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Advertisement Law

"Advertisement" refers to any word, message, advertisement, message concerning a good, service, program, or activity that is published in print, online, through electronic media, through social media, billboards, or through any other structure and is lawfully disseminated. Any auditory, visual, or audio-visual representation, as well as any message, sign, poster, image, light, sign, structure, etc. Nepal's advertising laws are supervised by the advertisement board, with the advertisement act 2076 serving as the primary legislation pertaining to advertisements.

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To assist companies and people in adhering to the laws and rules governing marketing and advertising, Delta Law provides a range of advertising-related services.

Delta law has also been drafting and negotiating advertising-related contracts in accordance with Nepalese contract law, including those with media outlets, influencers, endorsers, and advertising agencies for a long time.  Some of the other services provided by delta law are: Reviewing advertising materials in-depth to make sure they abide by Nepalese rules and regulations, such as the Advertisement Act of 2076, the Consumer Protection Act of 2018, and other pertinent laws, Regulatory Guidance, drafting and renewing advertisement licenses.

Our lawyers driving Advertisement Law
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Senior Advocate | Founder

Mr. Upendra Keshari Neupane

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Advocate | Founder | Managing Partner

Mr. Babu Ram Aryal

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Cover subjects including rules, targeting, and disclosure obligations. Clients frequently ask questions about the definition of false advertising.

The advertisement board oversees Nepal's advertising laws, per section 14 of the Advertisement Act 2076. Following work related to the regulation of advertisement an advertisement board will be constituted.

  1.   Under section 4 of The Advertisements (Regulation) Rules, 2077, this regulation shall be used to determine whether the advertising agency is running or not.
  2.   The Advertisement Board has released a number of guidelines, a code of conduct, and standards pertaining to advertisements.

There is no need for specific labeling or branding under Nepali legislation.  A shipment's packaging and labels must prominently display the nation of origin and destination for customs reasons. Additionally, a commercial invoice listing all of the products in the package, a customs declaration form, and a certificate of origin must be included. The provisions relating to labeling and packaging of the products are:

  1. Section 22 of the Customs Act 2064 states that the customs officer must verify whether the declared products have been placed under the appropriate subheadings in accordance with current economic law, following the determination of the customs value.
  2.  Section 28 of the Customs Act 2064 states that a customs officer may open and inspect any weight or package that is to be exported or imported, either all at once, all at once, or only a small percentage of it. He may also give an order to any employee working under him to open and inspect the same.

 Given that the Advertising Act makes no mention of commercials pertaining to children, The dissemination of information on a freeing and educational level is encouraged, but it also permits unlawful activities including the sale of child pornography, gambling, and unsuitable interactions between kids and adults.

The Rights Relating To Children, 2075 prohibits children from engaging in immoral professions. This includes taking, producing, distributing, or displaying images of children with the intention of recruiting them for an immoral career. This includes disclosing pictures, details about a child's private life, or narratives that damage a child's reputation through publication, display, or distribution.

Child pornography on the internet is prohibited by Nepal's The Rights Relating To Children 2075, but pornographers are still free to advertise on the internet. Children will continue to be exposed to online exploitation and psychological harm if there is no strong cyber law in place to regulate this activity.

A person will be considered to have committed an act of violence against a child if they show them movies or other audiovisual materials that are designated as being for adults only, according to Section 66(2)(c) of the Rights pertaining to Children.

According to Section 66(3)(a, b), anyone who displays or causes to be displayed an obscene picture, audiovisual recording, or other material of a similar kind, or who causes to be displayed an expression or gesture that suggests obscene or sexual behaviour toward him or her, or who causes to be displayed child pornography, and who distributes, stores, or uses any real or fake obscene picture or audio-visual material of him or her, will be considered to have committed child sexual abuse.

 

As per the Nepalese legal provisions, of the Advertisement Act 2076 provides that:

 Ans: i. As stated in section 12 (1) of the Advertisement Act of 2076, any person or organization that publishes or broadcasts advertising online, in print, through communication, or through social media should not be permitted to advertise without information about the identity, address, and authority of the advertiser.

  1. Section 12 (2) states that the company or individual who published the advertisement will be held accountable if there is a disagreement regarding it and the advertiser's identity and location cannot be located.

 iii.  A punishment of up to one lakh rupees per person may be imposed for violations of Section 12 of the Advertisement Act, as stated in Section 25 subsection 3 (c) of the Act.

  1. It is also stated in Section 10 of the Competition Promotion and Market Protection Act, 2006, that no individual or business that manufactures or distributes any goods or services may engage in misleading advertising.
  2. Section 16(2)(b) of the Consumer Protection act 2075, prohibits releasing false or misleading advertisements and prohibits selling goods by making misleading advertisements. If any of the aforementioned activities are carried out, it will be presumed that an unfair trade and business activity has taken place.

