Advertising & Marketing 2023

Last Updated October 17, 2023

Mexico

Law and Practice

Authors



Arochi & Lindner is one of the most respected and recognized names in Latin American intellectual property protection, handling all aspects of IP including trademark, patent, copyright, IP litigation and dispute resolution, IP rights enforcement, life sciences, domain names, trade secret protection, as well as, advertising, marketing, data privacy, blockchain, web 3.0 and the metaverse, civil and commercial litigation, corporate and regulatory law. The firm’s IP portfolio includes IP rights holders from the following sectors: information technologies, entertainment, food and non-alcoholic beverages, alcoholic beverages, pharmaceutical, automobile, apparel, luxury brands, video games, fast-moving consumer goods, sports, retailers, advertising agencies, among others. A&L provides comprehensive coverage against piracy and counterfeiting, and in general terms, of IP rights observance. The firm handles more than 40% of the IP litigation cases in Mexico. Since 1994, A&L has distinguished itself with its legal expertise and exceptional understanding of business needs, expanding their areas of expertise over the years.

In the past few years, Mexico has had two important new regulations regarding advertising, the Law on Transparency, Prevention and Combat of Improper Practices in Advertising Contracting and the Outdoors Advertising Law of Mexico City. However, there are many other legislations where advertising and marketing may encompass depending on the case such as:

  • the Federal Consumer Protection Law;
  • the General Health Law;
  • the Industrial Property and Copyrights Law;
  • the Civil Code;
  • the Criminal Code;
  • the Mexican Data Protection Act;
  • the Mexican Norm for e-commerce (NMX-COE-001-SCFI-2018); and
  • the Rules for advertising derived from the Health Act.

With the recent laws, Mexican jurisdiction added authorities that help to watch over advertising and marketing practices. Depending on the case, we as lawyers have to encompass the same with a specific authority. Here is a list of the regulators that could deal with cases related to advertising and marketing issues in Mexican jurisdictions:

  • The Protection Agency (PROFECO), which is in charge of regulating the B2C scheme and arbitrate between consumers and products or services providers. Procedures are of administrative nature.
  • The Mexican Industrial Property Agency (IMPI), which is in charge of industrial property filing and intellectual property litigation from an economic/industrial perspective. Procedures are of administrative nature.
  • The Mexican FDA (COFEPRIS), which in charge of regulating and protecting the population from health risks. All products that somehow are related to sanitary and health fields, are a matter of interest for this entity to ensure safety, efficacy and security to humans. Procedures are of administrative nature. 
  • The Attorney General’s Office (FGR), which in charge of investigating and prosecuting crimes of federal level. 
  • Federal Civil Tribunals, which are in charge of disputes and litigations of a civil and commercial nature. 
  • The Federal Institute for Access to Public Information and Data Protection (INAI), which in charge of data protection procedures and complaints. It regulates the relation between data holders and those that manage such data. Procedures are of administrative nature.
  • The Federal Economic Competition Commission (COFECE), which is in charge of applying and executing the Law for the Transparency Prevention and Combat of Improper Practices in Advertising Contracting (LCMP).
  • The Federal Telecommunications Institute (IFT), which is in charge of regulating and supervising compliance of the provisions set forth in the Federal Telecommunications and Broadcasting Law (LFTR). Such authority will monitor and sanction those media owners who do not respect the maximum time established for advertising. Furthermore, the IFT holds faculties of surveillance regarding the rights of the public audiences.
  • The Ministry of the Interior, which is in charge of authorising and supervising the promotion of gambling, contests, and raffles in their different modalities.
  • The Ministry of Health, which authorises the transmission of advertising related to i) the practice of medicine and its related activities and ii) food supplements, biotechnological products, alcoholic beverages, medicines, herbal remedies, medical equipment, cosmetics, pesticides, plant nutrients and toxic or dangerous substances.
  • The Advertising Consultive Council, which emanated from the government’s health entity, addressed to deal with advertising related to health services; food, food supplements and non-alcoholic beverages; infant formulas; alcoholic beverages and tobacco; health supplies, drugs, herbal remedies, medical equipment, surgical and healing supplies; hygiene products; cleaning products; perfumes, lotions, cosmetics and beauty products; pesticides, plan nutrients and toxic or dangerous substances; and biotechnological goods.

