationoftheprecedingwhichiscapable of being created, manipulated, stored, retrieved or communicated electronically.‘Advertisement’undertheMCMCreferstoanannouncementofapublicnaturewhetherforthesaleorpurchaseorprovisionofgoodsorservicesorconstitutinganinvitationtoparticipateinanactivityandconveyedbyorthroughanysignage,imageorsounddisseminatedthoroughelectronicmediumforadvertisingpurposes.

Thebasicprinciplesofadvertisingare:• itmustbelegal,decent,honestandtruthful;• itshouldbepreparedwithasenseofresponsibilitytoconsumersandtosociety;• itshouldrespecttheprinciplesoffaircompetitiongenerallyacceptedinbusiness.

Meanwhile,theConsumerProtectionAct1999defines‘advertisement’soastoincludeeveryformofadvertisement,whetherornotaccompaniedbyorinassociationwithspokenorwrittenwordsorotherwritingorsoundandwhetherornotcontainedorissuedinapublication,andincludesadvertisementbythedisplayofnotices,bymeansofcatalogues,pricelists,circulars,labels,cardsorotherdocumentsormaterials,bytheexhibitionoffilmsorofpicturesorphotographs,orbymeansofradio,television,telecommunicationoranyothersimilarmeans.

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Thenewly-introducedAnti-FakeNewsAct2018isalsoself-regulated.However,insteadoflodgingacomplainttolocalauthority,itisthedutyofthepersonwhohasinhispossession,custodyorcontrol any publication containing fake news to remove such publication immediately uponknowingorhavingreasonablegroundstobelievethatsuchpublicationcontainsfakenews.Anypersonwho fails to do so commits an offence and shall, on conviction, be liable to a fine notexceedingonehundredthousandringgit.Meanwhile,investigationoffakenewsandinformationdisseminatedthroughelectronicmediaisalsowithinthepurviewoftheMCMC.

‘Fakenews’,asdefinedbytheAnti-FakeNewsAct2018,includesanynews,information,dataandreports which is/are wholly or partly false, whether in the form of features, visuals or audiorecordings,orinanyotherformcapableofsuggestingwordsorideas.


TheMCMCstatesthatadvertisementsmustnotportray,orrefertobywhatevermeans,anylivingpersonunlesstheirexpresspriorpermissionhasbeenobtained.Thisrequirementappliestoallpersons,includingpublicfiguresandforeignnationals.

ItisalsoanoffenceundertheAnti-FakeNewsAct2018topublishanadvertisementportrayingaliving person, or containing a caricature of a living person, as an individual with skills orachievementswhichthepersonpublishingthesaidadvertisementknowstobefalseoruntrue.(EgifApublishesanadvertisementcontainingacaricatureofZdepictingZasasuccessfulinvestorinaninvestmentschemeknowingthatZisnotinvolvedintheinvestmentscheme,AisguiltyofanoffenceunderSection4(1)oftheAnti-FakeNewsAct2018.)

Section4(1)oftheAnti-FakeNewsAct2018statesanypersonwho,byanymeans,maliciouslycreates, offers, publishes, prints, distributes, circulates or disseminates any fake news orpublicationcontainingfakenewscommitsanoffenceandshall,onconviction,beliabletoafinenotexceedingfivehundredthousandringgitortoimprisonmentforatermnotexceedingsixyearsortoboth.


OnlineadvertisingiscontrolledbytheMCMC,Anti-FakeNewsAct2018andConsumerProtectionAct1999.


AnyonlineadvertisingormarketingisgovernedbytheMCMC,Anti-FakeNewsAct2018andtheConsumerProtectionAct1999.


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The MCMC prohibits advertisement relating to any form of gambling including betting,sweepstakesorlotteries.


Thebasicprinciplesofadvertisingare:(a) itmustbelegal,decent,honestandtruthful;(b) itshouldbepreparedwithasenseofresponsibilitytoconsumersandtosociety;and(c) itshouldrespecttheprinciplesoffaircompetitiongenerallyacceptedinbusiness.

Itisprohibitedtoadvertiseproductsorservicesinrelationto:• cigarette,tobaccoanditsaccessories;• anyitembannedinthePostalServicesAct1991forthepurposeofcheatingormisleading;• theoccultandfortunetellers;• marriageagenciesandfriendshipsclubs;• unlicensedemploymentagencies;• anyformofgamblingincludingbettingandgamblingtips;• clothingwhichisprintedwithword(s)orsymbol(s)thathaveaninappropriatemessage;• sexualorindecentscenesincludingkissingscenesbetweenadults;• pornography;• pig,porkproductsanditsderivatives;• firecrackers;• financialspeculationintendedtopromoteorattractinterestinanystocksorshares;• deathnotices,funeralandburialservicenoticesandburialmonuments;• discoscenes;and• slimmingproducts,whethertobeusedorallyorbyphysicalapplication.


Wearenotawareofanycasesrelatingtoonlineadvertisingandmarketing.


Advertisingmustbelegal,decent,honestandtruthful.

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Mexico

193

SOCIAL MEDIA – MEXICO


ThemainsocialmediaplatformsusedbyadvertisersinMexicoforadvertisingandmarketingtoconsumersareFacebook,YouTube,InstagramandTwitter.

AllimportantglobalsocialmediaplatformsareavailableforuseinMexico.


InMexico,thelawsandregulationsthatareapplicabletostandardadvertisingandmarketingarealsoapplicabletoadvertisingandmarketingviasocialmedia.

TheFederalLawonConsumerProtection—whichstates that advertisingmustbe truthful; theRegulationstotheGeneralLawonHealthinAdvertisingMatters;theFederalLawonGamblingand Draws; and the General Law on Tobacco Control are some of the most important legalinstrumentsregardingadvertisingandmarketing(forbothregularandsocialmediaadvertisingandmarketing).


TheCouncilforAdvertisingSelf-RegulationandEthics(‘CONAR’)hasissuedaCodeforAdvertisingEthics,aswellastwoothersectoralcodes(oneofthemdealingwiththeadvertisingoffoodandnon-alcoholicbeveragesdirectedatunderageaudiences;andtheotheronerelatedtoalcoholicbeverages).

Itisimportanttonotethatthesecodesareapplicablebothtostandardadvertisingandmarketing,aswellastoadvertisingandmarketingviasocialmedia.


Therearenospecificlaws,regulations,andself-regulatoryrulesrelatedtoinfluencermarketingviasocialmedia.However,thistypeofmarketingiswithinthegeneralscopeofapplicationofthelaws,regulationsandself-regulatoryrulesmentionedinanswers2and3above.


Therearenospecificlaws,regulations,andself-regulatoryrulesrelatedtonativeadvertisingviasocialmedia.However,thistypeofmarketingiswithinthegeneralscopeofapplicationofthelaws,regulationsandself-regulatoryrulesmentionedinanswers2and3above.


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SOCIAL MEDIA – MEXICO

There are no specific laws, regulations, and self-regulatory rules related to the use of usergeneratedcontentwhenadvertisingandmarketingviasocialmedia.However,thegeneralruleoftruthfulness of the advertising established in the Federal Law on Consumer Protection isapplicable,asaretheotherlaws,regulationsandself-regulatoryrulesmentionedinanswers2and3above.

TheuseofusergeneratedcontentmayalsoentailtheneedofusecertainlicensingtoolsdefinedintheFederalCopyrightLaw.


TheFederalLawonGamblingandDrawsregulatesbothregularsweepstakesandcontests,andthoseconductedviasocialmedia.Ifsweepstakesandcontests(involvingtheelementofchance)aretobeperformedwithinMexicanterritory,thenapriorauthorizationfromtheFederalMinistryof the Interior (SecretaríadeGobernación)mustbeobtained.Thisproceduremay take4 to6weeksforcompletion.


As canbe seen in theprevious answers, the laws, regulations and rules that are applicable toregular advertising/marketing are also applicable to advertising/marketing via social media.Therefore,agoodknowledgeregardingtheapplicationoftheselaws,regulationsandruleswillbecrucialforasoundlegalassessmentoftheadvertising/marketingviasocialmedia.


Sofartherehasnotbeenawidely-knowncaserelatedspecificallytoadvertising/marketingviasocialmedia(itshouldbeborneinmindthatadvertising/marketingviasocialmediaisrelativelyrecent inMexico).Nevertheless, it is important tomention that, according toArticle97of theFederalLawonConsumerProtection,anypersonmaydenouncebefore theFederalAgencyonConsumer Protection (‘Profeco’) the violation of any of the provisions of the Federal Law onConsumer Protection. This could includeArticle 32,which establishes the general principle oftruthfulnessofadvertising/marketingforbothregularandsocialmediaadvertising/marketing.


Article 32 of the Federal Law on Consumer Protection establishes one of themain pillars foradvertising/marketing inMexico (which is also applicable to advertising/marketing via socialmedia); namely that the information or advertising of goods, products or services that arepresented/transmitted throughanymeansor form shall be truthful, provable and lacking anytexts,dialogues,sounds,images,trademarks,appellationsoforigin,orotherdescriptions,thatleadormayleadtomistakeorconfusionbecauseoftheirmisleadingorexcessivenature.

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Netherlands

197

SOCIAL MEDIA – THE NETHERLANDS


Themainsocialmediaplatformsthatadvertisersuseforadvertisingandmarketingtoconsumersarethefollowing:• Facebook;• YouTube;• LinkedIn;• Instagram;• Snapchat;• Twitter;• Pinterest;and• Tumblr.

TherearenoimportantglobalmediaplatformsthatarenotavailableorarenotwidelyusedintheNetherlands.


Advertisingandmarketingviasocialmediaisgovernedbycivillawandtheself-regulatorysystem.

TheDutchCivilCoderegulatesthemainprinciplesofthreetypesofcommercialpractices:B2B,B2C and comparative advertising. The Copyright Act, the Benelux Convention on IntellectualPropertyandtheEuropeanUnionTradeMarkRegulation(‘EUTMR’)regulatetheuseofthirdpartyIPandportraitsin(interalia)advertising.

There are also various sector-specific laws in place that regulate certain aspects or types ofadvertising.Forinstance:• the Commodities Act and the various Decrees based on the Commodities Act (food

advertising);• theMediaAct2008(advertisingrelatedtothemedia);• LicensingandCateringAct(alcoholadvertising);and• theTobaccoAct(tobaccoadvertisingisprohibited).


TheDutchAdvertisingCoderegulatesthemainprinciplesofadvertising,suchaswhatconstitutesmisleadingadvertising.Alongsidethiscode,numerousspecificcodesapply,suchas:• AdvertisingCodeSocialMedia;• AdvertisingCodeforAlcoholicBeverages;• AdvertisingCodeforGamesofChance;• CodeforAdvertisingdirectedatChildrenandYoungpeople;• CodeforPassengerCars;• CodeforEnvironmentalAdvertising;and

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• CodefortheAdvertisingonMedicinalProductstotheGeneralPublic.

ThemostimportantsetofrulesspecificallyrelatedtoadvertisingandmarketingviasocialmediaislaiddownintheAdvertisingCodeSocialMedia(‘RSM’).BelowisasummaryofthemainrulesfromtheRSM.

(a) Advertising must be recognizable as such: Most importantly, the RSM imposes atransparencyrequirementonadvertisersanddistributors(bloggers/vloggers/influencers).Whereanadvertiserandadistributorhavea‘relevantrelation’witheachother,thecontentandnatureoftherelevantrelationmustbedisclosed.InthecontextoftheRSM,‘relevantrelation’meansa relationship aimedat (causing the)distributionofadvertising throughsocial media, in return for payment or any benefit, that might affect the credibility ofadvertisingthroughsocialmedia.‘Advertiser’meansthepartythat:(i) encouragesthedistributortocreateand/orpublishadvertisingthroughsocialmedia;(ii) advertisesbyplacingadvertisingonsocialmediaand/orby(causingthe)modification

ofcommunicationsonsocialmedia.TheexplanatorynoteswiththeRSMgiveexamplesastohowtherelevantrelationmaybedisclosed.

(b) Nomanipulation:Modifyingpostsorothercommunicationsonsocialmedia,suchthattheaverage consumermaybemisled, is prohibited. If an advertisermodifiesposts or othercommunications,orcausessuchmodification tocommend itsorathirdparties’product,serviceoractivity,itmustdisclosethisinaclearandaccessiblemanner.Ifpostsorothercommunicationsonsocialmediaaremodified,selectedorcomparedwithinthecontextofcommendingaproductoftheadvertiserorathirdparty,theadvertisermustdoeverythingnecessarytoclearlymentionthenatureoftherelevantrelation.Furthermore,theadvertiserisprohibitedfromsystematicallycreatingand/orusingfalseornon-existentidentitiesinbulktocommunicateaboutaproductand/orservicethroughsocialmedia.Theadvertiserisalsorequiredtomakethisknownwhendisplayingcontentgeneratedbyconsumersinaselectivemanner,asaresultofwhichonlypositivecommunicationsarepresented.

(c) Children:Directlyencouragingchildrenaged12orundertoadvertiseproductsorservicesonsocialmediaisprohibited.

(d) Dutyofcare:TheadvertiserisrequiredtoinformthedistributorofthecontentoftheRSMandtoobligethedistributortocomplywithallrelevantrulesandregulations,includingtheRSM.Ifthedistributorisallowedtoinvolvethirdparties,theadvertiserisrequiredtodrawthedistributor’sattentiontothefactthatsuchthirdpartiesmustalsocomplywiththeseprovisions.

InadditiontotheRSM,YouTube-influencershaverecentlyadoptedtheSocialCode:YouTube.Thiscodecontainsaself-regulatorysetofrulesthatonlybindtheinfluencers.AdvertisersarenotrequiredtocomplywiththeruleslaiddownintheSocialCode:YouTube.Pleasenotethatatthemomenttherearenoconsequencesforviolationsofthiscode.


IntheNetherlands,therearenospecificlawsorregulationsoninfluencermarketingviasocialmedia,exceptfortheRSM(astowhichseeanswer3).

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Therearenospecificrulesorregulationsrelatedtonativeadvertisingviasocialmedia.Thegeneralruleapplies:advertising,whetherornot throughsocialmedia,mustbeclearlyrecognizableassuch.Thiscanbeespeciallyproblematicwithnativeadvertising,astherationaleistosomewhat‘blendin’theadvertisementwithitssurroundings.


Nospecificrulesorregulations(other than thosediscussed inanswers2and3)apply tousergeneratedcontentinparticularwhenadvertisingviasocialmedia.Whichrulesapplydependsontheplatformused,thetypeofpostandtheproduct/serviceadvertisedinit.Forinstance:if:• theusergeneratedcontentisconsideredanadvertisement;• itispublishedonYouTube;and• alcoholisadvertisedinit,thepostwillhave tocomplywith, interalia, theDutchAdvertisingCode, theAdvertisingCodeSocialMediaandtheAdvertisingCodeforAlcoholicBeverages.


Asforthedeterminationoftheapplicablerules,adistinctionshouldbemadebetweenpromotionalgamesofchance(chance-based)and‘normal’competitions(skill-based).

Anexampleofapromotionalgameofchance isa lottery,wherewinnersaresimplyrandomlyselected.TheBettingandGamingAct(law)andtheCodeofConductforPromotionalGamesofChance(self-regulatoryrules)applytopromotionalgamesofchance(whetherornotconductedviasocialmedia).

However,iftheoutcomeofthecompetitioncanbeinfluencedbytheparticipants(forinstance:themostbeautifulororiginalentrywins),thecontestisa‘normal’competition,towhichnospecificrulesapply.

NB:Sweepstakesandcontestsmust,ofcourse,complywiththeapplicabletermsandconditionsofthespecificsocialmediaplatformthatisused.


Anever-presentissueisthedifficultyindistinguishingadvertising(whereadvertisingrulesapply)fromoriginalcontent(fallingwithinthescopeoffreedomofexpression).Animportantquestionhasbeenwhetherasocialmediapostcanbeconsideredadvertising,evenifthereisnoformofcollaborationbetweenanadvertiserandaninfluencer.TheAdvertisingCodeCommitteehasbeenveryquicktoconsiderpostsasadvertising,evenintheabsenceofagreementsregardingpostsonsocialmedia.Advertisersshouldkeepthisinmindwhenconcludingtalentagreements.

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(1) Avloggerpromotedinfantformulainoneofhervlogs(advertisingisnotallowedforthisproductcategory).Therewasnocollaborationbetweenherandtheproduceroftheformulaproduct, Nutricia. The ACC found that, regardless of the existence of a relationship, thevloggerwasadvertisingforNutricia.Sincethevlogdidnotcomplywiththerulesoninfantformulas,itwasfoundtobeinbreachofthelaw.

(2) SupermodelDoutzenKroespostedonInstagramaboutthebrandRivella,inwhichshedidnotsufficientlydiscloseherrelationshipwithVrumona,theproducerofRivella.ThisadwasfoundtobeinbreachoftheRSM.SheusedahashtagwiththesloganofRivella,whichwasnotsufficienttomakecleartoherfollowersthattherewasarelevantrelationshipbetweenDoutzenandVrumona.

(3) Avlogger reviewedvarious typesof coconutoil.Hewasonlypositiveaboutone typeofcoconut oil, and the complainant contended that there was a relationship between theproducerofthisoilandthevlogger.Thevloggerstatedthatheonlybasedhisopiniononpersonalexperienceandhisownresearch.Astheadvertiseralsodeniedthattherewasanysortofcollaboration,thevlogpostwasfoundtofallwithinthescopeofthevlogger’sfreedomofexpressionandcouldnotbeseenasadvertising.


• Makesurethatsocialmediaadvertisingisclearlyrecognizableasadvertising.TakenoteoftheexplanatorynoteswiththeRSM,whichexplainhowtodisclosearelevantrelationship(NBtheseexplanatorynoteswillbeupdatedin2018).

• Ifpossible,concludeawrittenagreementwithinfluencers.Obligetheinfluencertocomplywithalltheapplicablerules.

• Intheabsenceofawrittenagreementwithaninfluencer,advertisersshouldattheveryleastactivelyinformtheinfluencerabouttheRSMandotherapplicablerules.Forinstance,whensendinganinfluencerasampleproduct,includeanoteinwhichtheinfluencerisaskedtoreviewtheproductandpostonhis/hersocialmediachannelsbutisalsoaskedtocomplywiththeapplicablerules.Anyrulesspecifictotheproductconcernedshouldbelisted(eg,avoidhealthclaimswhenpostingaboutfoodproducts).

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New Zealand

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SOCIAL MEDIA – NEW ZEALAND


ThemostcommonsocialmediaplatformsusedbyNewZealandersare:• YouTube;• Facebook;• Instagram;• Pinterest;• Google+;• LinkedIn;• Twitter;• Tumblr;and• Reddit.


ThemainlegalcontrolsapplicabletoadvertisingandmarketingviasocialmediainNewZealandarethesameasthosethatapplytoadvertisinginallmedia,andarenotparticulartosocialmedia.

Intellectualproperty,contractlaw,passingoffanddefamationareallareasoflawthatarerelevantto advertising. In respect of legislation, the Fair Trading Act 1986 (‘FTA’) is the primary actcontrollingmarketingandadvertisinginNewZealand.

Theincreaseinmarketingviasocialmediahasincreasedtheattentiononhowthelegalcontrols,whichtoalargeextentwerecreatedinthecontextofmoretraditionalmarketing(egprintandtelevision),applytodifferentconceptsintheuseofsocialmedia.

TheFTAincludesageneralprohibitiononconductintradethatismisleadingordeceptiveorislikely tomisleadordeceive.This generalprovision captures advertising in any form thatmaymisleadordeceiveconsumers.Itisanobjectivetestandthereisnoneedforsomeonetoactuallyhave beenmisled or deceived. This provision is often used in conjunctionwithmore specificprovisionsthattheadvertisingormarketingmayalsohavebreached.

Further,morespecificprohibitionsincludemakingafalseormisleadingrepresentationthatgoodsor services have any sponsorship, approval, endorsement, performance characteristics,accessories, uses or benefits. The concept of ‘endorsement’ has becomemore relevant in thecontextofsocialmedia,inparticulariftheendorsementhasbeenpaidfor.

TheFTAisenforcedbytheCommerceCommission.TheCommerceCommissionmonitorssocialmediaand,whereitseesonlinecomplaintsthatmightraiseissuesundertheFTA,mayadvisethecomplainanttovisittheCommerceCommissionwebsiteforinformationonhowtomakeaformalcomplaint.


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The Advertising Standards Authority (‘ASA’) is a self-regulatory body in New Zealand thatregulatesadvertising in allmedia.TheASA issues codesof advertising standards (‘Codes’) foradvertisementstocomplywith.

TheASAhasabroadjurisdictioninrelationtovariousformsof‘advertisements’.ForthepurposesoftheASACodesofPractice,theterm‘advertisement’istakeninthebroadestsenseandincludesanyformofadvertisingwhichpromotestheinterestofanyperson,productorservice, impartsinformation,educatesoradvocatesanidea,belief,politicalviewpointoropportunity.

Members of the public can lodge a complaint with the ASA, free of charge, if they feel anadvertisement has breached one of the Codes. Complaints are heard by an independentAdvertisingComplaintsBoard.ThereisarightofappealtotheindependentAdvertisingStandardsComplaints Appeal Board. If a complaint is upheld, the advertiser will usually be required toremovetheoffendingadvertisement.AlldecisionsarepublishedontheASA’swebsite.

As referred to above, advertising through social media will generally come within the ASA’sjurisdictionandthereforetheCodeswillapply.Therearecurrentlyatotalof14Codeswhichcovervariousdifferenttopics,includingadvertisingtochildren,environmentalclaimsandadvertisingfood.TheAdvertisingCodeofEthicsprovidesfivebasicprinciples(aswellasanumberofmorespecificrules):(1) AlladvertisementsmustcomplywiththelawsofNewZealand;(2) Noadvertisementshouldimpairpublicconfidenceinadvertising;(3) No advertisement should bemisleading or deceptive or likely tomislead or deceive the

consumer:ThisreflectstheprohibitionintheFTA.Advertisementsmustnot,eitherdirectlyor by omission or ambiguity,mislead or deceive consumers. They should not refer to atestimonial unless it is genuine, current, directly relevant and is typical and not anexceptional case. Advertisement should also not use tests, surveys, research results, orquotationsfromtechnicalandscientificliteratureinamannerthatismisleading;

(4) All advertisements should be prepared with a due sense of social responsibility toconsumersandtosociety: Advertisementsshouldnotcontaincontentthatwould, in thecontextoftheprevailingcommunitystandards,beregardedasoffensive.Theyshouldnotplayonfear,orcontainunacceptableviolentbehavior.Theyshouldnotcontaindepictionsof danger or illegal behavior or situations that encourage a disregard for safety, unlessjustifiableoneducationalgrounds;and

(5) All advertisements should respect the principles of free and fair competition generallyacceptedinbusiness.

Withincreasingamountsofadvertisingoccurringthroughsocialmediaplatforms,theASAissuedaGuidanceNoteonSocialMediain2012.TheASAcommentsintheGuidanceNotethattheywillhave jurisdiction over representations made on social media platforms an advertiser uses topromoteitsbrandorproductoverwhichtheadvertiserhasa‘reasonabledegreeofcontrol’.


Wheresocialmediainfluencersarebeingpaidbybrandstoadvertisetheirproductsorservices,thereispotentialforconsumerstobemisledintothinkingthattheinfluencer’scontentiseditorial,whereinfactitisanadvertisement.Therefore.thereisariskofbreachingthegeneralprohibitionintheFTAonengaginginmisleadinganddeceptiveconductintrade.

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TheFTAalsospecificallyprohibitsapersonintradefromrepresentingthatgoodsorserviceshaveany sponsorship, approval, endorsement, performance characteristics, accessories, uses orbenefits where doing so would be false or misleading. Therefore, marketing that implies orencouragesconsumertoinferthatasocialmedialinfluencerissponsoring,approvingorendorsingagoodorserviceviaeditorialcontent,ratherthanmakingitclearsuchcontentisanadvertisement,maybreachtheFTA.

TheASA’sAdvertisingCodeofEthicsrequiresthatadvertisementsmustbepresentedsothattheyare easily distinguishable and readily recognized as an advertisement. Therefore, where aninfluencer’scontentisreallyanadvertisement, iethecontentiscontrolledbytheadvertiserasopposedtotheinfluencer,advertisersshouldtakestepstoensurethatviewersarenotifiedthatthecontentisadvertising.TheASAGuidanceNoteonSocialMediaspecificallystatesthatpaid-forTwitterendorsementsshouldincludethehashtag#ad.ThisislikelytobeapplicabletosponsoredInstagramandothersocialmediapoststoo.


Theinherentnatureofnativeadvertisingmeansthereisariskthataconsumermaybemisleadinto thinking content is independent and editorial when it is in fact paid promotionalmaterial/advertising.Therefore,thoseusingnativeadvertisingareencouragedtoclearlydisclosethatthecontent isanadvertisement,orriskbeing liable formisleadinganddeceptiveconductundertheFTA.Aswithalladvertisements,nativeadvertisingmustmeetthestandardsestablishedbytheASACodeofEthics,includingtherequirementthatconsumersareabletotellwhencontentisbeingpaidfor.Note,however,thatthereisnorequiredmethodofdisclosurestipulated.


Anadvertiser’sliabilityforusergeneratedcontent(‘UGC’)isanareathatisreceivingincreasedattention in New Zealand. Under the FTA, advertisers may be found liable for misleadingrepresentations.AccordingtotheASA,thiscanextendnotonlytothoserepresentationsmadebytheadvertiseritself,butalsoUGC,whichmayfallwithintheASA’sjurisdictionwhereitisregardedasadvertising.Therefore,representationsmadebyconsumerscommentingonthesocialmediapage of a particular advertiser may result in the advertiser being penalized. The ASA hascommentedthatthiswillbeconsideredonacase-bycase-basis,andthatmatterstheytakeintoconsiderationinclude:• whethertheadvertisersolicitedthesubmissionofUGCandadopteditanduseditinits

advertising;• whethertheadvertiserreceivedunsolicitedcontentwhichitthenincorporatedinits

advertising;and• whethertheadvertisersolicitedtheUGC(including,eg,throughacompetitionentry)that

wasthenpostedontheadvertiser’ssite.


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NewZealandhas specific gambling laws thatapply to sweepstakes generally, includingwherethosesweepstakesareundertakenonline(eg,viaremote interactivegambling).Therefore,anypersonproposingtoconductanonlinesweepstakeorcontestviasocialmediathatwillbeopentoNew Zealand entrants should seek specific legal advice on the application of New Zealand'sgamblinglawstothatsweepstake.Inadditiontothis,socialmediaplatformsoftenhavetheirownrequirementsrelatingtosweepstakes.

Inrelationtoadvertisingspecifically:Inadditiontothegeneralrestrictionsonfalseormisleadingconduct, the FTA provides that, where an advertiser promotes goods/services by offeringconsumersgiftsorprizes,theymustactuallyintendtoprovidetheprize/offerandinthemannerin which it was offered. Therefore the advertiser should describe the prize/offer accurately,including any relevant conditions and time limits, and generally refrain from misleadingconsumersabouttheirchanceofwinningtheprizeorthetermsoftheoffer.


Whenadvertising/marketingtoNewZealandresidentsitisimportanttoassessthesubject-matteroftheadvertisementandconsideranyindustry-specificconsiderationsthatmaybeapplicable.Asmentionedabove,theASAhasestablished14Codeswhichsetoutanumberofspecificrulesthatadvertisersmust complywith in key consumer areas, including the sale of alcohol, gambling,promotionofmedications,provisionoffinancialservices.


Generally recent cases relating to social media have concerned the jurisdiction of the ASA toconsiderthecomplaints.ThisisduetotheriseofsocialmediaadvertisingisafairlynewareaandtheASA’sjurisdictiononsomeissuesisyettobeestablished.

Adecisioninlate2017involvingthecompanyDBBreweriesLimitedconsideredinpartthescopeoftheASA’sjurisdictionregardingUGC.ThecomplaintwasinrelationtoFacebookandInstagrampages that depicted the consumption of Double Brown beer, a product of DB Breweries. ThecomplainantassertedthatthecontentbreachedtheASA’sCodeforAdvertisingandPromotionofAlcohol for various reasons, including having content that promotes excessive drinking andirresponsibledrinkingbehaviors.DBBreweriessaiditdidnotownorcontrolthecontentofthepagesinanyway.

TheComplaintsBoard considered that inorder for the contentmeet thedefinitionof ‘alcoholadvertisement’itneedsto:• begeneratedbyanalcoholproducer;and• beamessagecontrolleddirectlyorindirectlybytheadvertiser;and• haveanintenttoinfluence;or• beadvertiser-endorsedordistributedusergeneratedcontent.

BecauseDBBrewerieshadnotgeneratedorcontrolledthecontentonthepages,orendorsedordistributedtheUGC,thecontentsubjecttothecomplaintwasnotanalcoholadvertisementandwasthereforeoutsidethejurisdictionoftheComplaintsBoard.Therefore,thedecisionhighlightsthatinorderforUGCtomeetthedefinitionof‘advertisement’andcomeunderthejurisdictionoftheASA,theremustbesomeformofpositiveendorsementofthematerialbytheadvertiser.

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TheMarketingAssociation’sSocialMediaMarketingBestPracticeGuidelines,referredtointheASA’sGuidanceNoteonSocialMedia, provide someguidance for advertisers/marketingwhenpromotingonsocialmedia.Belowaresomeofthekeyguidelines:• Providethenameoftheorganization/brandbeingpromoted.• Distinguishbetweenpersonalandorganizationalpostsinordertoensureconsumerscan

clearlytellthecontentisadvertising.• Makeuseofdisclosureendorsements:Ifcontentisbeingpaidfor,ensurethatconsumers

arenotifiedofthis.• Disclosewhomanagessocialmediachannels:Thisprovidesgreatertransparencyasto

whoiscontrollingthecontentandisthereforelesslikelytobemisleading.• Ensurethatrepresentationofyourorganization/brandisconsistentacrossplatforms.

