Text 2. State and Public Regulation of Advertising and Information Activity

Advertising as well as other forms of marketing is a vital means of communication between marketers and customers. It helps to create efficient markets, both nationally and internationally, and brings significant benefits for both consumers and companies, as well as for society in general. In order to monitor and control advertising a number of different regulatory bodies have been set up. Many countries have established the Advertising Standards Authority, whose job is to examine complaints from the public, and establish whether or not a particular ad or campaign should be withdrawn.

Advertising regulation refers to the law and rules that define the ways in which products can be advertised in this or that region. Rules can define a wide number of different aspects, such as placement, timing, and content. Advertising law is a complex area. Many communities have their own rules, particularly for outdoor advertising.

In the United States, the Federal Trade Commission is the highest authority on the subject. States and more local political divisions can have their own laws on the subject. False advertising and health-related ads are regulated the most.

Sweden and Norway prohibit domestic advertising that targets children. Some European countries don’t allow the sponsorship of children’s programmes, no advertisement can be aimed at children under the age of twelve, and there can be no advertisements five minutes before or after a children’s programme is aired.

In the UK the situation is complexas well. Each medium is governed by different regulatory bodies. Thus, Non-Broadcast Advertising is managed by the Advertising Standards Authority, while TV commercials are referred to the Office of Communications. OfCom- isa special governmental super-regulatory body of telecommunications industries which has merged the Radio Authority, Independent Television Commission and the office of Telecommunications.

However, all advertising in the UK is subject to the Committee of Advertising Practice and to the European Advertising Standards Alliance. Thus, CAP is responsible for the constant revising and updating of the British Code of Advertising, Direct Marketing and Sales Promotion - the CAP Code. Its members represent all sectors of the marketing communications industry. The Code policy and monitoring team conducts routine monitoring of advertisements in various media. As advertising of tobacco on television, billboards or at sporting events is banned in the UK, alcohol advertisers are not allowed in their campaigns to discuss the relative benefits of drinking, in most instances therefore choosing to focus around the brand image.

In the Russian Federation, the Federal Anti-monopoly Service (FAS Russia) and its regional offices are responsible for enforcement of the advertising legislation. Within the limits of their authority, the anti-monopoly bodies prevent, reveal and terminate violations of the advertising legislation of the Russian Federation by physical or legal persons and initiate and consider cases related to violations of the advertising legislation of the Russian Federation. An advertisement must be bona fide and accurate. Unfair and false advertising is forbidden.

Answer the questions:

1. Why is advertising vital for communication between marketers and customers?

2. What bodies have been established in different countries to regulate advertising?

3. What does advertising regulation refer to?

4. What aspects can advertising regulation rules define?

5. What institution is responsible for advertising regulation in the United States?

6. What advertising is prohibited in Sweden and Norway?

7. How is the advertising regulation control realized in the UK?

8. What type of advertising is banned in the UK?

9. What bodies are responsible for enforcement of the advertising legislation in the Russian Federation?

10. What is the mission of the Federal Anti-monopoly Service in Russia?