Advertising Agreements Under Georgian Law
An advertising deal — the relationship of brand and agency, media and publisher — is shaped by the Law on Advertising: endorsement, placement and distribution contracts are concluded freely, but their content must fit the law's articles. This page's line is the role architecture of the deal: Article 3 defines the advertising customer, producer and distributor and the types of improper advertising; Article 4 the general requirements; Article 5 the ban on covert advertising; Article 13 the qualification of sponsorship; Article 21 the consequences of violation. A properly built contract reflects these roles exactly, because liability is distributed by role.
The Roles of the Parties and the Types of Improper Advertising
Article 3 lays the foundation: advertising is information distributed by any means and form about goods, services and works, natural and legal persons, ideas and initiatives, aimed at an indefinite circle of persons and serving the formation of interest and promotion of realisation. The roles are defined by law: the advertising customer is the source of the advertising information; the producer gives it a ready form; the distributor places and distributes advertising using property, including broadcasting means. The types of improper advertising are also defined in this article: unfair — with incorrect comparisons and discrediting of competitors; unreliable — with data inconsistent with the truth about the properties, price and guarantees of the goods; unethical — violating generally recognised humane and moral norms, insulting state symbols and religious symbols; and misleading — deliberately deceiving the consumer and capable of harming a competitor. Counter-advertising is the public refutation of improper advertising — the lawful route for correcting a violation.
Recognisability: What Every Advertisement Must Satisfy
Article 4 sets the general requirements: advertising must be understandable, at the very moment of its presentation and without the use of special knowledge or technical means, as advertising directly — a format agreed in the contract cannot override this test. Advertising is distributed in the state language across the whole territory of Georgia. It is impermissible to advertise goods whose production and sale are prohibited, or which require a licence that has not been obtained. Advertising of goods subject to mandatory certification must carry the mark "certified". The placement and distribution of improper advertising is prohibited, and it entails liability according to the nature and degree of public danger of the act committed. Decisive for personality protection: the use of a natural person's image or name in advertising without that person's permission is prohibited — the endorsement agreement is precisely the formalisation of that permission.
Covert Advertising: The Ban on Hidden Emphasis
Article 5 defines covert advertising: in non-advertising video, audio and film production, as well as in print publications, it is prohibited to draw the simultaneous attention of advertising consumers to a specific brand, model or article of goods, to the manufacturer, performer or seller, without the prior indication that this is advertising. A brand embedded in a series, a shop singled out with simultaneous emphasis in an article — the classic forms of covert advertising. The same article prohibits interrupting the demonstration of a film in cinema and video services with advertising, except for breaks between episodes. In paid telephone, computer and other directory services, advertising may be supplied only with the subscriber's consent, and its value must not be included in that of the requested information; in free services it is supplied after the notification, and distribution by telex or fax without prior consent is prohibited.
Sponsorship and Liability: The Final Test of the Deal
Article 13 defines sponsorship: the contribution of natural and legal persons to the activity of other persons — in the form of money, property, the results of intellectual activity, services or works — on condition of the distribution of advertising for the sponsor's goods. A sponsorship contribution is treated as the value of the advertising, the sponsor as the advertising customer and the sponsored party as the distributor; the sponsor may not interfere, and no right of sponsorship belongs to a person whose product may not be distributed under this law. Liability is set by Article 21: for violation of the legislation, advertising customers, producers and distributors are answerable. Persons whose rights are violated by improper advertising may apply to court for compensation of damage caused to health and property, to name, dignity and business reputation, and may demand the public refutation of the improper advertising. Importantly: the imposition of liability does not discharge the parties from stopping the violation and from executing the decision on carrying out counter-advertising.
Frequently Asked Questions
Below we answer the questions most frequently asked about advertising agreements.
Who counts as the customer, producer and distributor of advertising?
The customer is the source of the advertising information; the producer gives it a ready form; the distributor places and distributes it using property, including broadcasting means.
What is covert advertising?
Simultaneous emphasis on a specific brand, manufacturer or seller in non-advertising production, without the prior indication that this is advertising.
May a person's name be used in advertising without consent?
No. The use of a natural person's image or name in advertising without permission is prohibited — the endorsement agreement formalises the permission.
What follows from improper advertising?
Customers, producers and distributors are answerable; the injured person may claim compensation of damage and public refutation in court, and the parties' obligation of counter-advertising remains.
How We Help on Legal.ge
The Legal.ge team prepares advertising agreements and handles their disputes: we draft endorsement, production and distribution contracts with an exact allocation of roles, check material against the recognisability and covert-advertising requirements, and represent you in disputes over improper advertising — claiming compensation of damage and public refutation. Tell us what kind of campaign is planned and on which channels it will be distributed. Consultations in Georgian, English and Russian serve customers, agencies and media alike.