Comparative advertising is a marketing strategy that involves contrasting a product or service with a rival in order to increase brand awareness.

  1. As per the Competition Promotion and Market Protection Act 2063, Section 3, no producer or business that distributes or produces goods or services may, in order to restrict or manage competition, individually or jointly enter into, or cause to be entered into, any agreement with any other producer of the same or comparable goods or services.
  2. No enterprise in a dominating position may abuse that position, or cause others to abuse it, with the intention of controlling competition in the production and distribution of any commodities by that enterprise or through its affiliation, as stated in section 4 of the same act.

According to the Nepalese legal provisions, of the Advertisement Act 2076 and Drugs Act 2035 provides that:

  1. The Advertisement Act of 2076 Section 15 Subsection 1 (c) addresses medications that are only sold with a doctor's prescription.
  2. No person shall make a false or misleading publicity or advertising about the use, utility, or efficacy of any drug, as stated in section 19 (1) of the Drugs Act of 2035.

iii.  Section 19 (2) Anyone planning to publicize or advertise any medication must apply for a license from the Department and pay the appropriate costs in order to do so.

The National Policy on Regulation and Control of Alcohol-2017, which forbids the sponsorship, promotion, or advertising of alcoholic beverages, has the support of the government. Citing Public Health Service Act 2018's section 45, the Nepal Advertisement Board stated on November 10 calling for the cessation of alcohol and alcoholic product promotion following the government's move.

 Even though the idea of influencer marketing is not new, it has just lately gained traction in Nepal thanks to the endorsements given to social media, music, and film stars who encourage brands to use their online platforms for product advertising.

Given the cost of this new approach to marketing compared to more established methods like hoarding boards, broadcast, and print media advertising, firms in the nation might be receptive to it.

Traditional advertising remains the most effective, although influential marketing is making progress.

Celebrities have long been used in Nepali advertising, but celebrity endorsements are a more recent development that are beginning to pay off for the investing firms.

The Nepalese acts which has mentioned the provision of paid content and sponsored advertisement in Nepal are:

  1. The Tobacco Act's Section 10 has Advertisement and sponsorship of tobacco products are prohibited by the Tobacco Products (Control and Regulatory) Act, 2068 (2011). This means that no one, not even the manufacturer, is permitted to release, sponsor, advertise, or distribute any news or information about tobacco products through newspapers or electronic media, including radio, television, FM, the internet, email, interactive programming, hoarding boards, wall paintings, logos, signage, writing, visual, audio, marks, as well as through person or any other means.
  2. Additionally, as stated in Section 6 of the Advertisement Act 2076, international broadcasting networks in Nepal are prohibited from airing foreign commercials by the Advertisement Regulation Act. The Act also forbids the transmission of foreign commercials dubbed into Nepali on Nepalese television networks.

According to the Nepalese provision of the Election Code of Conduct 2072:

  1. Election Code of Conduct 2072, chapter 3, section 6, prohibits government ministers of Nepal and those in public office from participating in political campaigning on behalf of or against any candidate or political party.
  2. No procession, mass meeting, rally, assembly, gathering, or campaign may be planned or caused to be organized, at the time and location that are forbidden by applicable legislation, according to section 4 of the same act.

 iii. No mass gathering, rally, assembly, campaign, or procession may be organized or caused to be organized by obstructing public transit.

There have been some fresh developments with the first amendment to the Advertisements Rules and Regulations, 2080 BS. The current state of the advertising sector is plagued by a lack of transparency among the three main stakeholders: media, advertising agencies, and advertisers. Advertisers these days include both government and private sectors. Currently, advertising is carried out by both public and commercial organizations, with government agencies accounting for 33% of the market.

The Online Media Operation Regulation, 2017 was released by the Department of Information and Broadcasting media regulatory authority to govern, advise, and oversee registered online media, including press, radio, television, and registered online news portals.

  1. Any person or organization wishing to run online journalism through online media following the enforcement of these Directives must submit an application to the Department using the format stipulated by the applicable law.
  2. As per the directive, online media that are involved are required to appoint editors, journalists, managers, and employees, and to pay them a minimum salary as stipulated by the Working Journalists Act. The department will not register or renew the license of any online media that does not comply with these mandatory provisions.

 iii. Any forbidden information published or distributed will be held accountable by the concerned internet media. The media will be responsible for maintaining an online copy of every piece of published or distributed content. To find out if online media have adhered to the Journalistic Code of Ethics, the department will monitor them.