The scope for deceptive advertising is limited depending on the case. Unfortunately, the Mexican jurisdiction is underdeveloped regarding these types of matters are usually seen on a case-by-case basis. For example, if there is a misleading advertising issue, this can be seen before the Mexican Consumer Protection Agency (PROFECO); but if it is found that there is unlawful competition in the matter or a third party’s trade mark is being discredited, it can be addressed to the Mexican Industrial Property Agency (IMPI). In Mexico, these kinds of cases must be analysed and prosecuted before the appropriate authority, as it is believed it can give a much better approach to the case. Either way, those government entities are empowered to sanction individuals or companies. Shareholders would only be held liable as long as their individual participation in the illegal conduct is proven. 

Third parties who provide services to the advertiser, by general rule, are not liable for deceptive advertising. However, the parties may agree that the service provided is held responsible for the contents of the publicity and, therefore, it could be possible to pursue civil actions to obtain damages for any penalties imposed by the authorities. 

In terms of criminal matters, there is a short list of felonies for which a company can be held responsible for.

Mexican legislation considers advertising as any activity that includes the entire process of creation, planning, execution and dissemination of content, by any media channel.

The Authority requires pre-approvals only in articles with specific characteristics, such as medicines and food supplements, among others. Additionally, in order to avoid any conflict with the authority, the advertiser could submit advertising material of any type of product or service for pre-approval before the Consumer Protection Agency, even if it is not required.

In the Mexican legal system, in order for the image of a person to be used and commercialised, an authorisation from its owner is required in accordance with the Federal Copyright Law (LFDA). It is worth mentioning that this obligation is only applicable when, within the materials that make up the advertisement, the owner of the image can be clearly identified; in other words, when we are talking about a group of people where it is difficult to individualise the members, the authorisation is not necessary.

It is important to mention that, although the LFDA only provides the authorisation for the use of the portrait of a person, which is understood as the physical description of the person, national jurisprudence has extended this concept to characteristic elements of the person such as their voice, way of dressing, gestures or unique forms of expression.

In this sense, this broad concept currently must be considered in the authorisation for the use of an image, and currently, such authorisations fall within the limitations established by the LFDA for advertising contracts, in the sense that they cannot be used for more than three years counted from the first communication to the public of the corresponding campaign. Additionally, the applicable payments must be made.

In Mexico, there is a non-binding self-regulator association, which is known as CONAR (Self-regulation and Advertising Ethics Council A.C). CONAR’s mission is to exercise advertising self-regulation among its affiliates and procure the legal framework throughout the industry to promote fair competition and defend Mexican consumers by providing accurate and timely advice through responsible advertising. CONAR is used many times to enlighten and guide our authorities about day-to-day cases that are related to advertising matters.

There are two proceedings available before the Mexican Consumer Protection Agency (PROFECO), in which private parties may challenge advertising practices:

  • Complaint: Any individual may file a complaint denouncing the existence of unlawful advertising practices. This complaint may lead to an investigation and to penalties against the advertiser. 
  • Arbitration: In this case, parties seek to conciliate before the authority, with the purpose of reaching an agreement to solve the matter. Terms of agreement usually include a reimbursement of any prices paid by the consumer, indemnification for damages caused by the unlawful practice or granting of additional goods or services. 

In case there is no agreement between the parties, consumers may file a civil action obtaining damages from the advertiser that may have been caused by the unlawful advertising.

The rules for advertising derived from the Health Act provide specific guidelines and limitations for advertising on: health services; food, food supplements and non-alcoholic beverages; infant formulas; alcoholic beverages and tobacco; health supplies, drugs, herbal remedies, medical equipment, surgical and healing supplies; hygiene products; cleaning products; perfumes, lotions, cosmetics and beauty products; pesticides, plant nutrients and toxic or dangerous substances; and biotechnological goods. For some of them, a special authorisation is needed to advertise the product; for other industries, a notice given to the authority is enough. Moreover, when the pandemic happened, a publicity venue that had significant growth was social media. Social media users, especially influencers, gave birth to many cases that were prosecuted by the advertising “competent authorities” due to misleading advertising, unlawful competition and lack of publicity permits (regulatory).

In Mexico during 2022, the Federal Law for Protection of the Cultural Heritage of Indigenous and Afro-Mexican Peoples and Communities was published. This law has the objective of protecting the intangible cultural heritage of native peoples and communities, in that sense any use, exploitation and commercialisation, including advertising, of any expression that is part of cultural heritage requires prior authorisation.

Such authorisation must comply with the requirements established by Mexican Law, respect the uses and customs of the people and/or community in question and must be reviewed and approved by the Mexican Authority on the matter.

