Advertising & Marketing 2023

Last Updated October 17, 2023

Argentina

Law and Practice

Authors



Bruchou & Funes de Rioja stands as the leading law firm in Argentina providing a full range of highly specialised and value-added legal services covering all the areas of practice required for doing business in Argentina, such as consumer law and general corporate. With a multidisciplinary approach, the firm’s powerful platform offers clients creative and sophisticated legal advice as required by the current challenges of business dynamics. The firm’s IP, data privacy, new technologies, and legal advertising department is composed of two partners, one senior associate, two junior associates, and one trade marks and patents agent. Bruchou actively assists big clients such as Vrio Corp, BIMBA Y LOLA, Vista Oil & Gas, Wieden + Kennedy, Enterprise, Liga Profesional del Fútbol Argentino, Extreme Reach, Helacor, Amazon Web Services, Faze Clan Inc, Warner Bros Entertainment Inc, Descente Ltd, and DIRECTV.

Argentina does not have one single code for advertising. On the contrary, rules are disseminated in different laws.

The most relevant laws applicable to the advertising business are:

  • National Civil and Commercial Code (NCCC);
  • Consumer Protection Law No 24,240 (CPL or “Consumer Law”);
  • Executive Order No 274/2019 on Fair Trading (“Fair Trading Executive Order”);
  • Trademark Law No 22,362 (“Trademark Law”);
  • Copyright Law No 11,723 (“Copyright Law”);
  • Media Law No 26,522 (“Media Law”);
  • Data Protection Law No 25,326 (DPL);
  • Front-of-Pack Labelling Law No 27,642 (FPLL).

There are also certain provisions applicable to advertising in respect of specific industry sectors, such as the Law Against Alcoholism (Law No 24,788).

Finally, self-regulation has a primary role in our system. The Advertising Self-Regulation Council (CONARP) and its self-regulation code are applicable to all kinds of advertising in Argentina.

Government agencies and Courts are in charge of enforcing misleading advertising of products or services. For example, the National Administration of Medicines, Food, and Medical Technology (ANMAT) is in charge of regulating and enforcing the advertising of medicines. The most common remedies government agencies apply are (i) fines or penalty payments, and (ii) cancellation/suspension of the licence or authorisation granted.

The administrative or judicial authorities involved in each case will depend on the infringement and the course of action chosen by the injured party. Concerning the main rules and regulations that apply to advertising issues, the following authorities are involved.

  • Secretary of Commerce – to file an administrative procedure for infringements to the Consumer Law and the Fair-Trading Executive Order.
  • National Institute of Industrial Property (INPI) – agency body that has jurisdiction over administrative procedures for trade mark matters.
  • Federal Court on Civil and Commercial Matters with jurisdiction to hear cases on misleading advertising and unfair competition.

Potential remedies available are injunctive relief, corrective advertising, and damages.

In most cases, the following persons/entities can be held liable.

  • The advertiser and the advertising agency that has created and placed the ad.
  • The media that broadcast it.
  • Any person who has taken part in its planning, creation, or publication.

Moreover, it has to be considered that the Consumer Law provides a broad liability regime, which, depending on the case, could involve different persons and/or entities associated with the advertising.

In general, “advertising” is understood as any communication promoting the sale of products and/or services.

No mandatory pre-approvals are required from the government before running advertising. However, it’s worth considering that Resolution No 983/2013, issued by the Federal Agency of Audiovisual Communication Services (replaced by ENACOM), has created the Television Audiovisual Advertising Registry, where advertising agencies, direct advertisers, and/or advertising production companies must register each advertisement to be broadcast on broadcast television services or national channels.

However, there are specific products that must contain certain pre-approved disclaimers in order to be lawful, such as:

  • tobacco;
  • medicine;
  • alcohol; and
  • food.

Article 31 of the Copyright Law and Article 55 of the NCCC prohibits using an image’s rights and an individual’s name, picture, voice, or likeness in advertising without its previous authorisation.

The Advertising Self-Regulation Council (CONARP) is a non-profit civil association with legal status that oversees the compliance of the CONARP’s Code and practice by advertisers, advertising agencies, and the media.

As stated in the CONARP’s Code, adverts must respect the principles of:

  • Legality – advertising must respect the legal rules in force;
  • Decency – advertising must respect moral principles and good customs and respect commercial loyalty, shun the unethical, truculent, and grotesque, and steer clear of using foul language;
  • Honesty – advertising must be honest, trustworthy, and avoid giving false testimony;
  • Truthfulness – advertising must avoid misleading consumers, and any exaggeration contrary to good faith; and
  • Social responsibility – advertising must avoid anything that upsets the concepts and essential values of society, or any expression, attitude, or hint that affects people’s privacy or causes moral suffering to anyone’s family, it must take care of the environment, and must take special care of children’s gullibility and young people’s lack of experience.

The Self-Regulation Commission (SRC) within CONARP deals with claims against advertising made by any of their associates. The 10-member SRC can act ex-officio or at the request of any person who files a complaint regarding any advertisement violating any of the CONARP’s Code provisions. Within two days from receipt of the complaint, the SRC shall meet and deliberate. If, after deliberation, the SRC decides that no provision of the CONARP’s Code is violated by the advertisement, it shall inform the complainant of its decision. If, on the contrary, the SRC concludes that there may be a violation of the CONARP’s Code, it shall inform the interested parties in writing of the infringing company or agency, detailing the provisions that it considers infringed. The SRC shall also invite the interested parties to a hearing to present their views and arguments. If the SRC then decides that the advertisement is contrary to the principles of the CONARP’s Code, it will ask the company and agency to withdraw (cease broadcasting) the advertisement within 24 hours. If the company and agency agree, the SRC shall inform the complainant and close the file.

