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Advertisement Law in Nepal

Advertisement Law in Nepal
Table of Contents

Introduction

"Advertisement" means any word, sentence, drawing, image, symbol, poster, pamphlet, publication, sign, structure or any other audio, visual or audio-visual publication or prepared for publication in public regarding any product, service, event or occasion through the means including print, electronic media, online, social networks, hoarding board, balloon.

Advertisement law in Nepal governs the ways in which products, services, and ideas are promoted to the public. It ensures that advertisements are fair, truthful, and do not mislead consumers. The main aim is to protect consumers' rights, promote healthy business practices, and maintain public morality and order.

In Nepal, advertisement-related matters are primarily regulated by laws such as the Consumer Protection Act, 2018 (2075 B.S.), the Advertisement (Regulation) Act, 2019 (2076 B.S.), and related directives issued by regulatory authorities. These laws set standards for what can and cannot be advertised, regulate advertising media, and establish penalties for false, deceptive, or harmful advertisements.

The Advertisement Board of Nepal, established under the Advertisement (Regulation) Act, plays a key role in monitoring and regulating advertisements to ensure compliance with the law. Special restrictions are placed on advertisements related to sensitive sectors like tobacco, alcohol, gambling, and medicines to safeguard public health and interests. With the rise of digital media and online marketing, Nepal's advertisement laws are gradually adapting to cover newer forms of advertising, including social media promotions and influencer marketing.

The Advertisement (Regulation) Act serves as a foundational law to regulate the advertisement sector. It covers the regulation of various forms of advertisements, ensures the authenticity and accountability of advertising agencies and providers, and sets restrictions on the content allowed in advertisements. However, the Act does not sufficiently address advertisements through social media and the internet.

The Act provides person to advertise for the following purposes:

  • Promote a product or service,
  • Make aware and inform the about a product or service,
  • Provide information about a program or event, or
  • Provide information with regard to public information, such as goods, among others.

Advertisement activity such as the following are restricted

The Act provides person to advertise for the following purposes:

  1. Products prohibited by the government for production, distribution, sales and use
  2. Gambling and unauthorized betting
  3. Advertising on inappropriate subject matter
  4. Weapons, explosives and similar products
  5. Medicines to be prescribed
  6. Products which need compulsory approval as per prevailing law for distribution or use and has not got such approvals
  7. Products for which advertisement is prohibited as per the prevalent law
  8. In the syllabus of schools and universities, however this does not include information provided for educational purposes.
  9. Advertising of blind faith.

In addition to that, the Act also prohibits advertisements of the following nature:

  1. Advertisements that create interruptions against Nepal's sovereignty, geographical integrity, nationality, independence of association between federal units, public peace & International relationship
  2. Advertisements that are against the state, in contempt of court or to aid in committing crime
  3. Advertisements that devaluate the National flag of Nepal, National Anthem, National Seal, National Personalities
  4. Advertisements that are abusive/ defamatory
  5. Advertisements against public value, fair market
  6. Advertisements that disrespect labor or discriminate on the basis of sex/ caste
  7. Advertisements that affect one's religion, gender, caste, financial status or language
  8. Advertisements without getting approval for using trademark, patent & design of the owner
  9. Advertisements demoralizing the local Industries
  10. Advertisements spreading misinformation, or that deteriorates the quality of others product
  11. Against the prevailing law.

Power of Local Level

The Act empowers local authorities to designate restricted areas for advertisements, including religious, cultural, and archaeological sites, educational and health institutions, and nearby areas. Information about these prohibited zones must be made public.

The Act establishes an eight-member Advertisement Board with authority to regulate advertisement standards, review advertisement content and public service announcements, distribute government advertisements fairly among media houses, and set timeframes for public notices through various media platforms.

Power, Function, and Duty of the Advertisement Board

  • To propose matters related to national advertising policy to the Ministry.
  • To review advertisement content against specified standards and guidelines.
  • To develop a code of conduct for the creation, broadcasting, and distribution of advertisements.
  • To promote the publication and broadcast of advertisements that serve national and public interests, as needed.
  • To investigate any activities that violate, promote discrimination, or conflict with the provisions of this Act.
  • To monitor advertisements broadcast on foreign channels and report any violations to the Ministry for further action.
  • To coordinate efforts among the Government of Nepal, advertising agencies, advertisers, media houses, and government officials.
  • To organize consumer awareness programs.
  • To recognize and award individuals for outstanding contributions to the advertising sector.
  • To issue necessary directives to producers, distributors, and broadcasters.
  • To distribute government-provided public benefit advertisements proportionately among media houses.
  • To carry out any other functions as prescribed.

Offenses and Punishment

  1. 1. If any person does or causes offences about Hoarding Boards will be fined not exceeding one lakh rupees.
  2. 2. If any person does or causes offences under Clean Feed will be fined not exceeding five lakh rupees.
  3. 3. If any person does or causes offences in an advertisement restricted area, fixed hours by the board, details of the advertiser, advertisement through email and SMS, etc, will be fined not exceeding one lakh rupees.

Complaint mechanism

Complaints regarding violations of the Act or its standards can be filed with the Advertisement Board, the relevant committee, or the local authority. The body with jurisdiction must act on the complaint or forward it to the appropriate authority, and the complainant must be informed of the action taken.

Conclusion

In Nepal, advertising law plays a vital role in ensuring that advertising practices are fair, truthful, and respectful of public interests. The Advertisement (Regulation) Act, 2019, along with other related laws, provides clear guidelines on permitted and prohibited advertisements, protects consumer rights, and promotes responsible advertising. The establishment of the Advertisement Board and empowerment of local authorities further strengthens regulation and enforcement. Despite these measures, challenges remain, particularly in addressing online and social media advertising. Continued reform and awareness are essential to adapt to changing advertising trends and to uphold public morality, national integrity, and consumer protection.

Frequently Asked Questions

The Advertisement Regulation Act, 2019, is a legislative framework established to regulate advertising practices in Nepal, ensuring that advertisements are fair, truthful, and do not mislead consumers.

Advertisements promoting prohibited products, gambling, weapons, prescription medicines without approval, and content that undermines national integrity or public morality are prohibited.

The Advertisement Board oversees the implementation of advertising standards, monitors compliance, reviews advertisement content, and distributes government advertisements fairly among media houses.

Yes, the Act empowers local authorities to regulate hoarding boards, including granting approvals and designating restricted areas for advertisements.

While the Act primarily focuses on traditional media, it acknowledges the need to adapt to digital platforms, prompting ongoing efforts to regulate online and social media advertising effectively.

Penalties include fines ranging from NPR 100,000 to NPR 500,000, depending on the nature of the violation, such as unauthorized hoarding boards or non-compliance with clean feed policies.

Consumers can lodge complaints with the Advertisement Board, relevant committees, or local authorities, who are mandated to act upon or forward the complaints to the appropriate bodies.

Yes, the Advertisement Board prohibits the use of foreign artists in advertisements displayed in public places to promote local talent and culture.

The clean feed policy mandates that foreign television channels broadcasted in Nepal must not contain foreign advertisements, ensuring that only Nepali advertisements are aired.

The Act requires advertisers to provide clear information about the advertisement provider, obtain necessary approvals, and adhere to established standards, promoting transparency and accountability.

Disclaimer:
This article is intended solely for informational purposes and should not be interpreted as legal advice, advertisement, solicitation, or personal communication from the firm or its members. Neither the firm nor its members assume any responsibility for actions taken based on the information contained herein.