Table of Contents

Page Argentina 5 Australia 7 Austria 9 Belgium 10 Bolivia 12 Brazil 13 Canada 15 Chile 17 Colombia 19 Costa Rica 21 Croatia 22 Denmark 23 Dominican Republic 24 El Salvador 25 Finland 27 France 28

Page Germany 30 Greece 31 Hungary 32 India 34 Ireland 36 Israel 37 Italy 39 Korea 41 Luxembourg 43 Malaysia 44 Mexico 46 New Zealand 47 Panama 48 Poland 49 Portugal 51 South Africa 53

Page Spain 54 Sweden 55 Switzerland 56 Turkey 58 United Kingdom 59 United States 60 Uruguay 61 Venezuela 62

ARGENTINA Dámaso A. Pardo PAGBAM Peron 555, 3 A C1038AAK Buenos Aires Tel: +54 11 5 032 3640 Fax: +54 11 5 032 3644 E-mail: dap@pagbam.com.ar Website: www.pagbam.com.ar

PEREZ ALATI, GRONDONA, BENITES, ARNTSEN & MARTINEZ DE HOZ (h)

PROPIEDAD INTELECTUAL

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? In the first place, it is worth mentioning that there is no specific law on advertising in Argentina. However, there are provisions for this matter scattered among different laws. The most relevant are:

(i) The Defence of Competition Law 25.156, which provides that the subordination of the sale of a product or use of a service for the purchase of another, or for the obligation of using another service constitutes an act of unfair competition.

(ii) The Fair Trade Practice Act 22802, which provides for a general prohibition of inaccurate, deceitful or misleading advertising of any kind. Any advertising campaign that may lead consumers to mistakes, confusion or deceit about the nature, properties, quality, quantity, use, price, conditions of commercialization or any other characteristic of the product or service offered or promoted will be considered an unfair trade practice.

(iii) In April 2008, Argentina modified its Consumer Protection Act 24.420. The following articles are relevant in respect to advertising and promotion incentives, namely: Article 4 provides that the supplier is required by law to supply the consumers with exact, clear and detailed information about the essential characteristics of the goods and services provided, and the conditions of their commercialization. Article 8 provides that the statements mentioned in ads, leaflets or through any other means of diffusion compels the offeror to fulfil his offer, and to include it in the contract established with the consumer. Article 8 bis —incorporated by Law 26.361— describes abusive practices. In particular, suppliers must refrain from using any conduct that intimidates consumers. Such conduct may be sanctioned with punitive damages.

(iv) Finally, Article 35 of the Consumer Protection Act rules out offers made by providers to consumers through any means regarding a good or service that has not been previously asked for, and that originates an automatic charge in any debit system that forces the consumer to expressly decline the acceptance of the offer in order that the charge is not effective.

(v) Article 37 refers to the interpretation of the contract. It provides that if the offeror violates the duty of good faith before the conclusion of the contract or during its execution, or violates the duty of information or the principles set forth in the Fair Trade Practice Act or in the Commercial Loyalty Act, the consumer will have the right to seek the nullity of the contract, or any of its clauses.

The Fair Trade Practice Act prohibits the following commercial practices:

(i) offering gifts or prizes, directly or indirectly related to a prior obligation of purchase of a good or service, when said gifts or prizes are submitted to the intervention of chance;

(ii) organizing or promoting any contest or competition where participation therein is to any degree conditioned to a prior obligation of purchase of a certain good or service;

(iii) giving money or other goods in return for the redemption of packages, parts of them or the product itself, when the amount of money or value of the good given in return is higher than the regular value of the redeemed objects or the prize they may represent to the person who redeems them.

In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes. Advertising of prescription-only medications directed to the general public is prohibited by Article 19 of Law 16.463. Moreover, Resolution 627/2007 bans the advertisement of prescription-only medicines which have not been approved of by the Argentine health authorities. On the contrary, advertising of non-prescription drugs (also known as over-the-counter medications) is allowed as long as the ethical rules set up in Disposition Nº 4980/2005 are complied with.

In respect to tobacco, no promotions or free distribution of such product can be carried out in schools, colleges, universities and similar places or in shows in which the main public is constituted by minors. Regarding the alcohol industry, contests or competitions of any nature that may require the drinking of alcoholic beverages for participation are not allowed unless they are expressly dedicated to sampling or tasting. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self regulation does not replace but supplement legislative and regulatory rules of the sector involved. In Argentina, self-regulation in advertising is a very efficient manner to solve disputes. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Article 256 of the Criminal Code imposes sanctions of up to 6 years of imprisonment when a public officer receives money, gifts, or benefits to carry out, delay or refrain from doing any act related to his/her functions. Article 256 bis increases the sanction up to 12 years when the gift was directed to influence a magistrate of the judiciary or the public Ministry. Law 25188 and decree 41/99 provide for ethics rules in public functions. Article 23 states that the public officer shall refrain from any conduct that may affect his/her independence of criterion for the performance of his/her duties. Furthermore, Argentina has signed the Treaty against the bribery of foreign public officers by Law 25.319. Article 38 of the Ethics rules allows for the paying of travel and accommodations of public officers for conferences, courses or cultural activities when they are received from governments, international organizations or non-profit entities if the acceptance of those incentives are not incompatible with the functions of the officer or are prohibited by specific laws. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The principle of transparency is expressly mentioned in the Ethics rules. In case of doubt, the public officer should consult with the National Office of Public Ethic.

AUSTRALIA Peter Le Guay Thomson Playford Level 25 Australia Square Tower 264 George Street Sydney 2000 Tel: +61 2 8248 3424 Fax: +61 2 8248 5899 E-mail: pleguay@thomsonplayford.com.au Website: www.thomsonplayford.com.au

I

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Yes. The Trade Practices Act 1974 (Cth) regulates conduct by corporations and Part V (Consumer Protection) has particular application to all advertising, marketing and promotional activity (including above the line and below the line advertising, free gifts, tie-in offers, sweepstakes, contests, rebates and any other benefits). Part V, among other things, prohibits a corporation from:

• engaging in conduct that is misleading or deceptive or which is likely to mislead or deceive; • making false representations with respect to things such as the goods’ standard, quality, value,

grade, composition, style or model, • representing that goods or services have sponsorship, affiliation or approval that they do not have • offering gifts, prizes or other free items with the intention of not providing or of not providing them as

offered; • bait advertising • referral selling and pyramid selling

‘Sweepstakes’ (in which winners of prizes are determined wholly or partly by chance, such as by way of draw or instant win ticket) are also subject to the lottery laws of each Australian State and Territory, some of which require lottery permits to be obtained. Promotions that are determined entirely by skill (i.e. contests), are not subject to the lottery laws. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Legislation Therapeutic Goods Act 1989 (Cth) regulates all goods and devices defined as being for “therapeutic use” which covers such things from prescription only medicines and over the counter pharmaceutical products through to medical devices. The Therapeutic Goods Advertising Code regulates the advertising of such goods. The Consumer Credit Code covers all ‘credit’ transactions including credit cards, personal loans etc. Self regulation (general) Australian Association of National Advertisers (AANA) Code of Ethics AANA Code for Advertising to Children (Advertising to Children Code) Self regulation (industry specific) AANA Food & Beverages Advertising and Marketing Communications Code (Food & Beverages Code) Australian Self Medication Industry Code of Practice – for non prescription medicines Alcoholic Beverages Advertising Code Weight Management Industry Code (including Slimming Advertising Guidelines) Federal Chamber of Automotive Industries Code of Practice for Motor Vehicle Advertising Australian eMarketing Code of Practice Mobile Premium Services Industry Code Internet Industry Association (IIA) Spam Code of Practice (although note that there is also spam legislation) IIA Content Code of Practice Some of the above industry codes are binding on members only.

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation supplements legislative regulation. In addition to the above industry specific codes, the AANA Code of Ethics is the overarching system of self-regulation. For some issues (i.e. taste and decency), the self-regulatory body would be first place that a consumer complaint would be directed, for other issues (such as for therapeutic goods), it will be the regulatory body. For the most part it would appear that self-regulation works well and that both industry and consumers are satisfied in that there is little public discussion about the majority of the above codes. The only real area that draws public comment and criticism are the Food and Beverages Code and the Advertising to Children Code, and, to a lesser extent (but usually in reference to either food and beverages or advertising to children), the AANA Code of Ethics. The Food & Beverages Code and the Advertising to Children Code are both relatively new and the criticism that is made tends to be that either the codes are insufficiently enforced or deficient. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? This would need to be considered on a case by case basis as an incentive for schools (whether government or private) would require different consideration to an incentive for a local government official. Incentives (whether promotional or otherwise) to government officials are essentially prohibited under anti-corruption legislation. By contrast, a promotion that is open, for example, to all school canteens who purchase a particular product and go in the draw to win sporting equipment for their school would be permitted. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? If only in relation to staff in public institutions, no, it is an outright prohibition. If in relation to promotional activities generally, then the only real ‘formal disclosure’ required is the information that must be provided to the lottery departments in order to obtain lottery permits (and follow up documentation regarding winners) and disclosure to entrants regarding the rules of the promotion or sweepstakes. Other Codes, such as the Therapeutic Goods Advertising Code and the Consumer Credit Code require that certain information be included on advertisements for particular products.

AUSTRIA Dr. Stefan Kofler Greiter Pegger Kofler & Partners Maria-Theresien-Strasse 24 A-6020 Innsbruck Tel: +43 512 571811 Fax: +43 512 584925 E-mail: info@greiter.lawfirm.at Website: www.greiter.lawfirm.at

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising and promotion incentives are regulated by the Austrian Act Against Unfair Competition. Promotion incentives which are somehow connected with the distribution of goods and services are subject to the premium regulation under paragraph 9a of the Austrian Act Against Unfair Competition. Free gifts, tie-in offers, sweepstakes, rebates and other benefits are restricted if such promotions are connected with the distribution of goods and services. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising and promotion incentives for health products are restricted according to the “Medizinproduktegesetz”. Advertising and promotion incentives for pharmaceuticals are restricted according to the “Arzneimittelgesetz”. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace government and legislative regulation of advertising and promotion incentives. In Austria self-regulation generally is only of minor importance. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Offering or granting gifts or other advantages to staff in public institutions or enterprises is prohibited by the Austrian Act Against Unfair Competition if such incentives aim to get unfair privileges in connection with the distribution of goods and services. Furthermore it is a general principle under the Austrian regulation against unfair competition that promotional activities and advertising must be identifiable as such by the consumer. Hidden sponsoring will in most cases be qualified as unfair competition. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are no legislative formal disclosure requirements for promotional incentives.

BELGIUM Jan Ravelingien Marx Van Ranst Vermersch & Partners Tervurenlaan 270 1150 Brussels Tel: +32 2 285 01 00 Fax: +32 2 230 33 39 E-mail: jan.ravelingien@mvvp.be Website: www.mvvp.be

MARX VAN RANST VERMEERSCH & PARTNERS

Burgerlijke vennootschap van advocaten – Société civile d’avocats

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The Belgian 1991 Act on Trade Practices, Information and Protection of the Consumer - as last amended on 5 June 2007 when Belgium implemented the EU Unfair Business-to-Consumer Commercial Practices Directive 2005/29/EC (entered into force on 1 December 2007) – govern and restricts in detail advertising and promotion that has excessively persuasive effects. A trade practice is qualified as aggressive if, in light of the factual context, the freedom of choice of the consumer is or runs de risk of being restricted by force, intimidation or inappropriate influence. Exploiting particular circumstances or bad luck to influence a decision, insistence at home, in unsolicited calls or in other media are explicitly qualified as an aggressive and unfair trade practice. Systematically declining requests for explanation also fall under the prohibited aggressive trade practices. Consumers are protected against a long range of purchase requirements in the context of contests, games of chances, lotteries or sweepstakes. Free gifts and value coupons are generally permissible, as long as they do not give rise to a psychological obligation to buy and are not used to drive competitors from the market. Combined offers are generally prohibited, but a detailed list of exemptions is foreseen. Announcements of price rebates and other benefits are permitted, but strictly regulated as well. Street solicitation and door-to-door sales require a permission to be obtained. Provisions in respect of distance contracts, the Belgian Ecommerce law of 11 March 2003 and a code of conduct by the Belgian Direct Marketing Association (BDMA) are also important legal instruments to consider in the context of persuasive promotion practices and incentives. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes, particularly but not only in the health products and pharmaceutical industry. The Act of 25 March 1964 on Medicines and the Royal Decree of 9 July 1984 concerning Information and Advertisements for Pharmaceuticals regulate advertising for both prescription and over-the-counter pharmaceuticals in a very restrictive manner. Royal Decree of 7 April 1995 implemented the Council Directive 92/28/EEC of 31 March 1992 on Advertising for Medicines. It is allowed for pharmacies to grant rebates under strict conditions. Promotion through titles or small gifts is prohibited, as well as contests. Towards professionals, direct or indirect rebates or the free gift of objects of all kinds are not allowed. Only the distribution of small samples is, under strict conditions, permissible. The organisation of conferences is allowed on condition that the scientific level and purpose of such meetings remains predominant. A strict compliance regime is in force. A Code on Deontology as changed on 21 March 2008 is published by the General Association of Medicinal Industry. The Code deals with sponsoring, information on events, seminars, premiums, studies. Detailed procedures and sanctions are in place. The Act of 16 December 2004 on the combat of excesses in the promotion of medicines is also relevant. The industry organizations adopted an Advertising Code for Cosmetics and Hygienic Products and a Code on Medicinal Products and Medical Treatments. The Jury for ethical aspects of advertising has rules on the use of health claims. The Belgian pharmaceutical industry association imposes restrictions in its’ detailed and compulsory self-regulatory code. Alcohol has a Code on Advertising for Alcoholic Beverages and the beer industry has the so-called Arnoldus Code. Further relevant are the Code on Advertising for Motor vehicles, Spare Parts and Accessories (and a Royal Decree of 2001). Several Royal Decrees contain detailed information on Prospectus advertising in the banking, finance and insurance industry. The Association for Ethics in Fund-Raising has enacted an ethical Code with recommendations. The Belgian Association of Banks has enacted many recommendations and guide lines on, i.a., transparency of premium compensations on deposits.