Consumers with a legitimate interest have the following actions:

  • Administrative procedure – this is a pre-judicial stage known as the “mediation process”. Both parties are invited to settle the case to avoid a court action within the mediation proceedings. Before filing an ordinary lawsuit, the plaintiff is forced to initiate mediation proceedings.
  • Court action – consumers can file a complaint with the Federal Court on Civil and Commercial Matters seeking an injunction to stop the advertising and damages.
  • Self-regulation procedure – consumers can file a complaint within the CONARP. In that case, the CONARP will analyse the advertising practices and if the practice is contrary to the CONARP’s Code, discontinuance, modification, or adjustment of the ad shall be requested.

Claims usually originate on the following matters.

  • Violation of Articles 4 and 7 of the CPL, which obliges advertisers to provide consumers with clear, precise, and accurate details on the essential characteristics of the goods and services.
  • Violation of Article 8 of the CPL, which states that the information given in advertisements, pamphlets, or any other means of communication obliges suppliers to comply with the offer and are considered part of the contract with consumers.

The most important legal/regulatory trends regarding deceptive advertising that occurred in the past 12 months in Argentina are:

  • The regulation of the FPLL – the legal and practical consequences are yet to be seen due to the grace period granted for compliance.
  • The publication of the CONARP’s paper – “Communication for Commercial Purposes: Legal Recommendations for Influencers”.

Nowadays, advertisers should especially keep in mind the following when launching a new campaign.

  • Non-discrimination between men and women.
  • Respect for the LGBTQ+ community.
  • Inclusion of people with disabilities.
  • Environmental awareness.

The last significant change to the general advertising legal framework in Argentina was enacting the Fair-Trading Executive Order, which repealed Law No 22,802. This was promoted by the previous government (which ended its mandate in December 2019). During the current government, the National Congress issued the FPLL, which has an important impact on advertising matters.

The NCCC prohibits all advertising that contains false information or information that misleads or is likely to mislead consumers when it relates to essential elements of the product or service. Moreover, the Fair-Trading Executive Order prohibits the making of any kind of advertising that uses inaccuracies or concealment that may mislead, deceive, or confuse concerning the characteristics or properties, nature, origin, quality, purity, mixture, quantity, use, price, or condition of the products and services. In addition, it considers that the following are acts of unfair competition.

  • Misleading consumers as to the entrepreneurial origin of the activity, the establishment, and the goods or services themselves in such a way that they are deemed to have a different origin to that which is proper to them.
  • The imitation of goods and services or business initiatives likely to cause confusion as to the origin of the goods or services, or that involve taking unfair advantage of the reputation or efforts of others.
  • Acts of denigration based on false assertions.

Finally, please consider that the Consumer Law states that those who produce, import, distribute, or market goods or provide services must provide consumers or users with truthful, detailed, effective, and sufficient information on their essential characteristics in a true and objective manner.

All advertising claims are subject to regulation, including express and implied claims. Puffery claims, when harmless because consumers do not believe them, are excluded from the field of deception and substantiation and are not prohibited. There is a thin line separating puffery and a claim that requires substantiation. Generally, the more obvious the exaggeration (without becoming puffery), the safer the claim.

The regulator and/or the eventual judge should analyse the dispute on a case-by-case basis, and the burden of proof will fall on the party asserting the ad contains deceptive claims.

There are no specific statutory rules on the obligation to substantiate claims in Argentina. However, the CONARP set up guidelines in its code, the summary of which is as follows.

  • The substantiation must be robust, objective, and ascertainable.
  • It should be made by an independent scientific entity with a specific impact on advertised products.

The CONARP’s Code states that advertising featuring a product’s practical use should be truthful and verifiable under equal conditions to the ones shown in the ad, refraining from showing qualities the product does not possess and avoiding creating expectations that the product cannot satisfy.

The CONARP’s Code states that testimonial advertising can only include testimonials or authentic recommendations of real experiences of the people giving their testimony or of those who represent them, which must be verifiable.

In addition, advertising must avoid false testimony. The representation of real people or dubbing must be expressly authorised by the represented or dubbed. When an advertisement uses uniforms, models, or clothing that characterises a profession or occupation, it must not mislead consumers and must be endorsed by a professional in the field, following the ethical rules stated in the CONARP’s Code.

Finally, opinions and testimonies in advertisements must be sincere and verifiable and not mislead consumers. The advertising must not reference a person, trade mark, firm, or institution without its consent.

Regarding the use of disclosures in advertising, Resolution 915-E/2017 of the Secretary of Commerce provides specific requirements for legends and/or warnings established as mandatory by national and provincial laws and their regulations. Moreover, the use of disclosures is admissible if it helps to avoid any inaccurate, deceitful, or misleading messages in advertisements.

Advertising must comply with National Law No 26,485 on Integral Protection of Women. Additionally, it must comply with Resolution No 1040/2021, which approves the “guide to good business practices on gender and diversity issues” and invites suppliers of goods and services to adopt the mentioned guide.

Moreover, the guide defines the essential guidelines of respect for gender identity and diversity, which should be applied by retailers. The document is based on the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) adopted by the Argentine National Constitution.

