Advertising on the Internet Will Be Recorded
New article 18.1 of Federal Law No. 38-FZ “On advertising” dated 13 March 2006 which comes into force on 1 September 2022 regulates the implementation of the unified information system for keeping a record of advertising on the Internet (the “unified information system”).
One of the purposes of this mechanism is to fight the grey market, in particular to ensure the traceability of the advertising placed on the Internet as well as to ensure that the processes of collecting, recording, storing and processing data on such advertising can be automated.
The unified information system will become accessible to the parties to advertising relationships (directly with regard to their rights and obligations) as well as to the antimonopoly authority and the tax service. It is proposed that this system should be integrated with other information systems for the purposes of obtaining accurate and relevant data and making sure that such data is posted correctly, in its entirety and without delay. Data will be stored in the unified information system for at least five years and will be subject to protection in accordance with the legislation on trade secrecy.
There are plans to include large volumes of information in the system: about advertising placed on the Internet, advertisers and advertising distributors, operators of advertising systems and advertising intermediaries. It is provided that data concerning social advertising will not be included in the unified information system.
Therefore, advertisers and advertising distributors, operators of advertising systems and advertising intermediaries are obliged to report and provide relevant information to the unified information system independently or through operators of advertising data.
The Federal Service for the Supervision of Communications, Information Technology and Mass Media (known by the Russian acronym Roskomnadzor) has been instructed to put together and maintain the unified information system. The above authority will establish a commission to select operators of advertising data. The Russian Government will determine the procedure for its activity, its members and selection criteria.
In our opinion, the creation of the unified base of advertising on the Internet will have both positive and negative consequences. The introduction of the new requirements may result in additional expenses for the parties to advertising relationships and a decrease in the volume of advertising on the Internet. At the same time, the system will increase the oversight of bad-faith practices in advertising on the Internet and make it more transparent.
The implementation of the unified information system is only starting and one will be able to make conclusions regarding the actual results of its launch as well as its effect on the market and its members only after some time. However, already at this stage there is no doubt that a major step has been made towards establishing increased oversight of advertising on the Internet.