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation only supplements the law. It is quite effective and elaborated in the health industry. Self regulation and containment of members in the same industry play a very important role in many sectors. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Excessive persuasion of potential customers in both private and public companies and institutions can be an issue of criminal offence (any form of bribery, corruption as governed by Sections Criminal code). Promotions involving certain kinds of customer benefits in a procurement or purchasing environment are tested against principles of criminal law and specific statutory instruments in procurement, company law and the laws of associations. Public staff legislation and employment law supplement the general criminal law provisions. Courts have a practice of being called to judge in matters of corruption and excessive purchasing inducement Section IV of the Criminal code deals with active and passive bribery and corruption of staff in public institutions. A distinction is made between bribery to obtain a licit and free of charge act or decision and bribery to obtain an illegal act or omission (including gifts, regardless of whether or not the bribe was successful). The excuse that the value of the gift or promise is quite small is not sufficient to take away the criminal offence. Bribery of private persons, staff, employees, directors, agents or proxy-holders is sanctioned in Section 3bis on private bribery (Articles 504 bis and 504 ter of the Criminal code) Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are formal disclosure requirements in place under private and collective employment law, company law and under the general principles of civil law, including the duty to act in good faith, trust and fidelity. Under Article 10 of the Act of 1964 on Medicines, the payment of legitimate scientific services and the invitation and payment of participation to scientific events, organised or supported by suppliers of medicines or medical devices, the supplier has to apply for a visum at Mdeon, the ethical platform of all Belgian health partners, with support of FAGG, the Medicine Agency. The Ethical code of Mdeon describes in detail the compliance regime and procedure on premiums and advantages, scientific events and services of scientific nature with detailed rules on hospitality, duration, accompanying persons and prolongation of stay. Since 1 January 2007, each producer or supplier of medicinal products and medical devices wishing to invite a healthcare professional to take part in a scientific event which includes at least one overnight is required to have a visa. The visa procedure assesses whether the hospitality offered complies with the cumulative conditions set out in the Act on medicinal products. Sponsorships of the organiser of a scientific event (such as an exhibition stand) are subject to the visa procedure. Circular letters by the Federal Agency for Medicines and Health Products, Department on Proper Use of Medicines are issued to manufacturers, importers, wholesalers and holders of a marketing authorisation or registration or distribution of medicines or medical devices.

BOLIVIA Ramiro Guevara Guevara & Gutiérrez S.C. Calacoto,15th Street Edificio Torre Ketal, Piso 4, Of. 402 Calacoto, La Paz Tel: +591 2 2770808 Fax: +591 2 2796462 E-mail: rguevara@gg-lex.com Website: www.gg-lex.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Under Bolivian Legislation, there are general principles that govern advertising and promotion incentives. Specific regulation has only been issued for regulated sectors, such as telecommunications, electricity and energy. Furthermore, consumer protection is briefly regulated by provisions included in Laws No. 2427 dated November 29, 2002, No. 2495 dated August 4, 2003 and No. 3076 dated June 20, 2005. By means of Supreme Decree No. 29519 dated April 18, 2008 the current administration approved specific regulation directed to protect consumers from price speculation. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. In Bolivia, advertising of alcohol and other products are subject to special regulations when broadcasted at a schedule where children may be exposed (Code of Minors and Children). Additionally, there are specific limitations regarding the advertising of pharmaceutical products and legal consultancy. Furthermore, the advertising of tobacco in media has been specifically prohibited by Supreme Decree 29376. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Bolivia does not have an advertising self-regulatory body. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? When consider extending promotional incentives to staff in public institutions it is important to consider that public staff is expressly prohibited by law to accept any gift or benefit from any person or entity. We highly recommend the utmost caution when extending promotional incentives to public institutions. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Bolivia has no formal disclosure requirements for promotional incentives.

BRAZIL Valdir Rocha & Paula D'Angelo Westenberger Veirano Advogados Av. Presidente Wilson 231, 23º Rio de Janeiro - RJ Tel: +55 21 3824-4747 Fax: + 55 21 2262-4247 E-mail: valdir.rocha@veirano.com.br Website: www.veirano.com.br

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Law 5.768/71 governs the free distribution of prizes as advertisement, especially through sweepstakes/draws, coupons and/or contests. This law establishes that these promotions shall be authorized by the Ministry of Finances. Furthermore, only the authorized company may enjoy the profit achieved with the promotion. The authorization will only be granted if some requirements are fulfilled, such as a precise indication concerning the destination of the financial results to be achieved with the promotion. If the law is breached, some sanctions are applicable, such as fines and prohibition of realizing these sorts of promotions for 2 years. This law is regulated by Decree 70.951/72, which provides that the deadline for the delivery of the prize is up to 30 days, except in case of coupon prizes, which shall be delivered in the act of the presentation of the coupon. Consumers Protection Code (Law 8.078/90) determines that any sort of advertisement/promotion binds the advertiser to what it was promised. Furthermore, it forbids the delivery of any products and/or the rendering of any services which were not previously required by the consumer. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. The Brazilian Advertising Self-Regulation Code ("CONAR”) establishes ethical guidelines to be observed by every advertiser. This code specifically foresees that firearm advertisements shall not offer free gifts for the acquisition of the product. Moreover, the already mentioned Decree No. 70.951/72 provides that medicines, weapons, ammunition, fireworks, tobacco and alcoholic beverages shall not be subject to promotion by means of free distribution of gifts. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Breaching CONAR’s guidelines will lead to a presumption of fault since CONAR is not an official agency and its decisions are not legally binding but simply ethically binding. Therefore, although self-regulation does not replace government and legislative regulation, it may be considered an ethical parameter which must be observed, and Brazilian Courts have already recognized the Self-Regulation Advertising Code as an interpretative tool for advertisements. Procedures before CONAR are quick and effective, although they do not substitute, but only supplement, court decisions. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? The Administrative Improbity Law (Law 8.429/92) establishes that any economical advantage granted in the form of gifts, resulting in an unlawful enrichment of a public employee in the exercise of his/her public function, constitutes an act of administrative improbity, when the person who gives the present is somehow interested in some act of the respective public institution. The sanctions applicable may be the restitution of

the goods or amounts given, loss of the public function, suspension of political rights, and payment of a fine, amongst others. The Code of Conduct governs the acceptance of presents and free gifts, and, although directed to public officials in a first place, it also applies to other public servants. Examples: (i) a director of a public institution must not accept any presents to be drawn among public employees of such institution, even if this director is not participating of the draw; (ii) if a public authority is invited for concerts, sport events etc., the invitation can only be accepted by institutional reason and if the ticket costs up to R$100.00 (approximately US$ 60.00). The rationale of the Code is to create a limited relationship between private and public sectors. The Criminal Code, which foresees the crime of passive corruption, must apply if a public employee accepts any undue advantage as a “gift”. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The Code of Conduct establishes a difference between presents and free gifts. The acceptance of presents given by a person or entity interested in some act of the public authority or institution is forbidden. The existence of interest is determined objectively: (i) when the person/entity is under the regulatory jurisdiction of the public institution; (ii) when there is personal/professional interest in a decision that may be rendered by the public institution; (iii) when there is a commercial link between the person/entity and the public institution; and (iv) when it constitutes a third-party interest, acting in representation of the person/entity mentioned previously. The acceptance of presents is permitted under two circumstances: from a relative or friend, on their own cost and expenses, and from foreign authorities, in the exercise of diplomatic functions. Free gifts, on the other hand, are souvenirs given as a matter of courtesy or advertising, and their distribution is permitted (i) if the cost of each souvenir does not exceed R$100,00 (approximately US$ 60.00); (ii) if not directed exclusively to a certain authority; and (iii) once a year, if given by the same person/entity.

CANADA Geneviève Marcotte Heenan Blaikie LLP 1250 René-Lévesque Boulevard West Suite 2500 Montréal (Québec) H3B 4Y1 Tel: (514) 846-2238 Fax: (514) 921-1238 E-mail: gmarcotte@heenan.ca Website: www.heenan.ca

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising in Canada is governed by a number of federal acts including the Competition Act, the Food and Drugs Act, the Consumer Packaging and Labelling Act. In addition, each province or territory generally has its own consumer protection legislation governing the sale of goods and services. Certain jurisdictions also have a range of product-specific advertising codes such as those for alcohol and financial services. A product or service offered “free” with the purchase of another product (e.g. a free gift or tie-in offer) must be offered without hidden costs such as an increase in the cost of the product/service being purchased. The offer must clearly state that the purchase of the other product is required to get the free product or service. Similarly, where a bonus item is offered with the purchase of another item, (e.g. “Included”/"No Extra Charge”/”Bonus”), the price of the purchased item should not be reduced if the purchaser refuses the bonus item (nor can the price of the purchased item be increased by the cost of the “bonus” item). Sweepstakes and contests are regulated by both the Competition Act and the Criminal Code. Under the Criminal Code it is an indictable offence to dispose of property by any mode of chance alone. Thus, prudent contest organizers require that a skill test be administered to potential winners, making the contest a game of mixed chance and skill. Meanwhile, the Competition Act requires that one disclose certain minimum contest details and not unduly delay the awarding of prizes. The Competition Bureau requires that the disclosures to be made in a reasonably conspicuous manner prior to the entrant being inconvenienced or committed to the contest. In Quebec, the Act Respecting Lotteries, Publicity Contests and Amusement Machines also requires contest sponsors to meet filing and bonding requirements for publicity contests open to Quebec residents. Depending on the value of the prize and identity of the contest organizer, these may include registering the contest rules, paying fees and submitting contest advertising prior to the contest’s launch, as well as furnishing security to the Régie des alcools, des courses et des jeux based on the prize value available to Quebec residents. At the end of such a contest, the organizer may also need to report the winners to the Régie and account for any unawarded prizes. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Alcoholic beverage advertising is regulated through various provincial codes, licensing requirements, and provincially run store advertising requirements. For tobacco products, the Tobacco Act prohibits virtually all tobacco advertising/promotional activity with the exception of “information” and “brand preference” advertising in publications or places where young people are not permitted by law, and under certain conditions. No tobacco sponsorship (signage) advertising is permitted. There are numerous other restrictions including the prohibition against offering/providing any consideration direct or indirect for the purchase of a tobacco product including a gift to the purchaser or a third party, bonus, premium, cash rebate or right to participate in a game, lottery or contest. Tobacco packages must bear text and visual health hazard warnings. Financial services industry advertising is also regulated at the provincial level through cost of credit disclosure requirements and other consumer protection legislation. Food, Natural Health Product, Cosmetic, and Drug advertising are all regulated by the federal Food and Drugs Act. In addition to industry section regulation, there are various advertising-related requirements imposed upon

transactions by virtue of their form. For example, telemarketing and other remote agreements are regulated by various provincial statutes, and there are similar requirements for internet-based agreements. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation supplements government and legislative regulation of advertising and promotion incentives. Advertising Standards Canada ("ASC") is the advertising industry’s national self-governing body in Canada. It pre-clears broadcast ads for food, natural health products, cosmetics, alcohol and children’s advertising (and it preclears both broadcast and print ads for consumer drugs). It also administers the Canadian Code of Advertising Standards, the Broadcast Code for Advertising to Children, Gender Portrayal Guidelines and conducts confidential trade dispute hearings and responds to consumer complaints. The Canadian Marketing Association also publishes a Code of Ethics that governs its members and provides an industry standard. While self-regulation is generally an effective tool in Canada, government regulators will get involved where the public interest merits intervention. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives extended to staff in public institutions can pose a number of legal issues in Canada. For example, there are prohibitions on staff at public institutions accepting free gifts (including paid travel and accommodation) in a number of jurisdictions that include various federal, provincial/territorial, and municipal governments. There are also lobbying statutes at various government levels that require the registration of all lobbying activities. In Quebec, there is also a prohibition on advertising to children under the age of 13 (with few exceptions) and school board approval is required for any in-school promotion. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The Criminal Code contains a provision against "secret commissions", which includes providing any reward, advantage, or benefit of any kind to an agent or employee, as consideration for doing or not doing any act relating to the affairs or business of the agent or employee's principal. In addition, there are various procurement and conflict of interest requirements that exist in various jurisdictions and in various levels of government.

CHILE Rodrigo Albagli Albagli Zaliasnik Miraflores 130, 25th Floor Torre los Andes, Santiago Tel: + 56 2 445 6000 Fax: + 56 2 361 1789 E-mail: ralbagli@az.cl Website: www.az.cl

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Chile’s Tobacco Advertising and Consumption Law No 20,105, bans any kind of incentives in advertising or promotion incentives for tobacco related products. According to Article 35 of our Consumer Protection Law No 19.496, it is mandatory to inform consumers about the rules and duration of any promotion or offer. The latter must be accomplished when the prize, contest or draw is advertised by any means. Free gifts are permitted, except in circumstances strictly prohibited by law (for example, tobacco related products for minors under 18 years old). It is a common legal practice in Chile to register the regulations of a prize, contest or draw before a public notary, even though it is not legally mandatory. Nevertheless, please note that by exclusively registering the regulations of a prize, contest or draw before a public notary, a company would not be complying with Article 35 of our Consumers Law. When a prize involves the opportunity to participate in a contest or draw, the prize advertiser must clearly state the number of prizes and the deadline to collect the prize. The prize adviser must also inform the public results of the contests and draws. Tie-in offers, sweepstakes, rebates and other benefits are allowed, but they must follow the rules of information contained in the Consumer Protection Law. However, please bear in mind that only a special law may authorize individuals or institutions to provide lottery or sweepstake services, so this is a regulated market. At this time there are only two institutions with due authorization to conduct such activities (lotteries - sweepstakes) in Chile: Polla Chilena de Benificiencia (under regulatory body Decrete 120/60) and Lotería de Concepción (Law 18568). Individuals or institutions that don’t have this authorization are banned from conducting the already mentioned activities. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. The Tobacco industry is regulated by Tobacco Advertising and Consumption Law N°20,105. According to this law tobacco related products can only be advertised within a point of sale. Outside of these points of sale, tobacco can be advertised exclusively using ads designed by the Ministry of Health. Tobacco related products are also banned on the internet (.CL Chilean domain name) and on any broadcast issued by a Chilean radio or television channel. Advertisement of medicinal products is mainly regulated by Supreme Decree Nº 1876/95 dated July 5 1995, which contains the “Pharmaceutical Products Regulation”, and to a lesser extent by other bodies of Law, such as Supreme Decree Nº 404/83 dated November 2, 1983, which contains the “Stupefacient Regulation”; and Supreme Decree Nº 405/83 dated November 2, 1983, which contains the “Psychotropic Products Regulation”. Additionally, some dispositions of the Consumer Protection Law Nº 19.496, the Unfair Competition Law Nº 20.169 and the Antitrust Law, Supreme Decree Nº 211, may be applicable to some advertising and promotional practices involving medicinal products.