The CONARP’s Code states that advertising must be environmentally friendly. In this regard, it states that it shall not, directly or indirectly, generate or stimulate:

  • material and visual contamination;
  • alteration of natural and urban landscapes;
  • obstruction of the view of public sites, places of tourist interest, or monuments; or
  • excessive noise which can be detrimental to people’s health and wellbeing.

In addition, advertisements and other forms of commercial communication, such as labels and packaging of products containing environmental claims, should:

  • reference the product’s characteristics and its impact on the environment, duly verified by technical and scientific methods;
  • avoid ambiguity by explaining its actual scope precisely;
  • make clear and legible statements;
  • indicate in a clear matter which product life cycle it refers to, with appropriate justification; and
  • use statements that refer to the absence or reduction of a particular ingredient only if the level of the substance does not exceed the recognised pollution limits.

Moreover, National Law No 25,127 provides guidelines and rules regarding organic, biological, and ecological products and the requirements to obtain the specific label for the products that comply with the necessary standards.

The applicable legal framework in Argentina does not provide special rules regarding Dark Patterns. However, it must be considered that advertising must comply with the provisions of the NCCC. In this regard, the NCCC states that any advertising that contains false indications or indications of such nature as to mislead or be likely to mislead the consumer, when they relate to essential elements of the product or service, is forbidden.

Argentine legal framework also states that suppliers who market goods and services through websites or apps must have a regret button (“Botón de arrepentimiento”), allowing the consumer to request the revocation of the acceptance of the purchased service. This right to withdrawal applies for 10 days.

The FPLL provides that all forms of advertising, promotion, and sponsorship of packaged food and soft drinks containing at least one warning label and specifically targeted at children and adolescents are prohibited. Moreover, in all other cases that contain at least one warning label, it is prohibited to include children’s characters, animations, cartoons, celebrities, sportsmen, etc, as well as the giving or promising of prizes.

The CONARP’s Code states that all advertising should take special care of children’s credulity and young people’s inexperience. In consequence, any advertisement must:

  • be careful about the content of the message;
  • avoid the visual presentation of dangerous practices or situations that may induce minors to emulate them at the risk of their safety;
  • avoid showing dangerous objects out of the reach and use of children;
  • avoid showing children committing illegal acts;
  • avoid showing young children operating electrical or gas appliances, or lighting fires, without adult guidance;
  • avoid showing children driving adults’ vehicles; and
  • avoid showing children committing illegal acts.

The CONARP’s Code also provides specific guidelines regarding advertising messages for children or adolescents. In addition, media law contains similar provisions to the CONARP’s Code to protect the interests of young people.

Regarding Sponsor ID, the CONARP’s Code states that “sponsorships must be identified as such. Sponsors, sponsored parties, and each party involved should avoid imitating motifs used by other sponsors that may cause confusion or mislead the public, even in the case of non-competing brands, companies, or events. They should not give the impression that they are a sponsor of an activity or its media coverage if they are not the official sponsor. In the case of sponsoring programming content, the name and brand of the sponsor should be identified, and care should be taken to ensure that there is no confusion between the sponsorship of an activity and the sponsorship of its broadcast, especially where different sponsors are involved.”

There are many types of claims subject to regulation in Argentina, including geographical indications, designations of origin, natural claims, and therapeutic/health claims.

Origin and Geographical Claims

  • National Law No 25,380 regarding “agricultural and food products” safeguards geographical indications and designations of origin utilised for marketing agricultural and food products, whether in their natural state, conditioned, or processed. The use of geographical indications and/or designations of origin is prohibited on packaging, labels, advertisements, and product documents if they do not comply with the provisions of this law.
  • National Law No 25,163 regarding “wines and spirits of wine origin” acknowledges the protection and registration of Argentine geographic names for indicating the origins of wines and spirituous beverages.
  • Under the Trademark Law, the following cannot be registered as trade marks:
    1. names of national or foreign origin;
    2. words, names, or symbols used or required to be used by the nation, provinces, municipalities, religious and health organisations; and
    3. letters, words, names, or symbols used by foreign nations and international organisations recognised by the Argentine government.

Natural Claims

Natural claims regarding food are governed by Disposition No 4980/2005 of the ANMAT regarding advertising over-the-counter products. This Disposition states the following.

  • Advertisements for products that are semi-synthetic or formulated in combination with synthetic components are prohibited from claiming they are “natural”.
  • Cosmetic products, personal hygiene products, and perfumes claiming that their safety or efficacy is solely due to their natural composition are restricted from doing so. If the products are derived from natural substances, advertisements may state that they are “obtained from substances of natural origin” or “made with ingredients derived from natural substances”.

Therapeutic and Health Claims

These are also governed by Disposition No 4980/2005. This provision prohibits using the following claims when advertising products.

  • Attributing therapeutic actions or properties.
  • Suggesting that food is a medicinal product, or mentioning that food diagnoses, cures, soothes, alleviates, prevents, or protects from certain diseases.
  • Stating that food can be used as a replacement for a conventional meal or as the only food in a diet.

The list is not exhaustive, and other regulated claims must be analysed on a case-by-case basis.

Comparative advertising is regulated in the Fair-Trading Executive Order. To be considered lawful, the advertising must comply with the following.

