Russia: The law on the restriction of beer advertising was stalled once again

The State Duma postponed the crucial second reading of the bill on advertising originally scheduled for Friday, 27 January 2006, according to the Moscow Times.

The most contested parts in the legislation include the restriction of beer advertising at sporting events, the reintroduction of commercials to children's television and changes in the regulation of billboard advertising, a spokesman for the Duma committee handling the bill said Thursday.

The bill passed in its first reading last April, but the second reading has now been postponed for a fifth time. Legislation takes its final shape in the second reading before it is subject to a third reading. Approval from the Federation Council and the president are required for a bill to become law.

One of the main issues is the regulation of billboards across the country, with Moscow city officials particularly afraid the legislation will take control over the city's outdoor advertising out of their hands.

While city authorities do not regulate the content of billboard advertising, they can take action if they decide advertising space is being used inappropriately, said Vladimir Makarov, chairman of Moscow's committee on advertising and information. This will no longer be the case if the bill passes in its current form, he said.

Makarov said city officials were also concerned that their ability to take down billboards was likely to become restricted, as the legislation stipulates that a court ruling would be required to move a billboard. Currently, billboard owners are often simply allocated a replacement site if road works or other construction encroaches on an existing location, Makarov said.

Most of the backing for the new rules is coming from a handful of advertising companies, Makarov said.

The National Association of Outdoor Advertising and Information, or NANRI, which lobbies on behalf of the outdoor advertising industry, declined to comment.

NANRI is headed by Sergei Zheleznyak, who is also head of outdoor advertising major News Outdoor Russia, which is part of Rupert Murdoch's media giant, News Corp.

For brewers, the bone of contention is the ban on beer advertising, said Vyacheslav Mamontov of the Beer Union. "If the bill is passed the way it's been proposed, there can't be any broadcasts of sports competitions," he said, adding that beer makers were the main sports sponsors around the world.

The third main issue is advertising on children's television, which was banned in 2001. The legislation, which is opposed by consumer protection groups concerned about junk food advertising, would allow commercials on any program longer than 25 minutes.

The 2001 ban on advertising in children's programs has effectively destroyed children's television, said Tatyana Chernyayeva, head of children's and youth programs for channel TV Center. The lack of money in the sector has impacted quality and quantity, she said.

The International Confederation of Consumer Protection Organizations, however, feels the state should finance children's television. The toll that ads take on children's health is also an issue, as research shows that up to 70 percent of advertising in children's programs in emerging markets is for junk food, said Dmitry Yanin, chairman of the confederation.

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