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace government and legislative regulation, but it does complement this area. The self-regulating activity has been proved necessary and successful. The CONAR organization, through its Chilean Code of Advertising Ethics, has become the lead agency in this area and its rulings and guidelines are complied with by the industry and consumers, as well as received and recognized as a valuable contribution to welfare of markets.

To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Article 64 number 5 of Chile’s Constitutional Law that Regulates the Civil Service Administration, clearly bans any form of promotional incentive directly targeted towards staff in public institutions. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? As explained in the answer to the first question, according to the Consumer Protection Law all the terms, conditions and requirements related to a certain promotion must be clearly informed to the public.

COLOMBIA Felipe Garcia Echeverri DG & A Abogados S.A. Carrera 7 No. 74-21 piso 6 Bogotá D.C Tel: +571 2170800 Fax: +571 2120260 E-mail: fgarcia@col-law.com Website: www.col-law.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Articles 14, 16, 23, 24, 31 and 32 of the Decree 3466 of 1982 establishes the responsibility of producers for the advertising with promotional incentives in two (2) special cases: a) When advertising does not correspond to the reality which is understood by the fact that the incentives offered are not granted to the consumer in the opportunity indicated for it, or within the term by which this kind of advertising or commercial propaganda is used or broadcasted, whenever the period for it was not determined and, b) When this type of advertising, induced or might be induced to cause error to the consumer as to the price, quality or suitability of the goods or services, which will be understood by the circumstance of that, simultaneously with the offering of the incentives and even six (6) months after such offering was removed, the price of goods or services increases, as well as when the quality or the suitability of the good or service are unfavorably affected due to the incentive or concurrently with it. Free gifts and rebates are allowed. Tie-in offers, sweepstakes, contests and other benefits are permitted but subject to some formal requirements that the producer must comply beforehand. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes. Advertising for pharmaceutical products is regulated by the Decree 677 of 1995 and the Resolution No. 4320 of 2004; Homeopathic medicaments by Decree 3554 of 2004; Products of specific use by Decree 3636 of 2005; Food and Alcohol Beverages by the Laws 9 of 1979, 30 of 1986, 124 of 1994 and, also by the Agreement 001 of 2006 from the National Television Commission (CNTV- for Spanish acronym); Tobacco by the Law 30 of 1986 and the Agreement 001 of 2006 from CNTV; Advertising and promotional incentives made by insurance companies, financial entities, pension funds and fiduciary societies must observe what has been stipulated in the Articles 97 and 99 of the Decree 663 of 1993, as well as in the Chapter Six, Section I of the “Circular Básica Jurídica” of our Financial Superintendence. On the other side, our Self Regulatory Code establishes special rules for some of the aforementioned topics such as tobacco, cigarettes, alcohol, medicines, financial services, public services, health and advertising for persons under age. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Please be informed that there is no industry self-regulation in advertising and promotion incentives in Colombia. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives for public employees are legally established to increase the levels of efficiency, satisfaction, development and welfare of them in the performance of their work and also with the purpose of contributing the effective compliance of the institutional results. The regulatory principles of this system are equity, justice, synergy, impartiality, transparency and coherence and they always must be oriented to a) create favorable conditions for the development of the work so that the labor performance can comply with the objectives predicted and, b) recognizing the results of the performance of the best employee of the entity in levels of excellence. Regarding the private employees, by virtue of the free willing principle, the entity can establish all the incentives desired. Depending on what is determined as an incentive, its nature (legal or extralegal) and the frequency in which it is caused, the incentives will be constituted as an integral part of the salary.

Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Regarding private employees, promotional incentives must be established expressly within the terms and conditions of their labor contract. In relation to public employees, according to the Decree 1567 of 1998, the Director of each public entity must create and execute annual incentives plans in conformity with the law. Such plans should contain at least six (6) of the following non-pecuniary incentives: promotions, assignments, commissions, scholarships for formal education, participation in special projects, publication of works in national and international level, public recognitions for meritorious work, financial support for investigations and, social tourism programs. As for pecuniary incentives, they will be assigned and distributed among the best work teams of the entity and cannot exceed the amount of forty (40) minimum legal wages. This depends upon the entity’s availability of resources.

COSTA RICA Uri Weinstok Weinstok Abogados Paseo Colon, Torre Mercedes Piso 9 San Jose Tel: +506 2256 5060 Fax: +506 2256 5262 E-mail: uweinstok@weinstok.co.cr Website: www.weinstok.co.cr

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Consumer Protection Law establishes that the advertising of any promotion or special offer must expressly indicate the original price of the product, the new price or the benefit that the consumer will receive by accepting the offer. Additionally, if the offer or promotion is subject to conditions or restrictions these must be indicated in the advertising. Any information that may affect the purchase decision of consumers must be expressly indicated. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes. The main products subject to specific regulations are: Alcohol, tobacco, pharmaceutical, financial services, foodstuff. Each of these products have a specific regulation, either by Law or governmental decree. In most of these cases all promotions and advertising must be previously cleared by a government regulator. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self regulation does not exist in Costa Rica. There have been some initiatives to establish a self regulation system, but it’s not in place yet. The only two exceptions are the tobacco and alcoholic beverages industries, which both have self regulation codes, but there are no self-regulatory bodies. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? In public institutions these types of incentives are forbidden by the Law Against Corruption and Illicit Enrichment of Public Servants. This Law establishes a high standard of ethical conduct that must be complied with by all public servants, including the prohibition of any payment, gift, benefit or incentive to any public servant. In private entities, however, these activities are not regulated by law, so they depend on the contracts, policies, and standards of each company. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? If incentives are offered to the general public, they must comply with the principles of consumer protection stated above. If they are done through the normal dealings among commercial entities, then they would depend only on the standards of the companies involved. Customarily, some non-written ethical rules may apply, like for example obtaining the consent from the employer before offering an incentive to an individual, and others. However, no written body of Law or regulation would apply, other than general commercial and contract Law.

CROATIA Mladen Vukmir Vukmir & Associates Gramaca 2L 10000 Zagreb Tel: +3851 376 0511 Fax: +3851 376 0555 E-mail: mladen.vukmir@vukmir.net Website: www.vukmir.net

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? There is a Consumer Protection Law in Croatia. The one currently in force was enacted back in 2007 and replaced the Consumer Protection Law of 2003. Promotional activities such as free gifts, tie-in offers, sweepstakes, rebates and other benefits are generally allowed, as long as the awards are not of high value and the awarding depends on an objective criterion. This however is not prescribed by the Consumer Protection Law, but represents the standpoint of the Croatian Ministry of Finance as the authority in charge of award games which on the other hand require special permissions. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. There are no special regulations for advertising and promotion incentives applying to certain industry sectors only. There are special regulations for certain industry sectors such as food, alcohol, tobacco and pharmaceuticals, but they do not refer to advertising and promotion incentives in particular. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? In Croatia self-regulation supplements government and legislative regulation of advertising and promotion incentives. It is an effective tool. However, it is not specific depending on the industry, but it is generally prepared and enforced by the advertising agencies associations, meaning that it mostly applies to all types of industries. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? The approach in such case would depend to a certain extent on whether the promotional incentives come from inside or outside the public institution. If coming from outside the public institution, this would generally be forbidden. Certain code of conduct rules may apply too. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In Croatia there are no explicit and prescribed disclosure requirements for promotional incentives. Some of those principles might apply however in practice, especially before courts and other institutions.

DENMARK Johan Løje Sandel, Løje & Wallberg Frederiksgade 7, O. Box 9006 DK-1265 Copenhagen K Tel: +45 33 43 21 15 Fax: +45 33 11 46 22 E-mail: jl@slw.dk Website: www.slw.dk

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Article 9 of the Danish Marketing Practices Act (MPA) states that any sales promotion campaign shall be presented in such a way that the terms of offer are clear and easily accessible to the consumer, and the value of any additional services is clearly indicated; part 3, MPA concerns consumer protection – article 9 sales promotion, article 10 trading stamps, article 11 sweepstakes and prize competitions; free gifts and tie-in offers were made legal in the 2005 revision of MPA; sweepstakes are legal if not subject to purchase requirements; rebates and other benefits are legal, but subject to certain restrictions in MPA. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising and promotion incentives of foodstuffs and dietary supplements are regulated by the Foodstuff Act; pharmaceutical products by the Medicines Act and self regulatory codes. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation supplements government and legislative regulation of advertising and promotion incentives and is in general an effective tool. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)?

DOMINICAN REPUBLIC Jaime R. Angeles Angeles & Lugo Lovatón Alberto Peguero 107, Miraflores Santo Domingo Tel: +809 221-1717 Fax: +809 685-3333 E-mail: jangeles@angeleslugo.com Website: www.angeleslugo.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Consumer Protection Law (358-05) does not allow free gifts or other benefits when they are tied to a purchase requirement or obligation. Also if a consumer has been granted a gift during a special offer, he/she is not obliged to return it, if principal services / purchases are terminated. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Although there are special regulations for several industry sectors such as tobacco and health products, there are no special rules for promotion incentives. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? In the Dominican Republic there is no a self regulation tool. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? In the Dominican Republic we do not have express limitations and prohibitions for promotional incentives extended to staff in public institutions. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In the Dominican Republic, procurement rules (340-06) induce some basic rules to avoid any unwelcome exposure:

a. Public institution Management has to authorize the visit and clearly express who should attend in their representation;

b. No confidential information or privileged technical information that can be perceived as an advantage to other competitors during the visit – trip (Art. 66.1.1)

c. Limitation as much as possible any social or parallel event that is not necessary for the business purpose of this visit is advisable.

EL SALVADOR Carlos Castillo Romero Pineda & Asociados World Trade Center 1, Suite 305, Col. Escalón San Salvador Tel: (503) 2505 5555 Fax: (503) 2505 5500 E-mail: carlos@romeropineda.com Website: www.romeropineda.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? El Salvador, does not have an advertisement law, Nonetheless, several related legal statutes can be found. The Commerce Code regulates unfair competition acts through advertisement, the Trademark Law regulates unfair competition acts through the use or dilution of a third party trademark and the Consumer Protection Law, regulates misleading advertising and prohibits comparative advertising. The National Publicity Counsel, which is a non-governmental association formed by Advertising Agencies, Media and Private Corporations has issued an Advertisement Ethics Code, which includes regulation on misleading advertising, comparative advertising, and other related subjects. Free gifts, sweepstakes, rebates and other benefits may be used as long a no unfair competition act is made, no consumer protection regulatory is violated and Intellectual Property Rights are not infringed. Tie-in offers, may be examined by the Superintendence of Competition upon request of a competitor as they may be considered to be anti competitive behaviour. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes, certain industry sectors must comply with special regulations. Pharmaceutical product advertising must have prior approval of the National Superior Health Counsel, which is a part of the Ministry of Health. The Health Code, in Art. 14, establishes the following: “The counsel has the following attributions:

n) To prior to publication or diffusion qualify the advertisement of all products to be offered to the consumers for the prevention or cure of sickness, promotion or re-establishing of health, preventing the advertisement from omitting or exaggerating, providing inexact information, that may induce the consumer to error or confusion in regards to the origin of the products, its components and ingredients, its benefits or implications; avoiding the abuse on the good faith of the consumers or their credibility.” ñ) To watch over and control the announcement to the public of professional services related to health. “

Tobacco and alcoholic beverage advertisement is limited to certain types of publications and time slots in national television programming by the Ethics Code of the National Publicity Counsel. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? The National Publicity Counsel, which acts as a self regulation entity, and has introduced regulation of advertising and promotion incentives. Government regulation is limited to certain areas of the commercial activity, and the National Publicity Counsel Ethics Code, regulates specific aspects of the advertisement industry, such as comparative advertising, advertising directed to under aged demographics, advertising fraud, security risks and accident

responsibility derived from advertising, etc. Self-regulation is effective in El Salvador, the only setback that may be encountered in self regulation issues before the Ethics Committee of the National Publicity Counsel, is in the fact that its decision are not mandatory, and corporations which are not members of the Advertising Association, Media Association and Advertiser Association, are not obliged to obey their resolution. On the other hand the National Publicity Counsel, has as listed members all major radio and television stations and most of the printed advertising industry, hence obtaining the strength to implement its decisions. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? The Government Ethics Law, prohibits any and all types of gifts to Government employees. “Art. 6: The following are ethics prohibitions to the public servants: To request, accept directly or through a third person, gifts, payments, fees or any other type of revenue, as payment for the fulfilment of their office.” Hence the paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes, would be deemed unethical. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The question does not apply to El Salvador.