  • It must not be misleading, deceptive, or confusing between the advertiser and a competitor or between the advertiser’s goods and those of a competitor.
  • It must compare goods that satisfy the same needs or have the same purpose.
  • The comparison must be made objectively, between one or more essential, relevant, representative, and verifiable characteristics of those goods (which may include the price).
  • The purpose of the advertising must be to inform the target market of the advantages of the goods being advertised.
  • Advertising must not disparage or denigrate the intellectual and industrial property rights or circumstances of any competitor.
  • Advertising must not take undue advantage of the reputation of a competitor’s brand.
  • It shall not present a good as an imitation of a good bearing a protected trade mark.
  • In the case of goods protected by a designation of origin, geographical indication, or specific designation, the comparison may only be made with other goods of the same designation.

The CONARP’s Code provides similar provisions regarding comparative advertising.

The Trademark Law reserves the exclusive use of a trade mark by the owner. However, according to the applicable legal framework, the use of a competitor’s name, trade marks, and/or packaging is permitted if the advertising does not disparage or denigrate the trade mark of the competitor.

An advertiser has the following actions to challenge claims made by a competitor.

  • Administrative procedure.
  • Court action – the advertiser can request the stop of unlawful advertising, the publication of corrective notices, and, if appropriate, the conviction. Additionally, the Fair-Trading Executive Order includes the compensation for damages caused by the act of unfair competition (which may include the publication of the ruling) and the issuance of precautionary measures.
  • Self-regulation procedure within the CONARP – the SRC will analyse the advertising practices and if the practice is contrary to the CONARP’s Code’s principles, discontinuance, modification, or adjustment shall be requested.

In Argentina, there are no special rules related to ambush marketing. However, depending on the case, the Trademark Law, Consumer Law, Fair-Trading Executive Order, and the Antitrust Law No 27,442 may be applicable.

On the occasion of the 2022 World Cup, the CONARP published the paper: “Sponsorship of Activities and Ambush Marketing”.

Finally, there is abundant case law on ambush marketing issued by the Federal Court on Civil and Commercial Matters.

The Argentine applicable legal framework does not provide special rules regarding advertising in social media. Therefore, general provisions of traditional media apply to advertising and marketing published through social media.

However, it should be considered that the CONARP published a paper in 2017 that introduces best practices in commercial communications in social media. The paper emphasises that, in all cases, online communications must be legal, truthful, honest, trustworthy, and loyal.

Argentina does not have statutory rules for the responsibility of the advertiser for content posted by others on the advertiser’s site or social media channels.

However, in October 2014, the Supreme Court of Argentina, in a landmark case regarding Rodriguez, María Belén v Google Inc, on damages, ruled that search engines are not liable for such content unless they have been notified by a court or unless the material was obviously unlawful and caused grave harm. The decision reaffirms the position of the Supreme Court regarding internet freedom in Argentina.

Resolution 915-E/2017 of the Secretary of Commerce states that the compulsory disclosures shall be included in the advertisements in an easily legible typeface, in contrasting colours, in the direction of the publication, and with typeface height equal to or greater than 2% of the screen and with a minimum of three seconds of permanence. Additionally, relevant regulations for specific industries shall apply.

There are no prohibitions on using any social media platform in Argentina. Argentina has a strong position in favour of internet neutrality and freedom of expression.

In Argentina, there are no specific regulations for native advertising. Instead, the general provisions that apply to traditional media also apply to this case. In such respect, advertising in Argentina must adhere to legal standards, including honesty, truthfulness, trustworthiness, legality, and decency, and should not mislead consumers.

Argentina does not have special rules regarding influencer campaigns. However, influencers must comply with the noted rules and principles. Moreover, the CONARP recently published a paper: “Communication for Commercial Purposes: Legal Recommendations for Influencers”.

In addition, three Bills have been recently filed with the National Congress, namely:

1358/2020 Legal Regime for Influencers

Including the following:

  • influencers’ definition;
  • digital advertising;
  • duty of registration before the AFIP; and
  • responsibility on misleading and/or abusive advertising.

1898/2021 Code on Consumer and User Protection

  • Aims to rule the subject matter and unify legislation, including the following innovations:
    1. obligations on public persons or influencers; and
    2. penalties.

“Draft Code on Consumer Protection”

  • Seeks to broaden the notion of a consumer relationship.

Although the Bills lost parliamentary status due to their non-treatment, they represented a breakthrough in the doctrine and potential regulation.

Doctrine is divided on whether influencers are responsible for the consequences of the ad on consumers, based on the interpretation of Article 40 of the CPL. Those who hold them liable base their position on the fact that influencers do implicit advertising.

The CONARP’s Code recommends advertisers advise each influencer on the product/service category, informing them about the applicable legal regulations and industry-agreed best practices to comply with them. Communication must be clear, as the influencer shares the responsibility for the publication with the brand, whether it is deceptive or not.

Given that the influencer generates content beyond their possible link with a brand, it is necessary to differentiate what may be an editorial or artistic post of their own from that which is the result of the relationship with the brand. In the interest of truthfulness to the consumer, if there is a contractual commitment between the brand and the influencer, this should be evident to the user.

There are no specific rules or regulations regarding the use of consumer reviews. However, the facts of a review must at least be truthful and without intent of libel or slander, considering that damage actions could be initiated, argued on the company’s reputation, good name, and honour.

Consumers, as with any other person, have the right to free expression recognised by the National Constitution of Argentina, which should not generate responsibility for the advertiser, except if the advertiser has used misleading or deceptive advertising to attract customers.