  1. Clause 4 (1) of the Journalist Code of Conduct, 2016 states that journalists and the mass media have an obligation to consistently distribute accurate information in support of the preservation and advancement of citizens' fundamental rights, including the freedom of speech and opinion.
  2. Section 11 of the Online Media Operation Directives states that content from 2073 that is forbidden by the Constitution and current laws from being published or transmitted cannot be found in online media. Furthermore, it is forbidden to publish any information that violates the journalistic code of conduct, including articles that promote crime, violence, or terrorism, reveal the name of an unconnected person in the media, invade someone's privacy, etc.

The main legislation controlling tobacco use in Nepal is the Tobacco Product (Control and Regulation) Act, 2010, which also governs tobacco advertising, marketing, and sponsorship, as well as tobacco packaging and labeling. It also prohibits smoking in public areas, workplaces, and public transportation.

  1. The tobacco Product (Control and Regulation) Act of 2068's section 4 mentions the ban on smoking and tobacco use in public areas. It is forbidden for anyone to use tobacco products in a public setting, according to Section 4 (1).
  2. Nonetheless, section 4(2) states that a manager may make the required accommodations for individuals in a specific location in public spaces like hotels and airports to smoke or consume tobacco, provided that it does not negatively impact other individuals.

iii. According to Section 10 of the Tobacco Act (Control and Regulatory) Act 2068, no one, including the manufacturer, is permitted to advertise, promote, release, sponsor, or disseminate any news or information about tobacco products through newspapers and electronic media, including radio, television, FM, the internet, email, interaction programs, hoarding boards, wall paintings, logos, signage, writing, visual, audio, marks, as well as through person or any other means.



According to the Nepalese provision of Public Health Service Act, 2075:

  1. The act's Section 14 addresses maintaining confidentiality. Subsection 1 of the Act stipulates that confidential information pertaining to the health status, diagnosis, or treatment received by the service receiver shall be maintained.
  2.   Subsection 2(a) states, however, that if the service recipient provides written authorization for the information to be disclosed, it may be disseminated.

    iii.     If any information is required to be released by a court order or applicable law, and if not disclosing information seems to have a significant impact on public health.

  1. According to section 45 of the same act, no advertisement of the manufacturing, distribution, dissemination, and transmission of advertising materials that adversely influence human health, including those of alcohol, cigarettes, tobacco, or substances derived from tobacco, will be made,
  2. Section 45 (2) states that it is forbidden to produce, distribute, disseminate, and transmit ads that contain false or deceptive information in order to draw attention to goods and services that have an impact on one's bodily or mental well-being.

According to the Advertisement Act 2076 following are the penalties for violating the law:

  1.   Any offense against goods that the government forbids their manufacture, distribution, sale, or use, as well as illegal gambling and betting, will be prosecuted in accordance with the applicable laws. If so, the same penalty must be applied; if not, ten years in prison and a fine of up to Rs 10,000 may be imposed.
  2.   The penalties are divided into the following categories:
    i. Anybody who violates the laws pertaining to hoarding boards faces a fine of up to one lakh rupees.ii.A punishment of up to five lakh rupees will be imposed on anyone who violates the clean feeds policies.

          iii.  A punishment of up to one lakh rupees will                be imposed on anyone who violates any of the              following which includes advertising in                            prohibited areas, Special scheduled time, data              related to the advertiser, advertising by email                and SMS, procedure and standards prescribed              by prevailing law, and misleading information.

  1.   Any publication or broadcast in the mass media that runs advertisements or oversees the editing of this kind of media.

The editorial board will not face consequences only for this reason. Nevertheless, nothing in this rule will stop the relevant authorities from penalizing the editor if they also own the medium.

Some of the Nepalese acts has provided the provisions of the advertisements for environmentally sensitive products or services:

  1. According to Section 3 of the Advertisement Act of 2076, anyone may promote using hoarding boards of a certain size as long as they don't damage or block public property or roadways.
  2. According to Section 17(2) of The Environment Protection Act of 2019, while gathering, storing, processing, selling, distributing, disposing of, or transferring a hazardous material, the relevant individual or organization must ensure that it is managed properly to prevent negative environmental effects.

Yes, religious and cultural sensitivities impact advertisement content in Nepal which is listed in the Advertisement Act 2076. It states:

  1. According to section 4(5)(d) of the Advertisement Act permission to advertise cannot be granted from the Hoarding Board if it negatively impacts religious, cultural, historical, or archeological sites, or if it negatively impacts places on the World Heritage List that are listed due to their natural beauty and original culture.
  2. Advertisements that upset the balance between religion, race, gender, caste, caste or community, or that are based on discrimination against people with disabilities, language, region, or ideological beliefs are prohibited by section 5(2)(g) of the act.

Furthermore, a shareholder who is a legal person cannot appoint a proxy, but can only appoint an authorized representative of such a legal person by passing a board resolution, who is also authorized to vote on behalf of the shareholder at AGMs.

The requirements for obtaining permits for outdoor advertising in Nepal are:

In Nepal, in order to engage in advertising, individual advertisers or advertisement agencies/organizations are required to obtain a license from the village municipality or municipality at the local level.