Someotherbestpracticesthatanadvertisershouldconsider:• Ifyouaresendingaproducttoaninfluencerwiththeintentionofhavingthempromoteit

onasocialmediaplatform,itwouldbeprudenttoenterintoanagreementwiththemsettingouttheirobligationsinordertoreducetheriskofthemmakingfalse/misleadingstatements/representationsabouttheproduct.

• Whereadvertiserscontrol/manageasocialmediaplatform,theyshoulddeveloptheirownsocialmediapolicies,withcleartermsofuseforuserspostingUGC.

• AnadvertisershouldalsohaveadisclaimeronthesocialmediaplatformthattheadvertiserisnotresponsibleforUGC.

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Nicaragua

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SOCIAL MEDIA – NICARAGUA


The main social media platforms that advertisers use in our jurisdiction for advertising andmarketingtoconsumersareFacebook,YouTube,PinterestandTwitter.

Wearenotawareofanyimportantglobalsocialmediaplatformsthatarenotavailableorarenotwidelyusedinourjurisdiction.


ThemainlawsandregulationsgoverningadvertisingandmarketingviasocialmediainNicaraguaare:• ConsumersandUsersProtectionAct,LawNo842(2013).• RegulationstotheConsumersandUsersProtectionAct,DecreeNo36-2013(2013).• CompetencyPromotionAct,LawNo601(2006)• RegulationstotheCompetencyPromotionAct,DecreeNo79-2006.

TheConsumersandUsersProtectionActcontrolsadvertisingandmarketingpracticesasawhole.The Competency Promotion Act controls comparative advertising and also includes a generalprohibitiononunfaircommercialpractices.Also,itisimportanttounderlinethatthegenerallawin the areas of intellectual property, contract and defamation is very relevantwith regard toadvertisingandmarketing.


Withtheexceptionofthebeerindustry,self-regulationisnon-existentinNicaragua.Therefore,thelegalcontrols,asearlieroutlined,aremostimportant.


Atpresent,thereisnodifferenceinthemainlegalcontrolsthatapplytoadvertisingandmarketingviasocialmedia,ascomparedtoofflineandotheronlinemediaplatforms.Furthermore,wedonotforeseeanychangesinthenearfuture.


Atpresent, there areno specific laws, regulations, and self-regulatory rules inour jurisdictionrelatedtonativeadvertisingviasocialmedia.

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SOCIAL MEDIA – NICARAGUA


Atpresent, there areno specific laws, regulations, and self-regulatory rules inour jurisdictionrelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.


ThespecificlawrelatedtosweepstakesandcontestsistheConsumersandUsersProtectionAct,LawNo842(2013).However,therearenodifferentorspecificprovisionsregardingsweepstakesandcontestsviasocialmedia.Therefore,thegeneralrulesareapplied.


In view that there are no specific provisions for advertising and marketing via social media,comparative advertising and other forms should be done according to the provisions of theCompetencyPromotionAct.


At present there have not been any judgments/decisions, and we do not foresee anychanges/legislation relating to the field of advertising and marketing via social media in ourjurisdiction.


• Avoidcomparativeadvertisement.

• Askforareviewoftheadvertisingpriortothelaunch,tobesureyouarecomplyingwiththelocalregulations.

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Nigeria

213

SOCIAL MEDIA – NIGERIA


ThemainsocialmediaplatformsfrequentlyusedbyadvertisersinNigeriaincludethefollowing:• Facebook;• Instagram;• Twitter;• Pinterest;• LinkedIn;• Snapchat;and• YouTube.

All these platforms are quite popular among Nigerian businesses seeking effective media foradvertisement,althoughsome,suchasFacebook,InstagramandYouTube,aremorepopular,andthusmorefrequentlyusedbyNigerianmarketers,advertisersandbusinessesalike.


Currently, there are no specific laws and regulations specifically governing social mediaadvertising andmarketing in Nigeria. However, the traditional rules governing advertisementgenerallyapply.Theseinclude:• theTrademarkAct;• the Nigerian Code of Advertising Practice and Sales Promotion and the Nigerian

BroadcastingCode(5thed);• theCinematographyActof1990;• theCopyrightAct;• Regulations1and2oftheCosmeticsandMedicalDevices(Advertisement)Regulationof

NAFDAC(NationalAgencyforFoodandDrugAdministrationandControl)1995;• theNationalTobaccoControlBill(NTCB)2009,2012&2013;• Regulations1and11oftheBottledWater(Advertising)RegulationsofNAFDAC1995;


Themainself-regulatoryrulesonadvertisingandmarketingviasocialmediainNigeriaincludethefollowing:• advertisingmusttellthetruthandmustnotmisleadconsumers;• claimsmustbesubstantiated;• consumers’onlineprivacymustbeprotected;• ruleagainstplagiarism—disclaimersanddisclosuresmustbeclearandconspicuous;• demonstrationsmustshowhowtheproductwillperformundernormaluse;• refundsmustbemadetodissatisfiedconsumerswherethisoptionhasbeenprovided;

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• theruleagainstinflammatoryadverts;and• theruleoffewwordsonpictures—picturesmustnotbeobstructedbytoomanywords.


Therearenospecificlaws,regulations,andself-regulatoryrulesinNigeriarelatedtoinfluencermarketingviasocialmedia.

However,thefollowingadvertisingrulesareadheredtobytheadvertisingpublic:• thedutytobehonest;• whereaclaimismadeastoexpertise,suchaclaimmustnotbefalse;and• thedutyofdisclosure—apersonwhoendorsesaproduct,whetherformoneyorforfreeor

atadiscount,orviasomeothersortofcontract,mustdisclosethenatureofthatrelationship.


As relates to theuseof influencers, native advertisingandonline reviews, it is important thatcompaniesmaketheproperdisclosuressothatconsumersarenotmisled.

Itisalsoexpectedthattheinfluencerorendorsershowsthesourceoftheproductaswellastheirrelationshipwithsuchproduct(ifany),especiallywheresuchrelationshipisboundtoinfluencetheresponseoftheconsumerstothegoods.


Therearenospecificlaws,regulationsorself-regulatoryrulesinNigeriarelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.However,thefollowingrulesandguidelinesrelatingtoconformitywithpublicmoralityaretobeadheredtobytheadvertisingpublic:• theruleagainstplagiarism;• anadvertmustnotbepolitically,culturallyorreligiouslyinflammatory;• anadvertmusthaveregardtothesocio-economicandculturalrealitiesofNigeria;and• anadvertmustbefreeofhatespeech.


TherearenospecificlawsorstatelegislationconcerningtheconductofsweepstakesandcontestsviasocialmediainNigeria.Certainself-regulatoryrules,however,serveasaguideinthisregard,althoughtheyarenotreallybinding.Theseareasfollows:• theruleagainstnon-disclosureofall therulesof thecompletion(egasregardswhocan

enter,aswellasthoseexcludedunderachecklistforgiveaway);• therulenottoofferupillegalproducts;and

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• sweepstakesrequireameansofentrythatdoesnotrequireapurchase/consideration.


Otherimportantissuestoconsiderinclude:• timemanagement;• insightastotheintentoftheadvert;• organization;• gooddesign;• honestcommunication&integrity;• effectivecommunication;• natureofproduct;and• accessoftargetmarkettotheinternet.


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Socialmediaadvertisingissubjecttothetermsandconditionsofthehostplatform’sowntermsofuse.However,afewbestpracticesincludethefollowing:• fulldisclosure;• advertsormarketingshouldnotbemisleading;and• adverts/marketingshouldnotinfringeontrademarksorcopyrightsofanybrand.

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Norway

217

SOCIAL MEDIA – NORWAY


Themain social media platforms that advertisers use are Facebook, Instagram and YouTube.Snapchatisalsoused,butlessthantheotherthree.

Themost importantglobalsocialmediaplatformsareallavailable,butWhat’sAppisnotmuchusedinNorway.


TherearenoparticularNorwegianlawsregulatingadvertisingandmarketingpublishedthroughsocialmediaas such.Advertising andmarketing via socialmedia followsmuch the same legalcontrols as offline advertising andmarketing, and advertising andmarketing on other onlinemedia platforms. Also, as in all areas of advertising andmarketing, intellectual property law,personaldatalaw,generalcontractlawanddefamationlawhavetobetakenintoconsideration.

The legal provisions in Norway relating to advertising and marketing are contained in theMarketingControlAct2009.Thiscontainsageneralprohibitiononunfaircommercialpractices;andfurthercontainsspecialprovisionsrelatingtotheprotectionofchildren,includingageneralprohibitiononunfaircommercialpracticesaffectingchildren.

TheMarketingControlActcontrolsadvertisingandmarketingpracticesasawhole,includingviasocialmedia. However, advertising andmarketing in the context of socialmedia gives rise toparticularissueswhichmakecertainenactmentsmorerelevantthantheymaybeelsewhere.

Keyprinciplesinclude:• marketingmessagestobedesignedandpresentedinsuchawaysothatitisclearthatitisa

marketingcommunication;• theconsumertobeincontroloftheadvertisementshe/shereceives,requiringtheconsumer

togiveprior,active,voluntary,express,specificandinformedconsenttoreceiveelectronicmarketing;

• banner advertisements to comply with general legislative requirements; any conditionsrelating to any salespromotions, competitions, offers or giftswithpurchase to be clear,transparentandeasilyaccessibletothesocialmediauser;and

• marketingdirectedatchildrenandyoungpeopleundertheageof18tofollowadditionalrequirements.

The Consumer Authority (‘CA’) (see below) has issued a number of guidelines of particularrelevancetosocialmedia,including:• GuideforlabellingofadvertisementsinYouTubevideos(2017);• TheConsumerOmbudsman’sguidanceonlabellingadvertisinginsocialmedia(2017);• PositionoftheNordicConsumerOmbudsmenonsocialmediamarketing(3May2012);• TheConsumerOmbudsman'sGuidelinesforBloggersontheMarketingControlAct;• Guidelinesonmarketingbye-mail,SMSetc(MCT§15)(21January2013);• GuidelinesonCommercialPracticestowardsChildrenandYouth(September2009);• GuidelinesonAdvertisingontheInternet(November2005);and

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• MobileContentServices—Guidelines2009.


Theonlyself-regulatoryrulesonadvertisingandmarketinginNorwayconcernthemarketingofunhealthyfoodanddrinksdirectedespeciallytowardschildren(seehttp://www.mfu.as/37532-Englishformoreinformation).


Influencersmustcomplywiththelawsandregulationsmentionedabove.TheCAemphasizesthatit is the advertisers’ responsibility to ensure compliance with laws and regulations whenpromotingthroughinfluencers(formoreinformationseehttps://www.forbrukertilsynet.no/eng-articles/advertisers-using-social-media-must-comply-with-the-marketing-control-act).


Pleaseseeanswer4.TheCAemphasizesthattheconsumershouldnotbeindoubtwhetherapostinsocialmediaisadvertisingornot.


Pleaseseeanswer4.TheCAemphasizesthattheconsumershouldnotbeindoubtwhetherapostinsocialmediaisadvertisingornot.


AdvertisersusingsocialmediamustcomplywiththeMarketingControlAct.Asfarassweepstakesandcontestsareconcerned,theMarketingControlActSection18isofimportance,whichstates:

‘Traderswhoinmarketingofferconsumersanadditionaladvantageoranopportunitytoobtain such an advantage, for example in the form of discounts, gifts, participation incompetitionsorgames,shallensurethatthetermsandconditionsformakinguseoftheofferareclearandeasilyaccessibletotheconsumers.’


From 1 January 2018 the Consumer Ombudsman (‘CO’) changed its name to the ConsumerAuthority (‘CA’). At the same time, it was given new and more efficient tools to stop illegalmarketing,unfaircontracttermsandotherviolationsofconsumerprotectionlaws.

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TheCAisanindependentadministrativebodywiththeresponsibilityofsupervisingmeasuresinthemarket,andwhichseekstoexertinfluenceontraderstoobservetheregulatoryframework.TheCAconsiderscasesfollowingcomplaintsfromconsumersandtraders,butwillalsolookatmarketingmeasuresonitsowninitiative.

Thechangesfrom1January2018mean,inshort,thattheCAitselfcanstopunlawfulpracticesandimposesanctionsagainsttraders,whilsttheMarketCouncilbecomesanappealbody.Decisionscanbemadeincaseswithoutnegotiationsfirstbeingcarriedoutwiththetraders;andmoretypesofoffencescanbesanctionedwithdirectadministrativefinesintheformofinfringementpenalties.

AlthoughtheCAisnolongerobligedtonegotiatewithtraders,dialogue,guidanceandnegotiationstoarriveatvoluntarysolutionsremainanimportantpartofitsactivities.

TheCAcarriesoutsupervisionoftheMarketingControlActaswellassupervisingcertainpartsoftheregulatoryframeworkgoverningadvertisinginbroadcasting.TheCAandtheMarketCouncilhaveauthoritytoissuedecisionsbanningunlawfulmarketingandcontracttermsandconditionsinstandardcontracts,whendeemednecessaryintheinterestsofconsumers.


N/A


Bestpracticeisregulatedin:• GuideforlabellingofadvertisementsinYouTubevideos(2017);and• ConsumerOmbudsman’sGuidanceonlabellingadvertisinginsocialmedia(2017).

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Panama

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SOCIAL MEDIA – PANAMA


ThereisnolimitationintheuseofsocialmediaplatformsinPanama.Instagram,FacebookandWhatsapparethesocialmediaplatformsthataremostwidelyusedinthePanamanianjurisdiction.


ThePanamanianjurisdictionsdoesnothaveaspecificlawgoverningadvertisingandmarketingviasocialmedia.Theregulationsgoverningadvertisingandmarketinggenerallyare:• LawNo45of31October2007,and• ExecutiveDecreeNo446of23June2009.


Whilst there are no specific regulations for advertising andmarketing via socialmedia in thePanamanianjurisdiction,aself-regulatoryruleapplicableingeneraltodifferentsituationsisthatadvertisingandmarketingmaterialshouldnotportraybehaviorcontrarytolaw,publicorderandmorals.


ThePanamanianjurisdictionsdoesnothaveaspecificlaworregulationsinrelationtoinfluencermarketingviasocialmedia.


Whilstthereisnospecificlaworregulationsrelatingtonativeadvertisingviasocialmedia,aspectsforthisareregulatedbyLawNo45of31October2007andExecutiveDecreeNo446of23June2009.


ThePanamanianjurisdictionsdoesnothaveaspecificlaworregulationsrelatingtotheuseofusergeneratedcontentforadvertisingandmarketingviasocialmedia.


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SOCIAL MEDIA – PANAMA

ThePanamanianjurisdictionsdoesnothaveaspecificlaworregulationsrelatingtotheconductofsweepstakesandcontestsviasocialmedia.Notwithstandingtheabove,ResolutionNo65of2October2002,issuedbytheGameControlBoardoftheMinistryofEconomyandFinance,maybeapplicable,which regulates on the functioning of games of luck and chance andactivities thatgeneratebetsplacedthroughgamessystemsofelectroniccommunication.


The same rules that are applied to common advertising are also applied to advertising andmarketingviasocialmedia.


AtthistimethereisnojurisprudencerelatingtoadvertisingandmarketingviasocialmediainthePanamanianjurisdiction.


Pleasenotethatsomekey‘bestpractices’foradvertisingandmarketingviasocialmediainthePanamanianjurisdictionare:

• advertisingshouldnotportraybehaviorcontrarytolaw,publicorderandmorals;and• alladvertisingandmarketingmaterialshouldbedulyverifiedbyyourlocallawyer.

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Paraguay

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SOCIAL MEDIA – PARAGUAY


ThemainsocialmediaplatformsutilizedbyadvertisersinParaguayare:(a) Facebook(forthesalesofmassconsumptionproducts),followedby:(b) Twitter(forinteractionwiththepublicingeneral),(c) Instagram(whichusehasgrownconsiderablyduringthepast twoyearsand,in theyear

2017alonehasregisteredanincreaseofusersof77%),(d) theprofessionalnetworkLinkedInisalsousedbymarketersandadvertisersbutonamuch

smallerscale.

Thereareno importantglobalsocialmediaplatformsnotavailable foruse,however, therearesomeplatformsthat remainunknown to themajorityof thepeopleandthereforenotusedbycompanies,(suchasperiscope).


Regulation of advertising and marketing via social media is not specifically addressed byParaguayan legislation, so in any given situation one has to refer to legislative bodies andregulationsconcerningadvertisingingeneral.

Forexample,theLawonConsumerProtectionsetsoutthemainguidelinesforadvertisingand,interalia:• ensures that consumers have the right to adequate protection against misleading

advertising, coercive or unfair commercialmethods, bywhichadvertisements posted bymarketersandadvertisersshallbedirect,straight-forwardandavoidanykindofambiguityordeceptionintheofferoftheproductorservice;

• determinesthatmanufacturers,importers,distributorsandsellersofproductsorservicesmustprovidetheconsumerswithtrue,accurateandobjectiveinformationregardingsuchproducts or services, which shall also be efficient and sufficient as to the features orcharacteristicsofthesame;

• determinesthat,withrespecttoproductsorservicesthatwhenutilizedmayposeanormalandforeseeablerisk,theyshallbecommercialized(andthus,advertised),withobservationofthemechanisms,instructionsandnormsnecessarytoguaranteetheirreliability;

• (withreferencetothepublicityandadvertisementthemselves)establishesthatanysortofmisleading or deceptive publicity/advertisement is strictly prohibited. The Law alsoexplains what is meant by ‘misleading’ advertising, namely any kind of advertisinginformation,disclosureorcommunicationthatispartiallyorcompletelyfalseoriscapableofconfusingconsumers;and

• prohibitscomparativeadvertising.Abusiveadvertising(meaningadvertisementsthat,forexample,displaysomesortofdiscrimination,orinciteviolenceorthetakingadvantageofchildren)isalsobanned.

There are special regulations regarding some products, such as tobacco products, alcoholicbeverages andpharmaceutical products, that shouldalsobe taken into accountby advertiserswhenmakingpublicityviasocialmediaplatforms.Forexample:(a) theadvertisementofprescriptionmedicinesorpharmaceuticalproductsisprohibited;

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(b) publicity concerning tobacco products shall contain a disclosure, asserting that tobaccoproducescancerandotherrespiratorydiseases;and

(c) the advertisement of tobacco products and alcoholic beverages cannot displaypictures/images/footagesof childrenor teenagersunder18, cannotbe related to familyenvironmentsorathletic/sportsevents,

amongotherissues.


There are no self-regulatory rules that specifically address the advertising and marketing ofproductsorservicesviasocialmedia.However,theAdvertisingSelf-RegulatoryCodeinParaguaysetsout themainprinciplesconcerningadvertisingandmarketing inParaguaywhichmustbetakenintoaccount,andthesearealsoapplicabletoadvertisingviasocialmedia.Forexample,theCodedeterminesthatadvertisingmustrespecthumandignity,privacyandshallnotinducethepublic to commit felonies or crimes; it shall respect themoral and good practices, it shall beaccurate,truthful,avoidingdeceptionortheprospectofmisleadingtheconsumers.


InfluencermarketingviasocialmediaisnotregulatedinParaguay.However, it isworthnotingthat there is a rule, which could apply to influencers and their advertisements/marketingstrategies, concerning the traceability of the advertiser; whoever makes an advertisement ormarketsaproductissubjecttodisclosingtheoriginoftheproduct/serviceandalso,thesourceofthepublicityoradvertisement.


Therearenolawsorregulationsconcerningnativeadvertisingviasocialmedia;however,suchtypesofadvertisement/practicesaresubject to themainregulationsdiscussed inanswer2; inparticular, that advertisers, influences, marketers, etc must avoid all types of misleadingadvertisement.Forthisreasonitisouropinionthatadvertisers,marketersandinfluencersshoulddiscloseanycontractoragreementtheyhavewithanycorporation/individualforwhomtheyareworkingoradvertisingproductsorservices.


The use of user generated content when advertising and marketing via social media is notregulatedinParaguayandsuchcontentsaresubjecttowhatisestablishedinthecopyrightlawand trademark law. It is doubtful that a usermay have any claims regarding content he/sheuploaded to a social network unless it is protected by copyright, for example. In any case,protectionalsodependsupon,andisgovernedby,theagreementsandtermsofuseofeachsocialmediaplatform.

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Therearenospecificlaws.Theyaregovernedbythelawsandregulationsconcerningcontestsandsweepstakesingeneral.


Therearenootherimportantissuestobeconsideredwhenadvertisingormarketingviasocialmedia.


WedonotknowofanyrecentjudicialcaseconcerningtheadvertisingandmarketingviasocialmediainParaguay.Thisisafieldthatisinitsinfancyandtakingitsfirststeps;althoughitisstartingtobeofgreatconcerntothepublicingeneral.

However,wewouldliketomentionasituationthattookplacejustafewweeksago,whenasocial-media influencer,model andactress, daughterofawell-knowntheatreactress anddirector inParaguay, posted an article on Facebook and Instagram, alleging that allmeat products, dairyproducts,andgluten-containingproductsaredetrimentaltopeople´shealth,supposedlybasedonscientificevidence.Thishadamajorimpactwithinthecommunity,assuchpostscouldleadpeople,especiallyteenagers,tothinkthatsuchfoodsarebadfortheirhealthandcausethemtoremovesuch foods from their diets, which could have a harmful effect, particularly on children andteenagers. Although thismatter causedawidespread reaction in the public at large, andwithnutritionistsandhealthpractitionersinparticular,suchactsarenotregulatedbytheParaguayanlegislation(atleast,notspecifically)noristhereanauthorityincharge;therefore,therearenosanctions to people, users, companies and influencers who provide false—and ultimately,harmful—information.


Ingeneral,wewouldadviseadvertisersandmarketerstoobservethenormssetforthbytheLawonConsumerProtectionandtheAdvertisingSelf-RegulatoryCode,aswellastherulesforpublicityof specific products. In this sense, all advertisement should be truthful, clear, concise, notmisleading,notdeceptive,notabusive;theoriginoftheadvertisementshouldbeabletobetracedandmarketersandadvertisersshouldavoidmainlycomparativeadvertisementaswellasunfaircompetitionpractices.Careshouldalsobetakenwhenusingthirdparties’trademarks,copyrightortheimageofpeople,whetherfamousornot.

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Poland

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SOCIAL MEDIA – POLAND


ThesocialmediaplatformsusedbyadvertisersinPolandincludeFacebook,YouTube,LinkedIn,Instagram,Twitter,Pinterest,Snapchat,Google+andothermostpopularworldwideplatforms.WearenotawareofanysocialmediaplatformsthatarenotavailableforuseinPoland;however,therearesomesocialmediaplatformsthatarenotwidelyusedsuchasQuora,StellerorAirhoot.


InPoland,therearenospecificprovisionsregardingadvertisingandmarketingviasocialmedia.Therefore,thegeneralrulesonadvertisingandmarketingmayapply,tobefound,interalia,intheActonCombatingUnfairCompetitionof16April1993.

Intermsofadvertising,unfairtradingpracticesinclude,inparticular:• advertisingthatiscontrarytolaworhonesttradepractices,orthatoffendshumandignity;• advertising that, bymisleading customers,may affect their decision to buy a product or

service;• advertising that appeals to consumers' emotions by causing fear or drawing on the

superstitionsorcredulityofchildren;• astatementthat,whilstinrealityencouragingthepurchaseofproductsorservices,givesthe

impressionofneutralinformation;• advertising thatsignificantly intrudes into customers’ privacy, inparticularbybothering

customersinpublicplaces,sending,atacustomer'scost,productsthatwerenotorderedbythecustomer,orabusingtechnicalmeansofcommunication.

Whenevaluating amisleading advertisement, all the elementsof the advertisement shouldbetaken into consideration, in particular those concerning the quantity, quality, ingredients,manufacturing method, fitness for a particular purpose, uses, repair or maintenance of theadvertisedproductsorservicesaswellasthecustomer'sbehavior.

Intherealityofsocialmedia,theregulationsregarding‘undercover’marketing(stealthmarketing)areofparticularimportance.Polishlawproscribesanyadvertisingwhichgivestheimpressionofneutral information, including references to the quality of productsmade via socialmedia bypersonsseeminglyactingasprivate,impartialuserswhilst,inreality,actinginconnectionwithamarketingcampaign.SuchactivitiesalsofallwithinthescopeoftheActonCounteractingUnfairMarketingPracticesof23August2007,whichforbidsmisleadingomissionssuchasnon-disclosureofthecommercialnatureofanactivityundertakenbyabusinessentitytowardstheconsumer.

OtherrulesthatareworthmentioningaresetoutintheActof29December1992onRadioandTelevisionBroadcasting.ThisActprovidesthatadvertisingtobaccoproducts,alcoholicbeverages,medical services, medical products, card games and mutual bets, psychotropic products andsolariumservices are forbidden.ThisAct applies solely to thedefinedon-demandaudiovisualmediaserviceproviderswithinallkindsofadvertising,includingviasocial-media.

Additionally,theregulationsonSPAMmayberelevanttomarketingviasocialmedia.UndertheElectronicServicesActof18April2002,itisforbiddentosendunsolicitedcommercialinformationtospecifiedindividualrecipientsbymeansofelectroniccommunication,inparticularviae-mail.Thisprovision is also applicable to commercialmessages sent, for instance, via Facebook.The

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consentoftherecipientisnecessarytoavoidviolation.Itmaybearguedthatclicking‘Like’onthefanpageof the advertiser is equivalent to such a consent; however, the law requires that suchconsentisexpressandcannotbeinterpreted(derived)fromadeclarationofdifferentkind.

There are also more detailed sectoral provisions on advertising in relation to the specificcategoriesofobjectbeingadvertisedthatshouldbecompliedwith,alsowhenadvertisingviasocialmedia. For example, underprovisionsof theAct onUpbringing in Sobriety andCounteractingAlcoholism of 26 October 1982 it is forbidden to publicly advertise and promote alcoholicbeverages,with theexceptionofbeer.Moreover,advertisementforbeermustsatisfystatutoryprerequisites, such as that it is not directed minors, does not encourage excessive alcoholconsumptionanddoesnotevokeassociationswithrelaxationorleisure.Anotherexamplemaybefound in theprovisionsof thePharmaceuticalLaw,whichprovides, interalia,aprohibitiononadvertisingmedicinalproductsbypubliclyknownpersons,scientistsorpersonswithmedicalorpharmaceuticaleducation.


Themain self-regulatory ruleson advertising andmarketingareprovided inCodeofEthics inAdvertisingwhichisabasicdocumentoftheCouncilforAdvertising—aself-regulatingbodywhichcomprisesadvertisingandmarketingassociationsaswellassectorassociations.TheCouncilforadvertising supervises compliance with the Code of Ethics and handles complaints fromconsumersandcompetitorsinrelationtoanyperceivedinfringements.TheCodeofEthicsdoesnotdistinguishbetweenadvertisingviasocialmediaandotherformsofadvertising;advertisingviasocialmediaisalsothesubjectoftheCouncil’sresolutions.

TheCodeofEthics contains several principles regardingadvertising that shouldbeobeyedbyadvertisers,ofwhichtheprimaryoneisthatadvertisingactivitiesshallbeperformedwithduediligence, in accordance with the prevailing standards of decency, with a due sense of socialresponsibility,andshouldconformtotheprinciplesoffaircompetition.TheCodeisdividedintochaptersthatregulatespecificaspectsofadvertising;egadvertisementsaddressedtochildren,thosecontainingecologicalinformation,andsponsorshipordirectmarketing.Although,theCodedoesnotlegallybindtheadvertisers,theCouncil’sresolutionsissuedasaresultoffiledcomplaintsfiledmayhaveahugeimpactontheadvertiser’simage.


Wearenotawareofanylaws/regulationsorself-regulatoryrulesrelatedtoinfluencermarketingviasocialmedia.


There are neither specific laws and regulations nor self-regulatory rules related to nativeadvertisingviasocialmedia;nor, indeed,does thereexistadefinitionof ‘nativeadvertising’ inPoland.GeneralprinciplesandprovisionsofPolishlawregardingadvertisingandmarketingapply.

Forinstance,undertheprovisionsofthePressLawActof26January1984,advertisementsshouldbedulymarked inamanner thatdoesnotcauseanydoubts,and journalistsmustnotconduct

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hiddenadvertisingactivity,whichaimstocreatefinancialorpersonalgain.Theserulesapplytoadvertisingthattakesplaceinthe‘press’withinthebroaddefinitionofthatwordgiveninthisAct.


Therearenospecificlaws,regulationsorself-regulatoryrulesrelatedtotheuseofusergeneratedcontent.Moreover, there is no legal definition of ‘user generated content’, and so use of suchcontentshouldbeinterpretedinlightofgeneralrulesandprinciplessetforthinPolishlaw.

ThePolishActof4February1994onCopyrightandRelatedRightsprotectsanauthor’scopyrighttoeach individualcreativework,embodied inanyform,regardlessof itsvalue,designation,ormediumofexpression.Ifauser’scontentfallswithinthescoperegulatedbythisAct,anyuseofsuch content shouldbeprecededby the author’s consent,while respecting the author’smoralrights.


From a legal point of view, conducting sweepstakes and contests via social media should beregardedastheprovisionofservicesbyelectronicmeansregulatedintheElectronicServicesActof 18April 2002, due to the fact that they areorganizedvia the internet.ThisAct imposesanobligationontheserviceprovidertocreatetherulesgoverningtermsofservice,andincaseofcontests, these should comprise, inter alia the organizer’s data, a description of the prize,explanationhowthewinneristobeselected,conditionsofparticipationandcontesttimeperiod.

Sweepstakes, which contain an element of randomness, may only be conducted if specificrequirements laidout inprovisionsof theGamblingActaremet.This shouldbe confirmedbydecisionintheDirectoroftheTaxAdministrationChamber.Failuretofulfilltheserequirementsmayresultintheimpositionofhighfinancialpenalties.


