Russia: Russian President Putin signs new law on beer advertising

Russian President Vladimir Putin has signed the federal law “On advertising,” his press service told RBC (RosBusinessConsulting). The new bill bans beer advertising on television from 7 a.m. to 10 p.m., and from 9 a.m. to 12 p.m. on the radio. Advertisements during broadcasts of sporting events may include brands and company names but not actual images of alcoholic drinks.

The bill restricts the use of child images in the advertising of socially dangerous products and services, including alcohol, tobacco and gambling.

New restrictions were imposed on the advertising of pharmaceutical products, banning the use of images of “men in white coats” and permitting pharmaceutical product advertisements only in specific periodicals, health centers and other places of medical practice.

The new rules ban advertisements resembling traffic signs and advertising through transport vehicles used solely for advertising purposes.

Restrictions were also introduced on the duration of television advertising. Television advertising should account for no more than 20 percent of air time an hour and no more than 15 percent of air time a day. Blocks of commercials shall not exceed four minutes. These rules will apply until 2008, when advertising time on television will be reduced to 15 percent of air time per hour and per day. Every kind of TV advertising will be affected.

Advertising during children’s programs was also affected by the new rules. Advertisements will only be allowed before the start and at the end of such programs, but not during children’s programs.

Advertisements for financial services shall include the names of persons providing such services, and they may not include guarantees of effectiveness and profitability of investment. Advertising of loans mentioning at least one element of borrowing costs shall list all other elements as well.

Advertising spenders are not happy with the new rules. After the Duma passed the second reading of the bill, Video International, Russia’s largest advertising group, said it could suspend some of its contracts if the daily quota for television advertising was reduced from the current 20 percent to 15 percent of air time.

And the Union of Russian Brewers sent an appeal to Sergei Mironov, Chairman of the Federation Council upper parliament chamber, saying that “in the process of considering the bill by the State Duma a number of amendments were made to it, which in effect impose a ban on the sponsorship activities of breweries. Before 2004, Russian breweries participated in more than 30 sponsorship projects in the areas of sport, culture and environment. Their total sponsorship was worth about $50 million a year. From September 2004, when some restrictions were imposed, breweries had to reduce their sponsorship programs. The new bill will put an end to all their sponsorship activities, the appeal says.

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