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LIABILITY IN ADVERTISING: RUSSIA

LIABILITY IN ADVERTISING: RUSSIA

In Russia, liability for illegal advertising is determined by the Code of Administrative Violations, and the types of violations are based on the Law on Advertising and the Law on Competition Protection. The Federal Antimonopoly Service of the Russian Federation (“FAS”) is the state administrative body responsible for enforcement of the applicable laws. The FAS initiates administrative cases ex officio, on a submission of the public prosecutor or at the petitions of individuals and legal entities; it also carries out inspections, brings administrative and legal actions against infringers, and issues mandatory orders to rectify discovered violations. The period of limitation for the institution of administrative cases is one year from the date of the violation committal. The FAS’ orders or rulings can be challenged in court.

Administrative procedure is initiated by the FAS, which determines the case and imposes an administrative fine on the infringer, whereas civil liability is incurred upon judicial consideration of the case initiated by the right holder. A person whose rights were infringed by the inappropriate advertising can apply to court and claim compensation for losses (including lost profit), recovery of damages, compensation for moral damages and public refutation of false advertising.

Violations of the Law on Advertising and the Law on Competition protection result in administrative and civil liability for the advertiser, advertising producer and advertising distributor, as the case may be. Whereas the advertiser and the advertising distributor are almost always liable for the illegal advertising, the advertising producer is held liable only if it is proved that the violation occurred through his fault. Violations in the sphere of advertising are not subject to criminal penalties.

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