Itisworthmentioningthattheregulatorybodiesforspecificbusinesssectorsmonitoradvertisingvia social media. For instance, the State Agency for Prevention of Alcohol-Related Problems(‘PARPA’) considers fan-pages created by the alcoholmanufacturers to be alcohol advertising,which is forbidden in Poland for any alcoholic beverages except beer (alongwith some otherexceptions). In theory, such activity undertaken via social mediamay even result in criminalprosecutioninstigatedbyPARPA.

It is importanttonote thatviolationsof therulesrelatingtoadvertisinghaverecentlybeenofparticularinteresttotheconsumerandcompetitionregulatorinPoland.Iftheviolationthreatensthe collective consumers’ interests, the regulatormay impose a fine amounting to 10% of theannual incomeof theperpetrator.Someof therecentdecisionshavespecificallyaddressedtheissueofadvertisingviatheinternet.

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Wearenotawareofcasesthatwouldbeparticularlygroundbreakingasregardsadvertisingandmarketingviasocialmedia.

Therewas,however,acontroversialadvertisementofenergydrinkpublishedonInstagramontheanniversaryoftheWarsawUprisinglastyear.Itpresentedanobscenemiddlehandfingergesture(flipoff)withaverbaldescription‘Remembranceday.Screwallthat’shappened.What’simportantiswhatwillhappen'.

Thecasedidn’tcometocourt.TheCouncilforAdvertisingresolvedthatthatadvertisementwasnotperformedwithaduesenseofsocialresponsibilityandthatitcrossedthelineofgoodmannersandviolatedhistoricalvalue;whereupon,theenergydrinkproducerdecidedvoluntarilytopayhalfmillionofPolishzlotytotheWorldAssociationofHomeArmySoldiersasanapology.


Therearenogeneral ‘bestpractices’ foradvertisingandmarketingviasocialmedia inPoland.However, there are several sectoral-specific documents issued in relation to goodpractices inadvertising,suchas:• theAdvertisingCodeofPolishBreweries,which,interalia,indicatesthatadvertisingcannot

inanywaybeaddressedtopeopleunder18yearsofage;and• theCodeofGoodAdvertisingPracticesforDietarySupplements,whereitisprovidedthat

advertisementofdietarysupplementsshouldatleastincludetheterm‘dietarysupplement’andthenameoftheentitythatappearsontheproduct.

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Portugal

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SOCIAL MEDIA – PORTUGAL


ThemainsocialmediaplatformsthatadvertisersuseinPortugalareFacebook,Instagram,SpotifyandYouTube.Asforotherglobalsocialmediaplatforms,Twitteristheonlyonethatisnotwidelyusedbyadvertisers.


Therearenospecific lawsandregulations foradvertisingandmarketingviasocialmedia.Thegeneralrulesforadvertisingapply.

AdvertisingismainlyregulatedatanationallevelbytheAdvertisingCode,whichestablishesthecoreprinciplesandrulesforadvertisingactivityinPortugal.

Thefollowingarealsoofrelevance:• UnfairCommercialPracticesLaw,thatprohibitsthosepracticeswhichdonotemploythe

necessary professional diligence, and are likely to distort the economic behavior of theconsumer;and

• Consumer Protection Law, which contains some rules concerning the right to obtain acertainqualityofgoodsandservices,accordingtotheconsumer’slegitimateexpectationsandinformationprovidedbythesupplier/serviceprovider.

It is also important to refer to some of the provisions of the Portuguese Civil, Criminal andAuthorshipRightsCodeswhichcontainsomeimportantrightsandlimitationstosomemarketingpracticesusedinsocialmedia,egregardingdefamation/libel,withtheuseofadvertisingmeans;ortheuseofaperson’simage;theuseofthirdpartycontentorofUserGeneratedContent,etc.

Finally,incertainsituationsprivacylawsandpersonaldataprotectionlaws,shouldalsobetakenintoconsideration,especiallythoseregardingprivacyintheelectroniccommunicationssectorthatmayapplytoonlinemarketingactivities.


The Association of Advertising Self-Regulation (‘ARP’)—previously called Institute of Self-Regulation for Commercial Communications (‘ICAP’)—and the Consumer General Directorate(www.consumidor.pt), are the main supervising entities which exercise some control overadvertising andmarketing practices as awhole, specifically to protect consumers from illegalcommercialbehaviors.Theycoveralltypesofmedia,includingsocialmedia.

Thoughtherearenospecificself-regulatoryrulesonadvertisingandmarketingviasocialmedia,ARPhasdraftedseveralcodesofconductandguidestokeypractice,namely:• Theself-regulatoryCodeofConduct,basedontheInternationalChamberofCommerceCode

ofConductandspecificallyontheinternationalstandard(ISO14021);• The Good Practice Guide on Digital Marketing Communications and Online Behavioral

PublicityintheContextofSelf-Regulation;

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• Self-Regulation Code for Commercial Communication of Food and Beveragesdirected atChildren;

• CodeofSelf-RegulationfortheCommercialCommunicationonAlcoholicBeverages—WinesandSpirits.


Therearenospecificlegalcontrolsforinfluencermarketingviasocialmedia.Thereforethegeneralrulesregardingadvertisingprovided intheAdvertisingCodeandinotherself-regulatoryrulesshouldbeconsidered.

According to the general rules, advertising, and, by extension, ‘influencermarketing via socialmedia’, must respect the principle of identifiability. In compliance with this principle, alladvertisingmustbeunequivocallyidentifiedassuch,whateverthemeansused(Article8oftheAdvertisingCode).

It is forbiddentousesubliminal images toadvertisewithout theaddressesbeingawareof theadvertisingmessage(Article9).

Asforself-regulatoryrules,althoughtherearenospecificrulesfor‘influencermarketingviasocialmedia’ the rules set out by ARP should be considered. The ICAP Code of Conduct regardingAdvertisingandotherMeansofMarketingCommunicationstatesthattheadvertisersmusttakeevery measure to ensure that the consumer understands the commercial nature of thecommunication(ArticleD1).

The consolidated ICC Code on Marketing Communications again states that marketingcommunicationsmustbeclearlydistinguishedassuch,thusthecommunicationmustbepresentedinawaythatcanbeeasilyrecognizedasanadvertisementandthatallowstheconsumertoeasilyidentifytheadvertiser.


Portuguese legislation does not provide specific laws, regulations or self-regulatory rulesregardingnativeadvertising.

Therulesdiscussedintheanswertoquestion4alsoapplytonativeadvertisingviasocialmedia.


PortugueselegislationdoesnotprovidespecificlawsandregulationsregardingUserGeneratedContent(‘UGC’).

However,unlikenativeadvertisingandinfluencermarketing,thereareself-regulatoryrulesthatapplyspecificallytoUGC.

TheGoodPracticeGuideonDigitalMarketingCommunicationsandOnlineBehavioralPublicityintheContextofSelf-RegulationstatesthatUGCisconsideredmarketingwhenthe‘endusercreates

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advertising forproducts, services, or organizations, orwhen such content becomes part of anorganization'smarketingstrategy’.

TheGoodPracticeGuidealsoforeseesthatUGCisconsidereddigitalmarketingwhenthecontentis‘generatedbythirdpartiesorasaresultofviralmarketingthathasbeenappropriateorusedbythemerchant/advertisers’. Thus, to establish if a given caseofUGC is tobe considereddigitalmarketingtherearetwoquestionsthatmustbetakeninconsideration:• DidtheadvertisergenerateordistributetheUGCand/orviralmaterial?• Ifnot,didtheadvertiserendorsetheUGCand/orviralmaterialgeneratedbyathirdparty?

Iftheanswertoeitherofthesequestionsis‘yes’,theUGCinquestionwillconstituteamarketingcommunicationwithintheestablisheddefinitionand,assuch,theARPiscompetenttoanalyzethatUGCand,iftheARPconcludesthattheUGCviolatesitsCodeofConduct,theadvertiserinquestionmusttakeallappropriatemeasurestocorrectorremoveit.

In addition, it should be noted that the general rules regarding advertising provided in theAdvertising Code, and in the specific legislation for eachmedia used to advertise,will also beapplicable.

Also,giventhatthiskindofadvertisingandmarketingusescontentcreatedbyusersofasystemorservicethatismadeavailablepubliclyonthatsystem,itisalsoimportanttorefertosomeoftheprovisions of the Portuguese Civil, Criminal and Authorship Rights Codeswhich contain someimportantrightsandlimitations.


CurrentPortugueselawregardingprizedrawsdoesnotspecificallyconsiderthemediumusedtoconductsweepstakesandcontests.Therefore,thegeneralprovisionsregardingprizedrawsmustbeconsidered.

Portuguese law has a general prohibition (under the Gambling Law, Decree-Law 422/89 of 2December(lastamendedbyLaw114/2017of29December))onprizedraws(inwhichthechanceofwinningisdependentonluck/chanceoracombinationofskillandluck/chance),exceptthosewhichareauthorizedbytheGeneralSecretaryoftheMinistryofInternalAffairs(‘SGMAI’),underthetermsandconditionsauthorizedbylaw.

Ontheotherhand,forskill-basedcontests(inwhichthechanceofwinningisdependentonlyonskill)thereisnoneedtoobtainsaidauthorizationoraregistrationandtherearenospecificruleslimitingthetermsunderwhichtheycanbeexecuted.

Inlightofthis,inordertopromoteprizedraws,itisnecessaryforthepromotertorequestpriorauthorizationfromthecompetentlocalauthority.

There is also an issue concerning minors entering into prize draws and skill-based contests.AlthoughPortuguesecivillawadmitsthatminorsabove16andunder18canenterintocertainagreements,contractswithminorsmaynotalwaysbeupheld,andminorsmaynotbeboundbythetermsandconditionsofacontracttowhichtheyareaparty.Therefore,itisnecessarytoseektheexpressconsentoftheparents/guardianwhendirectingaprizepromotionatminors.


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Wearenotawareofanyimportantissuesregardingadvertisingandmarketingviasocialmediaotherthanthosealreadystatedabove.


Wearenotawareofanydecisionsorjudgmentsspecificallyaddressingtheseissues.


Eventhoughtherearenokey‘bestpractices’foradvertisingandmarketingviasocialmediainPortugal,theAdvertisingCodeestablishesanumberofkeyprinciples:• legality,• identification,• truthfulnessand• respectfortherightsoftheconsumer.

Advertisingandmarketingviasocialmediamustbeclearlyidentifiedassuch,whateverthemediaused. The use of subliminal images or other media exploring the possibility of transmittingadvertisingwithout the recipientbeing awareof thenatureof the advertisingmessage isalsoforbidden.

Advertisingandmarketing via socialmedia should respect the truthandnotmisrepresent thefacts. Therefore, all statements concerning the origin, nature, composition, properties andconditionsinrespectofgoodsorservicesadvertisedforpurchaseshallbeaccurateandcapableofproof,atanytimebeforethecompetentbodies.

Also,advertisingandmarketingviasocialmediamustnotinfringeconsumers’rightsandshouldnotdepict inappropriatebehavior, such as encouraging the consumptionofalcohol, theuseoftobaccoorcontainobsceneorsexuallyexplicitcontent.

Theseprinciplesareveryconsumer-protective.Moreover,otherprinciplesrequireadditionalcaretobetakenwhenfeaturingoraddressingchildreninmarketingcommunicationsegaminorcanonlybeprincipaladdresseeofanadvertisementwhenthereisadirectconnectionbetweenminorsandtheserviceorgoodsbeingadvertised.

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Puerto Rico

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SOCIAL MEDIA – PUERTO RICO


ThemainsocialmediaplatformsusedforadvertisingandmarketinginPuertoRicoareFacebook,Twitter,LinkedIn,Instagram,Pinterest,andSnapchat.Thesearealsothemostwidely-usedinthecontinentalUnitedStates.


Themain regulations governing advertising andmarketing inPuertoRico are theRegulationsAgainstMisleadingPracticesandAdvertising,RegNum8599-2015,andtheRaffleRegulations,RegNum7764-2009,governedbytheDepartmentofConsumerAffairsofPuertoRico.TheLanhamActandtheFederalTradeCommissionalsogovernadvertisingandmarketinginthejurisdictionofPuertoRico.


Theself-regulatoryrulesonadvertisingandmarketinginPuertoRicocomefromthesamesourcesas those governing advertising andmarketing in theUnited States.Theprincipal ones are theAdvertisingSelf-RegulatoryCouncil,theNationalAssociationfortheDeaf,andtheBetterBusinessBureau.


Influencer marketing via social media is mainly regulated by the Federal Trade Commission(‘FTC’).ThemainsourceofguidancewithregardtothisphenomenonaretheFTC’sEndorsementGuides.


ThemainlawsandregulationspreventingdeceptiveandunfairpracticesinPuertoRicoaretheFTCActandtheRegulationsAgainstMisleadingPracticesandAdvertising,RegNum8599-2015.


Thereare twostatutes thatgovern theextentofauthorshiprightsandusergeneratedcontentwhenitcomestoadvertisingandmarketinginsocialmedia:(1) the Puerto Rico Author Moral Rights Act of 2012, which grants authors the rights to

attribution,integrity,andwithdrawaloftheirworks,and(2) theCopyrightActof1976.

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SOCIAL MEDIA – PUERTO RICO


Themain regulations governing advertising andmarketing inPuertoRico are theRegulationsAgainstMisleadingPracticesandAdvertising,RegNum8599-2015;and theRaffleRegulations,RegNum7764-2009.


OneimportantfactortotakeintoconsiderationwhenadvertisingandmarketingviasocialmediainPuertoRicoisthatthestatutesandregulationsgoverningmarketingandsocialmediaintheUnited States also apply to Puerto Rico. Locally, the Consumer Affairs Department governsregulationsonrafflesandmisleadingpracticesandadvertising.AsacommonwealthoftheUnitedStates, even though autonomous on various aspects, Puerto Rico’s statutes and regulations inadvertisingandmarketingareintertwinedwithmainlandregulationsandstatutes.


PuertoRicohasnorecentcasesregardingadvertisingandmarketingviasocialmedia.FederalcasesandFederalTradeCommissiondecisionsapplyinPuertoRico.


Thebestpractices foradvertisingandmarketing in thePuertoRico jurisdictionare theguidesissuedbytheFTC.

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Romania

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SOCIAL MEDIA – ROMANIA


Facebook, Instagram and Snapchat are themain social media platforms used in Romania forgeneraladvertisingandmarketingtoconsumers.


The law that regulates the advertising and marketing via social media and other marketingchannelsisLawNo148/2000onAdvertising.LawNo158/2008onMisleadingandComparativeAdvertisingisalsoapplicable,havingafocusonconsumerprotectionandtheavoidanceofunfaircommercialpracticesandthe legal indicators tobeconsideredby theRomanianauthorities inqualifyingacommercialmarketingpracticeasmisleadingorcomparativeadvertising.

With a strong focus on EU provisions, Romania has adopted Law No 365/2002 regarding e-commerce.This law regulates the freemovementof the informational society, the commercialcommunication,thecontractconcludingandtheliabilityofserviceproviders.

Regardingthecontentofadvertisingonsocialmedia,thefollowingarealsoapplicable:• LawNo8/1996onCopyrightandNeighboringRights;• LawNo84/1998onTrademarkandGeographicalIndications;and• LawNo11/1991ontheRepressionofUnfairCompetition.

General Data Protection RegulationNo 679/2016 regulates the protection ofpersonal data ofnaturalpersonswhenadvertisingandperformingmarketingstrategies,including,butnotlimitedto,socialmediaadvertising.

Government Emergency Ordinance No 34/2014 on Consumer Rights in Contracts ConcludedbetweenConsumersandProfessionalsregulatestheconsumers’withdrawalrightfromdistanceagreements.

Government Ordinance No 21/1992 on Consumers’ Protection regulates consumers’ rights inrelationtotheadvertisingandmarketingmethodsdevelopedbyadvertisers.

Law No 506/2004 on the Processing of Personal Data and the Protection of Privacy in theElectronicCommunicationsSectorshouldalsobeconsideredofinterest.


Themainself-regulatoryregulationistheCodeofAdvertisingPracticeissuedbytheRomanianAdvertisingCouncil(‘RAC’),theRomanianself-regulatorybodyintheadvertisingindustry.

Theabove-mentionedregulationisnotmandatoryandcomesasarecommendationforthosewhoperformadvertisingandmarketingstrategiesonsocialmediaplatforms.

Also, the National Authority for Consumer Protection has issued Order No 72/2010 on theConsumers’ InformingMeasures, imposing obligations to all economic operators that performonlineadvertising.

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TherearenospecificlegalprovisionsoninfluencermarketingviasocialmediainRomania.

Thegenerallawsdescribedinanswer2above,alongwiththeRomanianCivilCode,areapplicabletothesetypesofactivities.


Therearenolaws,regulationsorself-regulatoryrulesinRomaniarelatedtonativeadvertisingviasocialmedia.

Article29DataProtectionWorkingParty’sOpinionNo5/2009onOnlineSocialNetworkingoffersguidelinesregardingcontextual,segmentedandbehavioralmarketingonsocialmediaplatforms.


LawNo677/2001ontheProtectionofIndividualswithregardtotheProcessingofPersonalDataandtheFreeMovementofSuchDataisthenationallawthatregulatestheprotectionofpersonaldataofthenaturalpersonsinrelationtoadvertisingandmarketingusergeneratedcontent.Thiswillbereplacedasof25May2018,whentheGeneralDataProtectionRegulationNo679/2016willcomeintoforce.

Wealsoconsiderofgreat impact theGuidelinesonAutomated IndividualDecision-makingandProfiling for thepurposesofRegulationNo2016/679 issuedby theArticle29DataProtectionWorkingParty.


GovernmentOrdinanceNo99/2000regardingtheSaleofProductsandServicesontheMarketcovers,toagreatextent,actionstopromote:• sales ata reducedprice: eg ‘soldout’, clearance sales, sales in factoryoutlets or factory

warehouses, promotional sales, price reductions for productswhich have not been soldwithin three months of supply, price reductions for perishable goods, price reductionsdeterminedbythecompetitionorimposedonthemarket;and

• directsales:egmultilevelmarketing,advertisinglottery,theorganizationofcontestsetc.


Oneofthemainissuesconcerningadvertisingandmarketingviasocialmediaisrelatedtopersonaldataprotection/data privacy. The users of social platformsare often aggressively targeted byadvertiserswithouttheirpriorconsentandwithoutthembeinginformedthattheirpersonaldataisprocessedandtransferredformarketingpurposes.

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Usersareregularlyspammedwithunwantedadvertorialcontentwithoutthembeingabletoopt-outeasilyfrombeingprofiledbytheadvertiserswithinsocialmediaplatforms.


InRomania,numerouscomplaintsregardingdataprotectionlegislationinfringementshavebeensubmittedtotheRomanianDataProtectionSupervisoryAuthority.Mostofthecomplaintsconcernunwantedandunsolicitedmarketingcommunicationsreceivedviasocialmedia.

Inonehigh-profilecasesaBelgiancourtbannedFacebookfromcollectingpersonaldatawithoutpriorconsentandsentencedFacebooktoaEUR250,000fine/dayofinfringement.


TheRACCodeofAdvertisingPracticerepresentsasetofethicalrulestobeobservedbyallthoseinvolvedinadvertisingandanyformofcommercialcommunication,inordertoprovideaproper,honest and decent communication, observing the law and the practice principles in theinternationally recognized advertising and commercial communication drafted by theInternationalChamberofCommerce(‘ICC’).

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Russia

249

SOCIAL MEDIA – RUSSIA


Russian social media landscape is represented by Vkontakte, with around 100,000,000 activeusers,andOK.ru,witharound50,000,000activeusers,thatdominateinthisarea.InternationalplayersFacebookandInstagramarealsopopularinRussia.

Amongthevideohostingplatforms,YouTube,anditsRussiananalogueRuTube,arewidelyusedbyadvertisers.

Asfornon-availableplatforms,LinkedInisthemostsignificantone,whichwasblacklistedintheterritoryofRussiain2016duetonon-compliancewithRussianpersonaldatalaws.


Russian lawsdonot containspecific regulationwith regard to socialmedia.TheFederalAnti-monopoly Service of the Russian Federation (‘FAS’), a state advertising regulator, considersadvertising campaigns on socialmedia in the samemanner as advertisements in general. TheFederalLawonAdvertisingprovidesalistofkeyprinciplestobefollowedinordertocomplywiththelaws.

First of all, advertising must be truthful, ie it must contain correct information, includinginformationontheadvantagesofthepurchasedgoods/services,anycharacteristicsofthegoods,priceofthegoods,purchasingterms,productwarrantyliabilitiesandsoon.

Second, the advertising should be ‘fair and trustworthy’. Advertisements must not containincorrect comparisons or discredit the honor, dignity or business reputation of third parties,includingcompetitors.Advertisingofthirdparties’goodsinamannerintendedtodiscreditsuchthirdparties’reputationisprohibitedandmayberecognizedanunfaircompetitioninaccordancewiththeantimonopolylegislation.

Anadvertisementshallbedeemedinaccurateifitcontains,interalia,inaccurateinformationon:• advantagesoftheadvertisedgoodsorservices;• anycharacteristicsofthegoods;• prices/discounts;• intellectualpropertyrights,etc.

Itisstrictlyprohibitedtouseswearwords,roughandoffensiveimages,aswellascomparisonsandexpressions,interalia,inrespectofsex,race,nationalityandageinadvertisements.

Specialregulationsaresetoutwithrespecttotheadvertisingoftobaccoandalcohol,includingontheinternet.


Therearenospecificself-regulatoryguidelinesdevelopedinRussiawithrespecttoadvertisingand marketing in social media. Certain guidance for online sources is provided by the ICC(International Chamber of Commerce)’s Code of Advertising and Marketing CommunicationPractice (https://iccwbo.org/content/uploads/sites/3/2016/10/ICC-Consolidated-Code-of-

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Advertising-and-Marketing-2011-English.pdf) (which underpins much of self-regulationworldwide),whichisalsoapplicabletosocialmedia,namely:• Whencollectingpersonaldatafromindividuals,careshouldbetakentorespectandprotect

theirprivacyby complyingwith relevant rules and regulations. Inparticularadvertisersshouldensurethattheindividualsconcernedareawareofthepurposeofthecollectionandofanyintentiontotransferthedatatoathirdpartyforthatthirdparty’smarketingpurposes.Nocollectionofpersonaldataisallowedotherthancollectedforspecifiedandlegitimatepurposesandnotusedinanymannerincompatiblewiththosepurposes(Article19);

• Websitesdevotedtoproductsorservicesthataresubjecttoagerestrictionssuchasalcoholicbeverages,gamblingandtobaccoproductsshouldundertakemeasurestorestrictaccessofminorstosuchwebsites(ArticleD5);

• Digitalmarketingcommunicationsdirectedatchildreninaparticularagegroupshouldbeappropriateandsuitableforsuchchildren(ArticleD5).

It was announced in September 2017 that the Russian Code of Advertising and MarketingCommunications Practice was adopted during the IAA International Ad Issues Summit in StPetersburg;however,thishasnotyetbeenpublished.


Russianlegislationdoesnotcontainspecialregulationoninfluencermarketing.TheFederalLawon Information, Information Technologies and the Protection of Information used to containprovisionsdevelopedspecificallyforbloggersmandatedtocomplywithadvertisinglawsiftheymeetthecriteriaestablishedbythisLaw.However,thesearenolongerinforce,andthereforeonlygeneralrulesandregulationsapplytoinfluencermarketing.


Therearenospecificlawsorrulesonnativeadvertising.Generaladvertisingself-regulation,andtheFederalLawonAdvertisingwillapply.Thismeansthatnativeadvertisingmustcomplywithgenerallegalprinciplesandmustbefair,trueandaccurate.Suchadvertisingshouldnotpromoteanyillegalcontent.


Therearenospecificlawsorregulationsonusergeneratedcontent.However,despitethelackofspecificlegislation,RussianauthoritiesarenowpayingconsiderableattentiontoactivityontheinternetandtreatinformationofanynaturedisseminatedthroughsourcestargetingRussianusersverycarefully.Toillustrate,theFederalServiceforSupervisionofCommunications,InformationTechnologyandMassMediaissuedanofficialletterinAugust2017statingthatusersmustadheretolegalrequirementswhenpublishingusergeneratedcontent.

From2012,breachofRussianlegalrequirements(ieinformationlaws,personaldataregulationorotherlegalrules)mayresultinanofficialbanoftheinformationsource(suchasawebsiteorwebpage)andtheinclusionofthesourceintheofficialblacklistmanagedbyaRussianauthority.

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Promotionalevents,includingsweepstakesandcontests,aresubjecttogeneralrequirementsofRussianlegislation,suchascivillawsaswellasadvertising,dataprotectionregulationsetc.

CertainrequirementsregardingtheadvertisementofpromotionaleventsareestablishedbytheFederalLawonAdvertising,namely,thattheadvertisementmust:• refertotimeframesoftheevent;• refertothesource(ienottotheinformationitself)whereinformationabouttheorganizer

oftheevent,theevent’srulesaswellasinformationastothenumberofprizesawardedwithintheevent,deadlines,theplaceandprocedureforreceiptoftheseprizesisdisclosed.

From theperspectiveofRussian law,skill-basedpromotionsmayqualify aspublic contests orgamblingactivities.Insuchacase,civillaworgamblinglawswillapply.


Inadditiontogeneralprinciplesofadvertisingregulation,thefollowingrequirementsshouldbenoted:• allplacedadvertisingmustbetranslatedintoRussianorsupportedwithatranslation,except

fortrademarksprotectedinRussiathatdonotrequiretranslation;• Russianlawhasspecificprovisionsaimedatprotectionofminors.Thekeyregulationsare

the Federal Law on Advertising and Federal Law on the Protection of Children againstInformationthatmaybeHarmfultotheirHealthandDevelopment;

• advertising that comprises remote/distance selling must include the seller’s name,registeredaddressandtheregistrationnumberof itsentry in theStateRegistryofLegalEntities;

• special rules were adopted due to the upcoming FIFA World Cup in Russia aimed atprotectionofFIFArights.


Nowadays,oneofthehottesttopicsinonlineadvertisingareais:‘Isone’sweb-pageadvertisingornot?’.Itisatrendforcompaniestohaveanofficialgroupinsocialmediaprovidinginformationabouttheirbusiness.Fromapracticalstandpoint,website/socialmediapagecontentisdeemedtobegeneralinformationandcannotbeclassifiedasadvertising.

However,therearecaseswhenthisissuewasconsideredadversely.Forexample,underRussianlaws it is prohibited topromotealcohol on the internet, aswellas any correspondingactivity,unless it is general information about the company and the goods it offers. ARussian alcoholretailerpostednewson anewproduct—vodka—and illustrated thisnewswith abanner.Thebannerattractedattention to aparticularproductandhadapromotionalnature.Therefore, itmightnotbeconsideredgeneralinformationabouttheselleroritsgoodsandtheFASdecidedthatwebsitematerialsshouldbeclassifiedasadvertising.

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Inanothercase,aRussianbankpostedanadverttargetingteenagersthroughInstagram,whichcontainedaslangwordreferringtoacertaincriminalsubculture.TheFASinitiatedproceedingagainst the bank claiming use of foul language in advertising. The case is currently underconsideration.


Dueto lackofanyclearregulationofnativeadvertisement,VKontakte,amajorsocialmedia inRussia,requestedtheofficialopinionoftheFASwithrespecttopaidmessagesregulation.TheFASconfirmedthatit isnotrequiredtodistinguishsuchmessagesfromanyotherbymarkingthemwith‘ad’or‘advertising’noticeifpostedinsocialmedia.

Facebook users complained to the FAS due to disseminating of an unlawful advertisement ofsmokingblends(drugs)oversocialmedia.AccordingtoFacebookpolicies,anyadvertisementofdrugs is prohibited. Facebook took proper measures to remove such illegal content and nopenalties or other liability issues, such as blacklisting the socialmedia in Russia,were raisedagainstFacebook.

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Serbia

255

SOCIAL MEDIA – SERBIA


MostoftheglobalsocialmediaplatformsareavailableinSerbia.ThemostpopularsocialnetworkisFacebook,butadvertisersalsouse(formarketingpurposes)YouTube,Instagram,LinkedIn,aswellasViberandWhat’sApp.So-called‘influencermarketing’isbecomingmoreandmorepopular,butthereisnoofficialdataaboutthistypeof‘online’advertising.

To thebestofourknowledge, themost importantmediabuyingagenciesactive intheSerbianmarketareusing,orevendeveloping,particulartoolsfor‘measurementoftheinfluencers’inordertotrackdownandusethemostimportantindividualsforthepurposesofadvertising.


Thereisnoseparateregulationconcerningadvertisingandmarketingviasocialmedia.Alltypesofadvertising(print,radio,TV,online,directmarketingetc)areregulatedbythegeneralLawonAdvertising.


Themost important self-regulatory rules in the areaof advertising (in general) aredevelopedwithin the Serbian Branch of the IAA (International Advertising Association). IAA Serbia hasdraftedaCodeofMarketingCommunications.ThisCode also covers ‘advertisingby theuseofdigitalmedia’.Therearealsoinitiativesforlaunchingaself-regulatorybodywhosemaingoalwillbetomonitortheimplementationofCodeinpracticeandtogiveopinionsastothecomplianceofaparticularcampaign.


There is no separate regulation that covers the area of influencermarketing on socialmedia.However,theLawonAdvertisingcoversso-called‘onlineadvertising’.Article45defines‘onlineadvertising’asadvertisingwhichusesweb-presentation,socialnetwork,applicationoranyotherformofonlinecommunication,where thecontentsof theadvertising ‘unambiguously indicatesthatitisaddressedtoadvertisementrecipientsfromtheRepublicofSerbiaandthattheadvertisedgoodsorservicescanbepurchasedand/ordeliveredontheterritoryoftheRepublicofSerbia’.Although,‘influencermarketing’isnotspecificallyrecognized,thedefinitionof‘onlinemarketing’isbroadenoughtoincludealsothistypeofmarketing.

