Antitrust agency to give explanations on correspondence of adverts to Ukrainian law on request
Kyiv, August 5 (Interfax-Ukraine) – Companies can ask the Antimonopoly Committee of Ukraine for confirmation of the correspondence of their advertisements to Ukrainian law, in particular, the law against unfair competition, state commissioner Yuriy Kravchenko said at a press conference at Interfax-Ukraine on Thursday.
He said that these powers of the committee are foreseen in amendments to some Ukrainian laws on the improvement of regulations for the protection of economic competition (draft law No. 7419), which were signed by the Ukrainian president on July 22, 2011.
"What does this give to business? This gives it a chance to describe a situation that could appear if a TV or booklet advertisement is to broadcast or published. One can describer the situation, ask the Antimonopoly Committee about it, and get a response," he said.
He added that the opportunity to get explanations on the correspondence of advertisements to Ukrainian law would mean there would be less violations of the law.
"We're wary of the statements 'the best,' 'number one'… If this really is so, it has to be confirmed," Kravchenko said.
He said that amendments to the law on the protection of economic competition say that recommendations will be provided by only Antimonopoly Committee's central office bodies.
"Business should have… a general approach and understand [what will happen] in the advertisement sphere if they violate Ukraine law," he said.
He said that earlier the committee could issue recommendations only in the cases of the misuse of monopoly and anticompetitive actions.
President of the Association for Resistance to Unfair Competition and senior partner at JSC Arzinger Serhiy Shkliar said that the cost of one inquiry to the committee is set at UAH 1,360. He said that medium-sized and large business would apply for explanations.
"Some businesses… will not use [explanations] and this is their right, so as not to block business processes, even deciding that it's better to boost sales now and pay a fine later," Shkliar said.
"This is a good change … but it should be used wisely," he said.
He said that recommendations are not a legal act, although applying for recommendations companies actually present their advertisements to the committee.
"If you do not agree with recommendations and start advertising, you'll be fined, and then you will be able to challenge the committee's decision," Shkliar said.
The observation of all recommendations will be a good argument in court, he added.
The lawyer said that the requirement could promote the minimization of risks of getting large fines in disputes.
As reported, apart from the expansion of powers of the Antimonopoly Committee of Ukraine on the issue of explanations regarding the correspondence of their advertisement to Ukrainian law, the amendments to Ukrainian laws on the improvement of regulations on the protection of economic competition also foresee that administrative boards of territorial departments of the Antimonopoly Committee can issue fines for violations of antimonopoly law of up to 4,000 non-taxable minimum incomes of citizens (now UAH 17), while today the fines are restricted to 1,000 non-taxable minimum incomes of citizens.