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PRESENTATION OF MONTENEGRO

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1 PRESENTATION OF MONTENEGRO
Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 28 – Consumer and Health Protection Bilateral screening: Chapter 28 PRESENTATION OF MONTENEGRO Brussels, April 2013

2 DIRECTIVE ON MISLEADING AND COMPARATIVE ADVERTISING
Chapter 28: Consumer and Health Protection DIRECTIVE ON MISLEADING AND COMPARATIVE ADVERTISING Elvira Ceković Legal Advisor Agency for Electronic Media of Montenegro M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

3 Chapter 28: CONSUMER AND HEALTH PROTECTION
Relevant Acquis Directive 2006/114/EC of the European Parliament and of the Council of 12 December 2006 concerning misleading and comparative advertising. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

4 Chapter 28: CONSUMER AND HEALTH PROTECTION
National Legislation Law on Consumer Protection (OG RMNE, Nos 26/07, 73/10, 40/11) Electronic Media Law (OG MNE, Nos 46/10, 40/11, 53/11, 06/13) Law on Internal Trade (OG MNE, Nos 49/08, 40/11) Rulebook on Audiovisual Commercial Communication (OG MNE, No. 36/11) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

5 Chapter 28: CONSUMER AND HEALTH PROTECTION
Definitions (1) Trader - a person who sells goods or provides services to consumers Misleading advertisement - any announcement by which the consumers are misled in respect of the characteristics of the products or terms of sale, and which therefore affect the choice made by them Comparative advertisement - the advertisement which directly or indirectly identifies the competition or the products offered by competition Advertiser - a person who, through the means of mass communication, publishes the advertisement (Law on Consumer Protection, Article 2, Paragraph 1, items 11,, 21, 22 & 23) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

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Definitions (2) Audiovisual commercial communication means including in a programme a set of images with or without sound designed: (a) to promote, directly or indirectly, the goods, services or image of a natural or legal entity pursuing an economic activity, in return for payment or for similar consideration or (b) for self-promotional purposes Radio or television advertising means audiovisual commercial communication which implies any form of announcement broadcast in return for payment or broadcast for self-promotional purposes by a natural or a legal entity which aims to present or draw attention to a certain product, service, including immovable property, right and obligations, i.e. to encourage consumers to use or buy the said product or service, in return for payment (Electronic Media Law, Article 8, Paragraph 1, items 13 & 14) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

7 Misleading Advertising (1)
Chapter 28: COMSUMER AND HELT PROTECTION Misleading Advertising (1) Advertising shall be forbidden if it is misleading, or deceptive or if there is a probability that it shall deceive the persons to whom it is intended or whom it reaches and for whom, due to its deceptive character, there is a probability that it shall affect their economic conduct or which, due to such reasons, harms or there is a probability that it shall harm the consumer even if the advertisement was not published Advertising or offering goods or expression specifying the data that creates or may create a misconception in the market of the goods, thereby leading trader or can be put in a more favorable position is considered to be unfair competition (Law on Consumer Protection, Article 84) (Law on Internal Trade , Article 40, Paragraph 1 item 1) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

8 Misleading Advertising (2)
Chapter 28: COMSUMER AND HELT PROTECTION Misleading Advertising (2) The use of data which may be misleading as regards the advertiser’s identity, activities, features, quality, origin or other data regarding the product or service shall be prohibited Advertising shall clearly identify the ordering party. The ordering party shall be responsible for the veracity and accuracy of advertising, and the broadcaster is responsible for their compliance with this Law and the law governing media (Electronic Media Law, Article 89, Paragraph 3, Article 90) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

9 Misleading Advertising (3)
Chapter 28: COMSUMER AND HELT PROTECTION Misleading Advertising (3) In order to avoid misleading audiovisual commercial communications, particular attention shall be paid to the characteristics of advertising in the electronic media, especially to the announcements containing or related to: features of goods or services, such as the type, composition, manner and date of production, manner and time of provision of service, availability, quantity, specification, manner of use, suitability for certain purposes, geographic or commercial origin, results that can be expected from the use of goods or services, results and other material indicators of tests or control of the goods or services price or manner of calculation of price, as well as the conditions of sale of goods or provision of service nature, features and rights of advertisers, such as their identity, property, qualifications, industrial, commercial or intellectual property, awards, recognitions they received ( Rulebook on Audiovisual Commercial Communication, Article 13, Paragraph 4) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