The most important area specific to online advertising relates to the responsibility of theadvertisingplatform.Thisistreatedasan‘intermediary’,whichmeansthatitisresponsibleonlyuponnoticefromthecontrollingbody(the‘NoticeandTakeDown’systeminonlineadvertising).Allother(general)rulesthatareapplicabletootherformsofadvertisingarealsoapplicableto‘onlineadvertising’(eg,rulesconcerningsurreptitiousandmisleadingadvertising,rulesrelatedtothe protection of children andminors, limitationson the advertising of alcohol and gambling,prohibitionofdiscriminationetc).

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TheLawonAdvertisingregulatesnativeadvertising.Inparticular,Article12forbidssurreptitiousadvertising.Article13requires,whereadvertisingappearstogetherwithotherinformationofanon-advertisingnature,thattheadvertisementbeclearlymarkedwithrecognizablesign.Inotherwords,nativeadvertisingisallowedifitisproperlymarkedby‘graphical,visualand/oraudiosignwhich,subjecttothemethodofadvertising,characterizesaparticularmessageasadvertisement(eg “paid media space”, “advertisement” and the like)’. In other cases, where there is noappropriatemark,nativeadvertisingwillbetreatedassurreptitiousandthereforeforbidden.Theruleisapplicableforalladvertisingplatforms,includingsocialmedia.

TheCodeofMarketingCommunicationsalsohasrulesthatcouldbeappliedtonativeadvertising,forexampleArticle8(2)oftheCodeprescribesthata‘marketingcommunicationshouldnothideits commercial purpose. Therefore, a communication that promotes the selling of a particularproductshouldnotbepresented,forexample,asresearch,usergeneratedcontent,aprivateblogorindependentsurvey’.

Inaddition,theself-regulatorybodyforthepress(andinformativeportals),thePressCouncil,hasdevelopeditsownrules,theso-called‘GuidelinesfortheImplementationoftheJournalists’CodeofEthicsintheOnlineEnvironment’,whichalsohaveprovisionsrelevanttonativeadvertising.Thesestate,interalia,thateverytypeofcommercialadvertisingandpoliticalpropagandashouldbeclearlyseparatedfromthejournalisticandusergeneratedcontent.Suchseparationshouldtakeaccountof the levelofmediaanddigital literacyof theuser.Promocontentshouldbemarkedpursuant to the regulations and self-regulatory instruments which prescribes the rules onadvertising(forexample‘paidarea’,‘advertisingmessage’,‘promocontent’,‘Advertorial’etc.).

Therefore the most important regulatory and self-regulatory rules recognize the nativeadvertising,andinallsuchrulesitshouldbeproperlymarkedascommercialcontent.


Seeanswers2–5.


Therearenoseparaterulesrelatingtogamesofchanceandothersimilarcontestsviasocialmedia;thegeneralrulesareapplicable,dependingonthenatureofthecontest.

Themost important regulation is the Law on Games of Chance (governing the conditions fororganizing thecontest)andtheLawonAdvertising(concerninglimitationsonadvertising thisparticularservice).


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Theimportantissueisthatthewhole‘socialmediaphenomenon’isrelativelynew,therefore,itsmarketingpotentialasanadvertisingplatformhasbeen recognizedonly recently.Dataon thevalueofthemediamarketingeneral,andpercentageoftheonline(digital)marketshowsthattheindustry still doesn’t use this advertising platform to its full potential. Pursuant to NielsenEstimate,in2008,digitalwasonly1%ofthetotalvalueofthemarket.Ontheup-sideitisthatraremarketwhichhasstablegrowth,andin2016itwasover13%ofthemarket,butthisstillisverylowcomparingtoTVadvertising(above55%).

Thisaspectofthemarketdictatestheextentoftheregulationandregulatorycontrol.Thiscanbeseen,forexample,intheareaofpoliticalmarketing,wheretheadvertisingofapoliticalpartycouldbe forbidden on TV by reason of it being in breach of the rules relating to the content of theadvertisingmessage, but it couldbe freelydistributed, for example, viaYouTube, althoughthesame rules are (in theory) applicableonbothplatforms.AsTV is still thepredominantmediaplatforminSerbia,mostoftheavailableresourcesforenforcementoftheadvertisingrulesarefocusedonTV.


Oneofthemainproblemsisthecontrolofadvertisingviasocialmedia.Althoughwehaverules,thestatebodiesresponsibleforensuringcompliancewiththeadvertisingrulesdonothavethecapacitytocheckcomplianceacrosstheboard.Forexample,underSerbianLaw,onlineadvertisingofalcoholicbeveragesabove20%proof(egwhisky)isnotallowed;but,inpracticethereareclearcasesofsuchadvertising.Thesameistrueforadvertisinggamblingservices—inSerbiaonlythecompanies that hold a gaming license can be advertised under the provisions of the Law onAdvertising,but inpractice, therearemanycompanies thatareadvertisedviasocialnetworkswhichdon’thavesucha license.On theotherhand,majorcompaniesdon’twant toriskbeingcaughtbreakingthelaw,andinmostcases,complywiththeregulation.

Seealsotheanswerunder8above.


Unfortunately,therearemanycasesofmalpractice,forreasonsof:• theabove-mentionedrulesbeingrelativelynew(forexample,theLawonAdvertisingwas

passedin2016);• thespecificsofthemarket;and• thenatureoftheregulatorycontrol.

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Singapore

259

SOCIAL MEDIA – SINGAPORE


There is an increasing trendamongst advertisers forusing socialmedia.Facebook,WhatsApp,LinkedIn,Twitter,GooglePlus,Instagram,WeChat,YouTube,LineandPinterestarethepreferredsocialmediaplatformsforadvertisingandmarketingtoconsumersinSingapore.However,mostoftheimportantglobalsocialmediaplatformsareavailableforuseandareaccessibleinSingapore.


TheSingaporeCodeofAdvertisingPractice (‘SCAP’),which isadministeredby theAdvertisingStandards Authority of Singapore (‘ASAS’), sets out the basic framework for the regulation ofadvertisingandmarketinginSingapore(including,butnotlimitedto,advertisingandmarketingvia social media). In addition, there are specific statutes regulating advertisements of certainproducts and services, such as the sale of tobacco, pharmaceuticals, etc. Since social mediaencompasses‘onlineformsofcommunication’,therequirementsstipulatedinaplethoraofotherlaws, rules and regulations, including, but not limited to, the Internet Code of Practice, theElectronicTransactionsAct,theComputerMisuseActandthePenalCode,willneedtobeadheredto.Further,theASAShasrecentlypublishedGuidelinesforInteractiveMarketingCommunication&SocialMedia.


TheSCAPsetsoutanumberofkeyprinciplesinrelationtoadvertisinginallformsofmediaingeneral(andwhichequallyappliestoadvertisementsviasocialmedia):(a) alladvertisementsshould:

(i) belegal:Thecontentoughtnottocontainanythingthatisillegalorwhichmightincitepersons to break the law. Further, such activity should not be condoned inadvertisements. Further, advertisements should not contain anything thatcontravenestheethicalcodeofrecognizedprofessionalbodiesinSingapore,

(ii) bedecent:Thecontentoughtnottocontainanythingthatmaybedeemedtooffendthestandardofdecencythatprevailsinsociety,

(iii) behonest:Thecontentoughtnottoabusethetrustofitsusersorexploittheirlackofexperience,expertiseorknowledge,

(iv) avoidfear,superstitionandviolence:Thecontentshouldnotcontainanythingthatmightleadorlendsupporttoactsofviolence,

(v) betruthful:Advertisementsoughttobehonestandmustnotbemisleading,(vi) besafe:Thecontentshouldnotshowadisregardforsafety,(vii) protect children and young adults: The contest should not exploit the natural

credulityofchildren,and(viii) upholdsocialandculturalvalues:Regardshouldbehadtotheprevailingsocialand

culturalnorms;(b) alladvertisementsshouldbepreparedwithasenseofresponsibilitytotheconsumerand

society;

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(c) alladvertisementsshouldconformtotheprinciplesoffaircompetitiongenerallyacceptedinbusiness,including:(i) non-denigration,(ii) non-exploitationofgoodwill,and(iii) non-imitation;

(d) AlladvertisementsshallnotsubvertthesharedvaluesinSingapore’ssocietyincluding:(i) nationbeforecommunityandsocietyaboveself,(ii) familyasthebasicunitofsociety,(iii) communitysupportandrespectfortheindividual,(iv) consensus,notconflict,and(v) racialandreligiousharmony;

(e) AlladvertisementsshallnotsubvertSingapore’sfamilyvaluesof:(i) love,care,andconcern,(ii) mutualrespect,(iii) filialresponsibility,(iv) commitment,and(v) communication;and

(f) no advertisement shouldbring advertising intodisreputeor reduce confidence in it as aservicetotheindustryandtothepublic.

Inaddition,theGuidelinesforInteractiveMarketingCommunication&SocialMediapublishedbyASASsetoutthefollowinggeneralprinciples:• Allmarketingcommunicationmustbeidentifiedassuchanddistinguishedfromeditorialor

personalopinions.• Marketing communication should be clearly distinguishable from personal opinions and

editorialcontent,andshouldnotbemadetoappearlikethem.• Wherethereexistsaconnectionbetweentheendorserandthemarketerthatmaymaterially

affectthecredibilityoftheendorsement,suchaconnectionmustbefullydisclosed.• Thesubjectdescriptorandcontextshouldnotbemisleading.


Someofthegeneralprinciplesinrelationtoinfluencermarketingviasocialmediaareasfollows:• To the extent possible, the segment in the ad portraying the influencer and/or his/her

opinionoughttobegenuineandrelatedtothepersonalexperienceoftheinfluencer.• Careshouldbetakentoensurethattheinfluencerisindeedarealperson;inotherwords,

the influencer portrayed should not be based on a fictitious character so as to give theimpressionthatrealpeopleareinvolved.

• Anyexceptionalexperienceoftheinfluencer(iewhichdonotreflecttheexperiencethatanaverageuseroftheproductwouldordinarilyexpecttohave)shouldnotbeused.

• Where a connection existsbetweenthe influencer andthemarketer thatmaymateriallyaffectthecredibilityoftheendorsement,suchaconnectionmustbefullydisclosed.

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As per local practice, ‘native’ advertising generally refers to publications which resemble thepublisher’s editorial content but is paid for by an advertiser and is intended to promote theadvertiser’sproductand/orservice.TheSCAPsetsoutcertainprincipleswhichneedtobeadheredtointhatregard:• Theadvertiserandthepublisherhaveanobligationtoensurethatanyonewholooksatthe

advertisementisabletosee,withoutreadingitclosely,thatitisanadvertisementandnoteditorialmatter.

• Theword‘advertisement’shouldstandaloneandshouldappearontopofeverypageinsuchsizeandfontastobeeasilyseen.

• Iftheadvertisementoccupiespartofapage,itshouldbeseparatedfromanyadjacentmatterbyadistinctborder.

Fortheavoidanceofdoubt,theaboveareonlysomeofthegeneralprincipleswhichneedtobecompliedwith.


Someofthegeneralprincipleswhichapplyinrelationtousergeneratedcontentareasfollows:• Wheremarketersusesocialmediatoolstoencourage,measureandtraceuserengagement

inrelationtousergeneratedcontent,marketersmustnotboostuserengagementthroughfraudulentmeans.

• Thepurchaseof‘bulk’likesisnotpermitted.• Thecreationoffakeaccountsisnotpermitted.• Theuseofprogramsthatgeneratethesaidcontentand/orpageviews,isnotpermitted.


TheCommonGamingHousesActstipulatesthatanypersonwho:(a) announcesorpublishesorcausestobeannouncedorpublished,eitherorallyorbymeans

of any print, writing, design, sign or otherwise (including, but not limited to, via socialmedia),thatanyplaceisopened,keptorusedasacommongaminghouse,orinanyothermannerinvitesorsolicitsanypersontocommitabreachoftheprovisionsofthesaidAct;OR

(b) conducts in or through anynewspaper or any other periodical publication (whether viasocialmediaorotherwise),orinconnectionwithanytradeorbusinessorthesaleofanyarticletothepublic:(i) any competition inwhichprizesareoffered for forecasts of the results eitherof a

futureeventorofapasteventtheresultofwhichisnotyetascertainedornotyetgenerallyknown;or

(ii) anyothercompetitionsuccessinwhichdoesnotdependtoasubstantialdegreeupontheexerciseofskill,

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shallbeguiltyofanoffenceandshallbeliableonconvictiontoafineofnotlessthan$5,000andnotmorethan$50,000andshallalsobepunishedwithimprisonmentforatermnotexceeding3years.


Pleaserefertoanswers2and3.


CasesinrelationtoadvertisingandmarketingareseldomputinthepublicdomaininSingapore,aspartiesgenerallysettlethematterout-of-courtand/orbeforetheASASissuesapublicdecision.Bethatasitmay,therehavebeafewcaseswhichhavebeenreportedinthemediainthepast,oneexample is the dispute between Singtel, StarHub and M1 (as to which seehttp://www.straitstimes.com/singapore/singtels-controversial-campaign-good-wake-up-call-for-social-media-marketing-say-experts).


Pleaserefertoanswer3.

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Slovakia

264

SOCIAL MEDIA – SLOVAKIA


Currently,themostfrequentlyusedsocialmediaplatformsinSlovakiaareFacebookandYouTube.

Inabusinessenvironment,LinkedInisalsoverypopular.

OtherglobalsocialmediaplatformssuchasTwitter, Instagram,Snapchat,Google+etcarealsoavailableandregularlyusedbyadvertisers.

ThemostpopularlocalsocialmediaplatforminSlovakiaisadatingapp,Pokec.


ThereisnospeciallegislationregulatingsocialmediaadvertisinginSlovakia.Relevantrulesarescattered between various laws, including those covering advertising in general, unfaircompetition,dataprotectionandconsumerprotection.

AdvertisingingeneralisregulatedprimarilybytheActonAdvertisingwhichlaysoutthegeneralprinciplesofadvertising,aswellasbasicrequirementsforthecontentandformofadvertising.Theseprinciplesandrequirementsareapplicabletoallformsofadvertising,includingsocialmediaadvertising.

Other rules thatmustbe taken in consideration are contained in theCommercial Code(unfaircompetition rules, including misleading advertising), Civil Code (personality protection),CopyrightAct(authors’rights),ConsumerProtectionAct(consumerprotection),DataProtectionAct (personal data protection), Trademark Act, Act on Electronic Communications, Act onRetransmission,ActonDigitalRetransmission,etc.


Self-regulatoryrulesforadvertisingandmarketingviasocialmediaaremainlycontainedintheCodeofEthicsforAdvertisingPracticeissuedbytheSlovakAdvertisingStandardsCouncil(SlovakmemberofEASA).TheCodeofEthicsisageneralregulationapplicabletoallformsofadvertising,including advertising and marketing via social media, and contains general principles andstandardsofadvertisingaswellasrequirementsfortheadvertisingofspecificgoodsandservices.AlthoughtheCodeofEthicsdoesnotreplaceorsupplementthelegalregulation,itsprinciplesaregenerallyrespectedbyadvertisersinSlovakia.

Since 2008 the Rules for Online Advertising have been adopted by IAB Slovakia, the biggestassociationontheSlovakdigitalmarket,representingleadingSlovakpublishers,mediaagenciesandotherimportantplayersactiveinonlineadvertisinginSlovakia,withtheaimofestablishingasinglesetofrulesandstandardsfortheonlineadvertising.


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Therearenospecificlawsorregulationsrelatedtoinfluencermarketingviasocialmedia,despitethefactthatthisformofadvertisinghasbecomeveryattractiveforadvertisersinrecentyears.Intheabsenceofspecificrules,generalbindingandself-regulatoryrulesapply.

Abasic(implied)requirementforinfluencermarketingviasocialmediaisacleardisclosureofandrecognizabilityofrelationshipbetweentheinfluencerandtheadvertiser.AccordingtotheCodeofEthics, there isa relationshipbetweenadvertiserand influencer if the communicationprocessinitiatedbytheadvertiserorapersonauthorizedby theadvertiser iscarriedout inreturn forremunerationorotherconsideration.TheCodedoesnotspecifytheformsofsuchconsideration.Whilst any kind ofmaterial consideration is clearly caught by the rules, it is questionable if areward in form of increase of number of clicks or followers would be also regarded asconsiderationestablishingalinkbetweentheadvertiserandtheinfluencer.


Again,therearenospecificlawsorregulationsinSlovakiarelatedtonativeadvertisingviasocialmedia,thusgeneralbindingandself-regulatoryrulesapply.

Infirstplace,theregulatorswouldassessifthenativeadvertisingisclearlydistinguishablefromtheremainingcontentoftheplatform.AccordingtotheCodeofEthics,eachadmustbeidentifiableassuch.Nativeadvertisingviasocialmediashouldthereforealwaysbetransparentandvisiblymarkedassuchinordernottoconfusetheusersoftheplatform.Withoutacleardisclosure,theadvertiserandthemediaoperatorcouldbeinbreachofgeneralrequirementsfortruthfulnessandhonestyofadvertising.


Generalbindingandself-regulatoryrulesalsoapplytotheuseofuser-generatedcontentwhenadvertisingandmarketingviasocialmedia.

According the Code of Ethics, user-generated contentwithin social networks, blogs or similarvirtual platforms is considered as advertising, and, as such, subject to assessment by theAdvertisingCouncil,onlyifsuchcontentfallswithinthegeneraldefinitionofadvertising.

AdvertisingforthepurposesoftheCodeofEthicsmeansthecommunicationprocessinitiatedbyadvertiseror apersonauthorizedby the advertiser, aswell as the content resulting from thiscommunicationprocess,if:• thiscommunicationprocessiscarriedoutinreturnforremunerationorotherconsideration,

or• thepurposeofthecommunicationprocessistoinfluencethebehavioroftheconsumer,in

particulartoprovidetheconsumerwithinformationontheproduct,activitiesortargetsoftheadvertiser,oradvertiser´sprojectofacharitableornon-commercialnature.

If theuser-generated content fallswithin thedefinitionof advertising, itmust complywith allrequirements for advertising, including truthfulness, decency, honesty and due sense ofresponsibilityvis-à-visconsumers.

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Generalbindingandself-regulatoryrulesvalidinSlovakiaalsoapplytoconductingsweepstakesandcontestsviasocialmedia.

Sweepstakesandmarketingcontestsaregenerallycarved-outfromthestrictregimeoftheActonHazardousGamesandrepresentaverypopularmarketingtoolinSlovakia.Bindinglawsaswellasself-regulatoryrulesemphasizetherequirementfortransparencyandrequireacleardisclosureofall relevant informationregardingthecontest.Withoutacleardisclosure, theadvertising informofsweepstakesandcontestscouldbeeasilyfoundmisleading,whereasasimplepotentialtomisleadandaffecteconomicbehaviorofaconsumerisenoughforbreachofthelaw.


A typical issue in advertising and marketing practice in Slovakia is the misleading nature ofadvertising.Astherearenospecificrulesforadvertisingviasocialmedia,manyissuespertainingtothisformofadvertisingaresubsumedunderthegeneralprovisionsonmisleadingadvertising.

AccordingtotheCommercialCode,misleadingadvertisingisadvertisingwhichmisleadsorcouldmisleadapersontowhomitisaddressedandwhichmayaffecttheeconomicbehaviorofsuchpersonorwhichharmsormayharmanothercompetitororconsumer.

AccordingtotheCodeofEthicsmisleadingadvertisingisadvertisingwhichinparticular:• misleads the average consumer or significantly influences or is likely to significantly

influence theeconomicbehaviorof theaverageconsumer inrelation to theproduct inamannerwhichpreventshimfrommakingaqualifieddecision,or

• transmits in unclear, incomprehensible, multi-meaning or inappropriate mannerinformationessentialtotheaverageconsumerformakingaqualifieddecision;or

• usesanothermisleadingbusinesspractice.

Bothdefinitionsofmisleadingadvertisingarequitebroad.Asmentionedabove,asimplepotentialtomisleadaconsumerandaffecthis/hereconomicbehaviorisenoughtoconstituteabreachofthelaw/self-regulatoryrules.


MostoftherecentcasesrelatingtoadvertisingandmarketingontheinternetinSlovakiahaveconcerned ‘traditional’ issues regarding advertising content, such as themisleading nature ofclaims, missing or untrue information, offensive claims or images, insufficient protection ofminors,etc.Significantdecisionsrelatingtodifferentpitfallsofadvertisingviasocialmediaarestilltocome.


‘Bestpractices’foradvertisingandmarketingviasocialmediainSlovakiainclude:• transparency(egfairdisclosureofrelationshipbetweenadvertiserandinfluencer),

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• disclosure of relevant information (eg adequate disclosure of all material terms andconditionsofsweepstakesandcontests),

• clearidentificationofnativeadvertising,fairactingwithrespecttocustomers´reviews(egavoidingmanipulationwithcustomers´reviews,avoidingfalseprofilesandreviews,etc.),and

• fairandtransparentactingingeneral.

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South Africa

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SOCIAL MEDIA – SOUTH AFRICA


Themostwidely-used socialmedia platforms in South Africa for purposes of advertising andmarketingtoconsumersincludeFacebook,Twitter,Instagram,YouTubeandLinkedIn.InSouthAfrica,mostglobalandprominentplatformsareavailabletothepublic.


At present, social media advertising is not regulated in South Africa by way of any specificlegislation.However,alladvertisingandmarketing,includingadvertisingandmarketingviasocialmedia, must complywith the Consumer Protection Act 68 of 2008 (‘CPA’). The CPA containsspecificprovisionsrelatingtothemarketingofgoodsandservicesinSouthAfricaandsetsgeneralstandardstoensurethatthepublicisnotmisled.

Inshort,theCPAprovidesthatasupplierofgoodsorservicesmaynot,whenmarketingaproduct:• makeafalse,misleadingordeceptiverepresentationtoconsumersastothematerialfacts

relatingtoaproduct;or• failtocorrectanapparentmisapprehensiononthepartofconsumers.

Suchconductincludesinstanceswhereasupplierfalselystates,orimplies,orfailstocorrectanapparentmisapprehensionon thepartofaconsumerconcerning the ingredients,performancecharacteristics, accessories, uses, benefits, qualities, sponsorship or approval or the particularstandard,quality,grade,styleormodelofaproductwhenthisisnottrue.

Furthermore,asuppliermaynotuseexaggeration, innuendoorambiguityas toamaterial factpertainingtoaproduct.


TheAdvertisingStandardsAuthorityofSouthAfrica(‘ASASA’)isaself-regulatorybodyandplaysasignificantroleintheregulationofadvertisinginSouthAfrica.

TheCodeofPracticeofASASA(‘ASACode’)requiresthatadvertisingshouldbe:• legal,decent,honestandtruthful;• preparedwithasenseofresponsibilitytotheconsumer;• conformtotheprinciplesoffaircompetitionandbusiness;and• notbringadvertisingintodisreputeorreduceconfidenceinadvertising.

Furthermore,anadvertisermustbeable tosubstantiateall claims inmarketingoradvertisingmaterialthatarecapableofobjectivesubstantiation,bywayofdocumentaryevidence.

Inadditionto theASACode,advertisersandmarketersmayalsoneed tocomply, totheextentapplicable,withthecodesofconductoftheDirectMarketingAssociationofSouthAfricaortheWirelessApplicationsServiceProvidersAssociation.

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Nospecificlegislationdealswithinfluencermarketingviasocialmedia.However,giventhebroadscopeof thedefinitionsof ‘advertising’ and ‘advertisement’within theCPAand theASACode,influencermarketingmaywell be regardedasadvertising.Whenbloggers/influencerspost onsocialmediainrelationtoanadvertiser’sproductsorservices,thosepostscouldberegardedasadvertisements, because they are intended to market, promote, advertise or publicize theadvertiserortherelevantgoodsorservices.Accordingly,thiswouldalsorequirecompliancewiththeCPAandASACode.Influencermarketingshouldthereforecomplywiththerequirementsoffairandhonestmarketingandnotimplyafalseormisleadingrepresentation.


DespitetherebeingnospecificreferencetonativeadvertisingintheCPA,itcanbeinferredthatsuchadvertisingissubjecttotheCPA’sprovisionsinensuringthatfairandresponsiblemarketingisadheredto.Advertisersshouldensurethatnativemarketingisconductedinamannerthatisnotmisleading, fraudulent ordeceptive inanyway. Furthermore, theAdvertisingCodeofPracticerequiresthat‘advertisementsshouldbeclearlydistinguishableassuchwhatevertheirformandwhateverthemediumused’.


Thereiscurrentlynolegislationthatspecificallydealswiththeuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.

Usergeneratedcontentspecifiedforuseorinclusioninadvertisingandmarketingviasocialmediamay(dependingonthenatureofthecontent)amounttopersonalinformationasspecifiedintheProtectionofPersonalInformationAct2013(‘POPI’).However,POPIisnotyetinforceandwillonlybecomeeffectiveonadatetobedetermined.OncePOPIisfullyineffect,itwillapplytoanypersonorpublicorprivatebodywhodeterminesthepurposesofandmeans forprocessingofpersonal information (‘responsible party’) as well as third parties who process personalinformation for responsibleparties (‘operators’).An advertiser, as a responsibleparty, and itsoperatorsarethusrequiredtocomplywiththerequirementsforlawfulprocessingofpersonalinformationasspecifiedinPOPI.

Asfarasusergeneratedcontentisconcerned,itisworthmentioningtheFilmsandPublicationsBoard’sdraftOnlineRegulationPolicy. IfthePolicy is implemented,advertisingandmarketingplatformswouldhave toensure thatcontentpostedontheironlineplatforms isnotoffensive,specificallyagainstchildren.Anonlineadvertisingplatformwouldalsoberequiredtoreportanysuspiciousbehaviorrelatingtothecontentpostedbyusers.Failuretodosowouldresultintheimpositionoffinesorpenalties.

South Africa’s exchange control system might also have an impact on promotions and otheractivitiesthatinvolveusergeneratedcontent.Ifapromoterintendstoobtainownershipoftheintellectualpropertyrightsinusergeneratedcontent,andthepromoterisnotaresidentofSouth

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Africa,userswillneedtoobtainexchangecontrolapprovalinordertoassigntheirrightstothenon-residentpromoter.


The CPA governs the running of promotional competitions (sweepstakes/chance-basedpromotions).Althoughnoreferenceisspecificallymadetoconductingtheseviasocialmedia, itwould followthatcompliancewith theCPA’sprovisionswouldstillberequired for them.Suchcompetitionsdonotrequirepermitsorregistration.However, theCPAprescribes therequiredcontentofpromotionaloffersrelatingtosuchcompetitions,andtherunningofsuchcompetitionsmustbesupervisedbyanindependentauditor.Incontrast,contests(skill-basedcompetitions)arenotregulated,butmuststillcomplywithgeneraladvertisinglawrequirements.

Inaddition,oncePOPIcomesintooperation,advertiserswillhavetoensurecompliancewithPOPIinrespectofallpersonalinformationthatemanatesfromSouthAfrica,forexamplewhenhostingonlinecompetitionsinwhichSouthAfricanconsumersmayparticipate.


SouthAfricaisaconstitutionaldemocracyanditisthereforeimportanttonotethatalllegalissues,includingthoserelatingtoadvertising,willbeviewedthroughtheprismoftheConstitution.Intermsofadvertising,constitutionalissues,suchastherighttoequalityandfreedomofexpression,canberelevant.Intermsofculturalconsiderationsandpublicmorals,SouthAfrica,beingaverydiversecountry,haswidely-varyingculturalandmoralnorms,dependingon,forexample,race,socio-economicfactors,language,genderandreligion.


Currently,socialmediaisanundevelopedareaoflawinSouthAfricaandthereisnotmuchcaselawonthissubject.Therehasbeenasteadyriseinthenumberofdefamationcasesemanatingfromsocialmediaplatforms,wherethecourtandtribunalshavehadtoruleonissuesrelatingtodefamatorycommentspostedonsocialmediasites.Howevertheredoesnotappeartobecaselawspecificallydealingwithadvertisingandmarketingviasocialmedia.


Advertising claims may not, directly or by implication, omission, ambiguity, inaccuracy,exaggerationorotherwise,misleadtheconsumer.Thefactscontainedinanadvertisementmustbe capable of being proven truthful. Conspicuous disclaimers and footnotes are allowed, butcannotbeusedtocorrectanotherwisemisleadingclaim.Theymayonlyclarifyaclaim.

IntermsoftheASACode,advertisementsmustbeclearlydistinguishableassuchand,inrespectof electronic media, particular care should be taken to distinguish clearly between programcontent and advertising. Where there is the possibility of confusion, advertising should beidentifiedinamanneracceptabletotheASA.

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It should be noted that ASA was placed in business rescue in October 2016, but remainsoperationalatthisstage.DespitethecurrentjurisdictionallimitationsandfinancialsituationoftheASA,theASACodesetsouttheconditionsandrequirementsforfairandacceptableadvertisinginSouthAfrica.Assuch,itisadvisabletoensurethatalladvertsthataredirectedatSouthAfricanconsumersshouldcomplywiththeASACode.

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Spain

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SOCIAL MEDIA – SPAIN


ThemainsocialmediausedinSpainbyadvertisersforadvertisingandmarketingtoconsumersare: Facebook, Twitter, Instagram and YouTube. Others used are: LinkedIn, myspace, Flickr,Pinterest,VimeoandVine.


ThemainlawsgoverningadvertisingandmarketinginSpainare:• LeyGeneraldePublicidad(‘GeneralAdvertisingLaw’);• Ley3/1991deCompetenciaDesleal(‘UnfairCompetitionLaw’);• Ley34/2002deServiciosdelaSociedaddelaInformaciónydeComercioElectrónico(Law

onServicesoftheInformationSocietyandElectronicCommerce(‘LSSI’));• Ley Orgánica 15/1999 de Protección de Datos de carácter personal (Organic Law on

ProtectionofPersonalData(‘LOPD’));and• RDL1/1996,enacting theconsolidated textofLeydePropiedad Intelectual (‘Intellectual

PropertyLaw’).


TheSpanishadvertisingself-regulationassociation(‘Autocontrol’)haselaboratedtwoimportantself-regulationcodesinadvertisingandmarketing.