FINLAND Mikael Segercrantz Roschier, Attorneys Ltd. Keskuskatu 7 A, 00100 Helsinki Tel: +358 (0) 20 506 6585 Fax: +358 (0) 20 506 6100 E-mail: mikael.segercrantz@roschier.com Website: www.roschier.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The Consumer Protection Act and the Unfair Business Practices Act govern advertising and promotion incentives. The Consumer Protection Act applies to marketing directed to consumers where as the Unfair Business Practices act applies to business to business marketing. Chapter 2 Section 5 of the Consumer Protection Act prohibits sweepstakes (and other contest based on chance) in which consumers cannot participate without buying a product. Giveaways, tie-in offers and other benefits are permitted provided the value of the tie-in or benefit is disclosed in marketing. Rebates are also permissible but subject to time limitations. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising of medical products in Finland is governed by the Medicines Act and the Medicines Decree. The Finnish Code for the Marketing of Medical Products issued by Pharma Industry Finland (PIF) contains detailed provisions on marketing of medicinal products, complementing the statutory legislation. The PIF Code has been drafted and implemented by the representatives of the pharmaceutical industry. All members of PIF (which includes in practice all major players in the pharmaceutical industry in Finland) have undertaken to comply with the PIF Code and therefore it represents the generally accepted code of conduct of the industry. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace but supplement legislative and regulatory rules in connection with industry specific circumstances. Self-regulation is quite effective in the pharmaceuticals sector in terms of speed and depth of enforcement. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? In Finland, bribery of government officials is prohibited by Chapter 16, Section 13 of the Penal Code. The promising, offering or giving to a government official, or to another person, a gift or another benefit, the purpose of which is to influence or attempt to influence the activities of said government official while in service. Bribery is also prohibited in the private sector. According to Chapter 30 Section 7, promising, giving or offering to a person, or to another person, an unjustifiable benefit with the intention to get the person in his/her work or assignment to favour the person given the benefit or another party, is also prohibited. For the pharmaceutical sector the PIF Code sets forth guidelines regarding what is acceptable sponsoring, hospitality and representation. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are no direct formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service).

FRANCE Michel Béjot & Caroline Bouvier Bernard-Hertz-Béjot 8 rue Murillo 75008 Paris Tel: +33 (0) 1 43 18 80 80 Fax: +33 (0) 1 43 18 80 90 E-mail: bejot2@aol.com or mbejot@bhbfrance.com cbouvier@bhbfrance.com Website: www.bhbfrance.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? French law dated January 3, 2008 amended the French Consumer Code and added additional references to the previous “misleading advertising” concept. There is now a general notion of “commercial practices” (instead of the reference to the concept of “advertising”) which should:

- not be unfair (this notion contains both the reference to the positive acts of “misleading commercial practices” and the passive acts, which are notably the fact to voluntary hide an information to the recipients);

- nor aggressive (which is defined as the repeated and insistent requests or the use of a moral or physical constraint which can corrupt the (i) choice of the consumer, (ii) his/her consent or (iii) impede the exercise of his/her rights.

The law of May 21, 1836, recently amended by the law of March 9, 2004 prohibits the games of chance (e.g., sweepstakes) which present the four criteria (exhaustive list): a public offer, the hope of a gain, the role of chance (contrary to a contest) and the financial contribution. Contests, tie-in offers, rebates, free gifts and other benefits are allowed subject to the compliance with the French Consumption Code and other public order rules (for instance, the prohibition of the offer, as a gift, of alcoholic beverages or weapons…etc). In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. The advertising/promotion of tobacco products and alcoholic beverages is strictly regulated by the French Health Code, which notably limits the media used to promote such kind of products and prohibits their offer, as a gift, to the minors. In addition, the advertising/promotion of other specific products is regulated by the French Consumption Code. For instance, the advertising of food destined for children under 4 months (“préparation pour nourisson”) is only allowed in the press (written press) destined for health professionals. Samples should not be freely distributed to the public and the promotional operations are prohibited. The French advertising self-regulatory body (Bureau de Vérification de la Publicité, BVP¨) also issued Recommendations in connection with certain industry sectors (for instance, the Recommendations destined for advertising of alcoholic beverages, the health and beauty products, the motor vehicles…etc).

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace but supplements the legislative and regulatory rules. Self-regulation is an effective tool in France, insofar as the BVP:

- (i) encourages agencies, advertising medias and advertisers to become members of BVP, - (ii) regularly issues sets of rules called Recommendations which draw the outlines of the loyal

advertising in a large number of specific areas and - (iii) tries to promote its Recommendations as much as possible, notably by attending conferences,

drafting newsletters on its website (a part of its web site is easily accessible to the public, while another part of the web site is reserved to the professional members).

To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? The offer of promotional incentives to people working in the public sector (the civil servants) may raise the issue of the corruption which is prohibited by the French Criminal Code. The French Health Code also prohibits the offer, by the companies manufacturing or selling medicines products, of advantages in kind or money to health sector’ professionals. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The offer of gifts, by a company, to the employees of another company, has to comply with:

- (i) the regulation governing advertising and promotion (for instance the prohibition of the financial contribution in the case of games of chance),

- (ii) the general rule of the prohibition of the unfair competition, - (iii) the general prohibition of the abuse of a dominating position, - (iv) the tax rules (the gift is likely to be considered are benefits subject to the income tax to be paid

by the beneficiary), and - (v) the social contributions rules (the gift is likely to be considered as an indirect revenue subject to

social contribution to be paid by the company offering the gift, in the event this company can be regarded as the employer of the beneficiary of the gift (i.e., if there is a subordination’s relationship between them).

GERMANY Rudolf du Mesnil Heuking Kühn Lüer Wojtek Grüneburgweg 102 60323 Frankfurt Tel: +49 69 975 61211 Fax: +49 69 975 61100 E-mail: r.dumesnil@heuking.de Website: www.heuking.de

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Section 4 (1) Law Against Unfair Advertising of 3 July 2004 restricts advertising and promotion that has excessively persuasive effects. Section 4 (6) protects consumers against purchase requirements in the context of sweepstakes and contests. Free gifts are permissible (except in circumstances specifically prohibited in industry self regulatory codes). Tie-in offers, sweepstakes, rebates and other benefits are, in principle, permitted but subject to certain limitations of the Law Against Unfair Advertising. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Excessive persuasion of potential customers can be an issue of criminal offense (any form of bribery, corruption, payola and schmear (passive and active) as governed by Sections 239, 331 to 334 Criminal Code). Promotions involving certain kinds of customer benefits in a procurement or purchasing environment are tested against principles of criminal law and self-regulatory codes aiming at the prevention of corruption and excessive purchasing inducement, particularly in the health products and pharmaceutical industry. Some industry sectors (i.e. insurance companies in respect of insurance sales) restrict excessively inducing sales promotion by means of in-house compliance rules. Promotion and advertising in the health products industry is regulated by the Law Concerning Advertising of Health Products of 11 July 1965, as amended. Major pharmaceutical industry associations impose specific restrictions by means of their self-regulatory codes, dealing with specific issues arising in the given industry sector. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace but supplement legislative and regulatory rules in connection with industry specific circumstances. Self-regulation is quite effective in terms of speed and depth of enforcement, supplemented by regular court procedures. Self regulation debates and programmes have developed specific guidelines and principles. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Any kind of benefits granted by businesses to the staff in public institutions, and – to a lesser degree – private employers, are strictly regulated and subject to certain principles (code of conduct rules) such as (i) the requirement of “separation” of benefits from sales and procurement, (ii) the principle of “transparency and employer authorization”, (ii) the principle of “documentation”, as well as (iv) the rule of “equivalence” (balance of values in service and consultancy agreements in order to avoid hidden benefits and dependence / obedience). . Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In Germany, the above code of conduct rules (“separation”, “employer consent/transparency”, “documentation” and “equivalence”) have been developed in discussions between the industry and public institutions in order to cope with the dependence and subjection effects of certain promotion activities in the public sector. Increasingly, these rules also protect the independence of employees in the private sector.

GREECE Kriton Metaxopoulos & Irini Daroussou Metaxopoulos. Law Firm 54, Vasilissis Sofias Av. 11528 - Athens Tel:+30 210 72 57 614 Fax: +30 210 72 57 618 E-mail: kmetaxopoulos@metaxopouloslaw.gr

idaroussou@metaxopouloslaw.gr Website: www.metaxopouloslaw.gr

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? In the context of Greek Law, there is no specific regulation governing advertising and promotion incentives; these being regulated by the provisions of Greek Laws of Unfair Competition (Law no 146/1914) and of Consumer Protection (Law no 2251/1994). Article 9 of Greek Consumer Protection Law restricts all commercial practices leading to unfair, misleading, excessively tempting and highly persuasive advertising. According to relevant Greek case law, promotion incentives are, in principle, permissible, unless certain conditions are met, such as: the value of the promotional incentive is extremely high compared to the value/ price of the main product, the promotional incentive is unprocurable in the market or the promotional incentive is misleading in relation to consumer’s consideration regarding the “real” price of the product sold. In consequence, free gifts, sweepstakes and other benefits are, in general, permitted, though subject to certain limitations provided by several provisions of Greek laws. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Certain industry sectors are subject to special regulations governing promotion and advertising. Tobacco advertising is subject to specific limitations provided by the Decision of the Ministry of Financial Affairs no 1591/1989 while the advertising of certain pharmaceutical products is totally prohibited according to Greek Medicine Law no 1316/1983. Similarly, restrictions are being imposed on the advertising and promotion of agricultural and farming medicines, in accordance with the provisions of Law no 2538/1997. Radio and TV advertising is specially regulated by the provisions of Law no 2328/1995 and is, in practice, controlled by the National Radio and TV Council (Law no 2863/2000). Most importantly, the Greek Advertising and Communication Association (EDEE) has issued and implements the Greek Advertising and Communication Code which is in conformity with the rules of the International Chamber of Commerce. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? In Greece, self – regulation actually supplements government and legislative regulation of advertising and promotion incentives, thus being an effective tool by developing specific guidelines and principles. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? According to Articles 235 and 236 of Greek Criminal Code, any form of bribery (passive and active) constitutes a criminal offence which is punished with imprisonment of at least 1 year. In this context, it is prohibited to grant benefits/ retributions to public officers, should the benefits relate to the officers’ duties/ course of action. The conduct of civil servants is also governed by the provisions of the Greek Code of Conduct of Civil Servants. Responding to the query whether the sponsoring of certain products is permitted in a public institution (p. ex. school), besides the above Laws, the provisions of the relevant Regulations of Supplies are also applicable. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are no formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings etc). Greek Courts, have, nevertheless, adopted, in several promotion and advertising cases, the rules of “separation” and “transparency” of promotional incentives.

HUNGARY Matías Vallejos Meana & Krisztina Adamis Salló Law Firm Honvéd utca 38. IV./7. 1055 Budapest Tel: +36 1 331 0311 Fax: +36 1 269 2999 E-mail: hungarylex@mail.datanet.hu Website: www.decapoa.com

SALLÓ ÜGYVÉDI IRODA Salló Law Firm

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising and promotional incentives are regulated by several Acts of the Parliament, such as Act no. LVIII of 1997 on Business Advertising Activities, Act no. LVII of 1996 on the Prohibition of Unfair and Restrictive Market Practices and Act no. XXXIV of 1991 on Gambling. Free gift, tie-in offers, sweepstakes, rebates and other benefits are permitted as an accepted marketing tool, however it is forbidden to use promotion incentives that unjustifiably restrict the consumer’s freedom of choice: promotions should not create circumstances which make it substantially more difficult to objectively assess the actual worth of goods or a discount and to compare goods or offers with other good or offers. Discounts must clearly and plainly state to which product the discount pertains, as well as the period or duration for which it is offered, or that it is offered from a specific date or for as long as such a product is available. Draws, gift draws and scratch cards fall under the scope of the application of the Organization of Gambling Act, no. XXXIV of 1991 and Decree of the Ministry of Finance no. 25/1991. In general, draws may only be conducted with a permit (but there are exceptions) while gift draws are subject to reporting obligations. It is not permissible to organize promotions with the use of scratch cards (coupons where after removing the cover, the participant finds out that he or she has won a prize, or that he or she is entitled to receive a prize or that he or she “has not won”). In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Some Industry sectors are subject to special regulations. The advertising of tobacco (including any indirect advertising) and of prescription-only medicines is prohibited by law (Act no. LVIII of 1997 on Business Advertising Activities). There are restrictions applicable to the advertising of alcohol products, financial services products and advertising to children (Act no. LVIII of 1997 on Business Advertising Activities and Act no. CXII of 1996 on Credit and Financial Institutions). Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation supplements government and legislative regulation of advertising and promotion incentives. The leading self-regulation organization is the Hungarian Advertising Association (MRSZ), a national tripartite organization (comprising advertising and media agencies, local advertising services, television and radio broadcasters, leading newspapers and magazine publishers and major marketers) created in 1975. Self-regulation is an effective and respected tool in Hungary and its role is acknowledged by Hungarian law.

To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? There aren’t general regulations regarding promotional incentives extended to staff in public institutions but there are specific regulations regarding some sectors (I.e. medical doctors) and bribery is a criminal felony punishable by imprisonment between 1 and 8 years. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There aren’t general regulations requiring formal disclosures.