Despite the advertiser not having the legal obligation to monitor consumer reviews, it could be considered a good business practice.

According to the data protection legal framework in Argentina, controllers may process personal data for marketing purposes when:

  • the data subject provided prior, informed, and express consent;
  • the data was collected from legitimate public access sources;
  • there exists a legal obligation or attribution to process personal data; and
  • there exists a contractual relationship between the controller and the data subject that requires or allows the processing of certain personal data.

Before obtaining consent, the controller must provide a notice in a clear and visible place that discloses:

  • the purposes for processing and potential third-party recipients or types of recipients;
  • the existence of the database and the data controller’s identity and location;
  • whether providing the data is mandatory or voluntary;
  • consequences of refusing to provide data or providing inaccurate data; and
  • the data subject’s rights to access, correct, and delete their data.

Moreover, according to Resolution 14/2018 of the Agency for Access to Public Information (APIA), the controller has to include the following required notice: “The Agency for Access to Public Information, in its capacity as the supervisory authority of Law No 25,326, has the power to deal with complaints and claims filed by those affected in their rights for breach of the regulations in force regarding the protection of personal data.”

The DPL also requires a visible opt-out mechanism in every marketing email. In addition, unsolicited emails must include in their subject the term “Publicidad” (“Advertisement”).

Regarding liability for violating rules, the DPL provides the following sanctions: warnings, suspensions, or fines ranging from ARS1,000 to ARS100,000 and closure or cancellation of the file, register, or database. Non-compliance with the DPL can also result in civil liability.

Law No 26,951 provides the “Do Not Call Registry”. This regulation allows the data subject to block contact from companies advertising, selling, or giving away products and services. Companies offering products and services must check the list of blocked numbers monthly before engaging in marketing calls. Once the existence of the infringement has been verified, those who have committed it shall be liable to the sanction provided by the DPL.

Law No 26,951 is also applicable to text messaging.

Targeted/interest-based advertising is not specifically regulated by the data protection legal framework. The DPL and specific requirements for marketing communications will apply to these types of advertising activities.

The Argentine data protection legal framework does not provide special rules for processing children’s personal data.

There are no other important privacy rules related to advertising in Argentina.

Regarding sweepstakes and contests, note that Argentina is subdivided into 23 provinces and one autonomous city (the City of Buenos Aires). Even though the provinces and the City of Buenos Aires exist under a federal system, they have their own constitutions and local regulations. Whoever organises a sweepstakes/contest must be aware of the applicable legislation for the provinces included within the scope and comply with the relevant registration procedures (when applicable) or exclude those provinces from the territory scope to avoid sanctions.

Order No 961/2017 of the Ministry of Production established that the organiser/sponsor must include within the Rules the following information:

  • list of prizes to be awarded, including the specifications, nature, and number;
  • start date/closing date/territory scope;
  • the mathematical odds of winning a prize (or at least an estimation);
  • any costs that may arise from winning a prize;
  • how to enter;
  • the criteria and mechanism for winning a prize;
  • when and how the adjudication of prizes will be published;
  • how and when winners will receive their prizes; and
  • what will happen with prizes that are not awarded.

The Official Rules and advertising materials must be provided in Spanish. Moreover, there are specific wordings that marketing materials must include in Spanish.

Furthermore, within 10 days of the end of the promotion/sweepstakes, a list of winners must be published by the same means used to promote it. The list of winners must be kept for three years, together with the proof of receipt of the awarded prizes, in case the authority requires it.

In addition, the Fair-Trading Executive Order prohibits the organisation of contests or sweepstakes of any kind in which participation is conditional in whole or in part on purchasing a product or contracting a service.

The Argentine legal framework does not provide a specific distinction between a contest of skill and games of chance, nor does it include a specific definition of a game of skill.

In some Argentine provinces, there are different registration requirements for sweepstakes and contests. The costs and time associated with complying with these provincial regimes lead many advertisers to exclude Neuquén, Mendoza, Río Negro, Salta, and Tierra del Fuego from the territorial scope.

Argentina does not have specific provisions regarding free or reduced-price offers. However, free offers must comply particularly with the CPL, Fair Trading Executive Order, and the CONARP’s Code.

The CPL regulates the relationships between producers, importers, distributors, and sellers of products and customers who acquire goods or services for their final use and do not resell them. It protects not only contracts with consumers for pecuniary interest but also contracts of services or products that are free of charge. Moreover, an offer may not use language that suggests an item is “free” if it is not, nor contain price indications that could mislead consumers. When “free” products involve costs, such as shipping or taxes, they must be clearly stated.

The DPL applies to any issues regarding the automatic renewal/continuous service offers. According to CPL, all consumers must be duly informed of when the service will be charged (eg, automatic renewal) and all the payment conditions (eg, amount, method, and dates).

There are no specific rules related to using artificial intelligence (AI) in connection with advertising content development. There is currently no regulation governing AI, and very few regulations are directly or indirectly related to the subject.

On 2 June 2023, the Undersecretariat of Information Technologies published Order 2/2023 approving the “Recommendations for Reliable Artificial Intelligence”. The order seeks to provide theoretical and practical tools “to those who are part of the public sector, whether leading innovation projects, developing technologies, adopting technologies developed by other technical teams/suppliers, or formulating the technical specifications for such acquisitions”.

As there are no other specific rules, and there is no guidance, see the “Guide to Good Privacy Practices for Application Development” (Order No 18/2015) provided by the APIA.