Our current administration is trying to modify the advertising industry - targeting the agencies, rather than protecting consumers - and a clear example of this are the laws related to transparency in advertising contracting and outdoors advertising. However, in 2024, Mexico will be involved in several election processes, including the presidential election, so it will be important to be aware of the changes that may occur.

According to the Federal Consumer Protection Law, misleading advertising or abusive information is understood as advertising that refers to characteristics or information related to any good, product or service that may or may not be true, or that could mislead or confuse the consumer by the inaccurate, false, exaggerated, partial, artificial or contentious way in which it is presented.

In principle, all advertising claims are subject to regulation. The Federal Consumer Protection Law (FCPL) states that advertising must be truthful, subject to substantiated and clear texts, dialogues, sounds, images, trade marks, denominations of origin or other descriptions that induce or may induce into error or confusion, due to their misleading or abusive nature.

Claims that may not be objectively measured could be acceptable and are not subject to substantiation, provided that they do not violate the legal principles mentioned above. 

Implied claims will be analysed on a case-by-case basis to determine if they comply with the principles of the FCPL mentioned above, and empirical evidence is frequently used as a means for their substantiation.

Empirical evidence is frequently used to substantiate advertising claims and the specific type of substantiation will depend on the nature of the claim. 

For example, if a claim states that a type of liquid soap kills 99% of bacteria, a laboratory study will be an acceptable means to substantiate that claim. If another claim states that eight out of ten individuals prefer hamburgers from Restaurant “X”, then a survey which follows scientific criteria will be an acceptable means for substantiating this claim.

A first aspect to consider is determining whether the product or service shown in the advertisement is regulated by a mandatory Technical Standard or not. If the answer is “yes”, testing must be based on the rules, methods and procedures established in the applicable Technical Standard. If the answer is “no”, there will be more flexibility on the testing to be conducted, although it will be important that this testing is based on scientific standards.

There is currently no legislation in Mexico that specifically addresses these types of issues; however, general advertising standards must be complied with. For example, the Consumer Protection Law establishes that all information or advertising related to goods, products or services that are broadcasted by any means or form must be truthful, verifiable and clear, and therefore any endorsements and testimonials must comply with these characteristics.

Currently in Mexico, there is no legislation that specifically addresses these types of issues; however, general advertising standards must be complied with.

There is no current federal regulation that addresses stereotyping in advertising or inclusion, diversity and equity.

However, there are some local laws which do address this topic, as in some states it is prohibited to disseminate advertising containing harmful prejudices and stereotypes.

For example, local laws in Mexico City prohibit the use of sexist stereotypes in advertising, which are deemed to associate denigrating, exclusionary, submissive, racist or derisive messages with women, or to present women, their bodies or parts thereof, as mere objects.

In these laws, it is claimed that their purpose to avoid the violation of the dignity or rights of individuals.

There is no current regulation regarding green marketing, sustainability claims and greenwashing. The government had implemented different programmes in order to encourage companies to apply green marketing measures.

The most transcendental programme implemented by the Government is “Plan Verde”, a campaign that contains the strategies and actions to put Mexico on the road to sustainable development. This programme was only implemented by the Mexico City government and it is not applicable in other states of the country.

Both the Consumer Protection Law and Mexican official standards establish provisions to protect consumers from deceptive activities by suppliers, such as dark patterns.

In Mexico, there are several regulations for advertising directed to children.

For example, the Federal Consumer Protection Law, the General Health Law, the Regulation to the General Health Law Regarding Advertising, and other self-regulatory bodies, establish parameters and restrictions for advertising directed to children. These regulations include issues such as the prohibition of content that could be considered as harmful or misleading and time restrictions on when certain types of advertising could be aired.

A few months ago, the Federal Consumer Protection Agency (PROFECO) developed the Influencer Advertising Guide. This serves as a reference tool for influencers and content creators, consumers and the general public, to ensure compliance with the advertising provisions. However, considering it is only a guide, the enforceability of it is complicated.

The Industrial Property Law stipulates that signs, phrases, image elements, sentences, advertisements or trade names which are susceptible to deceiving or misleading the public, may not be registered.

Likewise, the law contemplates that signs that are identical or confusingly similar to geographical areas, whether proper or common, maps, town names or adjectives that indicate the origin of the goods or services and may cause confusion or error as to their origin can not be registered.