INDIA Mr. Sharad Vadehra KAN AND KRISHME B-483, KNK House, Meera Bagh, Paschim Vihar, New Delhi-110063 Telephone: +91 11 45570275, 45570276 Fax: +91 11 42334002, 42334003 Email : knk@kankrishme.com Website: www.kankrishme.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising communication is a mix of arts and facts subservient to ethical principles. In order to be consumer-oriented, advertising must be truthful and ethical. It should not mislead the consumer. If it so happens, the credibility is lost. Monopolies and Restrictive Trade Practices Act, 1969 - Section 36 A of the Act deals with: All business promotion schemes announcing ‘free gifts’, ‘contests’, etc. where any element of deception is involved is considered Unfair Trade Practices under the Act; Parle’s mango drink ‘Maaza’ gave the advertisement of Maaza mango and the MRTP issued a notice against Parle Exports Pvt. Ltd. The advertisement implied that the soft drink was prepared from fresh mango while actually preservatives were added to it. The company had to suspend production pending enquiry. The Consumer Protection Act, 1986 deals with pricing issues and states that it is a criminal offence to give misleading indication of price of any goods, service, accommodation, or facility to consumers. A breach of this Act is a criminal offence not only does a company risk being fined on a corporate level, but also any consenting or conniving directors or managers, or any other persons in positions of responsibility involved, risk personal fines and/or imprisonment. As regards free gifts, tie-in offers, sweepstakes rebates and other benefits are permissible subject to certain limitations. Broadly the following statues in India deal with such matters:

1. Consumer Protection Act, 1986 2. The Lotteries (Regulation) Act, 1998 3. Copyright Act, 1957 4. Indian Penal Code, 1860.

In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Drug and Magic Remedies (Objectionable Advertisement) Act, 1954 – This Act has been enacted to control the advertisements of drugs in certain cases and to prohibit the advertisement for certain purposes of remedies alleged to possess magic qualities and to provide for matters connected therewith. In Hamdard Dawakhana v. Union of India the Supreme Court was faced with the question as to whether the Drug and Magic Remedies Act, which put restrictions on the advertisements of drugs in certain cases and prohibited advertisements of drugs having magic qualities for curing diseases, was valid as it curbed the freedom of speech and expression of a person by imposing restrictions on advertisements. The Supreme Court held that, an advertisement is no doubt a form of speech and expression but every advertisement is not a matter dealing with the expression of ideas and hence advertisement of a commercial nature cannot fall within the concept of Article 19(1) (a). Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? In India the advertising agencies have formed an association called the Advertising Agencies' Association of India (AAAI) which also has a governing board called the Advertising Standard Council of India this council has adopted a code for Self-Regulation which has been drawn up by people in professions and industries in or connected with advertising, in consultation with representatives of people affected by advertising, and has

been accepted by individuals, corporate bodies and associations engaged in or otherwise concerned with the practice of advertising, with a view to achieve the acceptance of fair advertising practices in the best interest of the ultimate consumer. It is definitely to a great extent an extent an effective tool. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? In India promotional incentives i.e. paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education, sponsoring, sponsoring of school snacks for promotional purposes extended to staff in public institutions are regulated by the code of conduct rules formed by the institutions themselves. Industries have their own standards and regulations, especially the financial services field. Some states outright forbid the use of incentives in certain industries or in certain circumstances. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are no such requirements in India.

IRELAND Duncan Grehan Duncan Grehan & Partners 24 Suffolk Street Dublin 2 Tel: +353 1 6779078 Fax: +353 1 6779076 E-mail: dgrehan@duncangrehan.com Website: www.duncangrehan.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising and Sales Promotions are generally governed by the Consumer Protection Act, 2007 which deals with misleading or fraudulent advertising and consumer protection issues. In addition there are a number of self regulatory codes such as the Advertising Standards Authority of Ireland (ASAI) Code on advertising and marketing practices and the Broadcasting Commission of Ireland Code on broadcast advertising and code on advertising to children. The ASAI Code is followed by the majority of advertisers and would also deal with free gift promotions or other offers. ‘Sweepstakes’ often fall within the definition of a lottery under Irish law and can be governed by the Gaming and Lotteries Acts, 1956-1986. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Aside from the legislation detailed above there are various industry specific codes and legislation. For example:

• Financial Products and Services are governed by the Irish Financial Services Regulatory Authority’s Code of Practice and separately by the Consumer Credit Act, 1995.

• Pharmaceutical Products (including health and beauty products) are governed by the Medical Preparations (Advertising) Regulations 1993 regulated by the Irish Medicines Board.

• Alcohol advertising is regulated by a voluntary code of practice monitored by the Alcohol Marketing Monitoring Body which commenced in 2006.

• Tobacco advertising is governed by the Public Health (Tobacco) Amendment Act, 2003 Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? It supplements it. For example the ASAI self regulatory code would be seen as an effective tool as it is adhered to by the majority of the advertising and promotions industry and the Consumer Protection Act, 2007 allows Judges to have regard to voluntary codes of practice which might be relevant when hearing a case. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? This would not be a common problem in Ireland although some bodies such as the Irish Heart Foundation has voiced concerns in the past about promotions of certain snacks for children in schools. There is no current legislation governing the issue. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? No there are no formal disclosure requirements or registration requirements for promotions.

ISRAEL David Wolberg Kuperschmit, Goldstein & Co. Kefar Netter Industrial Park Kefar Netter 40593 Tel: +972 9 835 6122 Fax: +972 9 835 6123 E-mail: dwolberg@kgcolaw.com Website: www.kgcolaw.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The Consumer Protection Law - 1981 (“CPL”) and its Regulations, inter alia, govern advertising and promotion incentives. The Minister of Industry and Commerce, empowered by the CPL, may set regulations related to consumer protection. With these statutory powers, the Minster has enacted several regulations, such as Consumer Protection Regulations (Advertisements Targeted at Minors) - 1991. A large percentage of advertising is broadcasted on television. The Second Television and Radio Authority Rules (Television Advertising Ethics) - 1994 and the Communication Rules (Bezek and Broadcasting) (Advertisements, Services and Sponsorship Broadcasting on Designated Channels)-2004, set specific rules and guidelines on advertising and various types of promotion incentives. Free gifs, tie-in offers, rebates and other benefits are generally allowed, subject to qualifications and restrictions. Sweepstakes, unauthorized games and Gambling are generally outlawed by the Israel Penal Law - 1977. However the Minister of Finance is empowered to authorize certain types of sweepstakes/draws. In accordance to these powers, he permitted certain types of draws, via an “Announcement of a General License to Conduct Draws for Commercial Advertising/Promotion”. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Some sectors such as financial service providers (namely banks), tobacco and alcohol advertisers, lawyers, doctors and pharmaceutical companies, are subject to specific laws and regulations or specific obligations/restrictions within general laws, such as the Consumer Protection Law - 1981 (“CPL”). Obligations by banks towards consumers and codes of conduct are governed by the Banking Law (Licensing) - 1981 and rules derived from this law. The Banking Rules (Costumer Service) (Advertisements Targeted at Minors) - 1995 set a detailed list of restrictions relating to bank advertisements and incentives. Advertising of medicinal products in Israel is governed by a combination of laws, regulations and ethical codes. Though the CPL and some of its regulations do not specifically mention pharmaceutical advertisements, they outline general consumer protection restrictions which include restrictions relating to the sale and advertisement of pharmaceuticals. The CPL prohibits misleading consumers as to the quality and substance of goods and services, which is often the case with “miracle” beauty and health products. The Pharmacists Ordinance - 1981 and its derived Pharmacists Regulations - 1986, inter alia, set regulations relating to pharmaceuticals, their production, marketing, advertising and promotional incentives. Tobacco advertisements are governed by The Restriction of Advertising Tobacco for Smoking Law - 1983 and alcohol advertisements are, inter alia, governed by the Consumer Protection Regulations (Advertisements Targeted at Minors) - 1991, which prohibit encouraging minors to drink intoxicating beverages.

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? The major self regulating bodies in the fields of advertising and promotion incentives are the Second Television and Radio Authority and the Cable and Satellite Counsel. The former body relates to advertisements on private television and radio stations (in contrast to state/national stations) and the latter body relates to advertisements on private television broadcasted through cable and satellite. However, these bodies are not industry self regulating bodies. Industry self regulating bodies do not play a significant role in the fields of advertising and promotion incentives and by no means replace government and legislative regulation. Though to a certain extent, they may supplement legislative and regulatory rules. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives to staff at public institutions, though not specifically outlawed and existent in Israel, may be problematic in certain situations. In this context, it should be noted that according to Section 290(a) of the Israel Penal Law - 1977, “a public servant who accepts a bribe in return for an action related to his position, shall be liable to seven years imprisonment or seven years and a fine of ten thousand Liras”. Section 293 states that a bribe need not be in the form of money, rather, may also take the form of money equivalent or a benefit, if the bribe was given to induce or to result in favouritism or prejudice. Pursuant to Section 291, the bribe provider is also liable to penalties prescribed by the Penal Law. The above sections demonstrate that incentives targeted at staff in public institutions, in certain circumstances, may be problematic to both the incentive provider and receiver. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The Consumer Protection Law - 1981 (“CPL”) sets general rules designed to protect consumers against misrepresentation and deception, which are relevant to promotional incentives. Additionally the CPL has specific rules which demand full disclosure of the goods within the promotion. Promotional incentives via draws, are governed by the “General License to Conduct Draws for Commercial Advertising/Promotion”. The General Licence sets strict disclosure demands relating to, inter alia, the promotion organizer(s), the promotion framework, rules and prizes.

ITALY Avv. Felix Hofer Hofer Lösch Torricelli via Giambologna 2/rosso 50132 - Florence Tel: +39 055 5535166 Fax: +39 055 578230 E-mail: fhofer@hltlaw.it Website: www.hltlaw.it

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? There is no Consolidated Act on advertising; sector regulations do apply, one of them (Presidential Decree no. 430 of 2001) governs ‘sales promotions’ and specifically prize contests and premium operations. Sales promotions are subject to certain legal and administrative requirements, have to grant free entry and equal conditions to all participants and may not alter fair competition in the market. Free gifts are admitted as long as they consist in items of minimum value (no exact or legal definition available, assessment on a case-by-case basis). Italy has adopted a ‘Consumer Code’ (Legislative Decree no. 206 of 2005, amended by L.D. no. 146 of 2007) applicable to B2C relations and containing provisions on misleading and unfair practices. The Code considers as ‘aggressive’ any commercial practice, apt both, to limit consumers’ free choice or purchase behaviour as well as to induce them into commercial decision, which they wouldn’t have taken otherwise; among others are considered as unduly ‘aggressive’ all practices: (a) delivering the impression that consumers should not leave commercial premises without a purchase, (b) involving visits at consumers’ private home against their will, (c) resulting in repeated unsolicited e-mails, phone calls, faxes or use of other means of distance communication, (d) steering children to exercise their pester power against parents in order to induce them to purchases. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Sector regulations do apply for: - Alcoholic Beverages (Law no. 283/1962 and L.D. no. 109/1992 - special provisions for advertising in Radio, TV, Audio and Videotext services), - Tobacco products (covered by a general, strict ban originating from Law no. 165/1962, confirmed through Law no. 52/1983), - Cosmetics are subject to specific regulations (contained in Law no. 713/1986 and L.D. no. 126/1997), - Food Supplements and Dietetic Products also face restrictions (set by: Legislative Decrees nos. 111/1992, 109/1992, 169/2004), - Financial Products and Services are regulated by the Consolidated Acts on banking, financial brokerage and investment services, - Pharmaceuticals: no advertising or free distribution to the public is allowed (L.D. no. 541/1992) for products subject to medical prescription, special requirements and limitations are set as to advertising for OTCs. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? In Italy there is one general industry self-regulation Code for (formerly advertising now) commercial communication, which is binding to all those adhering to the system and becomes applicable through a standard clause inserted by members in their contracts with clients. The system does not cover specific industry areas and is not structured according to advertising techniques or means of diffusion: relevant is the category the adhering member is in. Currently the system covers basically Radio, TV and print advertising. The Federation of Web Operators has recently joined the advertising self-regulation system and therefore adopts the Code. This system has been in place for over 40 years and is quite effective (even though it’s exclusively based on a contractual agreement).

Additional self-regulations do exist (governed by special ethic codes) with respect to: - Minors and TV programs (this code contains provisions on advertising) , - Internet and Minors (this code, even if not directly dealing with advertising, may become relevant via the obligations on content control), - 'premium services' delivered by Mobile providers (but this code is primarily focused on protection of minors). To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? A highly critical issue: the contracts of Public Administrations’ / Institutions’ employees as well as the respective area agreements establish an exclusivity principle and prohibit any outside interference; hidden promotions or sponsorships are out of question and would be considered – if discovered – as a serious infringement; any initiative would require in-advance authorization from the employer; reimbursement would usually go to the Administration, which takes care of employees’ travel expenses. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In the private sector sales promotions (and specifically prize contests and premium operations) may be targeted to third parties’ employees, but are supposed to not interfere with the fidelity principle, governing the employer-employee relationship; in addition, in most cases prizes/premiums would be considered as part of employees’ remuneration and would therefore result subject to income tax (forcing the employer to perform as a withholder); therefore it’s absolutely advisable to seek for employers’ in-advance consent.

