How to avoid payment for outdoor advertising in Ukraine?
It is possible to present information about one’s firm and avoid payment for location of outdoor advertising by means of using informational signs and signboards. But in order to place such signs one must comply with special requirements: regarding size, content and rules of placement. If these requirements are not in compliance, state bodies can impose a fine for unsanctioned placement of advertising or remove the sign (signboard) that was placed without permission. We prepared a legal advice on this issue.
Requirements for the content of informational sign (signboard)
Requirements for the content of informational sign (signboard) are provided by Section 6 of Article 9 of the Law “On advertising”. In accordance with this provision a sign (signboard) may include only the following information:
- registered name of an entity;
- trademarks for goods and services which belong to the entity;
- type of activity (if one cannot be understood from the registered name of an entity);
Such a sign (signboard) can be placed in the following places:
- on the interior surfaces of personal premise or premise provided for use;
- on the exterior side of a building or construction but not higher than the first floor or on the first floor where personal premise of premise provided for use is located;
- near the entrance into such premise.
Placement of other information (for example number of telephone, e-mail address) or in different location may serve as a formal ground for control authorities to consider it outdoor advertising.
Recognition of a sing (signboard) as outdoor advertising placement of which took place in contradiction with the Typical rules that are defined by the Resolution by the Cabinet of Ministers of Ukraine number 2067 dated 29.12.2003 serves as a ground for imposition of a fine. In accordance with Section 4of Article 27 of the Law of Ukraine “On advertising” the amount of fine equals to fivefold cost of advertising distribution and if such cost cannot be determined the fine will equal to 5100 UAH.
Protocols on such violations can be drafted by officials of the Antimonopoly Committee of Ukraine, the National Television and Radio Broadcasting Council of Ukraine, the Ministry of Finance of Ukraine, the National Securities and Stock Market Commission and the State Committee of Ukraine on the Issues of Technical Regulations and Consumption Policies (bodies of consumers’ rights protection). Executive committees of local councils at the same time are entitled only to provide information to bodies of consumers’ rights protection about detection of violations.
Due to inability to impose fines, local authorities made up another way of opposition against voluntary placement of advertising – dismantling. Laws do not provide such means of dealing with violations. But until documents of local authorities which allow dismantling are not canceled in court they must be taken into consideration.
In particular in Kiev dismantling is provided by Chapter 17 of the Regulations on advertising placement in Kiev that was approved by the decision of the Kiev Council number 37/6253 dated 22.09.2011. Such dismantling is based on Order of Main department of advertisements placement. Term for personal dismantling is set by the Main department or Municipal Enterprise “Kyivreklama”. If not in compliance with requirement about personal dismantling it is performed by the Municipal Enterprise “Kyivreklama”.
There also may be some additional requirement regarding informational signs and signboards on local level. In Kiev for example such requirements are set by order of the Kiev State Administration number 565 dated 15.04.2011.
According to this document area of informational sign cannot exceed 2 square meters and 1 square meter for a signboard.
In order to place an informational sign in Kiev it is required to formalize a certificate for its placement. Such document is issued by the Main department on advertising on condition of compliance with a number of additional technical, architectural and aesthetic, informational requirements and requirements related to the location of placement. In order to obtain such certificate it is required to submit a set of 12 documents and undergo a lasting procedure of approvals. At the same time the certificate is issued only for two years.
Placement of sign without obtainment of the certificate as well as its placement with violations of set requirements is a ground for its dismantling. It is also possible based on order of the Main department on advertising. At the same time an owner of a sign is given 3 days since the moment of when such demand is received to dismantle the sign personally. If this requirement is not fulfilled it is possible that dismantling will be performed by the Municipal Enterprise “Kyivreklama”. Violation of regulations regarding placement of informational signs does not result in imposition of fines.
In this regard it is much more beneficial to place informational signboards instead of signs in Kiev since it is not required to obtain certificates for them. But such signboard can be placed only on façade of a house, building or a construction in which a person occupies a premise or near the entry in such premise, on the doors or window glass. At the same time it can include information only about name, ownership and schedule.
This material was prepared by lawyers of law firm “Pravova Dopomoga”.
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