The license is only valid for a certain amount of time, after which the advertisement cannot be preserved, and it must include the terms and conditions of advertising.

The advertisement must include all of the advertiser's basic contact details, such as name, address, and phone number. It is also necessary to display cautions regarding the possible consequences of consuming the promoted goods and services.

  1. The person wishing to erect the hoarding board and advertise on it from the relevant municipal level must comply with Section 4 of the Advertisement Act of 2076 Visible from Public Places.
  2. Section 3 of the Advertisement Act 2076 states that a person must apply for a permit from the appropriate local authority to use a hoarding board for advertising.  Local following the mandatory examination of the submitted application.
  3.  Similarly, section 4 of the same act states that the level office will use hoarding boards for advertising in compliance with this Act and other applicable laws. He will provide an affidavit if he feels that it is required. After the time frame specified in the notification has passed, the institution will have to remove the hoarding board.

The term "intellectual property" describes mental works of art and literature, inventions, designs, names, symbols, and pictures that are utilized in trade. By allowing creators or owners to regulate how their works are used, intellectual property is legally protected through patents, copyrights, trademarks, designs, and trade secrets. This gives them the chance to profit from their creative endeavors or investmen

Patent-protected goods or methods may be featured in advertisements. advertisers must guarantee the accuracy and adherence to patent laws of their claims regarding patented features. A limited number of business practices and advertising strategies are covered under patent protection. Accordingly, no one may copy, use, or cause to use a patent in the name of another without changing the ownership or obtaining written consent in accordance with Section 3(2) of The Patent, Design and Trade Mark Act, 2022.

  i.  Additionally, Section 12(2) states that no one may utilize a design that has already been registered. Designs include graphic user interfaces, screen displays, graphic symbols, and occasionally even web pages.

 ii.     In the situation where the provisions of section 12 is broken, the offender faces a punishment of up to 50,000 Rupees, and the Department may decide to seize any related items and merchandise based on the seriousness of the crime.

  1.   In accordance with section 18, each trade mark registration for goods or services classified into distinct categories must be submitted as a separate application.
  2.   No trademark may be used as a registered trademark without first registering it with the Department, according to Section 18B.

It is crucial to highlight that unfair competition rules forbid deceptive advertising practices such as phony brand endorsements, false advertising claims, deceptive packaging, and fraudulent marketing or promotions.

Yes, specific regulations regarding advertisements for financial services and products in Nepal. The Nepal Rastra Bank (NRB) is the regulatory agency in charge of monitoring financial institutions in Nepal. The NRB is in charge of establishing and carrying out monetary policy as well as overseeing banks and non-banking financial entities alike.

  1.   Section 8 of the Bank and Financial Institution Act, 2073 (2017) states that a bank or financial institution must register the prospectus at the Rastra Bank after obtaining the required approval regarding securities in accordance with applicable laws, prior to making its securities available for public purchase.
  2. Section 13 of the Tourism Act of 2035 states that any registered hotel, lodge, restaurant, resort, or bar must submit its rate or pricing list to the Nepalese government, make it available to the public, and publicize it in accordance with government guidelines.
  3. The Consumer Protection Act of 2075 states in Section 16 that unfair trade and commercial practices are prohibited: i. Section 16(2) (a,b) of the same act prohibits selling or providing goods or services by lying, concealing, hiding, or misleading the actual quality, quantity, price, measurement, format, or composition of such goods or services. It also prohibits releasing false or misleading advertisements and prohibits selling goods by making misleading advertisements. If any of the aforementioned activities are carried out, it will be presumed that an unfair trade and business activity has taken place.

Steps advertisers should take to ensure compliance with advertising laws when running contests or promotions in Nepal are:

Some legislators are pushing for the outlawing of beauty pageants in Nepal, despite the fact that there is currently no appropriate legislation in place for their operation.

  1. As many legislators have said that beauty pageants are conducted to abuse a child, the advertisers should observe the rules concerning competitions that involve minors. Make sure the atmosphere is age- and safety-appropriate, and get permission from the parents if needed.
  2. Establishing official and informal avenues for cooperation and communication with stakeholders and other government entities. taking part in networks and forums on competition law at the regional and global levels.
  3.  Expanding the Board's staff and budget. educating the staff and board members on the legal and technical facets of competition legislation through training.

i. Define the rules, standards, and evaluation procedures precisely. Make certain that judges follow fair and unbiased processes, and that all participants have equal opportunities.

ii. Make it clear how participant data will be handled and safeguarded. Obtain consent for the collection and use of data, and make sure that data protection rules are followed.

iii. The rules should clearly state the prize's specifics and requirements. Make sure the competition is run fairly and that the promised rewards are delivered on time.

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