KOREA Jay Young-June Yang Kim & Chang Seyang Building, 223 Naeja-dong Jongno-gu, Seoul 110-720 Tel: +822 3703-1114 Fax: +822 737-9091/3 E-mail: yjyang@kimchang.com Website: www.kimchang.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? In Korea, the Monopoly Regulation and Fair Trade Law (“FTL”) prohibits the unfair solicitation of customers, such as by offering excessive gifts, which may impede or harm merits-based competition in the market. The “Notification on the Types of and Criteria for Unfair Business Practices relating to the Offering of Gifts” (“Notification”) issued by the Fair Trade Commission (“FTC”) provides detailed guidelines on such unfair gift offerings. In addition, there are industry-specific statutes which contain certain provisions that may prohibit or restrict advertising and promotion incentives (below). Under the FTL/Notification, free gifts, bonuses, tie-ins, merchandise coupons, sweepstakes, rebates/refunds, and other discounts may constitute illegal anticompetitive practices, if they are found to confer disproportionate or unfair economic benefits to customers, or if construed as an abuse of market dominant position (in rare cases), among others. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising or promotion incentives by means of gifts, sweepstakes, etc, in the individual industries such as food, medicine, processing of livestock, tobacco, or alcohol, etc. are regulated by the following statutes: Food Sanitation Act, Pharmaceutical Affairs Act, Processing of Livestock Products Act, Tobacco Business Act, and National Health Promotion Act, etc. Further, enterprisers or enterprisers' organizations may create a "fair competition code" or "self-regulatory code" voluntarily and request the FTC to examine whether such code violates statutory prohibitions against unreasonable inducement of customers or unfair advertising under the FTL and the Fair Statement and Advertising Act, respectively. At present, there are 8 fair competition codes (issued by the Korean Hospital Association, Korea Department Store Association, Korea Pharmaceutical Manufacturers Association, Korean Association of Pharmaceutical Wholesalers, Korean Research-Based Pharmaceutical Industry Association, Korea LPG Industry Association, Korea Newspaper Association, and the Korea Dental Technologists Association) and 7 self-regulatory codes (issued by the Korea Cosmetic Industry Association, Korea Pharmaceutical Manufacturers Association, Korean Research-Based Pharmaceutical Industry Association, Korea Optometric Association, Korea Film Industry Cooperatives Federation, Korea Alcohol & Liquor Industry Association, and the Korea Bed Association) that have been approved by the FTC. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation supplements, but does not replace, Korean laws and regulations on advertising and promotion incentives, and can often serve as an effective tool in terms of overall efficiency, time, and adaptiveness to the particulars of a given industry. Also, enterprisers’ organizations promote and encourage self-regulation by and among their members in accordance with both legislative and industry codes. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Any benefits granted to public officials are strictly regulated under the following laws and regulations: the Korean Criminal Code, the Act Concerning Aggravated Punishment of Specific Crimes, the Act Concerning Aggravated Punishment of Specific Economic Crimes, the Anti-Corruption Act and the Code of Conduct for Public Officials. For example, the Code of Conduct for Public Officials prohibits a public official from receiving any cash or cash equivalent, real estate, gift and/or entertainment from any interested persons within his/her sphere of control in the course of executing his/her public duties, except as otherwise specifically permitted.

Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Pursuant to some fair competition codes, member enterprisers may be obligated to report certain types of promotional activities to their respective associations.

LUXEMBOURG Laurent Fisch Molitor, Fisch & Associés 8, rue Sainte-Zithe B.P 690 L-2016 Luxembourg Tel: +352 297 298 1 Fax: +352 297 299 E-mail: laurent.fisch@mfa.lu Website: www.mfa.lu

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The law relating to commercial practices, unfair competition and comparative advertising dated 30 July 2002 regulates certain persuasive commercial practices such as sale at a loss, bargain sales, clearance sales as well as misleading advertising, comparative advertising, commercial sweepstakes and promotional games. Chain selling such as snowball selling or tie-in selling is prohibited. Free gifts and cross-merchandising are permitted unless misleading consumers. Furthermore, door-to-door sales, street trading and order solicitation are, as a rule, prohibited by the amended law concerning door-to-door sales dated 16 July 1987. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. The law against tobacco of 11 August 2006 forbids advertising in favour of tobacco. Advertising concerning alcohol is permitted in Luxembourg without restrictions, except as for TV advertising which is subject to additional requirements (such as not aiming specifically at minors or not linking the consumption of alcohol to enhanced physical performance or to driving for instance). Advertising to the public of prescription only medical products is prohibited. The advertising of other medical products is regulated by the amended Luxembourg Regulation relating to the placing on the market of medical product of 15 December 1992 and also by the Luxembourg Regulation concerning TV advertising dated 5 April 2001. Advertising in favour of food is regulated by the Regulation concerning food labelling and advertising of 14 December 2000. The amended law of 5 April 1993 relating to the financial sector prohibits the Luxembourg bank to advertise the modalities of functioning of their compensation system. The deontological Code of the Association of Luxembourg Banks and Bankers (ABBL) contains additional rules such as the obligation not to use the Luxembourg taxation rules and the banking secrecy as a commercial argument for instance. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace national regulation of advertising and promotion but supplement it. Self-regulation cannot be considered as an effective tool in Luxembourg, except may be as for the financial sector. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives to staff in public institutions are not recommended in Luxembourg. They may be considered as active and/or passive corruption which is criminally sanctioned by articles 246 to 249 of the Luxembourg Criminal Code. By the law of 23 May 2005, Luxembourg has also introduced the prohibition of corruption in the private sector (articles 310 and 310-1 of the Luxembourg Criminal Code). Restrictive rules relating to donations and gifts in favour of health practitioners laid down by the amended Luxembourg Regulation relating to the placing on the market of medical product of 15 December 1992 the should also apply to doctors working in public institutions. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There is no legal whitewash procedure for promotional incentives to staff in public institutions or in the private sector. The deontological code of the Association of the Luxembourg Banks and Bankers (ABBL) states that banks should implement rules concerning promotional incentives in order to maintain the independence and the integrity of their employees but this cannot be really considered as formal disclosure requirements.

MALAYSIA Patrick Mirandah patrick mirandah co. (m) sdn bhd. Suite 3B-19-3 Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur Tel: +603.2278.8686 Fax: +603.2274.6677 Email: pmirandah@mirandah.com Email: gladys@mirandah.com Website: www.mirandah.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? In Malaysia, advertising and promotion is regulated by the Malaysian Communications and Multimedia Content Code which serves as a guideline in ensuring good practice procedures and acceptable standards of ethics which are disseminated to the public. Part 3 of the Content Code provides for advertisements to be depicted in ways so as to refrain from misleading or misrepresenting consumers through means of exploitation, exaggeration and advertent omission of information. The Consumer Protection Act 1999 provides a detailed framework on product safety and reliability with emphasis on selected areas of the law, which are not provided for under existing statutes. Part I of the Act provides for Misleading and Deceptive Conduct, False Representations and Unfair Practices. With regard to free gifts, rebates and other benefits, kindly note that the Content Code and Section 14 of the Consumer Protection Act 1999 provides that consumer liability for any costs which may be incurred must be made clear and expressed on all materials featuring the offer. An offer should be described as free only if consumers pay no more than the current public rates of postage, actual cost of freight or delivery and costs, including incidental expenses, of any travel involved if consumers collect the offer. Advertisers should make no additional charges to consumers for packing and handling. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Some of the industries which require special regulations in terms of product advertising include:

• Commercials on Medical Products, Treatments and Facilities Advertisements on medicines, remedies, appliances, skill and services relating to diagnosis, prevention and treatment of diseases or conditions affecting the human body are regulated by the Medicine Advertisements Board of the Ministry of Health. • Pesticide Advertisements Advertisements on pesticides are governed by the Pesticides Act 1974, which is under the authority of the Pesticide Advertising Board of the Ministry of Agriculture. • Food & Drinks Advertisements on food and beverage articles, which have therapeutic or prophylactic claims, are subject to prior screening. These advertisements are governed by the Food Act 1983 and Food Regulations 1985.

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Malaysia like many jurisdictions practices self-regulatory procedures in ensuring that all broadcasts are in compliance with our local code of ethics. A system of self regulation compliments and supplements both governmental and legislative control as it is a more cost effective and efficient way of addressing issues relating to breach if compared to having to bear the costs of court proceedings and heavy fines. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives extended to members of staff in public institutions are strictly prohibited in Malaysia. The act of bribery is sanctioned by the Anti Corruption Act 1997 and Penal Code which provides that it is an offence under Section 11 to accept or obtain or agree to accept or attempts to obtain from any person for himself or for any other person any form of gratification or reward for doing or forbearing to do any act in

relation to his principal affairs or business. Section 16 of the Anti Corruption Act provides that a person found liable of such an offence may be imprisoned for a term of not less than 14 days and not more than 20 years or fined not less than five (5) times the sum or value of the gratification (in instances it may be valued) or charged RM 10,000 whichever is higher. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? There are no formal means of disclosure for obtaining promotional incentives to members of staff in the public sector in Malaysia.

MEXICO Roberto Arochi Arochi, Marroquin & Lindner, S.C. Insurgenes Sur 1605 Piso 20, San Jose Insurgentes Mexico, D.F. 03900 Tel: +5255 5095 2050 x2222 Fax: +5255 5095 2028 E-mail: rarochi@aml.com.mx Website: www.aml.com.mx

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Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising is governed by Mexican Official Standards depending on the matter, and by the Federal Consumer Protection Law. All benefits mentioned are fully regulated as well. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Medication, Alcohol, Tobacco, Pet Food, etc. are subject to special regulations. The Federal Sanitary Law, The Federal Animal Sanitary Law, and the CONAR Ethics Code are involved. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self regulation supplements government regulations. The self regulation decisions are considered as strong evidence during litigation; therefore, self regulation is an effective tool. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Those kinds of promotions should be taken with care, since the government employees have a limit to the value for gifts and prizes they are permitted to accept. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The formal disclosure requirements for promotional incentives must arise from a contractual basis.

NEW ZEALAND Liesl Knox Hesketh Henry Private Bag 92093 Auckland 1142 Tel: +64 9 375 8756 Fax: + 64 9 365 5256 E-mail: liesl.knox@hesketh.co.nz Website: www.heskethhenry.co.nz

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Incentivised promotions are only permissible in New Zealand if they do not breach the Gambling Act 2003 (the “Act”). The Act prohibits promotions where consideration is payable to enter and/or participate and the outcome is based on chance. Free gifts are therefore permissible while sweepstakes are prohibited (except where a license is obtained or the form of sweepstake meets certain specific criteria). In general, excessive incentivisation is usually associated with high profit goods such as prescription drugs, tobacco and alcohol. In New Zealand, the Government operates under a bulk buying arrangement for approved, subsidised drugs and therefore the promotion of such items would be superfluous. The Act also prohibits the use of certain items including alcohol and tobacco from being used to incentivise any promotion whether it is as a prize or free gift. Once it is established that a promotion is permissible, a promoter must ensure that it complies with the Fair Trading Act 1996 (the “FTA”). The FTA prohibits misleading and deceptive conduct and false representations and unfair practices. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. In general all industries in New Zealand are subject to the same legislation and/or regulations in respect to incentivised promotions. For advertising however there are some restrictions on certain industry groups. For example, there is a strict prohibition on tobacco advertising (Smoke Free Environment Act 1990) and certain specific restrictions on advertising prescription medicines or pharmaceutical products under the Medicines Act 1981 (“MAct”). Advertising direct-to-consumers is permissible in New Zealand, however the content of such advertisements is heavily regulated whilst advertising to medical practitioners is regulated to a lesser extent. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Most industries comply with the self-regulatory advertising regime operated by the Advertising Standards Authority (“ASA”). The ASA’s regime operates a number of Codes of Practise relating to advertising and marketing to Children, and in relation to Food, Weight Management, Vehicles, Liquor and Therapeutic Products and Services. These Codes do not prevent advertising in, or to, these sectors but are aimed at ensuring advertisements are clear, fair and not misleading. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Any form of excessive persuasion or incentivisation could amount to an act of bribery or corruption under the Crimes Act 1961 (in relation to the public sector) or the Secret Commissions Act 1910 (in relation to the private sector). As a general rule promotional activities should be designed to promote ones own product to the general public and not to incentivise a specific future relationship or agreement. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Public Sector employees (including Members of Parliament) are obliged to disclose any personal dealings, gifts or free offers. This type of disclosure is also becoming more prominent in private industry to ensure against improper dealings.

PANAMA Marissa Lasso de la Vega Alfaro, Ferrer & Ramirez Avenida Samuel Lewis y Calle 54 Edificio AFRA Panamá Tel: +507 263 9355 Fax: +507 263 7214 Email: lassodelavega@afra.com Website: www.afra.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Panamanian consumer protection legislation (Law 45 of 2007) contains provisions regulating advertising, basically requiring accurate and truthful advertising. There is a provision in said law stating that any information contained in advertising binds the offeror and becomes part of the sales or service contract. In connection with promotions and discount sales, the law mandates that the offeror indicate their duration or the minimum amount of units offered, and, as discount sales, to indicate the lowest price at which the item had been sold in the previous three months by the offeror in addition to the new discount price. It should be noted that promotions marketed in Panama, involving chance (prices, raffles, etc.), must be previously authorized by the Gaming Board. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising of pharmaceutical products is subject to a special regulation (Law 1 of 2001). Also, the advertising of tobacco is regulated (Law 13 of 2008) prohibiting, for example, advertising near schools and sporting events. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? To the extent there is some self-regulation, which in most cases is due to moral concerns, it is supplementary to government regulation. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? To the extent the offeror may be benefited in return, corruption issues under the Penal Code may arise. Consequently, before granting incentives to public institutions’ personnel one should review the legal provisions to make sure the incentives may be legally granted. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The matter is not regulated, except for the requirement to obtain authorization from the Gaming Board in connection with promotions where chance is involved.