There are no specific rules related to chatbots. Those involved in these developments must comply with the Argentine data protection legal framework.

No special rules or regulations in Argentina apply to the advertising, marketing, or sale of cryptocurrency and/or NFTs.

No special rules or regulations in Argentina apply to the metaverse.

Several laws apply to advertisements of regulated products, including food, dietary supplements, tobacco, medicine, medical devices, cosmetics, and alcohol. These are some of the main ones, but the list is not exhaustive.

Alcohol

National Law No 24,788 against Alcoholism prohibits all advertising or encouragement of the consumption of alcoholic beverages that:

  • is directed to any person under the age of 18;
  • involves any person under 18 drinking;
  • suggests that the consumption of alcohol improves physical or intellectual performance;
  • uses the consumption of alcoholic beverages as a stimulant to sexuality and/or violence in any way; or
  • does not include in a visible place the following legends in Spanish – “Drink in moderation” and “Prohibited for sale to those under 18”.

Tobacco

National Law No 26,687 regarding Tobacco Products prohibits advertising, promoting, or sponsoring any product manufactured with tobacco. Advertising and marketing of tobacco products is still allowed:

  • at sale points;
  • in commercial publications addressed to companies involved in manufacturing, distributing, importing, exporting, and the sale of such products; and
  • through direct communication to people over 18, though only with their prior consent.

Tobacco packaging must include health warnings, such as “smoking causes cancer” or “smoking causes addiction to nicotine”, along with graphic images depicting the effects of smoking cigarettes.

Medical Devices

Disposition No 4980/2005 issued by the ANMAT governs the advertising of medical devices. Only devices of medical technology or medical products which, by their nature and proposed use, can be used or are indicated for use directly by the patient and/or non-professional user may be advertised.

Prescription-Only Medicines (POM)

Disposition No 4980/2005 prohibits advertising of POM directed to the general public.

Over-The-Counter Medicines (OTC)

In Annex II of Disposition No 4980/2005, the ANMAT provides specific requirements for advertising OTC.

Food

All food advertising must fully comply with ANMAT’s regulations. Some of these requirements are that advertising must not:

  • modify the approved labels according to the legislation currently in force as to uses, intake, and specific properties of the product;
  • measure the degree of risk decrease in catching illnesses due to consuming the product;
  • mention, either directly or indirectly, a pathological or abnormal condition;
  • make therapeutic claims for a product, or suggest that the dietary supplement is a medicinal product, or claim that the dietary supplement can diagnose, heal, relieve, mitigate, soothe, prevent, or protect against any illness whatsoever – it may include “helps prevent” or “helps protect” only if such statements relate to the product helping to prevent a typical illness caused by nutrient deficiency; or
  • claim that a food product can replace a conventional meal or claim that a diet can be based only on a specific food product.

Moreover, the FPLL states that all forms of advertising, promotion, and sponsorship of packaged food and soft drinks containing at least one warning label specifically targeted at children and adolescents are prohibited. In addition, it has certain provisions for advertising food that contains at least one warning label.

The Argentine advertising legal framework does not provide specific rules regarding the placement of products in entertainment content.

Other categories of products or services whose advertising is subject to specific regulation in Argentina are the following.

  • Gambling – it is strictly controlled. Argentine provinces regulate gambling at a local level.
  • Financial products and loans – under the CPL and other applicable resolutions, advertising of loan products (mortgages and pledges loans) must disclose specific information. Moreover, under the Financial and Banking Law, unauthorised entities are not allowed to advertise or promote marketing actions to gain consumer resources.

In addition, the CONARP establishes that considering those products and services which, by their nature, require special treatment in their communication, special care must be taken in the wording and presentation of the respective advertising messages.

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Buenos Aires
Argentina

5171 2300 / 4348 4100

damaso.pardo@bruchoufunes.com / marcas@bruchoufunes.com https://bruchoufunes.com/
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Trends and Developments


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Bruchou & Funes de Rioja stands as the leading law firm in Argentina providing a full range of highly specialised and value-added legal services covering all the areas of practice required for doing business in Argentina, such as consumer law and general corporate. With a multidisciplinary approach, the firm’s powerful platform offers clients creative and sophisticated legal advice as required by the current challenges of business dynamics. The firm’s IP, data privacy, new technologies, and legal advertising department is composed of two partners, one senior associate, two junior associates, and one trade marks and patents agent. Bruchou actively assists big clients such as Vrio Corp, BIMBA Y LOLA, Vista Oil & Gas, Wieden + Kennedy, Enterprise, Liga Profesional del Fútbol Argentino, Extreme Reach, Helacor, Amazon Web Services, Faze Clan Inc, Warner Bros Entertainment Inc, Descente Ltd, and DIRECTV.

Modern Considerations for the Legal Landscape in Advertising

Argentina is considered a very creative market regarding advertising. It is also a great source of talent, and many of its agencies successfully provide services to national and multinational companies. One of the main characteristics of advertising law in the country is the need for more unified codes and rules: norms are scattered in different regulations and codes. In such respect, the legal framework is diverse. The following laws apply to advertising:

  • Section 1100-1103 of the National Civil and Commercial Code.
  • Law No 24240 on Consumer Protection.
  • Decree No 274/2019 on Fair Trading.

Many regulations exist for specific industries, such as alcohol, tobacco, food, and medicine.

