Draft Amendment to the Regulation on Commercial Advertising and Unfair Commercial Practices is Open for Public Consultation 

The Ministry of Trade opened for public consultation, the Draft Regulation Amending the Regulation on Commercial Advertising and Unfair Commercial Practices (“Draft Regulation”), aiming to ensure accurate consumer information, protect consumers’ economic interests and align with developments in digital marketing practices.

The Draft Regulation includes comprehensive provisions regarding advertisements made through social media influencers, environmental claims, targeted advertising, the use of artificial intelligence, conditional sales, discounted sales and consumer reviews.

These amendments have been prepared based on the evolving consumption habits, alignment with the European Union’s Digital Services Act, the need to combat misleading environmental claims, the increasing prevalence of AI-generated content, and rising consumer complaints. 

Definitions and Scope

The Draft Regulation expands the scope of the existing framework by introducing new definitions for environmental claims, social media, influencers and consumer reviews.

These definitions aim to eliminate ambiguities concerning the supervision of advertisements and environmental claims made on digital platforms. 

Tightening of the Burden of Proof

All claims used in advertisers’ campaigns must be substantiated with verifiable information and documentation prior to the publication date of the advertisement.

This amendment will particularly tighten the oversight of health, environmental and performance-related claims. 

Discounted Sales 

The reference period for determining the base price in discounted sales shall be reduced from the currently applicable 30 days to 10 days. In addition, for businesses operating through multiple sales channels, the pre-discount price must be determined solely based on the sales channel in which the discount is applied. 

Discounts applied through loyalty programs will also fall under the discounted-sales rules under certain conditions. 

Conditional Sales

Detailed rules are introduced for conditional campaigns such as “buy 3 pay for 2” or “buy 1 get 1 free.” Accordingly: 

• The campaign’s start/end dates and any quantity limits must be clearly indicated.
• Information on the free product or service must appear within the main message of the advertisement. 
• The price referenced in the campaign must be based on the lowest price applied within the 10 days preceding the start of the campaign.

These provisions aim to prevent price manipulation in conditional sales. 

Environmental Claims 

In advertisements containing environmental claims: 

• Claims must be supported by information or documentation from authorized bodies, accredited institutions or universities.
• Generic environmental statements may not be used without clarification.
• The stage of the product or process to which the environmental impact relates, must be specified. 

These requirements are intended to prevent misleading environmental claims. 

Use of Artificial Intelligence and Digital Content

If artificial intelligence, filtering, or digital characters are used in advertisements, this must be clearly disclosed. 

Furthermore, advertisements may not depict an AI-generated digital replica of a real person as if that person had actually used or experienced the product. 

Influencer Advertising

The Draft Regulation provides a detailed framework for influencer content. Accordingly: 

• The promotional nature of the content must be clear, understandable and identifiable at first glance.
• At least one tag such as #Advertisement, #Sponsor or #Collaboration must be used.
• Tags must be visible without scrolling and clearly distinguishable from other text. 
• In audio content, the promotional nature must be stated at the beginning of the broadcast.

Targeted Advertising

The Draft Regulation sets out rules on targeted advertising. Accordingly: 

• Clear and easily accessible information must be provided on the criteria used to target the advertisement.
• Separate consumer consent must be obtained.
• Profiling based on special categories of personal data is prohibited. 
• Targeted advertising directed at children is prohibited.

These provisions form part of the alignment with the European Union Digital Services Act. 

Financial Advertisements 

In financial service advertisements where terms such as “discounted,” “advantageous,” or “favourable” are used, the interest or profit-share rate must be clearly indicated in the same medium where the advertisement appears. 

Consumer Reviews 

The rules on consumer reviews have been significantly updated. Accordingly: 

• Reviews from platforms where purchase verification is not possible may not be published. 
• Reviews may be shared on other platforms only in a manner that reflects their general nature, without distinguishing between positive and negative evaluations. 
• The period for businesses to respond to consumer complaints shall be reduced from 72 hours to 48 hours.

The aim is to enhance transparency and prevent the manipulation of consumer reviews. 

Effective Date

Following the public consultation process and any revisions that the Ministry of Trade considers necessary, the Draft Regulation will be finalized and will take effect upon its publication in the Official Gazette.