07.02.2024

by Antoni Majewski

Estonia’s Advertising Law Reform: Balancing Regulation and Self-Regulation

Estonia’s Ministry of Economic Affairs and Communications is reevaluating the Advertising Act to address ambiguities and enhance compliance. Despite coalition agreements proposing a ban on quick loan and gambling advertisements, the current draft amendment does not include these changes. Instead, there’s a consideration for allowing the industry to partly self-regulate.

Estonia

Key Points of the Reform

  • Clarification Needed: The reform aims to define advertising more clearly and establish who is accountable for rule enforcement. The current law’s ambiguities lead to frequent consultations with the Consumer Protection and Technical Regulatory Authority (TTJA).
  • Infringement Concerns: In the past year, the TTJA initiated 63 infringement proceedings, with a significant portion related to gambling and financial services advertising.
  • Coalition Agreement: Despite the coalition’s commitment to ban gambling and quick loan ads, this has not been incorporated into the draft amendment, prompting further analysis.
  • Regulation vs. Compliance: The ministry acknowledges that while gambling advertising is already regulated, the issue lies in non-compliance and monitoring inefficiencies.
  • Self-Regulation Proposal: The Ministry suggests creating a foundation for industry self-regulation, which could address infringements more proactively than state-level supervision.
  • Impact Study: There’s a proposition to conduct a study assessing the impact of advertising on debt prevention, considering the potential economic downsides of a complete ban.

Challenges and Considerations

The reform faces the challenge of balancing effective regulation with the potential economic implications of strict advertising bans. There’s concern that such bans might not effectively deter debt accumulation and could lead to a loss in state tax revenue and the rise of illegal market operators.

The proposal to allow the industry to self-regulate through a foundation is seen as a potential middle ground, aiming to enforce stricter rules without the extensive reach of a complete ban.

The Estonian Marketing Association supports self-regulation, suggesting it could resolve many existing issues. However, the ultimate decision rests with the government, which might still opt for a ban if deemed necessary. The ministry’s approach of proposing alternative solutions reflects an attempt to provide a balanced and pragmatic framework for advertising regulation.

Conclusion

Estonia’s Advertising Act reform is at a crossroads, with the government weighing the benefits of stricter regulations against the potential for self-regulation within the industry. As discussions continue, the focus remains on finding a solution that upholds consumer protection while considering the economic and practical realities of advertising in regulated sectors like gambling and financial services.

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