Another relevant aspect of advertising practice is self-regulation’s vital role in determining infringement. The self-regulation body is the Advertising Self-Regulatory Board (CONARP). A Self-Regulation Commission (SRC) within CONARP deals with claims against advertisements made by any of their associates or third parties. The ten-member SRC can act either (i) ex-officio or (ii) at the request of an associate or any individual/organisation who files a complaint in respect of any ad that violates any provision of the Code of Self-Regulation and Ethics for Advertising (the “Code”). Within two days of receiving a complaint, the SRC meets and deliberates. If, after deliberation, the SRC decides that the ad violates no provision of the Code, it shall inform the complainant of its decision. If, on the contrary, the SRC concludes that there is a violation of the Code, then it shall notify the interested parties in writing of the infringing company or agency, detailing the provisions that are considered infringed. The SRC shall also invite the interested parties for a hearing to present their views and arguments. If the SRC decides the ad is contrary to the principles of the Code, it will ask the company and agency to modify, discontinue, or withdraw (cease broadcasting) the same within 24 hours. If the company and agency agree, the SRC informs the complainant and closes the file.

Suppose the company or agency does not respond or decides not to obey the resolution. In that case, the SRC reports within 24 hours to the complainant and informs the public through the media and press about the questioned ad and the approach of the company/agency involved. CONARP will notify an enforcement governmental agency, such as AFSCA (Federal Authority for Audiovisual Communication Services), about the complaint’s outcome.

Social media and influencers

The most relevant issues concerning advertising and marketing law and practice in Argentina are influencer and social media regulations, environmental regulations, and the Front-of-Pack Labelling of Food Law. The increase in influencers, aided by the extensive use of social media, has produced a great deal of abuse and resulted in misleading consumers about the benefits of the goods and services advertised. Due to the importance of the subject, two different bills on influencers have been discussed recently in the National Congress. However, it still has to enact a final law. The first Bill, 1358/2020, included the following issues:

  • a definition of an influencer;
  • the duty of the influencers to register before tax authorities and report the income derived from the said activity; and
  • most importantly, the liability of influencers when misleading and abusing the advertising message to deceive consumers.

The second project, 1898/2021, intended to include some rules within the Code of Consumer Protection.

Notwithstanding, and due to a series of fraud cases, CONARP issued recommendations to influencers on commercial communications. Among other suggestions, the following are worth mentioning.

  • Ensuring that the message is lawful, truthful, honest, and trustworthy. It must also comply with the guidelines set out in CONARP’s Code.
  • Clearly stating that the message is commercial and the influencer obtains money for it.
  • Including the phrase “content in collaboration with [brand]” or “#sponsored content”, or any other similar statement, in a visible place and next to the name of the influencer/brand.
  • Messages may only include authentic testimonials or recommendations, related to the experiences, either belonging to the influencer him-/her-self or third parties.

Environmental marketing

The other topic that regulators and CONARP are increasingly monitoring is environmental marketing. There is no specific law on this matter in Argentina. Therefore, as in most advertising issues, the general rules of Decree-Law 274/2019 on unfair commercial practices are applicable. However, CONARP is giving this issue great importance. Their guidelines, basically taken from the World Federation of Advertisers (WFA), the International Chamber of Commerce (ICC), and the International Council for Advertising Self-Regulation (ICAS), can be summed up in six golden rules.

  • Ads must not mislead consumers.
  • Advertisers must have substantiation for all messages.
  • Communications must not omit material information and must be clear for the average consumer.
  • Attributes of the products should refer to the entire life cycle of the product.
  • Product comparison must meet the exact needs and for the same purpose.
  • Advertised products must include information on their environmental impact.

An independent scientific entity should substantiate the product/service with specific knowledge of advertised products, providing robust, objective, and ascertainable information. Messages can include aspirational claims, but there should be elements to demonstrate the capacity to fulfil the proposed aspiration reasonably.

Food labelling law

The Front-of-Pack Labelling of Food Law (the “Law”) has significant legal advertising and marketing consequences in Argentina. It seeks to guarantee the right to adequate food and health, mainly through simple and understandable nutritional information on packaged food and soft drinks and warnings about the excess of specific components. Human or legal persons who manufacture, produce, prepare, fractionate, package, commission to package, or manufacture, distribute, commercialise, or import food or beverages, who have placed their brand, or who are part of the food and soft drinks marketing chain for human consumption in the Argentine territory, will be subject to the Law. Moreover, the Law states that food and soft drinks packaged in the customer’s absence and marketed in Argentina must include a warning label on the front side for each critical nutrient in excess. This rule is mandatory, provided that essential nutrients’ content and energy value exceed the values established under the Law in their final composition.

The warning label shall be a black octagon with a wide border and white capital letters. The seal size shall cover at least 5% of the package’s central front. In case of infringement, Fair-Trading Decree sanctions will apply. The regulation establishes a two-stage schedule for complying with the obligations set out in the Law.

  • The first stage (products with higher levels of critical excess nutrients) runs from 20 November 2021 (the date of the Law’s entry into force) until 20 August 2022. Small companies have an extended period of up to fifteen months. The regulation extends this stage only once and for justified reasons for 180 calendar days, starting from the expiry of the previous deadlines.
  • The second stage (products with lower levels of critical excess nutrients) stretches until 20 May 2022. This deadline extends to 24 months for small companies.

This Law has significant consequences in terms of legal advertising and marketing. Article 10 establishes that all forms of advertising, promotion, and sponsorship of packaged food and soft drinks containing at least one warning label and explicitly targeting children and adolescents are prohibited.