Included in this case are those signs that are accompanied by expressions such as “genre”, “type”, “manner”, “imitation”, “produced in”, “manufactured in” or other similar expressions that create confusion for the consumer or imply unfair competition.

The Federal Consumer Protection Law allows the public comparison between products or services, as long as that information is not false, misleading or abusive or presented in an inaccurate, false, exaggerated, partial, artificial or contentious way. In the same vein, the Industrial Property Law (LFPPI) excludes from consideration the lawful comparison between products or services from trade mark discrediting, as long as it is with informative purposes. 

In addition, the Federal Consumer Protection Law gave powers to the Federal Consumer Protection Agency (PROFECO) to issue guidelines for comparative advertising, with the purpose of avoiding said comparative advertising from inducing the consumers into error or confusion. Up until now, PROFECO has only issued one set of guidelines dealing exclusively with the procedures and requirements for the comparison of prices of identical goods or services which are commercialised by different providers. The guidelines were published in 2009.

There are some specific requirements that must be considered with regard to comparative advertising claims in addition to those applicable to general advertising claims. In this sense, the Federal Consumer Protection Law states that the information or advertising that compares products or services, from the same brand or from different brands, shall not be misleading or abusive as said terms are defined by the law (see 2.1 Deceptive or Misleading Claims).

With regard to the comparison of prices of goods or services, the specific requirements established in the Federal Consumer Protection Agency’s 2009 Guidelines must be observed. These requirements include:

  • The goods or services must be identical.
  • The prices must be supported with a proof of purchase or with a certification issued by a Notary Public/Commercial Notary Public.
  • The documents mentioned above must include the identity of the provider with whom the comparison is made and its domicile.

Comparative information will be valid for five days counted from the date of purchase or the date of certification of a Notary Public/Commercial Notary Public.

The Federal Consumer Protection Law allows any individual or company to denounce a violation of that law before the Federal Consumer Protection Agency (PROFECO); for example, if an advertisement violates the principles established in said law (eg, that all advertising shall be truthful and not misleading), PROFECO will initiate an investigation of the claim and if it considers that the advertisement violates the law, it may order its suspension and/or impose a fine on the advertiser.

The Advertising Self-Regulation and Ethics Council (CONAR) also has a procedure to settle disputes between its members or between parties that, without being members, submit themselves to CONAR’s procedures regarding advertising claims.

Comparative advertising is not as frequent in Mexico as it is in other countries (eg, the USA). The most common practice in Mexico is price comparison which can be seen directly by the consumers in supermarkets, and which is a useful means for them to purchase goods with a degree of certainty that they are paying a lower price than the one available in other establishments.

Although it is true that in Mexico there is no specific regulation, the Consumer Protection Law establishes parameters and restrictions to detect and eliminate unlawful practices which ambush marketing could fall into. Therefore, the advertiser must be very careful to not incur in questionable practices that could me consider ambush marketing.

A few months ago, the Federal Consumer Protection Agency (PROFECO), developed an Influencer Advertising Guide as an instrument to instruct and guide influencers and content creators with respect to compliance with the applicable provisions on advertising in Mexico. However, the guide is only a reference tool for influencers and content creators, consumers and the general public to ensure compliance with the advertising provisions established in the Federal Consumer Protection Law.

Nevertheless, there are no other regulations that address the use of social media platforms. Therefore, if any of these social media platforms involve activities related to e-commerce or marketplaces operations eg, Facebook, there are specific regulations for this activity in particular, mostly for the sellers rather than the users.

In addition, consideration should be given to whether there are other activities of the platform that could imply regulations of another nature eg, money reward programmes based on the number of views or likes when the performer/user is a minor.

There are no strong precedents that could lead to the conclusion that there is a single position. There are crossed opinions on the level of responsibility that social media and sites administrators should have for the content posted on their platforms by third parties (users). Based on good practices adopted, such as removal the of content procedures allowed and “notice and takedown” techniques, immediate reactions from site administrators to remove the advertising content, or to have a policy to suspend users accounts that do not comply with the terms and conditions of the site, those social network or advertisers’ administrators may be protected from legal responsibility under a safe harbour model. All of the foregoing only applies if the social network or advertiser did not directly participate in the illegal act.

Considering that the recent Influencer Advertising Guide created by the Federal Consumer Protection Agency is only a reference tool and not yet an enforceable law, it would mostly depend on the nature of the product or service, rather than the channel of disclosure.