POLAND Dr. Ewa Skrzydło-Tefelska Sołtysiński, Kawecki & Szlęzak Wawelska 15B 02-034 Warsaw Tel: +48 22 608 70 47 Fax: +48 22 608 70 70 E-Mail: ewa.tefelska@skslegal.pl Website: www.skslegal.pl

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising and promotion methods are addressed mainly by the Law on Unfair Competition. Art. 3 thereof provides that an act of unfair competition is i.a. an unfair or illegal advertisement. Art. 16 further develops on this and lists as unlawful practices advertising offending human dignity, appealing to emotions (e.g. fear), or pretending to be neutral information. Art. 17a defines as unlawful act also adding free gifts or offers to seal of goods or provision of services (does not encompass gifts of little value and samples). A quite recent judgment of the Competition and Consumers Protection Court concerns the last mentioned act. It concerned an advertising campaign including over 20 TV spots, designed to look like a typical information service with a well-known TV presenter. Such campaign was considered as an act of an unfair competition and infringing interest of the consumers. Additional regulations concerning advertising are included in the Broadcasting Act, pursuant to which sponsored programs have to be clearly marked and advertisement cannot aim directly at minors. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Special regulations bind tobacco producers (Law on Protection Against Tobacco Usage Effects), pharmaceutical industry (Pharmaceutical Law), alcohol producers (Law on Protection Against Alcoholism) and games (Law on Games and Mutual Wagering) Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? An example of a self-regulation is the Code of Pharmaceutical Marketing Ethics created by few pharmaceutical firms acting in Poland. The effect of such regulations is hard to judge, but they certainly cannot replace statutory regulations. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Criminal issues may arise where “persons performing public functions” within the meaning of Art. 228 of Polish Criminal Code are involved. Pursuant to Art. 296a of the Code, it is illegal to accept a material benefit by a person working in a commercial enterprise, in return for preferential treatment, its promise or for an act of unfair competition. Please note that a concept of material benefit is very broad. Special regulations are included in Art. 58 of the Pharmaceutical Law, pursuant to which it’s illegal to approach persons authorized to issue prescriptions and persons selling pharmaceutical products with material benefits, gifts, prizes (except for low value gifts up to 100 zloty) and travel offers. Organisation and financing of trips as well as organisation and financing of promotional meetings in relation to medicinal products, where manifestation of the hospitality exceeds the main aim of such a meeting are forbidden. Section 2 of the above mentioned Art. 58 of Pharmaceutical Law, forbids accepting promotional gifts as described above. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)?

For certain professional groups statutory regulations create a requirement to disclose received benefits in a so-called Registry of Material Benefits. Obligation to disclose covers i.a. gifts exceeding certain value, trips’ costs covered by third parties etc. As for now Registry was formed for Medical Practitioners, other persons performing public functions and persons creating lists of pharmaceutical products and medical devices reimbursed form public funds.

PORTUGAL César Bessa Monteiro & Ricardo Henriques Azevedo Neves, Benjamim Mendes, Bessa Monteiro, Cardigos e Associados - ABBC, Sociedade de Advogados Largo de São Carlos nº 1 a 7 1200 – 410 Lisbon Tel: + 351 21 358 36 20 Fax: + 351 21 315 94 34 E-mail: c.bmonteiro@abbc.pt r.henriques@abbc.pt Website: www.abbc.pt

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The main statutory regulation with respect to advertising and promotion incentives is the Advertising Code (Decree-Law 330/90, of October 23rd as subsequently amended) which regulates advertising in general and Decree-Law 70/2007 of March 26th, 2007, which regulates discounts and special sales. Consumer’s protection is assured by the Law nº 24/96 of 31 July amended by Decree-Law 67/2003 of April 8th and also by Decree-Law 143/2001 of 26 April which regulates consumers’ protection regarding agreements entered into at a distance. Sweepstakes and all games dependant on luck or skill and luck combined, are forbidden according article 21º of the Advertising Code. However, according the Decree-Law 422/89, of December 2nd, 1989, as amended by Decree-Law 10/95 of January 19th, 1995, it is possible to structure a promotion, namely sweepstakes, raffles, lotteries and advertising contests, as long as they are subject to a previous authorization from the Local Authority (Civil Government). Concerning rebates and other benefits (promotions, liquidations and prices with rebates), Decree-law nº 70/2007 of March 26th, 2007 provides for the conditions and restrictions under which these kinds of sales may be executed. Regarding tie-in offers, the Decree-Law 143/2001 of April 26th prohibits the selling of a product or service with the condition that the consumer acquires another product or service to the same supplier, except if such products are complementary. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes. In fact, in Portugal there are some industry sectors which have special regulations concerning promotions and advertising: (i) Tobacco: Law 37/2008 of August 14th which regulates specifically the advertising and promotions concerning tobacco products, by generally prohibiting them; (ii) Medicines: Decree-Law 176/2006 of August 30th which regulates particularly the medicines to use in humans, limiting the possibility to advertise them to a great extent; (iii) Games dependant on luck: Decree-Law 422/89, of December 2nd, 1989, as amended by Decree-Law 10/95 of January 19th, 1995, which subjects them to an authorization from a Local Authority (Governo Civil) (iv) Financial Products: The Advertising Code, Consumer Law, Consumer Credit Law, and Financial Institutions Regulations establish that the advertising regarding financial products and services must be, in a general manner, respectful of the law and of the principles of veracity and protection of consumers; (v) Insurances: Decree-Law nº 176/95 of July 26th amended by the Decree-Law nº 357-A/2007 of October 31 establishing that in all advertising it should be clearly indicated that the amounts secured by insurance contracts depend on the progress of the “reference value” motioned in the insurance policy, and that there is the possibility of inexistence of a minimum capital; (vi) Alcohol: Although there is no special regulation, the Advertising Code stipulates many restrictions regarding alcohol advertising; (vii) Cosmetic Products: Decree-Law 142/2005 of August 24th amended by Decree-Law 86/2006 of May 11th

and by the Decree-Law 179/2007 of May 8th that determine the conditions concerning advertising of cosmetic products, namely non attributing them any healing or therapeutic capabilities. There are also some codes of conduct which provide general ethic principles regarding advertising conducts, such as the Code of Conduct of Professionals of the Portuguese Marketing Association, Code of Conduct of Credit Institutions Association and the Code of Conduct of the Advertising and Self-Discipline Civil Institute Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation does not replace, but only supplements existing regulations. In fact, self-regulation and codes of practice have gained much importance in recent years. Self-regulation and codes of conduct have proven effective and important with respect to bringing some ethics to advertising. There are some self-regulatory bodies as the Advertising and Self-Discipline Civil Institute (ICAP), Portuguese Association of Advertisers (APAN), Portuguese Association of Advertising and Communication Companies (APAP), Portuguese Association of Direct Marketing (AMD), Association of Promotion and Multimedia in Portugal (APMP), Professionals Marketing Portuguese Association (APPM). To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Portuguese laws and regulations do not provide for any special regulation regarding this type of incentives. The only applicable rules are the general rules laid down in the Administrative Procedure Code and Criminal Code. The Criminal Code establishes some general rules concerning active and passive corruption and the Administrative Procedure Code determines some reasons that may give rise to suspicion regarding the person who intervenes in an administrative process. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? As far as we are aware of, there are no written rules in Portuguese law specifically addressing this issue. However, we believe that the general principles indicated as an example in the query would apply in order not to fall under the existence or suspicion of active or passive corruption.

SOUTH AFRICA Chris Job Adams & Adams Adams & Adams Place, 1140 Prospect Street, Hatfield, Pretoria Correspondence: PO Box 1014, Pretoria 0001 Tel: +27 (0) 12 481 1500 Fax: +27 (0) 12 362 6440 E-mail: ckj@adamsadams.co.za Website: www.adamsadams.co.za

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Both the National Lotteries Act 57 of 1997 as well as the Advertising Standards Authority’s Code of Advertising Practice regulates advertising as well as promotional incentives. As far as consumer protection is concerned, the Consumer Affairs (Unfair Business Practices) Act 71 of 1988 deals specifically with consumer protection. According to Clause 4.4 of Section II of the ASA Code “products should not be described as ‘free’ where there is any cost to the consumer, other than the actual cost of any delivery, freight or postage. Where such costs are paid by the consumer, a clear statement if this is the case should be made in the advertisement”. Clause 4.4.2 goes on to say that “where a claim is made that, if one product is purchased, another product will be provided ‘free’, the advertiser should be able to show that he will not be able immediately and directly to recover the cost of supplying the ‘free’ product whether in whole or in part”. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Competitions are generally governed by Clause 8 of Section II of the ASA Code. Promotion and advertising in the healthcare sector is governed by The Medicines and Related Substances Control Act 101 of 1965. Promotion and advertising of alcohol is regulated by The Liquor Act 59 of 2003. Advertising and promotion of cosmetics is regulated by The South African Bureau of Standards and Department of Trade and Industry, in cooperation with the Cosmetic Toiletry and Fragrance Association. All of these are also governed, in parallel, by the ASA’s Code of Advertising Practice. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation and government or legislative regulation run concurrently. Self-regulation has been found to be an effective tool, especially in terms of speed, enforcement and cost reduction. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? There may be tax consequences for the recipients, but not for the advertiser. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Not to our knowledge.

SPAIN Gerhard W. Volz Schiller Abogados Henri Dunant 19 28036 Madrid Tel: +34 91 179780 Fax: +34 91 5971266 E-mail: gwvolz@schillerabogados.es Website: www.schillerabogados.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? There are several regulations governing advertising and promotion incentives, in particular:

- The General Advertising Act (Law 24/1988) - The Unfair Competition Act (Law 3/1991)

Protection of the Customer concerning promotion incentives is mainly achieved by the Retail Act (Law 7/1996). Free gifts, tie-in offers, rebates and other benefits are regulated in the General Advertising Act. They are in principle legal, but some restrictions have to be observed. Sweepstakes are permitted, but have to be authorized by the Spanish Gaming Board. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. In addition to the Code of Advertising Practice there are special regulations:

- The alimentary industry (2006: Self-Regulating Advertising Code of the Spanish Association of Alcoholic Beverages, 2004: Self-Regulating Advertising Code of Spanish Brewers)

- The tobacco industry (2001: Self Regulating Advertising Code Tobacco Products) - The pharmaceutical industry (2005: Self-Regulating Code concerning promoting medicines) - The toy industry (2003: Self-Regulating Code of Adverting directed to children)

Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation supplements government and legislative regulations. Self- Regulation is an effective tool. Although the decisions of the self-regulation institutions are only binding for its members and in those cases of explicit acceptance, due to public pressure exerted these decisions are usually observed. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? If a promotional incentive or any other kind of gift extended to staff in public institutions has the intention to offer an advantage, it is punished as bribery according to the Spanish Criminal Act (Art. 419-427). Furthermore the new Statutes of Public Employees (Law 7/2007) forbid any public employee to receive any kind of gift, favour or service beyond ordinary or social use or act of courtesy (Art. 54 and 55). Most private entities also have their own codes of conduct that regulate this issue. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? The incentives to public employees are lawful according to the legal definition if they are within “ordinary or social use or if they constitute an act of courtesy”. There is no formal definition, but in general gifts are permitted as long as they do not compromise the independency of the public employee, such as symbolic gifts with a low value and promotional material. Some private companies have special regulations including the limit of the value of a gift that may be accepted, but the general idea in the private sector is that small incentives/gifts are allowed if they do not pressure the employee or intent to influence the commercial relation.

SWEDEN Michael Plogell Wistrand Advokatbyrå Box 119 20 SE-404 39 Göteborg Tel: +46 31 771 21 00 Fax: +46 31 771 21 50 E-mail: michael.plogell@Wistrand.se Website: www.Wistrand.se

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The main act of interest is the Swedish Marketing Practices Act (MPA), which regulates most aspects of advertising and promotional activities. Marketing must never be misleading; therefore an issue of great importance is to provide sufficient and clear information regarding the offer the marketing concerns. Free gifts and purchase requirements are generally allowed, “free” gifts must however really be free, otherwise the advertising may be judged misleading. Sweepstakes, lotteries and contest where chance influences the outcome to an appreciable extent require a license. Licenses are usually only given to state-owned gambling companies. Licenses are never given to lotteries/sweepstakes arranged for marketing purposes. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. There are special rules on the marketing of alcohol, tobacco and pharmaceuticals. Regarding alcohol the main provisions are found in the Swedish Act on Alcohol (AL). There is also a self-regulatory code adopted jointly by interest organizations representing the Swedish advertisers, the Swedish brewers and the Swedish providers of spirits and wines. Regarding tobacco the main provisions are found in the Swedish Tobacco Act (TA). As far as we are aware there is no self-regulatory code. When it comes to pharmaceuticals the act of most importance is the Swedish Act on Pharmaceuticals (AP). In addition to this, the Swedish pharmaceutical industry and the Association of Representatives of Foreign Pharmaceutical Industries have adopted governing rules regulating drug information. The Council for Health Foods, a cooperative agency for the health related industry, has devised a set of rules regarding the marketing of health products. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Self-regulation supplements, but does not replace, legislation. Self-regulation is fairly effective since it is often developed by interest organizations; this in turn means that the acceptance of the regulation is rather high and the compliance good. On the other hand, actors within the industries are aware of the stakes and if the positive effect of a promotion that could be questioned is higher than the negative effect of a decision then the promotion will often be carried out anyway. Interim measures are not available based on self-regulatory codes. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? If a promotion is open to persons in their capacity as employees, it must be designed with care. Otherwise it risks coming into conflict with the rules on bribery. According to Swedish law it is a criminal offence to offer an employee (public or private) a bribe or other undue compensation for the exercise of his/her duties. A bribe is any offering that is objectively intended to influence an employee’s exercise of his/her duties. According to Swedish court precedence gifts, study tours and dinner offers are examples of activities that are considered to be bribes. Special precautions must be observed when offering such activities to public employees. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? No, there are no such formal disclosure requirements according to Swedish law. There are however rules regarding information. A marketing message must be designed and presented so that it is clear that it is marketing. It must also be clear who is responsible for the marketing.