TheCodeofAdvertisingConductisbasedontheICCInternationalCodeofAdvertisingPracticeanddefinesthebasicprinciplesofadvertisingwhicharetruthfulness,legality,honestyandloyaltyofcommercialcommunications.

The Code of Ethics of Electronic Commerce and Interactive Advertising (‘Confianza Online’)containsspecificregulationsonadvertisinginelectroniccommunicationsmedia.

TheseCodesarebindingon themembersof theassociation.At thesametime, theyserveasaguidelineforpracticeswithnoexistinglegalframework.

CompliancewiththedecisionsofAutocontrolinrespectofcomplaintsastoadvertisingpracticesismandatoryforitsmembersandnon-memberswhoexpresslyacceptthecompetenceofthejury,andisvoluntaryfortherest.


Therearenospecificlaws,regulationsandself-regulatoryrulesrelatedtoinfluencermarketingviasocialmedia.Accordingly,thegeneralrulesareapplicable,namely:

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• ThecontentsofinfluencermarketingwillberegulatedbytheUnfairCompetitionLaw.Inaddition, being essentially an advertising activity, the General Advertising Law is alsoapplicable.

• ThecontractualrelationshipisgovernedbytheWorkers'Statute,theCommercialCodeandCivilCode.

• The activity is also related and affected by the LSSI and the consumer’s position by theGeneralLawfortheDefenseofConsumersandUsers.

• Andfinally, the IntellectualPropertyLawandtheOrganicLawonProtectionofPersonalDataalsocomeintoplay.

Firstofall,thespecifictermsandconditionsofthesocialnetworkonwhichcontentsaretobeuploadedshouldbeobserved,andtheinfluencershouldberequestedtobeespeciallycareful.

Theinfluencercontentmustcomplywiththeintellectualpropertyregulationstoavoidthirdpartyclaimsfortheuseofpictures,marks,textsdrawingsetc.

Thewayinwhichtheinfluencerpresentsthecontenttotheconsumerisalsoparamount,sinceusersneedtobeclearthatthecontentconstitutesanadandrelateittotheadvertiser,thebrandandsoon.Generally,clearreferencestotheadvertiserareincluded,eg,bytaggingintheimagesorincludingreferencestotheirprofileinthesocialnetworkorahashtag.

The relationships between a brand or company and an influencer may be assimilated to therelationshipwithacollaboratorandframedbyacontractthatspecifiestheservicesagreedon,forcontractualcertainty,andtoclarifytheresponsibilitiesincurredinbytheinfluencersincaseofinfringement.


There are no specific rules related to native advertising via socialmedia, and accordingly thegeneralrulesareapplicable.

Themain regulation is the GeneralAdvertisingLaw. This does not address native advertisingdirectly as an autonomous concept, but regulates prohibited practices, as well as setting outdifferent aspects that must be considered so that the advertising is legal, such as avoiding‘misleading’,‘covert’or‘disloyal’advertisements.

Additionally,nativeadvertisingisaffectedbytheUnfairCompetitionLaw,bytheLSSIandbyLaw29/2009,modifyingthelegalregimeofUnfairCompetitionandAdvertisingfortheimprovementofconsumers’andusers’protection.


Therearenospecificrulesrelatedtousergeneratedcontent,andaccordinglythegeneralrulesareapplicable,inparticular,theIntellectualPropertyLaw,theLSSI,andtheOrganicLaw1/1982onCivilProtectionoftheRighttoHonor,toPersonalandFamilyPrivacyandtoOne'sOwnImage.

Withregardstousergeneratedcontent,thelegalconditionsoftheadvertisingcampaignoractionandthesocialnetwork’sconditions(astowhichseeanswer4)areessentialandwillframeboth

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thefutureuseoftheusergeneratedcontentandthepossibleresponsibilitiesforinfringementsormoralrightsviolations.

Thepromotionsmustbe clearly identified,although the terms ‘publicidad’, ‘public’ etcarenotcompulsory.


Therearenospecificlawsandaccordinglythegeneralrulesareapplicable,namely:• theLSSI,astohowtoprovideinformationontheInternet;• Royal Decree 439/2007 approving the Personal Income Tax Regulation, as to the tax

treatmentofprizes;and• Organic Law 15/1999 on Protection of Personal Data; supplemented by Royal Decree

1720/2007,whichdevelopsthisasregardsdatacollection.

Alsopossiblyapplicable,dependingonthelaterpurposesofthepromotionare:• RDL1/1996approvingtherevisedtextoftheIntellectualPropertyLawand• OrganicLaw1/1982onCivilProtectionoftheRighttoHonor,PersonalandFamilyPrivacy

andtoOne'sOwnImage.

As regards self-regulatory rules,Autocontrol has aCódigodeConducta SobreComunicacionesComercialesdelasActividadesdeJuego.

Justasthecontractregulatestherelationshipwiththeinfluencer,thelegalbasesofthepromotionregulateanyfutureusesofthecontentandanyresponsibilitiesorconflictswiththeparticipants.

Thelegalbasesneedtobeaccessibletousersbeforeandduringthepromotion,inthesamewayasin ‘physical’promotions.Aclearwordingofthe legalbasesisalsorequestedasinanyothersweepstakesandcontests.Nodifferenceshereexceptasinthemeansofparticipation.

In general, noprior authorizations are requested for sweepstakes and contests. Fordraws, anadvancetaxpaymentof10%ofthevalueoftheprizesisrequiredtobemade.However,thisisnota requirement for contests. The difference between a ‘draw’ and a ‘contest’ is in the ‘luck’ or‘random’factor.Apromotionisadrawwherethewinnerisselectedbychance;incontests,thewinnerisdeterminedbymerits,notchance.

Theadvertiserneeds tomakesure thatareference to the ‘contest’, ‘draw’. ‘raffle’andsoon isincludedsothatthereisavalidindicatoroftheuser’swillingnesstoparticipate.

Themainspecificcharacteristicofsweepstakesandcontestsviasocialmediaisthattheobjectofmanyofthemistoseektoobtainmoresubscribers,followers,likes,repostsorretweets;withthewinnerdependingontheimpactthattheyhaveonthesocialnetworkforthebrand.Inthisrespect,consideringthepeculiaritiesofthesocialnetworkplatformsandtheeasinesstodistorttheresults(duplicated profiles, users created ad hoc etc), specific mechanisms of control for these badpracticesneedtobeimplemented.


Itisimportanttoensurethat:

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• theadvertisingandmarketingit isaddressedonlytothebrand’sfollowersinthespecificnetwork;

• the advertising nature of themessage is clearly identified, including theword ‘Publi’ or‘Advertising’atthebeginningofit;and

• informationastohowtopreventreceivingfurtherpromotionalmessagesisgiven.

Asalreadymentionedabove,advertisingandmarketingpracticesinsocialmediaarealsocoveredbythegeneralrulesapplicableintheareaofadvertising.Theserequireadvertisingtobetruthful,legal,honestandloyalandofanaturethatdoesnotmisleadtheconsumeranduser.Theadvertiserandtheadvertisingmessagemustbeidentifiableassuch.Surreptitiousadvertisingisprohibited.

The rules in the self-regulation codes of Autocontrol state that advertising in the electroniccommunications media must be developedwith a sense of social responsibility and may notconstituteameansforabusingthegoodfaithoftheaddressees.Furthermore,contentwhichcouldbediscriminatory(forreasonsofnationality, race, sex, sexualorientation, religiousorpoliticalconvictions),beagainstpersonaldignityorincitethecommissionofunlawfulactsisprohibited.

Advertising communications in electronic media must respect the intellectual and industrialpropertyrightsofthirdparties(otherthanthoseoftheadvertiser).

Article 11 of the Confianza Online Code establishes guidelines for advertising in newsgroups,forums,chatroomsandthe like.With theexceptionof forumsandchatroomsofanadvertisingnature, the signatories to this code are required to inform theirusers thatnewsgroups,noticeboards,forumsorchatroomscannotbeusedforonlineadvertising.(Thisdoesnotapplywhentheadvertisingcomplieswiththerulesregardingtheadmissionofadvertisinginthegroup,forumorchatroom in question and if the prior consent of themoderator or service provider has beenobtained.)


Almostalltherecentexamplesarecasesofsexistorracistadvertising,somewithacourtruling,others withmere social pressure on the social networks, that arewithdrawn on the basis ofconsumerassociations,andothercollectivesthreatofbringingcourtactions.

Oneexamplerelatestoaclaimwasbroughtbyaconsumer’sassociation(ADECUA)withrespecttoaRyanaircampaign,wherefemaleflightattendantsappearedinbikiniswiththeslogan‘Tarifasalrojovivo’(redhotrates).TheprovincialCourtofMalagaheldthistobeunlawfulandunfairforbeingsexistandorderedthecompanytoceasethiscampaignandtorefrainfromresumingitinthefuture.

Also inMalaga, the TownHall has banned an advertising campaign of awebsite showing thebuttocks andgenitals of awomanwithan explicit slogan.Out of interest, thewebsite remainsactive,withitssolecontentbeingasubmissionformwhichhasbeentherefromthebeginning.

Examplesofsocialmediapressurecanbefoundinanadforelectricbicycles.InPinarelloNytrocampaign,thepictureofawomanwasaccompaniedbytheslogan‘I'vealwayswantedtogooutridingmybikewithmyboyfriend,butitseemedimpossible,everythingwillbepossiblesoon’.Theoverwhelmingreactionofusersonsocialnetworkswassuchthat,justhourslater,Pinarellowasforcedtowithdrawthecontroversialad.

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Big companies are not free from guilt either. Yves Saint Laurent was forced to withdraw acampaign after controversy aroused in the social networks accusing the French company of‘incitingrape’byshowingimagesofwomeninposesthatwereconsideredas‘degrading’byusers.

Onadifferenttopic,aninhabitantofasmalltowninValladolidobtainedafavorablerulingonhiscomplaintagainsttheTownHallforincludinghimwithouthisconsentinaWhatsAppgroupinwhichhereceivedpublicityandnews.TheSpanishAgencyforDataProtection(AEPD)declaredthisinfractionassevere(withfinesfrom40001€upto300000€).


• Torespectthegeneralrulesandtoclearlyidentifythecommercialcommunicationsaswellasthenaturalorlegalpersoninwhosenameareconducted.

• Nottoperformintrusiveadvertising.

• Includeclearreferencestotheadvertiser,forexample,taggingintheimagesorincludingreferencestotheirprofileinthesocialnetwork.

• Although it isnotmandatoryor requiredby the applicable regulations, it is increasinglycommontoincludethehashtag#publi,#publicidad,#anuncio#ad,#sponsor,etc.

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Sweden

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SOCIAL MEDIA – SWEDEN


AllimportantglobalsocialmediaplatformsareavailableforuseinSwedenandtheseareusedinvariousdegreesbyadvertisers.Facebook,InstagramandYouTubearethemainplatformsusedforadvertisingandmarketinginSweden.


Thereisnospecificregulationgoverningadvertisingandmarketingviasocialmedia,butgenerallawsandregulationsapply.

AdvertisingandmarketingisprimarilyregulatedbytheSwedishMarketingPracticesAct(‘MPA’)andothermarketinglegislationsuchastheSwedishActonNameandImageinAdvertising.

Themarketinglegislationissupplementedbyvariousstatutoryconsumerprotectionlaws.Therearealsoprovisionsrelevantforadvertising found insector-specificlegislationrelating to, interalia,alcohol,tobacco,lotteries,consumercredits;andmedia-specificlegislationrelatingtoradioandtelevisionetc.

In addition, intellectual property and data protection legislation (the European General DataProtectionRegulation(‘GDPR’)willenterintoeffecton25May2018)mustbeconsidered.


Theprimaryandgeneralself-regulatorysystem istheSwedishAdvertisingOmbudsman(‘AO’).TheAO,amongstotherroles,reviewswhetheradvertisingiscompliantwiththeAdvertisingandMarketingCommunicationPracticefromtheInternationalChamberofCommerce(the‘ICCCode’).Individuals,companiesandotherorganizationscanfileacomplainttotheAO.Incasesofgeneralpublic interest,theAOmayalso initiate itsown investigationwithoutacomplainthavingbeenlodged.



TheMPAprovidesthatacommercialpost(suchaspaidcontent)publishedbyaninfluencershallbe formulatedandpresented insuchawaythat it isclear that it isamatterofmarketing.Theaverageconsumershouldthereforebeabletoidentifycommercialcommunicationsasamatterofmarketingwithease.Additionally,thepartyresponsiblefortheadvertisingmustalsobeclearlyindicated.Incaseofwell-knownbrands,useofatrademarkmaysufficeinthisregard.

Anadvertiserisobligatedtoinformtheinfluenceroftheseduties.

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Theissuesrelevanttoinfluencermarketingdiscussedatanswer4alsoapplytonativeadvertising.


TheobligationundertheMPAtoidentifycommercialcontentasmarketingmeans,interalia,thatitmustbemadeclearifauserhasbeenincentivizedtopromoteaproductorservice.Atraderwillbeobligatedtoinformtheuserofthedutytodiscloseacommercialrelationship.

Ifusergeneratedcontentiscreatedinresponsetoacalltoactionbyanadvertiser(egaspartofacontest or similar) or the advertiser somehow uses or refers to such content in itsmarketingactivities, it could trigger liability undermarketing or intellectual property legislation for theadvertiser.


Promotionofparticipationinlotteries(whichincludesweepstakesorothercontestsandgameswhere the outcome is determined primarily by chance) organized from abroad, or which areunlawfully organized within Sweden, is currently illegal. Note, however, that changes to thisprohibitionareanticipatedaspartanongoingreregulationofSwedishgamingregulation.

In contrast, skill-based contests are allowed, provided that allmaterial information about thecontest(suchas termsandconditions,time limitsetc) ispresentedto theparticipantspriortoenteringthecontestandthatthecontestisexecutedproperly.


With regard to unsolicited commercial electronic communications, the MPA prescribes, as ageneral rule, that advertising by electronic mail (for example direct messages on Facebook)requiresthattherecipienthasgivenhisorherpriorconsenttosuchadvertisingfromthesender(opt-in).

Moreover,accordingtotheMPA,atradermustbeabletoproveallclaimsmadeinadvertisingandwillalsobeartheburdenofproof.Assuch,evidenceforsubstantiationmustberetainedforallclaims,evenusergeneratedcontentusedorreferredtobyanadvertiser.

Anadvertiserisnotallowedtousethename,theportraitoranyotheridentifiablesignofalivingperson in advertising or commercial communication unless the advertiser hasproper consentfromthatperson.


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On31January2017theSwedishPatentandMarketCourtheldaninfluencerliableforbreachingtheMPAbyfailingto:

• clearlyidentifyoneblogpostandoneInstagramasmarketing,and• indicatethecompanyresponsibleforthemarketing

(CasePMD11949-16TheSwedishConsumerOmbudsman/AlexandraMediaSwedenABetal).Thecaseispendingforappeal.


Bestpractice advice regardingadvertisingandmarketing via socialmedia includes adopting apolicyof:• followingthegeneraladvertisingrulesoftheMPA;• clearingthirdpartyrights;and• thesurveillanceofcommercialactivitiesofemployees, influencersandothercontributors

forwhichtheadvertisermightbeheldresponsible.

Co-operation with influencers should be governed by a written agreement (laying out theobligations of the influencer and providing recourse if the influencer acts in breach laws orregulationsetc).

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Switzerland

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SOCIAL MEDIA – SWITZERLAND


ThemainsocialmediaplatformsusedbyadvertisersinSwitzerlandincludeFacebook,YouTube,Twitter,LinkedIn,Xing,Google+,Instagram,Flickr,Pinterest,FoursquareandSnapchat.


Advertising and marketing via social media is subject to general laws and regulation onadvertising.

In particular, the Swiss Federal Law against Unfair Competition (‘UWG’) prohibits unfair,misleadingoroverlydisparagingadvertising.

Swisslawgenerallyprohibitsmass(spam)(e-)mailswithoutpriorconsent.

Sector-specific requirements apply to advertising of particular products or services (egpharmaceuticals, medical services, foodstuffs, alcohol, automobiles, lotteries, legal services,financialservices,creditsandloans),advertisingclaims(egpriceinformation,comparisons,healthclaims and indications of origin) and forms of advertising (eg TV and radio advertising,sweepstakes,targetedadvertisingusingpersonaldata).


Self-regulatoryrulesgovernadvertisingandmarketingingeneralandaddressparticulartopics(seeanswers2aboveand10below).

The collection of Principles on Fairness in Commercial Communication, issued by the SwissCommission on Fairness, is the most important self-regulatory framework for advertisingpracticesinSwitzerland.

Other relevant self-regulatory frameworks include the Code andDirectives of the Swiss PressCouncilontheProfessionalEthicsofEditorialStaffofPrintedandElectronicPressPublicationsand the Guidelines for Advertisers andAgencies issued by the Interactive Advertising Bureau(‘IAB’)(Europe).

These all focus on transparency, separation of paid and editorial content as well as editorialfreedom.

Noparticularrulesapplytosocialmediaadvertisingandmarketinginparticular.


Generalrulesonadvertisingandmarketingapply(seeanswers2,3and10), inparticularwithregardtotransparencyandtheseparationofadvertisementsandeditorialmediacontent,egforsponsoredcontentandproductplacement.

On a statutory level, a TV or radio broadcaster's permanent editorial employees may notparticipateinitsadvertisingprograms.Alegislativeproposalforanewlawonelectronicmediais

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expectedforpublicationandconsultationin2018.Theproposedlawwouldcoverpress,radio,TVandonlinemediaandwouldpresumablystipulatetransparencyobligations.

Accordingtocurrentself-regulation(seeanswer3),sponsorsofmediareportsmustbedisclosedtransparently. The editorial freedom regarding selection of content (eg lifestyle products,consumeradvice)andhandlingofthereportmustberespected.Thepressneedstodisclosetripspaidforbythirdparties.Presscoveragemaynotserveasconsiderationforpaidadvertising(egintheformof‘accompanying’editorialpieces).Credibilityofthemediarequirescritical,notoverlypositive,presentationofgoodsandservices,mentioningofgoodsandservicesonlytotheextentnecessaryfortherespectivemediacoverage,andnoblatantreproductionofadvertisingslogansintheeditorialsections.

No specific laws, regulations or self-regulatory rules apply for influencermarketing via socialmedia.


Generalrulesonadvertisingandmarketingapply(seeanswers2,3,4and10),inparticularwithregardtotransparencyandtheseparationofadvertisementsandeditorialmediacontent,egforsponsoredcontentandproductplacement.Aclearseparationofeditorialcontentfromadvertising(paidcontentorcontentsuppliedbythirdparties)isessentialtothecredibilityofthemedia.Self-regulation(seeanswers3and4)requiresclearvisualoracousticseparation.Nativeadvertisingshouldbemarkedassuch(eg‘paidcontent’,‘sponsoredcontent’,‘ad’).

Nospecificlaws,regulationsorself-regulatoryrulesapplyfornativeadvertisingviasocialmedia.


General rules on advertising andmarketing apply (see answers 2, 3 and 10). User-generatedcontentmaybesubjecttocopyrightandtrademarkprotection.Useofthird-partycontributionsmayraiseissuesregardingpersonalityrightsandtriggerdataprotectionrequirements.Nospecificlaws, regulations or self-regulatory rules apply for user-generated content in advertising andmarketingviasocialmedia.


Generalrulesonadvertisingandmarketingapply(seeanswers2,3and10), inparticularwithregardtotransparencyofcontestrules,dataprotectionandtheuseofparticipants'contributions.Swiss lawregularly requires anon-purchase route toparticipatewith an equivalent chanceofparticipating/winning.Inparticular,Swisslawprohibitslotteriesandlottery-likechance-basedgamesforwhichparticipationrequiresamonetarystakeorpurchase.


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Generalrulesonadvertisingandmarketingapply(seeanswers2and10).SwissofficiallanguagesareGerman,FrenchandItalian.Swisslawprovidesforverylimitedlanguagerequirements,buttheSwissaudiencemightexpectadsinthelocallanguagedependingontheproducts,servicesandadvertisingmessagesinvolved.


Caselawonparticularsocialmediaadvertisingandmarketingrelatedissuesarerare.Recentciviland criminal cases regarding socialmedia addresseddefamation, terrorismand racism issues,ratherthanadvertisingandmarketing.In2016,acantonalcourtfoundtherobotsearch/copyingofthird-partyonlineadsandautomatedintegrationtoanotherwebsite(‘spidering’)toqualifyasunfaircompetitionpractice(CivilappellatecourtofthecantonofFreiburg,22August2016,no1022015 189, published in (sic!) 2017, p 228 et seq). A cantonal court qualified ‘liking’ andcommentingdefamatorythird-partypostsonFacebookasslander(DistrictCourtofZurich,29May2017,noGG160246,subjecttopendingappeal).ItisquestionablewhetherthisrulingappliestoFacebook-likesingeneral.


Betransparent:• Uselabelssuchas ‘sponsoredcontent’or ‘advertising’todistinguishbetweenadvertising

andclassicmediacontent/program;• Informusersontheidentityoftheadvertiseraswellasofanysponsoredcontribution(eg

testedgoodsandservices,productplacement).

Beaccurate:• Onlyuseobjectivecriteriaforclaimsandcomparisonsinadvertising;• Onlylistcurrentprices,discountsandspecialoffers;• Donotuseclaims,comparisons,anddisclaimersetc.thataremateriallyambiguoustothe

averageaudience.

Respectthirdpartyrights:• Donotusethirdpartycontent(egtexts,pictures,trademarks)withoutpriorconsent.

Protectpersonaldata:• Minimizepersonaldata gathered andused for advertising via socialmedia to the extent

necessaryandadequate;• Informindividualsassoonaspossibleaboutthedatacollectionandprocessing(whenever

possiblepriortothecollectionofdata);• Betransparentaboutthepurposeofcollectionandprocessing;• Limitaccesstopersonaldatatoaneed-to-knowbasis;• Protectpersonaldatafromunintentionaldisclosure,disclosurewithoutpriorconsent,data

lossandthelike.

Becustomer/userfriendly:• Handle negative user/customer comments and complaints diligently, as the impact and

successofsocialmediaadvertisinglargelydependsontheactivityofusers;

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• Keeppromisesmadeinadvertisingandgobeyondtosatisfythecustomer.

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Turkey

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SOCIAL MEDIA – TURKEY


SocialmediaplatformspreferredworldwidearealsocommonlyusedinTurkeyinthecontextofsocialmediamarketing;withFacebook,Instagram,YouTube,SnapchatandTwittertakingthelead.

TherearenoplatformsthatarecurrentlyunavailableinTurkey;however,thiswasnotalwaysthecase.On20March2014,citingthenewprovisionsoftheamendedLawNo5651onRegulationofBroadcastsandPublicationsviatheInternetandPreventionofCrimesCommittedthroughSuchBroadcasts (‘Internet Law’) the Information and Telecommunication Technologies Authority(‘ICTA’) implemented a protection order that blocked access to the micro-blogging websiteTwitter.OnthedatabaseoftheICTAthegroundsfortheblockingorderagainstTwitterwerelistedasthreecourtdecisions,andanotherdecisionissuedbytheIstanbulChiefProsecutor’sOffice.TheICTAalsoissuedastatementadayaftertheblockingorderwasimplemented,statingthatcourtdecisionsconcerningtheviolationofpersonalrightsandtherightstoprivacyhadbeennotifiedtotheICTA,thatthesedecisionsrelatingtotheremovalofcontentwerethennotifiedtoTwitter,butasTwitterhadnotcompliedwiththeserequestsitwasdeemednecessarytoblockaccesstotheentirewebsiteinaccordancewiththeprovisionsoftheInternetLaw.TheICTAalsostatedthatifTwitterremovedsaidcontentandundertooktoapplytherulingsmadebyTurkishCourts,accessto thewebsitewouldbe restored.The controversyoriginally stemmed from images thatwereuploadedtoTwitterduringahostagecrisisthatsawaprosecutorandtwohostageskilled.

ShortlyaftertheblockingofaccesstoTwitter,on27March2014,theICTAalsobannedaccesstothevideosharingwebsiteYouTubeduetothepostingofaconversationallegedtohavetakenplacebetween the Minister for Foreign Affairs and senior members of the Turkish IntelligenceOrganization.ItisimportanttonotethatYouTubehasbeenpreviouslyblockedinTurkeyduetotheuploadingofcontentinsultingthememoryofAtatürk.Nevertheless,accesstobothwebsiteshasbeenrestoredthroughthedecisionsofrelevantCriminalCourtsofPeace,renderingallglobalplatformsaccessibleforuse.


InTurkey,therearenospeciallawsrelatingtoadvertisingandmarketingthroughsocialmedia.Control of advertisements via social media is subject to the same laws and regulations asadvertisementsinanyotherkindofmedia.TheprincipallegislationgoverningadvertisingistheConsumer Protection Law no 6502 (‘Consumer Protection Law’), which was enacted on 28November 2013 and entered into force on 28 May 2014, (repealing the Law on ConsumerProtectionno4077)aswellastheRegulationonCommercialAdvertisementsandUnfairPractices(‘Regulation’)whichwaspreparedinlinewiththenewConsumerProtectionLawandreplacedtheRegulationonProceduresandPrinciplesofCommercialAdvertisementsandAnnouncements.

Under Article 61 of the Consumer Protection Law, it is essential that commercialadvertisementsandnoticesconformto:• thelawsandprinciplesadoptedbytheBoardofAdvertisement,• generalmorality,• publicorder,and• personalrights.

Further,noadvertisement,noticeorimpliedadvertisementmay:

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• containuntrue,incorrectinformation,• deceiveormisleadtheconsumer,orabusehislackofexperienceorknowledge,• threatenthelifeoftheconsumerandsafetyofhisproperty,• encourageactsofviolenceorincitepeopletocommitcrime,• endangerspublichealth,or• abusetheelderly,childrenordisabledpeople.

It is incumbent upon the advertiser to prove the material claims made in the commercialadvertisement or announcement. Advertisers, advertising agencies or media companies mustcomplywiththeprovisionsoftheConsumerProtectionLaw.

Article5oftheRegulationsetsforththebasicprinciplestobeconsidered.Advertisementsmust:• conformtothelawandtopublicmorality,• conformtotherulesoffaircompetition,• notfeaturecontentwhichposesathreattothesecurityandsafetyofpeople,• notbehidden,misleading,orcontrarytopublicandmoralvalues.

AccordingtoprinciplesoftheRegulationanadvertisementshouldbeclearlydistinguishableasan‘advertisement’ nomatter what is its format or themedia where it is broadcasted.When anadvertisementisbroadcastinamediathatcontainsnewsandeditorialelements,itshallbestatedthat it is an ‘advertisement’. If a tweet or any other post on a socialmedia platform containsadvertorialcontent,itispossiblethatanadministrativefinemaybeimposedonthegroundsofhidden advertisements.Article 6 of the Regulation stipulates that ‘advertisements shall notcontainmisleadingexpressionsorimageswhichmayconfusetheconsumersdirectlyorindirectlyintermsofbringingfalseimpressionsbyprovidingincompleteinformation,leadingtoconfusionorpresentingexaggeratedclaims’.

TheAdvertisementBoard establishedunder theTurkishMinistryofCustomsandTrade is themainauthoritytocontroladsinTurkey.Itsdutiesincludedeterminingtherulesandpoliciestowhich advertisements must adhere and prohibiting and/or imposing a monetary fine onadvertisementswhicharecontrarytothelaw.TheBoardalsotakesintoconsiderationglobally-acceptedrulesrelatedtoadvertising.TheBoardcanexaminetheadsexofficiooruponcomplaint.TheBoard’sdutiesarenotrestrictedtoreviewinganyparticularformofmedia,andthereforeallformsofsocialmediaadvertisementsaresubjecttoreview.AdvertisementBoarddecisionsarelegallybindingandmaybeappealedbeforetheadministrativecourts.

In addition, all onlinebroadcasts inTurkey are also subject to the InternetLaw.Although theInternetLawsetsoutnodirectrulesonadvertisingandmarketingviasocialmedia, itsgeneralprinciples shouldbeapplied.UnderArticle8of the InternetLaw, if the contentof anonlinebroadcast—includingtheads—constitutesaspecifiedcrime,accesstothewebsitecaneitherbebanned by the regulatory body ICTA (for child abuse and obscenity crimes) or by the courtdependingonthetypeofthecaseandurgency.Thespecifiedcrimesareasfollows:• encouragingsuicide,• childabuse,• facilitatingtheuseofdrugs,• procurementofsubstancesthatposehealthrisks,• obscenity,• prostitution,• gamblingand

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• offensesrelatedtoinsultingAtatürk.

Moreover, underArticle 9 of the Internet Law, an individual is entitled to request that theinternetcontentproviderortheserviceproviderremoveanyinfringingcontentontheinternetthatviolateshis/herrights.Ifhe/shecannotgetasatisfactoryresponse,thenhe/sheisentitledtoapplybeforetheauthorizedcriminalcourtofpeacetoaskfortheremovalofthisinfringingcontentfromtherelevantwebsiteandbroadcasthis/herresponsestatementagainstthisinfringement.

If any statement inanadon socialmedia constitutes anassault against thepersonal rights ofsomeone,thatpersonmayclaimprotectionfromthejudgeagainstthosewhomadetheassaultundertheTurkishCivilCode.Unlessthereisconsentofthepersonwhosepersonalrightsaredamagedorunlessthereisanauthorizationconferredbylaw,eachassaultshallbeconsideredcontrarytothelaw.Insuchalawsuit,theclaimantmayrequestthatthejudgepreventstheassault,eliminatesthethreatanddeterminestheunlawfulconsequencesoftheassault.Additionally,therights holder is also entitled to demand material and immaterial compensation for his/herdamages.

Fromthecriminallawaspect,advertisementsorsocialmediapostsmayconstituteacrimesuchasdefamationorinsultunderTurkishCriminalCode.Thepunishmentfordefamationisaprisonsentencestartingatthreemonthstooneyearandmayincreasedependingontheseriousnessoftheoffense.Thepunishmentforinsultisimprisonmentofbetweenoneandfouryears.