In addition, in all other cases that contain at least one warning label:

  • the Law forbids highlighting the positive or nutritional qualities of products to avoid confusion about nutritional value;
  • warning labels must be exhibited or enunciated in their entirety every time the packaging is displayed;
  • the Law forbids including children’s characters, animations, cartoons, celebrities, athletes, mascots, etc, and promising prizes; and
  • the Law forbids promoting or giving away products that are free of charge.

Argentina needs a law regulating influencers’ activity and rules on environmental advertising. In any case, the excellent functioning of CONARP as a self-regulatory body is a reliable solution for all new matters that still need to be overseen.

As previously mentioned, complementing the Influencers and Social Media regulation, the Environmental regulation, and the Front-of-Pack Labelling of Food Law, Argentina also has the Consumer Protection Act, the Antitrust Law, and the Fair-Trading Decree.

Consumer protection

Argentina has been trying for years to improve consumer protection, and is now on the path of becoming one of the few jurisdictions that has a robust Consumer Protection Code. Despite the consensus on the need to codify the matter to unify legislation and protect consumers – the weaker party in the relationship with suppliers – the ruling party and the opposition in the National Congress have differing views on a standard and final text.

Since 2020, several drafts proposing the modification of the current consumer protection regime (Law No 24.240) and Consumer Protection Code have passed through the precincts of the National Congress. Still, none of them have reached parliamentary status. However, one Bill, No 1898/2021, “Code on Consumer and User Protection”, presented by the current provincial legislator of Mendoza José Luis Ramón, has set an important precedent. Its stipulations included the following innovations: obligations on public persons or influencers, specific stipulations on e-commerce, and new penalties.

Such was the impact Bill No 1898/2021 had, that it was presented again early this year by Senator Anabel Fernández Sagasti on the ruling party’s side for congressional consideration. Apart from the above-mentioned innovations, some of the draft objectives are:

  • stimulating individual and collective actions, as well as mechanisms for citizen participation in the defence of rights;
  • promoting sustainable consumption and discussing the actual durability of products;
  • regulating different forms and types of misleading commercial advertising; and
  • promoting real and equal access to essential public services and encouraging the participation of consumers in the elaboration and implementation of public policies.

Also, the initiative invites the provinces to expand this type of mechanism, taking the Code as a minimum floor of rights.

Likewise, the opposition party drafted a new Bill, “Draft Code on Consumer Protection,” and Deputy Jimena Latorre introduced it in the National Congress. This initiative seeks to broaden the notion of a consumer relationship, which would cover a broader range of consumers and users and make it possible to analogously apply the principles of such code to avoid regulatory gaps due to the passage of time.

“The protection of consumers in the hostile scenario of consumer society requires strong convictions and clear rules, devoid of escape valves that make a protective system permeable, which must be uniform [and] solid, but malleable, containing the center of protection whatever “dialogue” it must maintain with the rest of the legal system. Hence the importance of a true codification of the matter,” said José Luis Ramón in the paper on the foundations of the Code on Consumer and User Protection.

Considering the above and the growing legislative activity on advertising and consumer protection matters, we expect significant developments in Argentine legislation next year. Entrepreneurs and consumers await the impact of the new practices in the Front-of-Pack Labelling of Food Law on business and the population’s health as companies adapt to its stipulations to provide a higher level of consumer protection that addresses the new consumer realities.

Bruchou & Funes de Rioja

Ingeniero Butty 275
11th Floor
Buenos Aires
Argentina

5171 2300 / 4348 4100

damaso.pardo@bruchoufunes.com / marcas@bruchoufunes.com https://bruchoufunes.com/
Author Business Card

Law and Practice

Authors



Bruchou & Funes de Rioja stands as the leading law firm in Argentina providing a full range of highly specialised and value-added legal services covering all the areas of practice required for doing business in Argentina, such as consumer law and general corporate. With a multidisciplinary approach, the firm’s powerful platform offers clients creative and sophisticated legal advice as required by the current challenges of business dynamics. The firm’s IP, data privacy, new technologies, and legal advertising department is composed of two partners, one senior associate, two junior associates, and one trade marks and patents agent. Bruchou actively assists big clients such as Vrio Corp, BIMBA Y LOLA, Vista Oil & Gas, Wieden + Kennedy, Enterprise, Liga Profesional del Fútbol Argentino, Extreme Reach, Helacor, Amazon Web Services, Faze Clan Inc, Warner Bros Entertainment Inc, Descente Ltd, and DIRECTV.

Trends and Developments

Authors



Bruchou & Funes de Rioja stands as the leading law firm in Argentina providing a full range of highly specialised and value-added legal services covering all the areas of practice required for doing business in Argentina, such as consumer law and general corporate. With a multidisciplinary approach, the firm’s powerful platform offers clients creative and sophisticated legal advice as required by the current challenges of business dynamics. The firm’s IP, data privacy, new technologies, and legal advertising department is composed of two partners, one senior associate, two junior associates, and one trade marks and patents agent. Bruchou actively assists big clients such as Vrio Corp, BIMBA Y LOLA, Vista Oil & Gas, Wieden + Kennedy, Enterprise, Liga Profesional del Fútbol Argentino, Extreme Reach, Helacor, Amazon Web Services, Faze Clan Inc, Warner Bros Entertainment Inc, Descente Ltd, and DIRECTV.

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