SWITZERLAND Peter Hofer & Nirmala Dias Frick Hofer Hunziker, Rechtsanwälte Hechtplatz/Schifflände 5, Postfach 624, CH - 8024 Zürich 1 Tel: +41 250 43 70 Fax: +41 250 43 71 E-mail: peterhofer@rabenhaus.ch Website: www.rechtsanwaelte-rabenhaus.ch

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Advertising and promotion incentives are regulated by the Swiss Law Against Unfair Competition (Bundesgesetz gegen unlauteren Wettbewerb, “UWG”). Art. 2 UWG defines unfair competition as “every deceiving or other conduct against good faith which affects the relationship between competitors or between offerors and buyers”. According to Art. 3 UWG, aggressive selling methods which affect the consumer’s freedom of decision are prohibited as well as the deceit of the costumer regarding the real value of an offer by giving supplements. In so far, tie-in offers, rebates and other benefits are additionally restricted by Art. 3 UWG. The UWG furthermore contains extra sanctions for violation of this law, in completion of the Swiss Penal Law. Sweepstakes and lottery are regulated by the Swiss Law regarding lotteries and commercial bets (Bundesgesetz betreffend die Lotterien und gewerbsmässigen Wetten). Lotteries are prohibited in Switzerland except for charitable purposes. Also prohibited are the commercial offer, procurement and acceptance of bets regarding horse and boat races, soccer games or similar events. The operation of a betting agency is prohibited as well. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. There is a Swiss Regulation regarding the Advertising of Medicaments (Verordnung über die Arzneimittelwerbung). In addition, the Swiss pharmacy industry has created a “pharmacodex” resp. a codex regarding the conduct of the pharmaceutical industry which can be regarded as self-regulatory code. Furthermore, there are self-regulatory codes of different professions such as medical practitioners and lawyers which also contain rules regarding advertising. Regarding food and drinks there are regulations concerning the description of a product but also regarding its advertising (Lebensmittelverordnung; Regulation on foodstuff) and especially alcohol is excluded from sales promotions. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not substitute but complement governmental regulation. Self-regulation can be a very effective tool as sanctions may be imposed quickly. Above all, the sanctions of a professional guild tend to be more efficient; a medical practitioner for instance may loose his membership to the guild. However, wether a self-regulation is effective or not finally depends on the particular content of a self-regulation and the person or association which is responsible for its implementation and application.

To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Any public institution has to comply with the principles of equality, proportionality, legality and public interest. The salary and the payment for expenses are regulated by national or regional law. The expenses for public staff are public and therefore transparent. In a nutshell, promotional incentives for staff in public institutions would have to comply with the above mentioned principles, especially with the equal treatment of the staff members. Any unequal treatment (i.e. special benefits) would be considered bribing. As far as promotions in connection with a forthcoming election or voting are concerned, a public institution must not affect the free forming of opinion as a basic right. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Such requirements exist only in connection with regulations regarding the financial accounting. However, the financial accountings are public and therefore have to be transparent. Eventually, the above mentioned principles have to be respected as well.

TURKEY Ugur Aktekin Mehmet Gün & Partners Kore Sehitleri Caddesi 32 Zincirlikuyu 34394 Istanbul Tel: +90 212 354 0000 (pbx) Fax: +90 212 274 2095 E-mail: ugur.aktekin@gun.av.tr Website: www.gun.av.tr

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Under Turkish legislation, advertising and promotions incentives are regulated by the Regulation on the Principals and Application Orders of the Commercial Advertisements and Announcements ("RCAA") by the reference of Consumer Protection Law (CPL). While it is not stipulated explicitly, illegal promotion would constitute unfair competition pursuant to Article 56 of Turkish Commercial Code by constituting a misuse of economic competition due to being a misleading act. Free gifts are permissible. The article 8 of RCAA in condition of declaration of the tied products market price and the application period also tie-in offers as well. However, any other condition except the application period cannot be set up. Sweepstakes and rebates and other benefits are permitted in principle but they are subject to certain limitations according to the special regulations such as Regulation on Lotteries and Drawings For Non-Cash Rewards, for rewards with a monetary value exceeding TRY 44,32(including VAT) – approximately US$ 37. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. In our jurisdiction advertising of health, healthcare and pharmaceutical products/industries, tobacco and alcohol industries, cosmetic industry, legal consultancy and education and accountancy services, food and beverages of special purposes are subject to special restrictions set forth in different statutes, e.g.; CPL, RCAA, Pharmacy and Medical Drugs Law, Law pertaining to Application System of Arts of Medicine and Its Subdivisions, Public Health Law, Radio and Television Establishment and Broadcasting Law, Advocacy Law etc. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self-regulation does not replace but supplement legislative and regulatory rules in connection with industry specific circumstances. Even though the Advertising Self-Regulatory Board aims to continue with its proactive and continuous efforts for the provision of legal, ethic, correct and honest advertisements, one could suggest that it fails to be effective, in practice. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? Promotional incentives extended to staff in public institutions are strictly regulated by the general principles. Pursuant to the law relating to public officers, it is prohibited for staff to require and/or accept any benefit and/or gift. On the other hand, the Ethic Board is authorized to determine the scope of obtaining gift and promotions; and to require the list including gifts and promotions obtained by a general director or by an officer in an equivalent degree. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In general, disclosure requirements for promotional incentives are subject to the Article 8 of the RCAA, as mentioned above in the first question. On the other hand, promotional incentives extended to staff in public are not allowed, according to the law relating to public officers.

UNITED KINGDOM Brinsley Dresden Lewis Silkin LLP 5 Chancery Lane London, EC4A 1BL Tel: +44 (0) 20 7074 8000 Fax: +44(0) 20 7864 1741 E-mail: brinsley.dresden@lewissilkin.com Website: www.lewissilkin.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? The Committee of Advertising Practice Codes (CAP codes) oversees broadcast and non-broadcast advertising and is independently administered by the Advertising Standards Authority (ASA). Any ‘free’ offer can only be described as such if the consumer’s liability for costs is clearly marked. This liability must only extend to minimal unavoidable costs in responding to the promotion, such as postage or basic rate telephone calls. The Gambling Act 2005 places restrictions on the manner in which gambling is advertised, but does not cover advertising of lottery services. The Unfair Commercial Practices Directive will come into force on 26 May 2008, and will introduce a general prohibition on traders from treating consumers unfairly, primarily through a ban on misleading consumers. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising of pharmaceuticals, food (particularly to children), alcohol and financial services are subject to special regulation. The pharmaceutical industry is regulated by the Association of the British Pharmaceutical Industry (the ‘ABPI Code’) together with statutory legislation. Advertising of food and advertising to children under 16 is specifically covered by the CAP Code, as is alcohol, particularly in relation to encouraging excessive or irresponsible consumption. Financial Services are regulated by the Financial Services Authority, in conjunction with the Financial Services and Markets Act 2000. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? Industry self regulation tends to supplement legislation and is provided where necessary with sufficient legal support to be effective. For example, a two tier system regulates the pharmaceutical industry, where the ABPI Code complements, yet goes further than, the requirements laid down by domestic and European statute. The ASA, as the central body responsible for self-regulation of all advertising, vigorously enforces the various self regulatory codes according to its core principles, that advertising should be legal, decent, honest and truthful. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? A general duty of good faith is implied into any contract of employment, and situations where a promotional incentive may create a conflict of interest may be overcome by the member of staff obtaining permission from the relevant institution. Many public institutions issue guidelines and codes of conduct to deal with this issue. The Department for Children, Schools and Families, for example, makes it clear that it is for school governors to decide the appropriateness of sponsorship offers made to Specialist Schools. If a promotional activity extends to bribery of staff, this will amount to a criminal offence under anti corruption legislation. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? In addition to complying with wider domestic and European anti corruption legislation, certain public bodies and Government departments, such as the Ministry of Defence, issue detailed guidelines on ethical standards with specific reference to gifts and inducements, which require disclosure if potentially being in breach of standards. Penalties for can be severe, and often overlap with statutory offences for which there are criminal sanctions.

UNITED STATES Douglas J. Wood & Christa Kenin Reed Smith LLP 599 Lexington Avenue New York, New York 10022 Tel: +1 212 549 0377 Fax: +1 212 521 5450 E-mail: dwood@reedsmith.com / ckenin@reedsmith.com Website: www.reedsmith.com

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Various federal and state laws regulate sweepstakes (games of chance) and contests (games of skill) by requiring that they contain only two of the following three elements (prize, chance or consideration) to avoid qualifying as a lottery. Lotteries are prohibited on both the federal and state level (excluding state run lotteries which are permissible). The Federal Trade Commission (FTC) regulates the use of rebates and use of the phrase “free” in advertising. However, rebates and free gifts or products do not play a role in sweepstakes or contests because they would require the purchase of a product which is forbidden in these types of promotions. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. The advertising and promotion of food to children as well as dietary supplements and weight loss products in general are currently topics of great interest to the FTC. Section 5 of the Federal Trade Commission Act which states, ‘unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce are unlawful’, gives the FTC broad regulation powers over advertising and promotions including incentives to ensure that any message created for commercial purpose be truthful and not deceptive. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? The National Advertising Division (NAD) and Children's Advertising Review Unit of the Council of Better Business Bureaus (CARU) which were created in an alliance with the Association of National Advertisers (ANA), the American Association of Advertising Agencies (AAAA), and the American Advertising Federation (AAF) are effective at supplementing government and legislation regulation of advertising and promotion activities. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? To prevent conflicts of interest and encourage ethical behavior, most states have a public officers law which forbids a public officer or employee to accept any gift or incentive of more than a nominal value under circumstances in which it could be inferred that the gift was intended to influence or reward the recipient for performing official duties. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? For public officers or employees, incentives or gifts made to such individuals are generally forbidden. When a joint venture exists between businesses, the public should be made aware of such a relationship before being asked to purchase a product from either business so that the marketing of the joint venture is not considered a deceptive or unfair practice under FTC’s regulations.

URUGUAY Rafael Zerbino & Eduardo Jiménez de Aréchaga Bado, Kuster, Zerbino & Rachetti Treinta y Tres 1269 Montevideo Tel: +598 2 9160310 Fax: +598 2 9155669 Email: rzerbino@bkzr.com.uy ejimenez@bkzr.com.uy Website: www.bkzr.com.uy

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? As a general principle promotions which provide cash prices or in products to the consumers of those products are prohibited in Uruguay by Section 228 of Act Nº 15.581. However, it is permitted to have promotions in which luck does not intervene or that everyone wins (e.g. 2 products for the price of 1, or a free sample of a product with the purchase of another) and where luck intervenes, but the consumer is not obligated to purchase the product (e.g. can obtain a free coupon to participate in the draw at certain offices of the promoter), and which in Uruguay are known as “mixed promotions”. These mixed promotions are subject to authorization by the Area of Consumer Defense of the Ministry of Economy and regulated by Executive Power Decree Nº 449/995, also a permit should be secured with the Municipal Authority, and some taxes should be paid. In addition the Consumer Relations Act (Nº 17.250) includes provisions on advertising, establishing that the supplier is bound to the consumer by all information disseminated in advertising and forbidding misleading advertising and, while authorizing comparative advertising, it places the burden of proof of truthfulness on the supplier. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Yes, there are special regulations regarding advertising of alcoholic beverages (Parliament is going to issue a new Act), tobacco (Act Nº 17.793, act Nº 18.256), medications (Act Nº 15.443 and Executive Power Decrees Nº 521/984, 18/989, 568/989 and 493/990), and children (many references in different Acts and Executive Power Decrees) and the use of national distinctives (flag and other symbols). Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? The Association of Advertising Agencies has a Code of Conduct, but applies only to its members and it is still too soon to have a clear conclusion about its effects. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? As a principle, presents or promotional incentives directed or which specifically target public employees is forbidden. However, providing token gifts to public employees on special occasions (e.g. Christmas) is an accepted practice. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? Yes, the bases of all promotions carry prohibition for employees or close relatives of those, to participate in the promotion. Also as previously stated in the first question promotional incentives in order to be authorized, need to include a method of participation without obligation to purchase the product.

VENEZUELA Ricardo Alberto Antequera Hernández Estudio Antequera Parilli & Rodríguez San Felipe Avenue, Torre Centro Coinasa Building, PH-B La Castellana, Caracas 1060 Tel: +58(212)263.99.44 Fax: +58(212)263.99.08 E-mail: ricardoalberto@antequera.com.ve Website: www.antequera.com.ve

Is there case law or any statutory regulation governing advertising and promotion incentives? Are there any special consumer protection laws? What role do free gifts, tie-in offers, sweepstakes, rebates and other benefits, play in this context? Venezuelan Consumer Protection Law establishes that every promotion that will take place in Venezuela or involving Venezuelan residents must be announced to the “Consumers Protection Institute” (INDECU), providing complete information about the promotion, including the terms and conditions. It is important to bear in mind that in Venezuela there is a strict currency exchange control imposed by the government; consequently it must be taken into account that prizes in money must be paid in the local currency (Bolívares); and that there is an “Exchange Crime Law” (Ley de Ilícitos Cambiarios) which prohibits any kind of transactions made in foreign currency. In your jurisdiction, are there any industry sectors which are subject to special regulations for advertising and promotion incentives (for instance the health products and pharmaceutical industries in some countries)? Please name applicable statutes and self-regulatory codes. Advertising of pharmaceutical products is subject to a special regulation (Medicine Law). Also advertising transmitted through radio and TV services is specially regulated by the Radio and TV Social Liability Law. Does industry self-regulation replace or supplement government and legislative regulation of advertising and promotion incentives? Is self-regulation an effective tool? No, in Venezuela self regulation actually complements legal regulation regarding advertising and promotion activities. In fact it is an effective tool for solving controversies between particulars. To what extent do promotional incentives extended to staff in public institutions pose legal issues in your jurisdiction (i.e., paying for travel and accommodation costs on the occasion of conferences, personal entertainment, hidden education sponsoring, sponsoring of school snacks for promotional purposes)? If the promotional incentive is extended for a personal reason, meaning that such benefit is not granted by reason of a person’s public function, no legal issues will arise. However, this situation will change according to the “Corruption Law” since this regulation establishes that a public officer who by some act of their duties receives retributions or any other utility different than its regular income will be punished with imprisonment and a monetary fine. Consequently, in respect to staff of public institutions the granting of benefits and incentives should be handled carefully. Are there any formal disclosure requirements for promotional incentives (i.e., rule of separation of procurement from personal dealings, rules of employer consent requirements, written form requirements, adequacy of consideration granted for a service)? As explained in question one, according to the Consumer Protection Law all the terms, conditions and requirements related to a certain promotion must be notified to the “Consumer Protection Institute” and clearly informed to the public.