Regardless of the Influencer Advertising Guide, there are no regulations in force that specifically address the use of social media platforms. However, if any of these social media platforms involve activities related to e-commerce or marketplaces operations eg, Facebook, there are specific regulations for this activity in particular, mostly for the sellers rather than the users.

In addition, consideration should be given to whether there are other activities of the platform that could imply regulations of other nature eg, money reward programmes based on the number of views or likes when the performer/user is a minor.

There are no special rules regarding “native advertising”, other than complying with the regulations for regular publicity.

The Influencer Advertising Guide made by The Federal Consumer Protection Agency (PROFECO) is the only guideline we have in Mexico that focusses specifically on the use of influencer campaigns.

Due to the lack of legislation regarding the day to day activities of influencers in this jurisdiction, everything related to the activity of the same comes to a private contract which is held by the influencer, the brands and, sometimes, the agencies.

There is no current regulation addressing consumer reviews or banning employees or companies from posting reviews online of their own products. However, these activities are considered as improper practices and should be discouraged, as they could lead to commercial consequences or a bad reputation.

There is no current regulation addressing consumer reviews; therefore, the advertiser has no legal duty to monitor the reviews and it would be complicated to hold the advertiser responsible for such activity.

The use of any personal data must be handled with the verifiable consent of the data owner and for obtaining such consent, it is necessary to inform the owner of type of data processing through a privacy notice which must be available to the data owner prior to such processing. In the event of having obtained the personal/contact data indirectly, the privacy notice must be available to data owners in the data holder’s first contact with him/her, which means in the very first marketing email.

The privacy notice used in the marketing emailing is a short version that it must contain at least the following: the controller’s name and address, and the method and means to access and consult the full version of the privacy notice. If after receiving and/or reviewing the above-mentioned information, the data holder does not oppose to the processing of his/her personal data for marketing purposes, then the company may continue with this emailing. However, for those who do not wish to receive this type of communication, it is highly recommended to use opt-out mechanisms which should be enabled in every email sent.

For violations of privacy or data security law, the law provides a list of actions that are grounds for sanctions. Fines range from 100 to 320,000 times the current minimum daily wage (approximately USD5.38). In case of recurring infringements, an additional fine may be imposed and may be doubled if the case involves sensitive data. Sanctions may be imposed without prejudice to any civil or criminal liability that could arise.

As in many of the existing privacy legal frameworks, opposition is one of the rights considered in privacy and data protection regulation. This right is mainly focused on non-core purposes and as marketing is always considered as secondary purpose, the data owner can exercise this right at any moment. Data controllers must act accordingly in order to comply with the local regulation, otherwise, sanctions may be imposed.

Telemarketing is aligned with privacy regulations if:

  • a short version of the Privacy Notice is available at the beginning of the call;
  • there is consent from the data owner; and
  • an opt-out mechanism or an unsubscribe list option is enabled.

As mentioned, the use of personal data is allowed for secondary purposes (in this case through text messaging) if data holder grants his/her consent after having been informed about personal data processing and does not oppose to the use of data for the informed purposes. Unsubscribe lists and opt-out mechanisms must be enabled too.

Non-compliance with previous requirements could lead to sanctions considered by the Mexican privacy legal framework.

Although most targeted/interest-based advertising currently depends on the use of AI, cookies, beacons and similar technologies, the local legal framework only considers informing data owners of the use of these type of technologies (if any) and the way to disable them as a statutory requirement. As with the other elements in data processing, this information must be part of the privacy notice.

Fortunately, awareness in privacy and data protection is rising and the use of tools/mechanisms for easy customisation of this type of technologies is increasing.

Unfortunately, the local legal framework does not consider special rules/requirements for processing children’s personal data. Thus, the criteria for processing data of this community are the same as those applied to adults’ data processing.

Notwithstanding the above, Mexican Privacy Law considers the population of children as a “special” sector, and it establishes that data processing must be carried out without the use of misleading or fraudulent means. Thus, any bad use of children data shall be prosecuted and punished, and potentially increases the sanctions that may be imposed by the Authority.

It is highly recommended that consent for the privacy notice is provided by using using a checkbox as well as the implementation of plugins for age verification.

Data Privacy and Consumer Protection regulations contemplate that the processing of personal data for advertising purposes may only be carried out with the prior express consent of the owner of the personal data. Additionally, advertising companies are usually in charge of the processing of personal data, so it is necessary for the existence of an agreement between the advertising agency and whoever hires the service to determine who will be responsible for this data as well as the processing of the same, according to the consent of the owner of the personal data.