10 Comparative Advertising (1)
Chapter 28: Consumer and Health Protection Comparative Advertising (1) Comparative advertising shall be allowed if: It is not misleading for the consumer It compares products with the same intended use Objectively compares one or more characteristics of a product, including the price It does not create confusion on the market with regard to trade mark or other recognisable marks of the sponsor’s product as compared with the competitors It does not impair the reputation or disparage trademarks and other marks, products and the business of the competitors Comparing products of same origin, for the products whose origin is of particular importance Not using in an unfair manner the reputation of a trade mark and other recognisable marks of the competition, or the marks of origin of the competing product Not relating to the product that is being advertised as an imitation or a substitute for the product with a protected trade mark and other marks (Law on Consumer Protection, Article 89) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

11 Comparative Advertising (2)
Chapter 28: Consumer and Health Protection Comparative Advertising (2) Audiovisual commercial communication shall not: discredit or disparage competitors, their products or services present the competitor’s programme or service as an imitation or reproduction (Electronic Media Law, Article 85, Paragraph 3, items 7 & 8) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

12 Judicial protection (1)
Chapter 28: Consumer and Health Protection Judicial protection (1) A consumer, consumer organization or other interested parties have the right to a lawsuit before the competent court seeking: ban on unauthorized advertisements ban on publication of unauthorized advertisements (if still unpublished) Pending a decision, the court may take a temporary measure banning the advertisement that seems likely to contain the elements of forbidden advertisement Burden of proof for the veracity of claims contained in the advertisement lies with the advertiser the judicial proceedings have been initiated against (Law on Consumer Protection, Article 115, Paragraph 1- 3) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

13 Judicial protection (2)
Chapter 28: Consumer and Health Protection Judicial protection (2) The Court may adopt a decision ordering: exclusion of the contentious content from an advertisement certain corrections to be made in an advertisement, etc. Binding court decision banning an advertisement or ordering that certain requirements are met is published in “Official Gazette of Montenegro” and at least one daily print media distributed on the whole territory of Montenegro Court decision is binding for all participants in the circulation or owners of the means of mass communication within eight days following its publication in “Official Gazette of Montenegro” (Law on Consumer Protection, Article 115, Paragraph 4 – 6) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

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Sanctions (1) Misdemeanor offences for breaching Article 85 paragraph 3, items 7 & 8, determined by the court: A legal person punishable by a fine ranging from €500 to €6,000 A responsible person within a legal person punishable by a fine ranging from €100 to €2,000 (Electronic Media Law, Article 146, Paragraph 1 - item 36, Paragraph 2) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

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Sanctions (2) A fine ranging between €3,000 and €20,000 may be imposed by the court for an offence on legal persons – advertisers if they: publish an advertisement that is forbidden or an unauthorized comparative advertisement (Article 84 & 89) publish an advertisement prohibited by a court decision (Article 115) For the same offence, a fine is also imposed on: responsible person in a legal entity and natural person (between €300 and €2.000) entrepreneur (between €800 and €6.000) (Law on Consumer Protection, Article 132) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

16 Chapter 28: CONSUMER AND HEALTH PROTECTION
Sanctions (3) A fine ranging between €3,000 and ‚€20,000 may be imposed by the court for an offence on legal persons – advertisers if they: publish an advertisement that is forbidden in compliance with this law (Article115) For the offence referred to in paragraph 1 of this Article, a fine ranging between €300 and €2,000 is also imposed on the responsible person in a legal entity. For the offence referred to in paragraph 1 of this Article, a fine ranging between €800 and €6,000 is also imposed on an entrepreneur (Law on Consumer Protection, Article 133, Paragraph 1-item 4, Paragraph 2 & 3) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

17 Chapter 28: CONSUMER AND HEALTH PROTECTION
Sanctions (4) For the offences referred to in Articles 132 and 133 of the Law on Consumer Protection, a fine up to twofold maximum level prescribed by the provisions of these articles may be imposed on a legal person, responsible person in a legal person, natural person and entrepreneur (Law on Consumer Protection, Article 134) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

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Future Activities Considering the fact that the Directive 2006/114/EC deals with unfair practices between competitors which represents the ratio of business- to-business (B2B), and the existing legislation does not provide a sufficient degree of transposition during is planned to adoption & implementation of the Law on prohibiting misleading advertising in providing services and product sales, ensuring full transposition of the Directive Promotion of rules and procedures related to the enforcement of standards prescribed by the Directive on Misleading and Comparative Advertising M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

19 Thank you for your attention.
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