Thesoleself-regulatoryorganization,theAdvertisingSelf-RegulatoryBoard(‘ROK’)wasfoundedbyadvertisers,advertisingagenciesandthemedia,arguingthatadvertisementsshouldbelegal,ethicalandcorrect.ItintendstoimplementtheAdvertisementImplementationPrinciplesoftheInternationalChamberofCommerce,whichhavebeenacceptedworldwide.

Whilst the decisions of the Advertisement Boardare legally binding, ROK’sdecisions are onlyethicallybinding.AlthoughtheICCInternationalCodeofAdvertisingPractice(‘ICC’)standardsdonothavedirectenforceability;ROKhasadoptedtheminitsPrinciplesofSelf-RegulationandtheseprincipleswereenactedinparallelwiththeICCstandards.TheICCstandardsareconsideredbyROKinitsevaluationofadswhengivingadvisoryopinions.

ROKdoesnothaveparticularself-regulatoryrulesonadvertisingandmarketingviasocialmedia.Thegeneralprinciplesapplytotheextenttheyareapplicable.


Therearenospecificlaws,regulations,orself-regulatoryrulesrelatedtoinfluencermarketingviasocial media; general advertising rules and principles are applied. In this regard, influencermarketing should also adhere to rules regarding conformity to public order, fair competition,public/moralvaluesandveracity.

Aninfluencermarketingattemptincludinghiddenadvertisementoradvertisementofprohibitedproductssuchastobacco/alcoholproductsmightbeconsideredascircumventionofthelawandshouldbebanned.Influencermarketingcanalsobecategorizedasaparticularformoftestimonial

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advertising. Although testimonials are not defined in the body of current law, the Regulationprovidesforcertainrulesandlimitationsontestimonials.

Testimonialsgenerallyconsistofwrittenorspokenstatementsofindividualswhohaveusedtheproduct that is being advertised, communicating thequality and superiority of theseproducts.Article16of theRegulation stipulates that ‘advertisements shall not includeor refer to anytestimonyorendorsementthatisnotauthenticornotbasedontheexperienceofthetestifier’.Asregardsinfluentialmarketing,theproblemariseswhenthesocialmediainfluencerissharinganexperiencethatisfictional,pursuanttohis/heradvertisingagreement.

Anotherissueoflawconcerninginfluentialmarketingiswhenthesocialmediainfluencer,whoisfinanciallysupportedbyabrand,doesnotexplicitlycommunicatethisaffiliationorthefactthattheirpostessentiallyservesasanadvertisementforthebrand;suchbehaviorwouldbecontraryto the prohibition of hidden advertisements.Article 5 of the Regulation sets forth the basicprinciplestobeconsidered,includingthatanadvertisementshouldbeclearlydistinguishableasanadvertisementnomatterwhatitsformatisorthemediainwhichitisbroadcasted.Whenanadvertisement is broadcast in amedium that containsnewsandeditorial elements, it shall beclearlystatedthatitisanadvertisement.

Thesolutiontothisproblemwhenitcomestosocialmediainfluencermarketingistoconveythatthepostisindeedanadvertisement,ideallythroughdisclaimersinformingtheconsumersthattheinfluencerhasbeenreimbursedbythebrand-owner.


Therearenospecificlaws,regulations,orself-regulatoryrulesinourjurisdictionrelatedtonativeadvertisingviasocialmedia.Werefertothegeneralrulesdiscussedintheanswerstoquestions2and4.


Therearenospecificlaws,regulations,orself-regulatoryrulesinourjurisdictionrelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia.Werefertothegeneralrulesdiscussedintheanswerstoquestions2and4.


The Regulation on Lotteries and Drawings for Non-Cash Rewards No 26309 (‘Regulation No26309’) defines ‘contests’ as ‘mechanisms of which the winners are determined among theparticipantsdependingontheknowledgeandskillqualificationsoftheparticipantsandbytheeliminationmethodconsideringthesuccessdegreesorbytheassessmentofajurydeterminedwithinthesameprinciplesandattheendofwhichanin-kindand/orcashprizeisgiven,andalsothepuzzles,riddles,entertainmentprogramsandsuchothers’.Ifthewinnersofthepromotionaredeterminedby a juryor according toascoringmethod, or if theprize is granted to the first xnumberofparticipantswithoutanydrawmechanism,suchpromotioncanberegardedasacontestunderRegulationNo26309.However,byArticle2/çofRegulationNo26309,‘contestsinwhicha

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certainamountisnotchargedfromtheparticipantsandwhichdonotserveforthepurposeofthepromotionorsaleofacertaingoodorservice’falloutsidethescopeofRegulationNo26309.Inlinewiththisprovision,contestscannotserveforthepurposeofthepromotionorsaleofacertaingoodorserviceandeveryoneshallhaveanequalopportunitytoparticipateinordertoberegardedasacontestandtofalloutsidethescopeoftheNationalLotteryAdministration(‘NLA’)whichisthesoleorganizationwithauthoritytoorganizelotteriesanddrawswithacashrewardandtopermitlotteriesanddrawswithanon-cashreward.

IfthewinnersofthepromisedprizesaredeterminedbyadrawdependingonachancefactortheproceduresandprinciplesofwhichareapprovedbytheNLA,thepromotionwillbedeemedasadrawunderRegulationNo26309.Shouldthemonetaryvalueofthenon-cashprizeinaprizedrawexceedTL93,12(approximately€20)thentheorganizationofsuchpromotionwillbesubjecttotheofficialpermissionoftheNLA.

Prizecontestscannotbeorganizedwithapre-conditionofpaymentorpurchases.Inaddition,ifapromotionisdeemedtobeacontest,thenthetermsandconditionsofthecontestshouldbeincompliancewith theTurkishConsumerProtectionLawand thepromotion shouldnot containmisleadingelementsforconsumersandeverytermandconditionofthecontestshouldbeclearandunderstandablebytheparticipants.

UnderRegulationNo26309, if theprizedraw is subject to official permissionof theNLA, theadvertising of such prize draw should incorporate information as to the NLA authorization,including the authorization number and the date authorization was granted. Also, anyadvertisementsofthesameshouldcomplywiththefollowing:• anyprizeawardedshouldnotbedifferentthanthatpromotedandshouldsatisfytheaverage

consumerexpectation,• anyprizeawardedshouldbeprovidedtogetherwiththeprize’smarketpriceandwritten

termsofthepromotioninwhichitwaswon,and• thetermsofthepromotionanditsresultshouldbepublished.

Since it is forbidden for minors (the legal age of majority under Turkish Civil Law is 18) toparticipate inprizedrawsthe advertisementof prizedraws should explicitlynote thatminorscannot participate and that prizes are not awarded in case of accidental or unauthorizedparticipationbasedonage.

Other than theabovegeneralrulesregulatingtheadvertisementsofsweepstakes inanymediathere are no specific laws, regulations, and self-regulatory rules governing sweepstakes andcontests conducted through socialmedia. On the other hand, since scrutiny over socialmediacontestsandsweepstakesarenotasstrict,itispossibletoobservemanyprizedraws,whichshouldactuallybe subject toNLA’spermission, beingdrawnvia socialmediaplatformswithout suchauthorizationandwithoutcomplyingwith theadvertisementrestrictions.Havingsaid that,wewouldliketopointoutthatwehavenotyetobservedanydecisionincludingasanctionfornon-complianceviasocialmedia.


Due to the lack of specific rules for advertising and marketing via social media, control isweakened. However general principles still apply, together with the prohibition on hiddenadvertisements.Advertisingbansonspecificallyprohibitedgoodssuchastobaccoandalcoholic

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products should be firmly observed by advertisers since the controlling authorities aremorewatchfulonthesetypesofproductseveninsocialmedia.


TheAdvertisementBoardtendstobetoleranttowardssocialmediaadvertising,andthisattitudeis clearly reflected in its decisions. On the other hand, when it comes to social mediaadvertisementsofhealthinstitutions,theBoardregularlyemploysmuchstrictercontrol.Inthismanner, many decisions of the Advertisement Board cite the Regulation on Private HealthInstitutions for the Diagnosis and Treatment of Outpatients, which provides that healthinstitutionsmaynotadvertise theirservices,butcanonly informpeopleof the launchof theirpractice,practiceareasandservices.Thepromotionsortestimonialsusedintheseadvertisementsshouldnotcontainmisleading,exaggeratedorscientificallyunprovenclaimstoincreaseconsumerdemand.

DuetotheincreasingawarenessofsocialmediainTurkey,weexpectsomenewregulationsthatwillspecificallycoversocialmediaactivitiesinthenearfuture.


Asexplainedabove,sincenodefactosanctionsarebeingenforced,thereareno‘bestpractices’inthestrictmeaningofthephrase.Ontheotherhand,wehaveobservedthatsomeworldwidesocialmediaplatformsnowimplementcertaintoolstoavoidpossibleliabilities.Agoodexampleofthisistherecenttrendofgiving‘paidby’disclaimersonsocialmediapostsinordertoevadeliabilityfor taking part in covert advertisements. This practice is also adopted by some social mediainfluencersinTurkeywhiletherestdonothavesuchpractice.

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Ukraine

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SOCIAL MEDIA – UKRAINE


ThemainsocialmediaplatformsusedinUkraineforthepurposeofadvertisingandmarketingincludeFacebook,Twitter,LinkedIn,YouTube,Google+andPinterest.Inaddition,advertiserspayattention to popular messenger services (Skype, Viber, WhatsApp, etc.) as a channel of adsdistribution.

Certainpopularsocialplatforms,suchasVkontakte(www.vk.com),Odnoklassniki(www.ok.ru)andserviceplatformMail.ru(www.mail.ru)arenotavailableforuseduetoeconomicsanctionsand restrictions introduced against certain Russian-based or owned/controlled companies(ResolutionoftheNationalSecurityandDefenseCouncilofUkrainedated28April2017.Thebanhasbeenineffectsince17May2017andwasintroducedforaninitialtermof3years.


Toalargeextent,advertising/marketingontheInternet(includingsocialmedia)isregulatedthesamewayasadvertisingoffline.However,inadditiontospecificadvertising-relatedlaws(theLawofUkraineonAdvertising(‘AdvertisingLaw’))andgenerallegislation,it isnecessarytoensurecompliancewiththeLawofUkraineonElectronicCommerce(‘E-CommerceLaw’).

Fromapracticalinterpretation,marketing/advertisinginsocialmediashouldbeinlinewiththeUkrainianadvertisinglawsif:• thesocialmediaislocatedwithinaUkrainiansegmentofInternet(egregisteredindomain

.UA);• customerstargetedbysuchadvertisingarelocatedintheterritoryofUkraine;• advertisingisplacedbytechnicalmeanslocatedintheterritoryofUkraine.

TheAdvertisingLawestablishesspecificrequirementsregardingpromotionofservicesviameansof electrical communication (telecommunications) which arguably includes advertising by theInternet/socialmedia.Suchadvertisingshouldprovidedetailedspecificationsof:• thecontentoftheservice;• thecostoftheservice;• ageorotherlimits;• thename,addressoftheadvertisingprovider.

Withregardtocontent,socialmediacontentshouldbeinlinewithgeneralnorms(egprinciplesofadvertising,banoftobacco/alcoholads,etc.).Anyadvertsshouldbeclearlyidentified,egbyusingwords‘advertisement’,‘onacommercialbasis’,‘sponsoredcontent’,etc.

Inaddition,promotinggoods,work,servicesorbusinessreputationontheinternet,includingbywayofsendingelectronicmessages(‘commercialelectronicmessage’),issubjecttothefollowingregulationbytheE-CommerceLaw:• A seller (contractor, service provider) that distributes a commercial electronicmessage

(directlyor throughengagedagencies)shallprovidecustomerswithadirect, simpleanduninterrupted access to certain information (its full name; its location or place ofregistration;e-mailand/oraddressoftheinternet-store;informationaboutlicenses(series,number,validityterm,issuancedate)(ifactivityissubjecttolicensing);identificationcode(forlegalentities)ortaxID(forindividualsregisteredasentrepreneursinUkraine);amount

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oftaxesincludedinthevalueofgoods,workorservicesand,ifapromotedproductneedstobesupplied,informationonsupplycosts;andotherinformationthatissubjecttomandatorydisclosure).

• Thecommercialelectronicmessagemaybedistributedtoapersonoranentityuponconsentof such person or entity only; consent is not required provided that the addresseemayunsubscribefromfurtherreceivingsuchmessages.

• Thecommercialelectronicmessageshallbeclearlyidentifiedassuch.• Advertising messages regarding rebates, premiums and recognition prizes, etc shall be

clearlyindicatedassuchandconditionsoftheirreceiptshallbeavailableandwordedinsuchawayastoavoidambiguity,aswellascomplywiththeadvertisinglawsrequirements.

Moreover,theE-CommerceLawexpresslyprohibitsthepracticewherebythefactofreceiptofthecommercialelectronicmessagesbyaconsumerwithouthisorherconsentisusedasareasonforincreasing service fees charged by telecom operators/providers, payment system operators,hostingproviders,internetaccessproviders,etc.


Noover-archingadvertisingself-regulationrulesonadvertisingandmarketingviasocialmediaareinplaceinUkraine.

However,thereis‘softlaw’whichmaybeusedvoluntarilybyadvertisersinUkraine,interalia,inrelationtoadvertisingormarketingviasocialmedia:namelytheStandardsofNon-Discriminationbecause of Gender in Advertising (2011), Advertising andMarketing Communication Practice(‘ConsolidatedICCCode’).


Nospecificlaws,regulations,andself-regulatoryrulesrelatedtoinfluencermarketingviasocialmediaareinplaceinUkraine.Generallegislation,aswellasspecificadvertising-relatedlaws(egtheAdvertisingLaw)andtheE-CommerceLawapply(seeanswertoquestion2).


Nospecificlaws,regulationsorself-regulatoryrulesrelatedtonativeadvertisingviasocialmediaareinplaceinUkraine.However,suchadvertisingmustcomplywiththeprinciples,requirementsandrestrictionsstipulatedintheAdvertisingLaw,including,withoutlimitation:• prohibitionofhiddenadvertising,• banoftobacco/alcoholads,• requirementtoprovideaccurate,fullandnon-deceptiveinformationinthead.


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Therearenospecificlaws,regulationsorself-regulatoryrulesinUkrainewithrespecttotheuseofuser-generatedcontentwhenadvertisingandmarketingviasocialmedia.However,suchusemay fall under the definition of ‘advertising’ and, therefore, be subject to general laws andregulationapplicabletoadvertising.Therefore,suchcontentmustbecarefullymonitoredbytheadvertiser to ensure compliancewith the Ukrainian advertising laws (eg its legality, accuracy,trustworthiness,noinfringementsonpublicethicsormorals,nodiscriminatingstatements,etc).

Inaddition,theadvertisermayuseaphotographornameoftherelevantuseronlywithsuchuser’swrittenconsent.


There are no specific laws, regulations, or self-regulatory rules with respect to conductingsweepstakesandcontestsviasocialmediaandsothegeneralrulesapply.

Asweepstakeisgenerallypermissibleasachance-basedgamethatdoesnotrequireconsiderationforparticipation(and,therefore,itmaybeconsiderednottobegambling).Fromalegalstandpoint,itisconsideredapublicpromiseofrewarduponthecontestresults,andissubjecttotherespectiveprovisionsoftheCivilCodeofUkraine.

Skill-based contests are also generally permissible and are also usually organized as publicpromiseoftherewarduponthecontestresultsaccordingtotheprovisionsoftheCivilCodeofUkraine.Inparticular,theGamblingLawspecificallyexcludesthefollowingskill-basedcontestsfromitsregulation(iedoesnottreatthemas‘gamesofchance’):• art,sportandothersimilarcontests,irrespectiveofwhethertheirrulesofferprizesinmoney

formorinkind;• pool,bowlingandothergameswhichdonotresultinthewinnerbeingawardedaprize;• free-of-chargedrawswithrespect to (theadvertisingorpromotionofaspecificproduct,

service,trademark,tradenameordirectionsofbusinessofalegalentity,andcommercialprogramwithaprizeinmoneyformorinkind;

• drawsintheformofcontests(games,quizzes)whoserulesdonotrequireanypay-to-playfeeandprescribeawards toaparticipantwhoshowedthebestpersonalknowledgeandskills(personalwinaward)inmoneyformorinkind;and

• free-of-chargedrawsforentertainment,charityandeducationalpurposes.

As a part of their advertising (promotion), sweepstake or contest rules should also take intoaccount regulation specific to such advertising. In particular, the Advertising Law states thatadvertisingofcontests,lotteries,prizedraws,eventsofanadvertisingnature,etc,mustinclude:• informationastothedateandplaceofsuchevents;• referencetoaninformationsourcewheretherules(terms)maybefound;and• theplaceofconductinganysuchevents.

Information regarding any changes of the rules, place and term of the such events should beprovidedinthesamemannerasinitiallydistributed.


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The issues of intellectual property rights, particularly copyright protection, are important toconsiderwhenadvertisingandmarketingviasocialmediainUkraine.

In 2017, the Copyright Law was amended to provide copyright owners with a notice-and-takedownproceduretocombatcopyrightinfringementontheinternet.

As per the established procedure, a holder of the copyrighted work has the right to send atakedownnoticetothewebsiteorwebpageowner.Ifthelatterfailstocomply,therightsholderthenhastherighttosendatakedownnoticetoahostingprovider.However,thehostingprovidershouldresumeaccesstotherespectivecontentifthewebsiteorwebpageownerobjectstothetakedownnoticeandtherightsholderhasnotprovidedaconfirmationofcommencementoftherespectivecourtproceedingswithin10workingdays.

Note,thattheprocedureisestablishedaslimitedonlytothefollowingcopyrightedworks:music,audiovisual works, software, video, audio, and broadcasts (programs) of broadcastingorganizations.

To benefit from the notice-and-takedown procedure, the rights holder can act only through aUkrainianattorney-at-law(iealawyerwhomeetscertainprofessionalcriteria,haspassedabarexam,andobtainedanattorney-at-lawcertificate).


Ukrainiancourtpracticeonsocialmediaadvertisingisratherundeveloped.However,advertisinginsocialmedia thatviolatesstatutoryrequirementsmayattract theattentionof theUkrainianauthorities. For example, in 2017, the Ukrainian Parliament Commissioner for Human RightsdiscoveredprovocativepostsonFacebook,advertisingfastfoodandcontainingimagesandtextsthatcouldbeconsidereddiscriminatoryonthegroundsofgender(iedescribingwomenassexualobjects,hintingatsexualrelationsorsexualityinacasewherethereisnolinktothepromotedproductandnodirectassociationswiththeconsumptionofadvertisedproducts,goods,servicesetc). TheCommissioner requested the State ServiceofUkraineonFoodSafetyandConsumersProtection of Ukraine to check the advertising as to compliancewith the requirements of theAdvertisingLaw.However,noconclusionorresultsofthiscasehavesofarbeenpubliclyreported.


One of the key ‘best practices’ with respect to advertising andmarketing via social media inUkraineisinrelationtochance-basedgames.Intheeventofapromotionbeingconductedinsucha format, it is importanttoavoidreceivingconsideration fromtheparticipant.Otherwise,suchadvertisingormarketingeventmaybeconsideredasaformofgamblingwhichisprohibitedinUkraine.

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United Arab Emirates

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SOCIAL MEDIA – UNITED ARAB EMIRATES


AdvertisersareattractedtothemainglobalbrandsofsocialmediasuchasFacebook,Instagram,SnapChatandthelike.Inaddition,YouTubehasaverystrongfollowingintheregionandattractsadvertisersaswell.


Therearenospecificlawsthatapplytoadvertisingandmarketingonasocialmediaplatform—theadvertisersandpublishersareexpectedtocomplywiththelawsapplicabletoadvertising,andtocontentgenerally.

Thefollowingisalistofthemainlawsthatapplytomediaandadvertisinginthejurisdiction:• FederalLawNo15of1980GoverningPublicationsandPublishing;• FederalLawNo5of2012onCybercrimes;• FederallawNo2of2015onDiscrimination;• TelecommunicationsRegulatoryAuthorityRegulationsAnnex1(akaIAMpolicy);• NationalMediaCouncilResolutionNo20of2010onMediaContent;• NationalMediaCouncilResolutionNo35of2012onAdvertising;and• CabinetResolutionNos19,22,23of2017onMedia.

NotethatpartsoftheConsumerLaws,theCivilCodeandthePenalCodemayalsoapplyinsomecases.

Inaddition,theNationalMediaCouncilhasintroducedtheElectronicMediaActivityRegulationResolution2018,whichreiteratestherequirementtocomplywithalladvertisingstandardswhenadvertising on social media: ‘Ads that are presented on Social Media shall be subject to theadvertisingstandards thatareapplicableattheCouncil’.Thisreiterates theviewthatNationalMediaCouncilResolutionNo35of2012onAdvertisingandCabinetDecision23of2017arebothapplicabletosocialmedia,notwithstandingthatsocialmediaisnotspecificallynotedwithineach.

It should be noted that the relevant regulators (the National Media Council and theTelecommunications Regulatory Authority) both tend to react to complaints rather thanproactivelyseekoutinfringingmaterial.IfacomplaintisraisedbyanypersonunderFederalLawNo5of2012onCybercrimes,however,itmustberaisedwiththerelevantdepartmentofthepolicewhowillthendeterminewiththepublicprosecutorifacaseshouldbelaunched.


Therearenoself-regulatoryrulesinthejurisdiction.


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The ElectronicMedia Activity Regulation Resolution 2018 features a licensing system for anyentitythatisinvolvedin‘E-Media’.ElectronicMediaisdefinedas‘mediaactivitythatispracticedthroughthetoolsandmeansofelectronicpublication.’

UnderthisResolution‘influencers’,ie‘SocialMediaaccounts’ownerswhoofferpaidadvertisingservices’ (which would naturally include influencers) now have to obtain a license from theNationalMediaCouncilinordertooperatecommercially.

Ofparticularinterestinrelationtoinfluencersisthat‘electronicadvertising’isdefinedasbeing‘paidorunpaid’;aslongasitisintendedtopromote,itiscapturedbytheResolution.

The Resolution requires that ‘Ads that are presented on Social Media shall be subject to theadvertisingstandardsthatareapplicableattheCouncil’.Thismeansthatthevariousstandardsmust be applied to influencer content, including those provisions that require disclosure inrelationtoadvertisingcontent.ThisincludescompliancewithArticle5(7)oftheNationalMediaCouncilResolutionNo35of2012onAdvertisingwhichstatesthat‘[t]headvertisement'sidentityshallbeclearlydetermined,and it shallappearasuniqueandseparate fromothereditorialormediamaterial,andthereshallbeseparationsbetweentheadvertisementandanyothermaterialinadditiontotimeintervalsincaseofradioortelevisionbroadcasting.’

In addition, Article 17 of Cabinet Resolution No 23 of 2017 on Media states that ‘[a]ll paidadvertisingmaterialmustbeexplicitlyandclearlystatedaspaidadvertisingmaterial’.

Whilsttherehavebeennoprosecutionsasyetunderthesearticles,theydoindicatethatallpaidcontentpostedbyaninfluencershouldbeidentifiedasadvertisingmaterial.


Asabove.


Therearenospecificlawsinthisregard.


Itisimportanttonotethatthejurisdictionhasanabsoluteprohibitionongambling.Onthatbasis,theconductingofsweepstakesandcontestsisregulatedinamannerthatdiffersfrommanyotherjurisdictions,astheyareconsideredtobeaformofgambling.Theusualdifferentiationthatappliesin other countries between games of skill and games of chance does not necessarily assistpromotersinthisregion.

ManyoftheEmiratesrequirepermitsbeforeanysweepstakesorcontestscanberun.Permitscanonlybeobtainedbylocalentities,however,sothequestionoftheterritorialityofthepromotionisimportant.Inaddition,manyconditionsthatmightonlybeapplicableto‘offline’sweepstakesorcontestsmaystillapplywhentheyaretransferredtosocialmedia,suchashavinganofficialatthedraw,astherelevantauthoritymayrequirethis.

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Thehealthcaresectorhasadditionalregulationsapplicabletoadvertisingandmarketing;andtheauthoritiesarestringentinensuringtheseareappliedacrosssocialmediaaswellastraditionalmedia. Advertising for healthcare services and healthcare devices (which are both definedbroadly)mustcomplywiththeregulationsandmustalsobeapprovedbeforepublication.


Casesarenotmadepublicinthejurisdictionand,asthisisaciviljurisdiction,theywouldholdlittleprecedentvalueinanyevent.


There are some topics that we advise clients to use with caution, and seek advice beforepublication.These include religion, political issues, alcohol, smoking, nudityorovertsexuality,crudelanguage,andobscenity.Thereisalsoaprohibitiononcontentthatwouldbecontrarytothe‘cultural and social mores’ of the jurisdiction. This term is broad in scope, meaning that theregulatorscanapplythelawsinasubjectivemanner.

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United Kingdom

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SOCIAL MEDIA – UNITED KINGDOM


Facebook,Instagram,Twitter,Pinterest,Snapchat,YouTubeandLinkedInareallcommonlyusedbyadvertisersintheUK.TherearenorestrictionsonuseofanyimportantglobalsocialmediaplatformswithintheUK;allpopularglobalplatformsareused.


Legalcontrolsapplytoadvertisingandmarketingviasocialmediainmuchthesamewaythattheydofortraditionalofflineandotheronlinemediaplatforms.

The general law in the areas of intellectual property, data protection and defamation are ofrelevancetosocialmediamarketing.Contractlawisalsorelevant,asthosemarketingonsocialmediasiteswillalsoneedtocomplywiththetermsofuseoftherelevantplatforms.

MuchofthelegalcontrolsintheUKexclusivelyrelatingtoadvertisingandmarketingarecontainedin the Consumer Protection from Unfair Trading Regulations 2008 (‘CPRs’) and BusinessProtection fromMisleadingMarketing Regulations 2008. The Business Protection Regulationscontrolcomparativeadvertising.TheCPRscontroladvertisingandmarketingpracticesasawhole,introducingageneralprohibitiononunfaircommercialpractices.OfparticularrelevancetosocialmediamarketingarethefollowingrulesundertheCPRs:• ageneralrequirementnottomislead;• arequirementtodisclosecommercialintent;• arequirementtodiscloseifyouarepayingforeditorialcontentoradvertorial;and• aprohibitiononposingasaconsumer.

TheCPRsareenforcedbytheCompetitionandMarketsAuthority(‘CMA’)andTradingStandards.These bodies have the ability to bring criminal prosecutions for breach of the CPRs. ManycontraventionsoftheCPRswillalsobeabreachoftheregulatorycodes(seeanswer3below),astheregulatorycodeshavebeenamendedtoincorporate theCPRs.Accordingly, forlessseriousviolationsoftheCPRs,theAdvertisingStandardsAuthority(‘ASA’)willgenerallybethebodythatdealswithsuchmattersunderitsself-regulatorypowersinstead.


Self-regulationisextremelyimportantintheUK.Inpractice,itisasourceofgreatercontroloveradvertisingandmarketingactivitiesthanthatimposedbylaw.TheASAistheUK’sindependentregulatorofadvertisingacrossallmedia(including,since1March2011,allonlinemediaincludingsocialmedia).TheASAenforcestheadvertisingcodes,whicharewrittenbytheCommitteesofAdvertisingPractice(‘CAP’).ThecodewhichisrelevanttosocialmediaistheUKCodeofNon-broadcastAdvertising, SalesPromotionandDirectMarketing (‘CAPCode’). ThisCodemustbefollowedbyalladvertisers,agenciesandmedia.

Inrespectofsocialmedia,theASAhasjurisdictionover(a)UserGeneratedContentifithasbeenadopted and incorporated intomarketing (eg retweeting an individual’s tweet) and (b) socialmediaunderabrand’scontrol(egFacebookandTwitter).

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TheASAcannotimposeanyfinancialpenalties.SanctionsforbreachingtheCodeinclude:• Adversepublicityviaadjudications:theASAhasamicrositeofoffendersandforserious

offenderspaidforadscanbeimposedhighlightingnon-compliance;• Sponsoredlinkscanbetakendown;• AdAlertscanbesenttothepress;• Adscanbevettedpre-publication;and• Forseriousorpersistentbreaches,referralscanbemadetotheOFT.

BeyondtheASAandtheCAP,theregulatorysystemflowsthroughotherbodies.CompliancewiththeCAPCodeandwithASAdecisionsisamembershipobligationimposedbybodiessuchastheInternetAdvertisingBureauUK(‘IAB’),thetradeassociationforonlineandmobileadvertising;theIncorporatedSocietyofBritishAdvertisers(‘ISBA’),representingthelargestadvertisersintheUK;andtheInstituteofPractitionersinAdvertising,thetradeassociationforadvertisingagencies.


Regulation3(1)oftheCPRsprohibitsunfaircommercialpractices.Thisincludesusingeditorialcontent inthemediatopromoteaproductwherea traderhaspaidfor thepromotionwithoutmakingthatclearinthecontentorbyimagesorsoundsclearlyidentifiablebytheconsumer.Itplacesanobligationonbrandstobeclearaboutwhichendorsementsandpromotionalcontenthasbeenpaidfor.TheCPRsareenforcedbytheCMAratherthantheASA,and,whilsttheASA’spowersare limited to posting adjudications against a brand (which could result in negative PR andadditionalcostsifcontentneedstobechanged),theCMAhaswiderenforcementpowers.

WhereinfluencercontentbreachestheCPRs,itisalsolikelytobeinbreachofCAPCodeprovisionsspecifying that communicationsmustnotbemateriallymisleadingandmustbe identifiableasmarketing.

There is a distinction between sponsorship and advertising.With regards to sponsorship, theinfluencermaybepaidbutretainseditorialcontrolofthecontent.Inthiscase,thecontentwillnotbeclassedasadvertisingandwillnot,therefore,fallwithinthescopeoftheCAPCode.However,wherethebrandormarketerhaseditorialcontroloverthecontent,itwillbeclassedasadvertisingandmustbeidentifiedassuch(forexample,byusing#adonsocialmediaposts)inordertocomplywith the Code. It is arguable, however, that even without editorial control, the disclosurerequirementwouldariseundertheCPRsinrelationtopuresponsorship(ifitisnotself-evident).