In the event that sweepstakes or chance-based contests are carried out within Mexican territory (eg, if the draw will take place in Mexico), there will be a need to obtain a permit from the Ministry of the Interior.

Consumers may be required or requested to make a purchase in order to participate, but in these types of promotions, the organiser must file a notice before the Federal Consumer Protection Agency (PROFECO), at least 72 hours prior to the start of the relevant promotion.

In accordance to the applicable legal framework, games of chance are based upon randomness and the result of the game is totally outside of the player’s will.

A game of skill implies that its result is not based upon randomness and that the player’s will and skills will determine the outcome of the game.

The organiser of a game of chance to be carried out in Mexico (eg, if the draw will take place in Mexico) must obtain a prior permit from the Ministry of the Interior. This procedure may take from four to six weeks to be concluded. The authority will analyse, on a case-by-case basis, the mechanics of the game to ensure its fairness. The organiser will be asked to hire a bond to guarantee the payment of the prizes.

In case that the game of chance includes a purchase requirement, the organiser must additionally file a notice before the Federal Consumer Protection Agency (PROFECO), at least 72 hours prior to the start of the game of chance.

Contests of skill do not require a permit from the Ministry of the Interior. Nevertheless, if these contests include a purchase requirement, the organiser must file a notice before PROFECO at least 72 hours prior to the start of the contest.

In the case of offers, the Federal Consumer Protection Law (FCPL) establishes the following specific rules:

  • The advertising of offers must include the conditions, as well as the term or available quantity of the offered goods/services.
  • The available quantity of the offered goods/services will be subject to verification, if and when required by the Federal Consumer Protection Agency (PROFECO).
  • In case that there is no information on the offer’s term or available goods/services, it will be presumed that they are indefinite, up until the moment that the offer is publicly finalised through the same means of communication in which it was advertised.
  • Each and every consumer that complies with the applicable requirements for the offer will have the right to acquire the applicable goods/services during the term of the offer or as long as there is availability of the relevant goods/services.
  • There is a prohibition on the carrying out offers in which the advertised monetary value of the good/service is clearly superior to the one normally available in the market.

In the event that the offering party does not comply with its offer, the consumer may opt for:

  • requesting compliance;
  • accepting another equivalent good/service; or
  • terminating the contract.

In all three cases, the consumer will have the right to receive a monetary payment representing the difference between the price in which the good/service in the offer was offered and its regular price. In addition, the consumer will have the right to a monetary compensation equivalent to 20% of the price paid by the former.

The Federal Consumer Protection Law (FCPL) and its Regulations establish that automatic renewal/continuous service offers under which a marketer can continue to ship and bill for products and services on a recurring basis until the consumer cancels may be carried out, provided that the consumer has previously authorised the charges or that said charges derive from a related contract. In case that these requirements are not met, the above-mentioned offers would violate the FCPL and its Regulations.

There are no special rules regarding “the use of artificial intelligence”, other than complying with the regulations for regular publicity. However, considering the continuous growth of this field, Mexican legislators have been working in regulation projects to address this issue. We expect to have new regulatory frameworks addressing these issues in the next months.

In our country, there are no regulations addressing the use of artificial intelligence, other than complying with the regulations for regular publicity.

Mexico has no special rules regarding the use of chatbots or any other similar programme, other than complying with the regulations for regular publicity.

We do not have any specific rules or regulations that apply to advertising, depending on the broadcasting channel, but only general provisions. For its part, our e-commerce policies are still in development. As of today, e-commerce is mainly regulated by three norms and a tool enabled as “good practice”:

  • the Consumer Protection Act;
  • the Code of Commerce; and
  • the Mexican Norm for e-commerce NMX-COE-001-SCFI-2018 (non-binding).

The Ethics Code and digital seal implemented by PROFECO (voluntary, considered as a good practice). In addition, cryptocurrency is not recognised as legal tender in Mexico, nor recommended to consumers/users. NFTs are slowly gaining recognition with no specific regulations scheduled to be issued in the near future, but there are concerns about the basic offer and civil norms and copyrights are demanded. Unfortunately, the Mexican legal system is not characterised as being avant-garde when talking about Information and Communication Technologies (ICT).

There are no laws or regulations addressed to the metaverse, and no cases have been ruled on either, be it related to advertising or to any other subject. First of all, a matter of jurisdiction is urgently needed to be established and to what extent Mexican authorities would be entitled to act in a virtual world that does not know about physical borders. In light of this issue, Mexican authorities may only find a way to intervene when the advertiser is a Mexican company, the server that holds the virtual space is located in Mexico or if the affected consumer is Mexican or physically located in Mexican territory, despite its avatar.

