Despite the fact that summer is usually a slow time for Ukrainian lawmakers, this year brought two noticeable changes to the Law of Ukraine "On Advertising" ("Advertising Law"). Specifically, TV and radio advertising limits were reduced. Additionally, the statutory regulation on transmitting (retransmitting) of advertising integrated into TV and radio programs of foreign TV and radio broadcasting companies in the territory of Ukraine has been also improved.

Change to TV and radio advertising limits
Before adoption of the amendments, the Advertising Law provided for both daily and hourly limits on television and radio advertising spots. In particular, daily and hourly TV and radio advertising limits were set at 15 percent (216 minutes) and 20 percent (12 minutes) respectively. It was also permitted to extend these limits to an additional 5 percent during election time.

The recent amendments to the Advertising Law have cancelled daily TV and radio advertising limits and their election time extension. Furthermore, according to the amendments, hourly limits of TV advertising spots have been reduced to 15 percent (9 minutes). Hourly radio advertising limits have remained the same – 20 percent (12 minutes). New limits became effective on June 6, 2015.

It is expected that the reduction of TV and radio advertising limits will make TV advertising during prime time more competitive and expensive, as TV channels will have shorter advertising slots.

Peculiarities of broadcasting of "foreign" advertising in Ukraine
Before the amendments, the transmission / retransmission of advertisements integrated into TV programs and broadcasts (Integrated Advertising) of foreign TV and radio broadcasting companies was permitted for any foreign TV and radio broadcasting company provided that the relevant Ukrainian legal entity had been paid for the transmission / retransmission of such adverts.

The recently amended Advertising Law now specifies that transmission / retransmission of the Integrated Advertising is allowed only for those foreign TV and radio broadcasting companies, which fall within the jurisdiction of the EU member states or those states, which ratified the European Convention on Transfrontier Television. The method of transmission / retransmission is irrelevant in such case. Transmission / retransmission of the Integrated Advertising of other (non-qualified) TV and radio broadcasting companies is expressly prohibited.

The amended Advertising Law does not specify what is meant under "which fall within the jurisdiction." We expect that the respective state authorities will interpret it narrowly, i.e. as a place of incorporation of a foreign TV and radio broadcasting company.

The amendments entered into force on August 5, 2015.

The legislator expects that these amendments will positively influence the production of national media products and volume of the Ukrainian market of advertising.

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