LegalandregulatoryrequirementsintheUKstatethatadvertisementsmustbetransparent.Giventhenatureofnativeadvertising,thiscanoftencreateissuesforbrands.

TheCPRsspecificallystatethattwoofthepracticeswhicharedeemed‘alwaysunfair’are:(i) ‘usingeditorialcontentinthemediatopromoteaproductwhereatraderhaspaidforthe

promotionwithoutmakingthatclearinthecontentorbyimagesorsoundsclearlyidentifiablebytheconsumer(advertorial)’and

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(ii) ‘falselyclaimingorcreatingtheimpressionthatthetraderisnotactingforpurposesrelatingtohistrade,business,craftorprofession,orfalselyrepresentingoneselfasaconsumer’.

Section2oftheCAPCodealsostates:‘2.1Marketingcommunicationsmustbeobviouslyidentifiableassuch;…2.3Marketingcommunicationsmustnotfalselyclaimorimplythatthemarketerisactingasa consumer or for purposes outside its trade, business, craft or profession; marketingcommunicationsmustmakeclear theircommercial intent, ifthat isnotobvious fromthecontext.’

Inmakingitsassessments,theASAwillconsideradvertsfromthepointofviewofthe‘averageconsumer’ viewing the relevant advert. The ‘average consumer’ in the UK is ‘reasonably wellinformed,reasonablyobservantandcircumspect’.


Brandsaregenerallynotresponsibleforusergeneratedcontent(‘UGC’)unlesstheyinteractwithit in someway. If theUGC isunprompted, it is likely tobeoutside the remit of theCAPCode.However,ifthecontentisthen‘adoptedandincorporated’intothecompany’sownmaterialsthenthecontentwillbeconsideredtobe‘byorfrom’thecompanyandcouldcomeunderASAscrutiny.‘Adoptingandincorporating’contentisconstruedwidelyandcouldinvolvesimplyrepublishing,retweetingorlikingapost.TheASAisalsolikelytoconsiderUGCwhichispromptedorsolicitedfromusersasadoptedandincorporatedbythecompanyandthereforewithinitsremit.

IfcontentdoescomewithintheremitoftheCAPCode,theruleswillapplyasifthecompanyweretheoriginalpublisher.Inthiscase,brandsmusttakecarethatanyclaimscanbesubstantiatedandthecontentisnotharmfuloroffensive.Itisalsolikelythatthebrandwillbeliableforanycontentifitinfringesthirdpartyrightsorisdefamatory.

Inparticular,theDefamationAct2013mayapplytostatementsmadeintheUGC.Anybrandwhichrepeatsorrepublishesthestatementscouldbeliableifthestatementisuntrueandcausesseriousharmtothereputationoftheclaimant.Thereis,however,adefenseavailableundersection5oftheDefamationActprovidedanoticeandtakedownprocedureisfollowed.

CopyrightintheUKisgovernedbytheCopyrightDesignsandPatentsAct1988andcopyrightwillexistinanyvideosorphotospublishedintheUGC.ThereislikelytobethirdpartycopyrightinUGCifanyimagesareusedormusicclipsincorporated.RegistrationisnotnecessaryforcopyrighttobeprotectedintheUK.However,socialmediaplatformswillhavetheirownrulesoutlinedintheirwebsitetermsaboutownershipandlicensingofmaterialcontainedinUGC.

Fromaprivacyperspective,theGeneralDataProtectionAct(‘GDPR’)isduetocomeintoforceintheUKon25May2018,placingmorerobustrequirementsontheprocessingofpersonaldataandrequiringbrandstodocumenthowthisdataisused.Ifabrandcollectsusers’personaldetailstoenablethemtopostUGC,itwillneedtomakethiscleartotheuserinaccordancewiththespecificrequirementsintheGDPR.

TheCPRsareapplicabletoUGCastheyincludeaprohibitiononfalselyrepresentingyourselfasaconsumer.Thisprovisioncapturesanyfakereviewspostedbyabrandemployee;however,brands

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maybeabletorelyonthe‘duediligence’defense’iftheytakereasonableprecautionstopreventsuchpostings.


ThelawsrelatingtosweepstakesandcontestsintheUKareallencompassingandtherearenospecificadditionalrequirementsforsocialmediawhichgobeyondthese.

Sweepstakesare generallypermissible in theUK;however, apromoter should ensure that thepromotionmechanismitemploysdoesnotresultinthesweepstakefallingwithinthedefinitionofeither a ‘lottery’, ‘gaming’ or ‘betting’ within the Gambling Act 2005. For example, a ‘lottery’comprises:(a)paymentbyoronbehalfoftheentrant;(b)allocationofprizes;(c)suchallocationbychance.Promotersshouldlooktoremovethepaymentelementtoavoidconductinganillegallottery.

Contests are also generally permissible in the UK, however, as with sweepstakes, a promotershouldensurethatacontestdoesnotfallwithinthedefinitionofa‘lottery’,‘gaming’or‘betting’within theGamblingAct2005. For example, the skill-basedelementof the contest shouldnotdependonthewinnerguessingtheresultofafootballmatchorhorserace(particularlyifthereisarequirementtopaytoenter),norshouldittaketheformofcasino-stylegamessuchasrouletteorblackjack.

In order tominimize the riskof a contest beingdefined as a ‘lottery’, a promoter could againremove theneed forpaymenttoenter.Alternatively, ifapromoterwantstheentranttopay, itshouldensurethatthelevelofskillissufficienttodeterasufficientproportionofpotentialentrantsfromenteringorpreventasignificantproportionofthosewhodoenterfromwinningaprize.


GenderstereotypingiscurrentlyahottopicwithintheadvertisingandmarketingsectorintheUKfollowinganASAresearchstudyintotheissuein2016.Thestudywasinresponsetoincreasedpublicdiscussion aroundequality in theUK.The study found that gender stereotyping canbeharmfulbyrestrictingtheopportunitiesoraspirationsofindividuals,particularlychildren.InthenearfeaturetheUKislikelytoseenewrulesintroducedregulatingtheuseofsuchstereotypes.MarketersconsideringadvertisingonsocialmediaintheUKshouldbeparticularlycarefulinhowtheyusegenderroles in theircontent.While there isunlikely tobeanoutrightbanonalladsdepictingwomencleaningormendoingDIY,brandsshouldbeconsciousthatevenifsuchcontentisnotscrutinizedbytheASA,thereisheightenedpublicawarenessaroundtheissuewhichcouldresultinnegativepublicity.

In addition, CAP and BCAP have recently introduced stricter rules prohibiting the sexualrepresentationofunder-18s.Therulesprohibitrepresentationofanyonewhois,orseemstobe,under18inasexualway,unlesstheprincipalfunctionistopromotethewelfareoforpreventharmtounder18sandprovidedthatthesexualrepresentationisnotexcessive.


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• MondelezUKLtd‘OreoLickRace’(November2014)—InfluencerMarketingTwofamousvloggerswere featuredparticipating inanOreo ‘lickrace’on theirYouTubechannels. Each vlogger stated that they were working with Oreo and mentioned othervloggers who had also taken part in their own ‘lick race’. Each video also included thefollowingstatement:‘ThankstoOreoforhelpingtomakethisvideohappen!’

A complainant challengedwhether the advertswere obviously identifiable asmarketingcommunications.

TheASAupheldthecomplaintholdingthatthedisclosuresmadewereinsufficient.Itstatedthatthevideoswereinthestyleofthevideosonthevloggers’YouTubepages,assuchitwasnotclearthatthevideoswereadvertsorthatacommercialrelationshipexistedbetweenthevloggersandOreo.

• Procter&Gamble(Health&BeautyCare)Ltdt/aBeautyRecommended(May2015)—InfluencerMarketingAvideoentitled‘EasyLipMakeupTutorialsforWinterTime’wasfeaturedontheBeautyRecommended YouTube channel. The video featured amodel vlogger talking about andusinganumberofproducts;theseincludedseveralMaxFactorproducts.Atthebeginningofthevideo,textappearedwhichstated‘SponsoredbyBEAUTYRECOMMENDED,broughttoyoubyProcter&Gamble’.Thistextwasalsorepeatedinthevideodescription.

Acomplainantchallengedwhethertheadvertwasobviouslyidentifiableassuch.

TheASAupheldthecomplaint,statingthat,inthecaseofmarketingvlogs,consumersshouldbemadeawarebeforeclickingonavideolinkthatthecontentwhichfollowsisanadvert.Further the ASA considered that consumersmight not be aware that the brand BeautyRecommendedisownedbyProcter&Gamble.Thechannelandvideotitlesdidnotgiveanyindication as to the commercial nature of the video and the phrases ‘sponsored by’ and‘broughttoyouby’wereinsufficienttomakeclearthatthiswasadvertisingandnotmerelysponsoredcontentthathadbeenfinancedbutnotcontrolledbythebrand.Inthiscase, itwasbothfinancedandcontrolledbyP&G.

• Michelin Tyre plc and Telegraph Media Group Ltd (December 2015)—NativeAdvertisingAn advert for Michelin tyres appeared on The Telegraph’s website. Text and a videocomparedMichelin’styrestoanon-disclosedcheaperbrandandconcludedthatMichelintyresweresaferandwouldperformbetterinwetweather.Textappearedintherighthandcorner of the advert which stated ‘In association with Michelin’ and also contained astatement which read ‘As part of the Telegraph’s recent Performance Driving Day, inassociationwithMichelin’.BoththepageandthevideocontainedMichelin’slogo.

The complaintwasupheld.TheASA considered that the advertwouldbeunderstoodbyconsumers as anobjective studybetweenbudget tyres andMichelin tyres rather thanaMichelinadvertisement.WhilstthestatementsconnectingMichelintotheadvertmighthaveshownthatafinancialarrangementexisted,itdidnotnecessarilyshowthatthecontentwasanadvert.

• HenkelLtdt/aDylon(January2016)—NativeAdvertisingA Dylon advert was placed on the Buzzfeed site entitled ‘14 Laundry Fails We’ve AllExperienced’,thearticle’scontentwassimilartothatofatypicalBuzzfeedpost,althougha

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DylonColorCatcherlogowasplacedbelowthearticlewithtextwhichread‘DylonBrandPublisher’withalinktotheDylonpageonBuzzfeed.

Acomplainantchallengedwhethertheadvertwasobviouslyidentifiableassuch.

TheASAupheldthecomplaintstatingthat,whilstlabelsappearednexttotheadvertorialonBuzzfeed’shomepage,websitevisitorscouldaccesstheadvertorialviaanumberofdifferentpathways;itshouldhavebeenmadeimmediatelyclearwhenarrivingonthearticlepagethat itwasan advert. Itwasalso stated that theadvert should include labels other than‘BrandPublisher’foradvertorials.

• NomadChoicePtyLtdt/aFlatTummyTea(April2017)—InfluencerMarketingAmakeupbloggerpostedaselfieonherInstagrampageholdingaselectionofteaproducts.Thepostwascaptioned‘@flattummytea20%offguys!!!!Ifyou’vebeenfollowingmeyou’llknowIusedthisandgenuinelyfeellessbloatedandaflattertummy…ohyessss’.

TheASAconcludedthatFlatTummyTeaexercisedsufficientcontroloverthecontentofthepostinorderfortheposttobeconsideredamarketingcommunication.Further,thecontentandcontextofthepostdidnotmakeclearthatthepostwasanadvertisement,particularlyintheabsenceofanidentifiersuchas‘#ad’.Thecomplaintwasupheld.

• DiamondWhites(October2017)—InfluencerMarketingArealityTVstarcreatedaSnapchatsnapofherselfwhileholdingaDiamondWhitesproduct.The texton theSnapstated: ‘50%offeverything fromDiamondWhites!Swipeup[heartemoji]’andalinktotheDiamondWhiteswebsite.

TheASAupheldthecomplaintthattheadvertwasnotobviouslyidentifiableassuchandthatitwasnotobviousthattherealitystarhadacommercialrelationshipwithDiamondWhites.


BeforeutilizingUGCitisbestpracticetoobtaintheconsentoftheuser,whetherthatisthroughawrittenagreementwherebyrightsinthecontentareformallyassignedorlicensedtothebrand,throughthewebsitetermsandconditions,orbyseekinginformalpermissionfromtheuser.

Obtainingaformalwrittenagreementisthesafestandmostsecurewaytoproceed,particularlyiftheusageislikelytobehighprofileorforalongduration.Ifthisisnotpractical,thewebsitetermscouldbedraftedtospecifythatanyuploadedcontentwillbeassignedorlicensedtothebrandandwarrantiescouldbeincludedtoensurethatthecontentdoesnotinfringethirdpartyrights.Itisimportanttoensurethattheuserreviewsthetermsandacceptsthem,otherwisethereisariskthatthetermcouldbedeemedineffective.Seekinginformalorimpliedpermissionfromtheuseristheleastreliableformofconsent.

Whilstmoderatingcontentisimportantinordertoprotectthebrandandremoveinappropriatecontent,themoreabrandmoderatesthecontent,thegreatertheriskthatthebrandwillbelegallyresponsibleforanycontentwhichisposted.Thereisthereforeafinelinebetweenprotectingthebrandsreputationandcompromisingitslegalposition.

Brands should also implement policies against the making of defamatory statements, andimplementcomplaintsandnotificationprocedurestoallowuserstonotifythebrandofpotentiallydefamatorymaterialandgivingthebrandtheabilitytoremoveorblockthecontent.

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Disclosure is essential for native advertising and social influencer posts, particularly if theinfluencerhasbeenpaidandtherehasbeenanydegreeofcontroloverthecontentofthepost.

The other key area is online reviews. Moderation guidelines should be carefully drafted andappliedbytrainedstafftoensurethatfakepositiveornegativereviewsareremoved,alongwithreviewsthatareoffensiveorinfringethirdpartyrights.However,genuinenegativereviewsshouldnotberemoved.

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United States

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SOCIAL MEDIA – UNITED STATES


The main social media platforms that advertisers use in the United States include Facebook,Instagram,Twitter,Pinterest,Snapchat,Reddit,Tumblr,WhatsApp,andLinkedIn.


Advertising and marketing in the United States, including through social media, is heavilyregulatedbyfederal,state,andlocallaw,aswellasbyvariousself-regulatoryorganizations.Thelawsarecomplex,andareconstantlyevolving.BelowaresomekeyexamplesofthelawsgoverningadvertisingpracticesintheUnitedStates:

Federal Laws: While there are numerous advertising laws, including statutes prohibitingdeceptivepractices,aswellasstatutesgoverningspecificmarketingpractices, twoof themainexamplesare:• FTCAct:ThisActisafederallawprohibiting‘unfairordeceptiveactsorpractices’affecting

UScommerce.See15USC§45.• LanhamAct: This isthe federal falseadvertisingstatute,whichprovides thekey federal

causeofactionforcompetitors.See15USC1125(a)(1)(B).

StateLaws:Eachstatealsoregulatesadvertising,bothwithgeneralconsumerprotectionstatutes(manymodeledaftertheFTCAct),aswellaswithstatutesregulatingspecificpractices(suchastheadministrationofsweepstakesandcontests).Privateplaintiffsaswellasstateregulatorscanbringactionsundertheselaws.

LocalLaws:Somecountiesandmunicipalitiesalsohaveconsumerprotectionlaws.Theselawsrun the spectrum from general prohibitions on deception to specific requirements related topricingandotherretailpractices.

Self-Regulation: Asdiscussedmore fullybelow,self-regulationplaysan importantrole in theadvertising industry. Industry groups have promulgated respected and widely-followed self-regulatory codes, andmany advertising disputes are resolved through self-regulatory disputemechanisms.

Advertisingthroughsocialmediacanalsoimplicatemanyotherareasoflaw,includingcopyright,trademark,rightofpublicity,defamation,unfaircompetition,unionissues,ideamisappropriation,obscenityandindecency,hatespeech,othertortliability,criminallaw,andprivacy.Advertisinginvolvingusergeneratedcontent(‘UGC’),whichisquitecommoninthesocialmediaspace,canalsoposespecialliabilityrisksforadvertisers,althoughthereareprotectionspotentiallyavailableforadvertisers:• TheDigitalMillenniumCopyrightAct(‘DMCA’)providesrecourseforcopyrightownerswho

believethatmaterialappearingontheInternetinfringestheirrightsunderU.S.copyrightlaw,butprovides a ‘safeharbor’ from liability for ‘serviceproviders’who follow certaintechnicalrequirements.17USC§512.

• TheCommunicationsDecencyAct(‘CDA’)providescertainprotectionsforthepublicationofthirdpartyonlinematerial,providingthat‘noprovideroruserofaninteractivecomputerserviceshallbetreatedasthepublisherorspeakerofanyinformationprovidedbyanotherinformation content provider.’ 47 USC §230(c)(1). However, the CDA does not provide

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immunityfromliabilityundercertaintypesoflaws,includingcriminallawsandintellectualpropertylaws(47USC230(e)),anditisunsettledwhethertheCDAsafeharborcoversstaterightofpublicityclaims(comparePerfect10vCCBill488F3d1102(9thCir2007)withJaneDoevFriendfinder540FSupp2d288(DNH2008))orprovidesanyprotectionagainstaregulatoryactionbroughtbyagovernmentalentitysuchastheFTC.

Socialmediaadvertising isalsosubject to the termsandconditionsof thehostplatform’sowntermsofuse.

Asnotedabove,numerousregulatorybodieshaveauthorityoveradvertisingandmarketing.TheFederal Trade Commission (‘FTC’) is primarily responsible for enforcing the nation’s federalconsumer protection laws, including the FTC Act. State attorneys general and local districtattorneysalsohavejurisdictiontoenforcestateandlocalconsumerprotectionlaws.Inaddition,there are regulatory agencies charged with responsibility over specific industries and theiradvertisingandmarketingpractices,suchas:• theUSFoodandDrugAdministration(‘FDA’),whichischargedwithregulatingprescription

drugandbiomedicaladvertising(see,eg,21CFR312.7(a));• theConsumerFinancialProtectionBureau(‘CFPB’),whichhasauthoritytoimplementand

enforcefederalconsumerfinanciallawfor‘nonbank’financialcompanies(see,eg,12USC§5491);

• the Department of Transportation (‘DoT’), which has jurisdiction to regulate airlineadvertising(see,eg,49USC§41712);

• theSecuritiesExchangeCommission(‘SEC’),whichhascontroloverthefalseadvertisingofsecurities(see,eg,SecuritiesActof1933,15USCA§77a;SecuritiesExchangeActof1934,15USCA§78a);

• theFinancialIndustriesRegulatoryAuthority(‘FINRA’)hasavarietyofrulesandguidelinesaffectingadvertisingbyitsmembers(see,eg,FINRARule2210);and

• the Federal Alcohol Administration, which regulates unfair competition, including falseadvertising,inconnectionwiththeinterstatesaleofalcoholicbeverages(see,eg,27USCA§205(e),(f)).


Therearealsoindustryself-regulationorganizationswithadvertisingcodes,guidelinesordisputeregulationprogramsandjurisdictionovervariousadvertisingactivities:• NAD:theNationalAdvertisingDivision,whichresolvestruth-in-advertisingdisputes(see

www.asrcreview.org);• CARU: the Children’s Advertising Review Unit, which resolves disputes regarding

compliance with CARU’s Self Regulatory Guidelines for Children’s Advertising’ (seewww.asrcreview.org);

• ERSP:theElectronicRetailingSelf-RegulationProgram,whichresolvesdisputesregardingtruth in advertising primarily for direct response advertising (seewww.asrcreview.org/ersp;seealsowww.retailing.org);

• BBB: the Better Business Bureau, which has issued its own Code of Advertising (seewww.bbb.org/membership/codeofad.asp);

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• DMA:theDirectMarketingAssociation,whichhasissuednumerousguidelinesonmarketingpractices,suchasGuidelinesforEthicalBusinessPractice(seewww.the-dma.org);

• MMA:theMobileMarketingAssociation,whichhasissuedvariousguidelinesforthemobilemarketingindustry(seewww.mmaglobal.com);

• IAB:theInteractiveAdvertisingBureau,whichprovidesguidelinesandbestpracticesformany areas of online and social media marketing (seehttps://www.iab.com/guidelines/social-media-native-content);

• Networks:Themajorbroadcastnetworks(suchasABC,CBS,NBC,andFox),aswellassomeothers, who require that commercials that air on their networks comply with theirguidelines.Inordertoensurecompliance,thenetworkspre-clearcommercialsbeforetheyareacceptedforbroadcast;

• RatingsOrganizations:Someindustrygroupsprovideratingsonentertainmentproductstogiveconsumersinformationaboutthecontentofthoseproducts.TheyincludetheMotionPictureAssociationofAmerica(www.mpaa.org),theEntertainmentSoftwareRatingBoard(www.esrb.org),andtheRecordingIndustryAssociationofAmerica(www.riaa.com);and

• IndustryGroups:Manyindustrygroupshavealsoissuedself-regulatoryguidelineswhichareapplicabletothemarketingofspecifictypesofproducts.ExamplesincludetheDistilledSpiritsCounciloftheUnitedStates(www.discus.org)andtheAmericanGamingAssociation(www.americangaming.org).


The FTC has issued the Guides Concerning the Use of Endorsements and Testimonials inAdvertising (see https://www.ftc.gov/policy/federal-register-notices/guides-concerning-use-endorsements-and-testimonials-advertising-16-1).TheGuidesincludeacompanionpiece,whichis frequently updated: Endorsement Guides: What People Are Asking (seehttps://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking).These guidancedocumentsdonothave the forceof lawbut represent theFTC’sstaffcurrentinterpretationastowhatbusinesspracticescomplywithSection5oftheFTCAct.Thesedocumentsincludeguidanceforuseofinfluencers,aswellasotherendorsementsandtestimonials.

The IAB has also issued guidance for publishers (see https://www.iab.com/wp-content/uploads/2018/01/IAB_Influencer_Marketing_for_Publishers_2018-01-25.pdf).

The Word of Mouth Marketing Association (‘WOMMA’) has issued influencer guidelines (seehttps://womma.org/wp-content/uploads/2017/05/WOMMA-Social-Media-Disclosure-Guidelines-2017.pdf.

The basic requirements are that anymaterial connection between an influencer and a brandadvertiserthatwouldnotbeexpectedisdisclosedclearlyandconspicuously.TheFTChassaiddisclosureslike‘ad,’‘sponsored,’or‘paid’arenotambiguous.Further,suchdisclosureshouldcomeatthebeginningofthepostorinnocaseafteraviewermustscrollorclick‘readmore’.Inaddition,anendorsementmustreflect theactualexperienceof the influencerandcanonlymakeclaimsaboutaproductorservicethataresubstantiatedandnotmisleading.


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TheFTChasissuedtheEnforcementPolicyStatementforDeceptivelyFormattedAdvertisements(see https://www.ftc.gov/public-statements/2015/12/commission-enforcement-policy-statement-deceptively-formatted) and Native Advertising: A Guide for Business (seehttps://www.ftc.gov/tips-advice/business-center/guidance/native-advertising-guide-businesses).

The IAB has also issued a Native Advertising Playbook (see https://www.iab.com/wp-content/uploads/2015/06/IAB-Native-Advertising-Playbook2.pdf).

Thesamerequirementsforinfluencerpostsgenerallyapplyinthenativeadvertisingcontextaswell.Ifanativeadisintheformofavideo,disclosurethatthecontentisadvertisingshouldappearinthevideoitselfatthebeginningofthevideo.Ifnativecontentislivestreamed,thedisclosureshouldberepeatedthroughout.


As discussed above, the use of UGC content can implicate copyright, trademark, and right ofpublicity issues. While UGC can impose risks, there are protections potentially available foradvertisersthroughtheDMCAandCDA,asdiscussedabove.

ThelawsrelatingtocopyrightandrightsofpublicitygenerallydictatethatwrittenconsentmustbeobtainedbythecopyrightowneroftheUGCaswellasfromanyidentifiablepersonswhoappearintheUGC.IfUGCiscollectedthroughtheuseofacontestorsweepstakes,thelawsapplicabletocontestsorsweepstakeswillalsoapply.

Inaddition,UGCmayfallunderthecategoryofinfluencermarketing(ifconsumersaremakingclaims about an advertiser’s product or services), and so the considerations applicable toinfluencerswillalsoapply.


SweepstakesandcontestsaregenerallyregulatedbyindividualstatelawineachofthefiftyStates,and thesesame lawsapply tosweepstakesandcontestsviasocialmediaaswell. Ingeneral, ifsweepstakes or a contest has all three elements (of price, chance, and consideration), thepromotionisillegalintheUnitedStates.Legalchancepromotionsgenerallyremovetheelementof consideration and legal skill contest promotions generally remove the element of chance.AdditionalgeneralinformationonconductingsweepstakesoracontestintheUnitedStatescanbefoundinGALA’spublication,SweepstakesandContests:AGlobalLegalPerspective.

Some socialmedia siteshave their ownguidelines relating to the conduct of sweepstakesandcontestsinsocialmediaincluding:• Facebook:seehttps://www.facebook.com/page_guidelines.php;• Twitter:seehttps://help.twitter.com/en/rules-and-policies/twitter-contest-rules;• YouTube:seehttps://support.google.com/youtube/answer/1620498?hl=en;• Snapchat:seehttps://support.snapchat.com/en-US/a/promotions-rules;• Instagram:seehttps://help.instagram.com/179379842258600;and• Pinterest:seehttps://policy.pinterest.com/en/advertising-guidelines.

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OfimportantnoteistheFTC’sinvestigationofColeHaan.In2014,theFTCinvestigatedacontestconductedbyColeHaanonPinterest,whichrequiredentrantstopostapictureofaColeHaanshoeinordertoenter.Inaclosingletter,theFTCindicatedthatifacontestentrantpostscontentinsocial media in order to enter, in order to comply with the FTC’s guidance on the use ofendorsementsandtestimonialsinadvertising,he/shemustdisclosethatthepostisacontestentry(seefurtherdiscussionatanswer9).


As a general rule, the laws governing traditional advertising in the United States also governadvertising through social media. It is important, then, for advertisers to ensure that theiradvertisingonsocialmediaisvettedinthesamemannerastheirotheradvertisingcontent.Thereissomeuncertainty,however,aboutwhattypesofsocialmediacommunicationsbycompanieswouldnotbeconsideredtobeadvertising.

Advertisersshouldensurethattheirexpressandimpliedadvertisingclaimsinsocialmediaaretruthfulandproperlysubstantiated.Becauseadvertisersmaybeheldresponsibleforstatementsmadeontheirbehalf(suchasbyinfluencersorendorsers),statementsmadeinsponsoredcontent(such asnative advertising), and statementsmade inonline contentadoptedby the company,advertisersshouldhaveproceduresinplacetoensurethattheseclaimsaretruthfulandproperlysubstantiatedaswell.Advertisersarealsogenerallynotpermittedtousethirdparties(suchasanendorser)tomakeaclaimthattheadvertisercouldnotproperlymakeitself.

Particularlywithrespecttosocialmediaadvertising,therehasbeenagreatdealofattentionlatelyontheissueoftransparency—theideathatconsumershavetherighttoknowwhentheyarethetargetofadvertising.Whenindividualsarespeakingonacompany’sbehalf(suchasasocialmediainfluencer),orapublicationworkswithanadvertisertopublishcontentthatpromotesabrand(such as through native advertising), it is critically important that the content should clearlydisclosetherelationshipwiththeadvertiser.Forsocialmediapostsbyinfluencers,thismaybedonethroughhashtagdisclosuressuchas#ador#sponsored.Fornativeadvertising,disclosuressuchas‘advertisement’maybeneeded.

Therehasalsobeenagreatdealofattentionpaidtotheeffectivenessofonlinedisclosures.Thegeneralruleisthat,inorderforadisclosuretobeeffective,itshouldbe‘clearandconspicuous’.Fordisclosures insocialmedia, thisoftenmeans that thedisclosureshouldbe inaprominent,unavoidablelocation—notinalocationthatiseasilymissedbyconsumers(suchaswhenitisonlyvisiblebyscrolling,clickingonahyperlink,orclickingtoexpandthereadablearea).


TherehavebeennumerouscasesintheUSrelatingtoadvertisingandsocialmediainsocialmedia.Casesincluderegulatoryinvestigations,privatelitigation,andself-regulatoryproceedings.Somekeyexamplesinclude:

• AnnTaylor:TheFTCinvestigatedAnnTaylorinconnectionwithallegationsthatitprovidedgiftstobloggerswhothecompanyexpectedwouldpostblogcontentaboutthecompany’sLOFTdivision.Initsletterclosingtheinvestigation,theFTCsaidthatitwasconcernedthat

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bloggerswhoattendedapreviewofLOFT’scollection‘failedtodisclosethattheyreceivedgiftsforpostingblogcontentaboutthisevent.’

• ColeHaan:In2014,theFTCconcludeditsinvestigationofColeHaaninconnectionwithacontestColeHaanconductedonthesocialmediasitePinterest.TheinquiryfocusedonColeHaan's ‘Wandering Sole PinterestContest,’which instructed entrants to create PinterestboardswithimagesofColeHaanshoesandpicturesoftheir‘favoriteplacestowander,’fora chance towin a $1,000 shopping spree. The brand also asked entrants to include thehashtag‘#WanderingSole’intheirentries.

In its closing letter concluding the investigation, the FTC stated that ‘pins’ of ColeHaanproductsconstitutedendorsementsofthebrand.TheFTCalsostatedthattheopportunitytowinasignificantprizewasanincentiveforentrants,andonethatwouldnotreasonablybeexpectedbyconsumerswhosawthepins,thusrequiringadditionaldisclosure.TheFTCconcludedthatColeHaan’sfailuretoinstructcontestantstolabeltheirpinsandPinterestboardstomakecleartheywerepinningColeHaanproductsinexchangeforacontestentrycouldconstituteaviolationoftheFTCActandthatthehashtag‘#WanderingSole’didnotadequatelycommunicatethematerialconnectionbetweenthecontestantsandColeHaan.