Advertising related food supplements, alcoholic beverages, medicines, herbal remedies, medical equipment and toxic or dangerous substances, must have a permit from Ministry of Health.

Depending on the specific case, some products must contain a message of social responsibility regarding the consumption of such products in their advertising.

There is no specific regulation related to product placement as such, but in any case, the Intellectual Property Law would be applicable.

Previously, unauthorised product placement could be considered as trademark use, so it was vulnerable to infringement actions. However, with the new amendment to the IP Law, a definition of trademark use was added for the case of infringement, therefore, product placement no longer falls under this assumption.

In any case, if the image of the trademark or its owners is affected, civil actions may be initiated.

Products that are prohibited from being consumed are prohibited from being advertisement in Mexico as well, eg, vapes, cannabis (with the exception of personal use but not on advertising), cryptocurrency operations. In addition, the advertisement of financial services must have specific authorisations from the Central Bank (Banxico) and the National Banking and Securities Commission (CNBV), depending on the permits granted, to operate specific financial/monetary activities. Moreover, all advertising related to special events must take care not to infringe sponsorships spaces, and/or perform activities that may be considered ambush marketing. Private entities, such as FIFA, annually issue their own guidelines to avoid advertising misconduct during their soccer events, and iwith the World Cup taking place in Mexico, the US and Canada in the next few years, we can expect a lot of activity regarding the prevention of such practices to be carried out. Cases of this nature may be addressed to the Federal Economic Competition Commission (COFECE).

Arochi & Lindner, S.C.

Insurgentes Sur 1605 - Piso 20
Col. San José Insurgentes
C.P. 03900 Ciudad de México
México

+52 55 4170 2050

+52 55 4170 2113

info@arochilindner.com www.arochilindner.com
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Arochi & Lindner is one of the most respected and recognized names in Latin American intellectual property protection, handling all aspects of IP including trademark, patent, copyright, IP litigation and dispute resolution, IP rights enforcement, life sciences, domain names, trade secret protection, as well as, advertising, marketing, data privacy, blockchain, web 3.0 and the metaverse, civil and commercial litigation, corporate and regulatory law. The firm’s IP portfolio includes IP rights holders from the following sectors: information technologies, entertainment, food and non-alcoholic beverages, alcoholic beverages, pharmaceutical, automobile, apparel, luxury brands, video games, fast-moving consumer goods, sports, retailers, advertising agencies, among others. A&L provides comprehensive coverage against piracy and counterfeiting, and in general terms, of IP rights observance. The firm handles more than 40% of the IP litigation cases in Mexico. Since 1994, A&L has distinguished itself with its legal expertise and exceptional understanding of business needs, expanding their areas of expertise over the years.

Introduction

As a result of the continuous growth and relevance of social networks for advertising around the world, Mexican authorities have increased efforts to create regulatory frameworks to regulate such practices.

In this article, we aim to explain some key points regarding these new authority actions to address such a transcendental topic as advertising in social media, being that social media advertising has grown exponentially in recent years and has become an invaluable factor in commercial, political and social issues.

Advertising Guide for Influencers in Mexico

Summary

In May 2022, a member of the parliamentary group of the political party Morena – currently the political power that holds the presidency – presented a bill with the intention of regulating various aspects related to influencers before the Permanent Commission of the legislature.

Said proposal was called the “Influencer Law” and within it, two main aspects related to social networks and other platforms were contemplated. Firstly, the obligation of content creators (YouTubers and influencers) to declare expressly, immediately and adequately when one of their publications contains advertising messages. The second was the intention to regulate fiscal aspects related to tax obligations and responsibilities and tax collection by these agents.

Another aspect of this proposal is that it proposed a definition for advertising by content creators. This definition included not only consideration for the service by means of an economic retribution, but also negotiations in kind and other benefits included in the concept, such as gift cards, lodging and trips, among others, which are forms of payment that companies usually carry out instead of merely monetary retribution.

In addition, the law proposed a precise definition of what can be understood as an “influencer”, for which it determined that it is a natural person who, through its performance or participation in social networks, collects a large number of followers, fame and prestige, which in turn allows it to influence the consumption decisions of its audience.