• WarnerBros:In2016,theFTCsettleditslawsuitagainstWarnerBrosHomeEntertainmentInc,whichincludedallegationsthatWarnerBrosfalselyrepresentedthatpositivegameplayvideos of its game, Shadow of Mordor, posted by YouTube influencers reflected theindependentopinionsofimpartialgamers;andfailedtoadequatelydisclosetheinfluencers’materialconnectiontothecompany.

Inexchangeforpostingpre-approvedvideosdesignedtopromoteWarnerBros’game,theYouTubeinfluencersreceivedfreeaccesstothegameanduptothousandsofdollarsincash.The influencers were instructed to promote the game in a positive way and to placesponsorship information in the description box below the video, where it was notimmediatelyvisible.Inmanycases,theinfluencersdidnotdisclosethatWarnerBroshadpaid them to promote the game. The videos generatedmore than 5.5million views onYouTube.

ThefinalorderrequiredWarnerBrostoclearlydisclosematerialconnectionstoinfluencersorendorsers.ItalsospecifiedthemeasuresWarnerBrosmusttaketoeducateandmonitorwhat influencers do on the company's behalf, including, under certain circumstances,withholdingpaymentor terminating influencersor ad agencies thatdonot complywithrequirements.

• Lord&Taylor:In2016,TheFTCallegedthatLord&Taylordeceivedconsumersbypayingfornative advertisements, including an articlepublishedonlineby the fashionmagazineNylon, a Nylon Instagram post, and other incentivized social media posts by fashioninfluencers, without disclosing that the posts were actually paid promotions for thecompany’sDesignLabcollection.Amongothercharges,theFTCallegedthatLord&Taylorgavetheinfluencersafreedressandpaidthembetween$1,000and$4,000eachtopostaphotoofthemselveswearingitonInstagramoranothersocialmediasite.Lord&Taylorpre-approvedeachpost,andtheinfluencerswereobligatedbycontracttotag‘@lordandtaylor’as part of the posts and to use the hashtag ‘#DesignLab’ in the caption of the photos.AccordingtotheFTC,Lord&TaylorfailedtorequiretheinfluencerstodisclosethattheyreceivedthedressesforfreeorwerepaidbyLord&Taylorfortheirposts.

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• Advertisers should ensure that any social media content posted or sponsored by themcomplieswiththesamefundamentalprinciplesandlegalstandardsthatareapplicabletoadvertisinggenerally.

• Anyadvertiserusingsocialmediainfluencersshoulddevelopandimplementaprocessbywhich it can monitor and review influencer posts to ensure the posts are truthful andproperlydisclosetheinfluencer’srelationshiptotheadvertiser.

• Advertisers should ensure that social media disclosures are easily seen and read byconsumers and should not rely on consumers navigating to other locations to obtainimportantqualifyinginformation.

• Finally,rightsholderscontinuetoaggressivelyenforcetheirrights,particularlywithrespecttocopyrightinfringementandrightofpublicityviolations.Accordingly,advertisersshouldexerciseextracautiontoensurethatrightsareclearedbeforematerialisposted.

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Uruguay

325

SOCIAL MEDIA – URUGUAY


Facebook,TwitterandInstagramarethemostwidely-usedsocialmediaplatformsinUruguayforadvertisingandmarketingtoconsumers.TherearenoblockedplatformsinUruguay.


Therearenospecificregulationsconcerningadvertisingandmarketingviasocialmedia in theUruguayan legal system. Notwithstanding this, general regulations applicable to all types ofadvertisingapplytoadvertisingandmarketingactivitiescarriedoutthroughsocialmedia.

Act17,250onConsumers’RightsanditsregulatoryDecree244/000providethegeneralregimeapplicabletomarketingandadvertising.

The Act affirms one of themost important consumer rights: the protection against deceptiveand/or misleading advertising. Accordingly, all advertising must be transmitted and madeavailabletothepublicinsuchawaythatconsumersareawarethatitisanadvertisement.Alltypesofdeceptiveormisleadingadvertisingarecompletelyforbidden.


In2017,theself-regulatoryadvertisingcouncil(‘CONARP’)issuedsomeguidelinesapplicabletodigitaladvertising.TheseguidelinescomplementthegeneraladvertisingrulesissuedbyCONARPin2013.

Themainrulesare:• theadvertisermustclearlydisclosetocustomersallrelevantinformationabouttheproduct;• theadvertisermustgiveinformationabouthowthecustomerwilllegallyacceptanofferor

assumeanyobligation;and• iftheadvertisercollectsdatafromcustomers,customersmusthavethechancetoverifythe

accuracyofthedata.


Therearenospecificregulationsorself-regulatoryrulesrelatedtoinfluencermarketingviasocialmedia. According to the self-regulation guidelines, influencers have a ‘transparency’ duty.Unfortunately,thisdutyisnotexplainedintheguidelines.


Therearenospecificregulationsorself-regulatoryrulesrelatedtonativeadvertisingviasocialmedia.Thegeneralruleisthattheconsumermustunderstandwhatisactualnews/contentandwhatisadvertising.

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SOCIAL MEDIA – URUGUAY


Giventhattheinternetitself isnotconsideredbythelocalprivacylawregulatortobea ‘publicsourceofinformation’,thecollectionofpersonaldataviatheinternetrequires,inprinciple,thatthedataisobtainedfromthedatasubjecthimselforprovidedwithhisconsentforthepurposeofreceivingadvertisementsand/ormarketing-relatedinformation.

However,socialnetworksmaybeconsideredpressandthereforedatamaybeused.ThisisstillanopenissueinUruguay,soacase-by-caseanalysisisrequired.


Therearenospecificregulationorself-regulatoryrulesinUruguay.Generalrulesapply.

TherearetwotypesofsweepstakesregulatedunderUruguayanlaw• Sweepstakes,forwhichmoneymustbepaidforentry,arelegallyrestrictedandcanonlybe

carriedoutwiththepriorauthorizationoftheNationalDirectorateofLotteries(DirecciónNacionaldeLoteríasyQuinielas).

• Sweepstakesrelatedto theconsumptionorpromotion inanywayofcertainproductsorservicesareregulatedbyLaw15.851andDecree449/995.AllpromotionsofproductsorservicesarerequiredtobefiledforpriorauthorizationoftheDirectorateGeneralofTradeatleast30daysbefore thebeginningof thepromotion.Dependinguponthevalueof theprices,amunicipalauthorizationmayalsoneedtobeobtained.


AccordingtoAct17,250onConsumers’Rights,allinformationprovidedbythesupplier,includinginformation on advertisements released by any means of communication, is binding on thesupplierandispartoftheagreementwiththeconsumer.

Whenthecontractisenteredintoviasocialmedia,theconsumerhasafive-business-dayperiodtocancelthepurchase.Thesuppliermustdisclosetherighttocancelintheagreement.Iftherighttocancelisnotdisclosed,theconsequenceisthattheconsumermaycancelthepurchaseatanytime.


N/A


N/A

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Venezuela

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SOCIAL MEDIA – VENEZUELA


Themain socialmediaplatformsusedbyadvertisers inVenezuelaare Instagram,Twitter andFacebook,inthatorder.NoimportantsocialmediaplatformisblockedforaccessfromVenezuela.


ThemainlawsgoverningadvertisingandmarketingviasocialmediainVenezuelaare:• LawonSocialResponsibilityinRadio,TelevisionandDigitalMedia;and• ConsumerProtectionAct.


Whilst it will not be found written down anywhere, there is an absolute ban on politics inadvertising,anditisessentialforalladvertiserstosteerclearofmattersofsensitivesocial,politicalor financial interest inordertoavoidunwantedpoliticalexposureandbecomea target fortheGovernment.


Nospecific legislation is in forceconcerning theactivityof individualsconductingbusinessviasocialmedia;onlythatallcontentpostedwithmarketingpurposesmustclearlybeidentifiedas‘advertising’. General legislation (ie the Consumer Protection Law, the Criminal Code), isapplicable.


Veracityandtransparencyarethekeyrules.Contentmustclearlybeunderstoodasadvertisingorsponsoredmaterial,asinthecaseontraditionalmedia.


Seeanswer5.


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SOCIAL MEDIA – VENEZUELA

Thesamelaws,regulationsandself-regulatoryrulesapplyasinthetraditionalmedia.Termsandconditionsofpromotions/contests/sweepstakesaresubjecttoreviewbytheConsumerProtectionAgency.


Seeanswer3.


Therehavebeennoneofrelevance.


Credibility remains king. In spite of Venezuelans being avid users of social media platforms,companiesbelievethattheirreputationistheirbestassettomaintain/increasetheirclientbase.

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Zimbabwe

333

SOCIAL MEDIA – ZIMBABWE


Themainsocialmediaplatformsthatareusedby advertisers inZimbabweareFacebook(andFacebookMessenger),Twitter,What’sApp,Instagram,Snapchat,Pinterest,LinkedIn,Vimeo,VevoandYouTube.

InZimbabwetherearenosocialmediaplatformsthatarenotavailable/blockedforuse.However,YouTube,VimeoandVevoarenotwidelyusedinZimbabweforadvertisingpurposes.


Therearenospecificlawsrelatedtosocialmedia;thesamegenerallawswhichwouldapplytooff-lineactivitiesapplytosocialmediawhereitaffectstransactionsand/orpersonswithinthebordersofZimbabwe.Suchlawsincludebutarenotlimitedto:

• theCompetitionActrelatedtounfairbusinesspractices,falseormisleadingadvertising;• intellectualproperty;• contract;and• defamation.

In2017therewasaproposaltointroduceaCyberCrimeandCyberSecurityBill,whichwastabledbeforeParliamentfordiscussion.ThemainaimofthisBillwaspurportedlytocriminalizeincitingviolence, revenge porn, racist/xenophobic material, bullying, causing ‘substantial’ emotionalstress,communicatingfalsehoodsanddegradingotherpeople.

Inaddition,theAdvertisingStandardsAuthorityofZimbabwe(nowreferredtoas‘ASAZIM’),afteraperiodwhen itwasnon-functional, becameactive again inMarch2017.Asa voluntary, self-regulatorybody, itsmandate is topromoteaccessibleandcost-efficientmechanismstoensureadvertisingislegal,decent,honestandtruthful.AlthoughitreliesuponitsCodeofStandards,itrecognizestheneedtoamendtheCodetoreflectcurrentdevelopmentsandchallengesevolvingintheadvertisingandmarketingindustries,particularlyrelatedtosocialmedia.


Atthistimetherearenoself-regulatoryruleswhichspecificallygovernsocialmedia.However,advertisingviasocialmediawillmostlikelyfallunder,andbegovernedby,theCodeofStandardswhichisusedbyASAZIM.


Therearecurrentlynolaws,regulationsorself-regulatoryrulesforinfluencermarketinginZimbabwe.However,thegeneralguidingprinciplesintheCodeofStandardsarethatinfluencermarketing,justasanyotheradvertisement,mustnotbefalse,misleadingordeceptive.Therefore,disclosuremayberequiredunderthetermsoftheCode.

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SOCIAL MEDIA – ZIMBABWE


Therearecurrentlynospecificlaws,regulations,orself-regulatoryrulesfornativeadvertisinginZimbabwe. However, the general guiding principles in the Code of Standards are that nativeadvertising,justasanyotheradvertisement,mustnotbefalse,misleadingordeceptive.Therefore,disclosuremayberequiredunderthetermsoftheCode.


Therearecurrentlynospecificlaws,regulations,orself-regulatoryrulesrelatedtotheuseofusergeneratedcontentwhenadvertisingandmarketingviasocialmedia,exceptthegenerallawswhichwouldapplytooff-lineactivitiesconnectedtosocialmediawhereitaffectstransactionsand/orpersonswithinthebordersofZimbabwe,eg,CompetitionAct.


InZimbabwe, sweepstake competitions are regulatedby theLottery andGamingAct (Chapter10:26).However,itisunclearhowthelawsapplytocontestsviasocialmediawherethepromotersandcontestantsarenotfulfillinganyrequirementsorreceivinganybenefitswithinthebordersofZimbabwe.PromotersmustbeawarethatcontestantsareprohibitedundertheExchangeControlActfromagreeingtopayanyamount(eg,forapplication,entrance,ticketfeesetc.)inUSorothercurrencyoutsideZimbabwewithout thepriorauthorityof theReserveBankviaanauthorizedcommercialbankinZimbabwe.


A balance must be struck between the advertiser’s rights to free speech and expression, thecompetitor’srightnottobedisparagedandtheconsumers’righttoprotectionfromfalseand/ormisleadingclaims.


Therearenojudgments/decisionsatthistime.


Thebestpracticeistobetruthfulandhonestaboutthepropertiesofanyproductthatisbeingadvertisedorsoldtoensurethatconsumersarenotaggrievedwhenaproductdoesnotmeetthestandardswhichwereportrayedwhenitwasadvertised.Intheeventofinfluencermarketingornativeadvertising,thereshouldbedisclosureofthepecuniaryinterestsofthoseparticipatingintheadvertisement.

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GALA Members

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ARGENTINA

Paula Fernandez Pfizenmaier Randle Legal Carlos Pellegrini 1135. 2nd Buenos Aires B1009ABW T: +54.11.5252.0700 E: [email protected] W: www.randlelegal.com

AUSTRALIA Peter Le Guay Thomson Geer Level 25, 1 O'Connell Street, Sydney NSW 2000 T: +61.2.8248.5800 E: [email protected] W: www.tglaw.com.au

AUSTRIA Stefan Kofler & Dr. Georg Huber Greiter, Pegger, Kofler & Partners Maria-Theresia Strasse 24, A-6020 Innsbruck T: +43.512.571.811 E: [email protected] E: [email protected] W: www.greiter.lawfirm.at

BELGIUM Jan Ravelingien Marx, Van Ranst, Vermeersch & Partners Avenue de Tervueren 270, 1150 Brussels T: +32.2.285.01.00 E: [email protected] W: www.mvvp.be

BOLIVIA Marcos Mercado & Jorge Inchauste Guevara & Gutierrez Calacoto Calle 15 Torre Ketal, Piso 4, Oficina 2 - Calacoto La Paz P.O. Box 9332 T: +591.2.2770808 E: [email protected] E: [email protected] W: www.gg-lex.com

BRAZIL Valdir Rocha Veirano Advogados Av. Presidete Wilson, 231, 23. andar 20030-021 - Rio de Janeiro T: +55.21.38244747 E: [email protected] W: www.veirano.com.br

BULGARIA Kalina Tchakarova & Violetta Kunze Djingov, Gouginski, Kyutchukov & Velichkov 10 Tsar Osvoboditel Blvd. Sofia 1000, Bulgaria T: +00359.2.932.1105 E: [email protected] E: [email protected] E: [email protected] W: www.dgkv.com

CANADA Catherine Bate Miller Thomson LLP Scotia Plaza, 40 King Street West, Suite 5800, P.O. Box 1011, Toronto, Ontario, M5H 3S1 T: 416.595.8582 E: [email protected] W: www.millerthomson.com

CARIBBEAN Karyl D. Bertrand (Dutch) Bertrand Legal & LP Consultancy Castorweg 22-24 Willemstad, Curaçao T: +5999 461 8199 E: [email protected]

Dianne Daley (English) Foga Daley 7 Stanton Terrace, Kingston 6, St. Andrew, Jamaica T: +876 927 4371 E: [email protected] W: www.fogadaley.com

CHILE Rodrigo Albagli & Ariela Agosin Albagli Zaliasnik El Golf, Piso 4, Las Condes, Santiago T: +56 2 2 445 6000 E: [email protected] E: [email protected] W: www.az.cl

CHINA Kevin Guo, Philip Qu & Justina Zhang TransAsia Lawyers Suite 2218, China World Office 1 1 Jianguomenwai Avenue, Beijing 100004 T : +86 10 6505 8188 E: [email protected] E: [email protected] E: [email protected] W: www.TransAsiaLawyers.com

COLOMBIA Juan Carlos Uribe & Fernando Triana Triana, Uribe & Michelsen Calle 93B No. 12-48 P. 4, Bogotá, D.C. 110221T: +57 1 6019660E: [email protected]: [email protected]: www.tumnet.com

COSTA RICA Uri Weinstok M. BLP BLP Building, 4th floor. Via Lindora Business Center San José T: +506.2205 3939 E: [email protected] W: www.blplegal.com

CROATIA Mladen Vukmir & Aleksandar Bijelic Vukmir & Associates Gramaca 2L 10 000 Zagreb T: +385.1.376.0511 E: [email protected] E: [email protected] W: www.vukmir.net

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CYPRUS George Z. Georgiou George Z. Georgiou & Associates LLC 1 Iras Street, Nicosia 1060 T: + 35722763340 E: [email protected] W: www.gzg.com.cy

CZECH REPUBLIC Mr. Libor Štajer, Mr. Pavel Musil & Mr. Petr Kuta KMVS, advokátní kancelár, s.r.o. Hellichova 1, 118 00 Praha 1 - Malá Strana T: +296.210.562(3) E: [email protected] E: [email protected] E: [email protected] W: www.kmvs.cz

DENMARK Johan Løje Løje, Arnesen & Meedom Øster Allé 42, 6. floor, P.O.Box 812 DK-2100 Copenhagen Ø T: + 45.33.114622 E: [email protected] W: www.iplaw.dk

DOMINICAN REPUBLIC Jaime R. Angeles Angeles & Pons Mustafá Kemal Ataturck Ave. 27 de Febrero 210, Suite 203 El Vergel T: +809.373-9418 E: [email protected] W: www.angelespons.com

EGYPT Mohamed Eldib & Amr Eldib Eldib & Co World Trade Center, Floor 17, 1191 Corniche El Nil, Beaulac 11221 T: + 20 2 2578 6000 E: [email protected] E: [email protected] W: www.eldib.com

ECUADOR Carlos Alberto Arroyo del Rio Falconi Puig Abogados Av. Amazonas N21-147 y Roca Edificio Río Amazonas, Oficina 900, Quito T: +593.2. 256.1808 E: [email protected] W: www.falconipuig.com

EL SALVADOR Roxana Romero, Jose Roberto, Carlos Castillo & oberto R Pineda Romero Pineda & Asociados Edificio AVANTE, Suite 5-01, Blvd. Luis Poma Santa Elena, Antiguo Cuscatlan T: + 503.2505.5555 E: [email protected] E: [email protected] E: [email protected] E: [email protected] W: www.romeropineda.com

FINLAND

Mikael Segercrantz & Johanna Flythström Roschier, Attorneys Ltd. Keskuskatu 7 A 00100 Helsinki T: +358.20.506.6000 E: [email protected] E: [email protected] W: www.roschier.com

FRANCE Michel Béjot & Caroline Bouvier Bernard Hertz Béjot 29, rue Fortuny Paris 75017 T: +33.1.43.18.8080 E: [email protected] E: [email protected] W: www.bhbfrance.com

GERMANY Dr. Søren Pietzcker (Hamburg Office) & Dominik Eickemeier (Cologne Office) Heuking Kühn Lüer Wojtek Goetheplatz 5-7, Frankfurt 60313 T: +46.69.975 61-446 E: [email protected] E: [email protected] W: www.heuking.de

GREECE Kriton Metaxopoulos & Asterios Syssilas A. & K. Metaxopoulos & PartnersLaw Firm54 Vas. Sofias Av. , 11528 AthensT: +30.210.7257614E: [email protected]: [email protected]: www.metaxopouloslaw.gr

GUATEMALA Marco Antonio Palacios & Hilda Monterroso Palacios & Asociados / Sercomi Avenida Reforma 6-64 zona 9 Edificio Plaza Corporativa, Torre I, Nivel 9, 01009, Guatemala City T: +502.2385.3416 / 19 E: [email protected] E: [email protected] W: www.sercomi.com.gt

HONDURAS José Álvarez & Fernando Godoy BLP Torre Nova, 5th Floor, Suite 95-A, Paseo Los Próceres, Tegucigalpa 11101 T: 504.2269.1217 E: [email protected] E: [email protected] W: www.blplegal.com

HONG KONG Angus Forsyth Angus Forsyth & Co. 16A, Hillier Commercial Building, 65-67 Bonham Strand, Sheung Wan T: +852.2638.9099 E: [email protected] W: www.angfor.hk 339

HUNGARY András Szecskay, Anikó Keller & János Vajda Szecskay Attorneys at Law H-1055 Budapest, Kossuth Lajostér 16-17T: +36 1 472 3000E: [email protected]: [email protected]: [email protected]: www.szecskay.com

INDIA Sharad Vadehra Kan and Krishme KNK House, A-11 Shubham Enclave Paschim Vihar, New Delhi-110063 T: +91.11.4377 66 66, 4377 66 75 E: [email protected] W: www.kankrishme.com

IRELAND Duncan Grehan & Conor Griffin Duncan Grehan & Partners Solicitors Gainsboro House, 24 Suffolk Street, Dublin 2 T: +353.1677.9078 E: [email protected] E: [email protected] W: www.duncangrehan.com

ISRAEL David Wolberg Kuperschmit, Goldstein & Co. Upper Galilee Regional Counsel Compound PO Box 1032 Kiryat Shmona 11019,Israel T: +972.4.695.1755 E: [email protected] W: www.kgcolaw.com

ITALY Ernesto Apa, Lydia Mendola & Donata Cordone Portolano Cavallo Via Rasella 155, Rome 00187 T: + 39 06 696661 E: [email protected] E: [email protected] E: [email protected] W: www.portolano.it

JAPAN Chie Kasahara Atsumi & Sakai Fukoku Seimei Bldg., Reception: 12F 2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo100-0011T: +81 3-5501-2438 (Direct)E: [email protected]: www.aplaw.jp/en/

KENYA John Syekei Bowmans (Coulson Harney) 5th Floor, ICEA Lion Centre, West Wing, Riverside Park, Chiromo Road, Nairobi PO Box 10643-00100, Nairobi T: +254 20 289 9000 E: [email protected] W: www.bowmanslaw.com

LUXEMBOURG Michael Molitor & Virginie Liebermann MOLITOR, Avocats à la Cour 8, rue Sainte - Zithe, B.P.690, L-2016 T: +352.297.298/1 E: [email protected] E: [email protected] W: www.molitorlegal.lu

MALAYSIA Patrick Mirandah mirandah asia 1 Coleman Street #07 – 08 The Adelphi, 179803 T: +65.6336.9696 E: [email protected] W: www.mirandah.com

MALTA Georg Sapiano Aequitas Legal Valletta Buildings, South Street Valletta, 1103 T: +356 21 234085 E: [email protected] W: www.aequitas.com.mt

MEXICO Roberto Arochi Arochi & Lindner Insurgentes Sur 1605, 20th Floor San José Insurgentes, Mexico City, 03900 T: +52.55.50.95.2050 E: [email protected] W: www.arochilindner.com

NETHERLANDS Ebba Hoogenraad & Daniël Haije Hoogenraad & Haak Emerald House Jozef Israelskade 48G 1072 SB, Amsterdam T: + 31 20 305 3066 E: [email protected] E: [email protected] W: www.hoogenhaak.nl

NEW ZEALAND Erich Bachmann Hesketh Henry Level 14, PwC Tower, 188 Quay Street, Auckland 1010 T: +64.9.375.8709 E: [email protected] W: www.heskethhenry.co.nz

NICARAGUA Julián J. Bendaña-Aragón Guy José Bendaña-Guerrero & Asociados PO Box 3140, Managua 00005 T: +505.2266.5662 E: [email protected] W: www.guybendana.com.ni

NIGERIA Lara Kayode O. Kayode & Co.3rd Floor, Sterling Bank Building,198Igbosere Road Moloney, Lagos IslandT: +234.1.292 2412E: [email protected]: www.okayode.com

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NORWAY Bente Holmvang Bull & Co Postboks 2583 Solli, N-0203 Oslo T: +47.23.01.01.01 E: [email protected] W: www.bull.no

PARAGUAY Hugo Mersan & Lorena Mersan MERSAN Fulgencio R. Moreno No. 509 Edificio “De La Colina”. Casilla de Correos Nº 693, Asuncion T: + 595 21 447 739 E: [email protected] E: [email protected] W: www.mersanlaw.com

PANAMA Ramón R Benedetti A. Estudio Benedetti Edificio Comosa, Piso 19, Avenida Samuel Lewis, Panama 5, Panama T: + 507 321 5700 E: [email protected] W: www.benedetti.com.pa

POLAND Ewa Skrzydlo-Tefelska Sołtysinski Kawecki & Szlezak ul. Jasna 26, 00-054 Warsaw T: +48.61.856.0420 E: [email protected] W: www.skslegal.pl

PORTUGAL César Bessa Monteiro & Ricardo Henriques Abreu Advogados Av. Infante D. Henrique, 26 Lisbon 1149-096 T: +351. 217.231.800 E: [email protected] E: [email protected] W: www.abreuadvogados.com

PUERTO RICO Eugenio Torres Ferraiuoli LLC 221 Ponce de León Avenue, 5th Floor Hato Rey, Puerto Rico 00917 T: 787.766.7000 E: [email protected] W: www.ferraiuoli.com

ROMANIA Silviu Stratulat & Ana Kusak Stratulat Albulescu Attorneys at Law221 27 Ion Brezoianu St., ground 5th & 6th Floor, Bog'Art Center, 1st District Bucharest T: 40.21.316.87.49 E: [email protected] E: [email protected] W: stratulat-albulescu.ro

RUSSIA Irina Anyukhina ALRUD Law Firm 6 floor, 17 Skakovaya Street, 125040, Moscow T: +7.495.234.96.92 E: [email protected] W: www.alrud.com

SERBIA Slobodan Kremenjak, Nebojša Samardžić & Miloš Stojković Živković Samardžić Makedonska 30/II Belgrade 11000 T: + 381 11 2636636 E: [email protected] E: [email protected] E: [email protected] W: www.alrud.com

SINGAPORE Denise Mirandah mirandah asia 1 Coleman Street, #07 - 08 The Adelphi, 179803 T: +65.63369696 E: [email protected] W: www.mirandah.com

SLOVAKIA Dušan Nitschneider Nitschneider & Partners Cintorínska 3/A, 811 08 Bratislava T: +421 2 2092 1213 E: [email protected] W: www.nitschneider.com

SOUTH AFRICA Kelly Thompson & Jenny Pienaar Adams & Adams P O Box 1014, Pretoria, 0001 T: +27 12 432 6000 E: [email protected] E: [email protected] W: www.adamsadams.com

SPAIN Ignacio Temiño Ceniceros, Rubén Canales Quinto & Carolina Montero Peralta Abril Abogados Calle Amador de los Rios, 1 Madrid 28010 T: +34 91 7020331 E: [email protected] E: [email protected] E: [email protected] W: www.abrilabogados.com

SWEDEN Erik Ullberg Wistrand Box 11920, SE-404 39, Göteborg T: +46.8.5072.0000 E: [email protected] W: www.wistrand.se

SWITZERLAND Dr. Rolf Auf der Maur VISCHER AG Schuetzengasse 1, P.O. Box 1230, CH-8021 Zurich T: +41 58 211 34 00 E: [email protected] W: www.vischer.com

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TRINIDAD AND TOBAGO Olive Ramchand Fitzwilliam Stone Furness - Smith & Morgan 48-50 Sackville Street, Port of SpainT: +868.623.1618E: [email protected]: www.fitzwilliamstone.com

TURKEY Ugur Aktekin & Hande Hancer Gün + Partners Kore Sehitleri Cad. No: 17, Zincirlikuyu 34394, Istanbul T: +90.212.3540000 E: [email protected] E: [email protected] W: www.gun.av.tr

UGANDA Paul Asiimwe SIPI Law Associates Jocasa House, Third Floor, Unit 5, Plot 14, Nakasero Road, P.O. Box 4180 Kampala , Uganda T: + 256 393 272 291 E: [email protected] W: www.sipilawuganda.com

UKRAINE Oleksandr Padalka Sayenko Kharenko 10 Muzeyny Provulok, Kyiv 01001 T: +380 44 499 6000 E: [email protected] W: www.sk.ua

UNITED ARAB EMIRATES Fiona Robertson Al Tamimi & Company 6th Floor, Building 4 East Dubai International Financial Centre Sheikh Zayed Road PO Box 9275 Dubai T: + 971 (0)4 364 1641 E: [email protected] W: www.gun.av.tr

UNITED KINGDOM Brinsley Dresden Lewis Silkin LLP 5 Chancery Lane, Clifford’s Inn, London EC4A 1BL T: +44 (0) 20.7074.8069 E: [email protected] W: www.lewissilkin.com

UNITED STATES Ronald R. Urbach, Joseph J. Lewczak & Allison Fitzpatrick Davis & Gilbert LLP 1740 Broadway, New York, NY 10019 T: +1.212.468.4800 E: [email protected] E: [email protected] E: [email protected] W: www.dglaw.com

Jeffrey A. Greenbaum & Rick Kurnit Frankfurt Kurnit Klein & Selz P.C. 488 Madison Avenue New York, New York 10022 T: +1.212.980.0120 E: [email protected] E: [email protected] W: www.fkks.com

Amy Mudge, Melissa Steinman & Angel Garganta Venable LLP 600 Massachusetts Avenue NW Washington 20001 T: +1.202.344.4000 E: [email protected] E: [email protected] E: [email protected] W: www.venable.com

URUGUAY Agustin Mayer Ferrere Abogados Juncal 1392, Ferrere Tower, 11.000 Montevideo T: +598 2 900 1000 E: [email protected] W: www.ferrere.com

VENEZUELA Ricardo Alberto Antequera & María Alejandra Castillo Estudio Antequera Parilli & Rodriguez Edificio Centro COINASA, PH-B, Avenida San Felipe, La Castellana, Caracas 1060 T: +58.212.263.9944 E: [email protected] E: [email protected] W: www.antequera.com.ve

ZIMBABWE Brenda M. Wood Kahari B.W. Kahari Baronage House, 24 Lanark Road Belgravia/Avondale, Harare T: +263.4.250994/5 or 253941 E: [email protected] W: www.lawyersforafrica.com

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