However, despite the good intentions of this regulation and the benefits – and also questions – that it could generate, unfortunately this initiative has not progressed before Congress; and therefore, we only have the guidelines of the Guide, which will be addressed below.

In August 2023, the Advertising Guide for Influencers of the Federal Consumer Protection Agency was released. The origin of these actions by the authority arises from the generalised concern regarding the current and increasing participation of influencers and social media content creators in the advertising of goods, products or services that is broadcast through various media platforms, which on many occasions, derived from the lack of laws and regulations, can be carried out in a misleading manner.

The idea of the Guide is to provide information in simple and clear way, so that it can be easily understood and followed by influencers and content creators, or any other party involved in social media advertising, so that they can comply with the regulatory provisions.

It is important to point out that this Guide, although not binding, establishes a clear path to follow in order to respect the regulation of advertising in digital media in Mexico.

The Guide refers to the Federal Consumer Protection Law, which is the main law that regulates commercial advertising in the country, stating that when a content creator provides information or publishes a recommendation of a good, product or service through its platforms or social networks, it is generating advertising, since its purpose is to influence consumers to purchase certain good, product, or service.

Therefore, the advertising materials created and shared by the creators must continue with the obligation to be clear, truthful, verifiable and without any other form that may mislead or confuse consumers.

Among the most relevant points of the guide, include the following:

  • The use of hashtags such as #PaidAdvertising, #Advertising, #PersonalOpinions or #SponsoredBy to disclose the existence of a commercial relationship with the brand being advertised on social media platforms or networks.
  • Place important product information in a visible place and make it available at all times.
  • Use easy-to-understand labels. In the case of audio media, expressly mention that it is advertising.
  • In the case of images or videos, include the reference to the advertisement in such a way that it can be read and appreciated throughout its duration.
  • Review websites of goods and products are to verify that the goods or products are safe and compliant. If possible, share the source so consumers can verify the information.

Finally, it is important to be aware of the rules that exist for specific products like food and beverages, cosmetics, toiletries, health services and supplies, food supplements, beauty and perfume products, etc. This because there are consider products that may present a risk or damage to health.

Where are we now?

In our opinion, it is true that in the Federal Consumer Law there are chapters dedicated to advertising, which show the provisions and principles to be followed by any person who offers products and services in their communication.

However, it is important to make the distinction that there are a variety of different profiles in social networks; for example, there is the profile of the person who uses their networks and social profiles in a personal way to share content with their family and friends organically, to the commercial profiles where restaurants and companies show their products or services, going all the way to celebrities or politicians whose purpose is to use their profiles as a means of exposure among others.

Considering the above, with the importance of influencers and content creators today and with companies spending a large part and in some cases the majority of their budgets on social media campaigns, it is vital to have some kind of regulatory instrument to address these issues in a more particular way.

Although it is true that the normative rank of this document is not the desired one, since it lacks enforceability considering that the Influencers Guide is more a document with recommendations than a legal framework, it is definitely a very useful first step towards the implementation of new legal tools to regulate influencers' activity in the advertising field.

Nowadays the authorities responsible for enforcing advertising practices in general are the Federal Institute of Telecommunications (IFT), as they are the government agency responsible for regulating the activities of media outlets across different topics, the Mexican Commission of Economic Competence (COFECE), which is a government body whose purpose is to enforce anti-trust regulations, the Federal Consumer Protection Agency (PROFECO), which is the governmental institution that protects the rights of Mexican consumers, with the purpose of preventing abuses and guaranteeing fair consumer relations, and finally the Mexican Food and Drugs Administration (COFEPRIS), responsible for the exercise of attribution in matters of production, commercialisation, importation, exportation, advertising and general control of sanitary inputs, under the terms of the General Health Law.

The above-mentioned government institutions are in charge of advertising practices, however, in order to clearly establish the attributions and the involvement that each one should have, it will be necessary to have actual legal regulatory frameworks to regulate advertising practices in social media and therefore, provide legal certainty to both content creators and consumers.

We believe that it is of utmost importance that when planning additional legal frameworks to regulate the advertising framework in Mexico, inquiries with the different agents be carried out, such as authorities, companies, influencers and lawyers, that will be directly or indirectly involved and affected by the creation of the new legal tools. The foregoing is so that they can share their positions and experiences, in order to be taken into consideration once the new regulations are implemented.

Moreover, considering that social networks are nowadays the most important advertising media in Mexico, and that precisely taking into account that in the coming months we will be immersed in an election, although it is true that electoral issues have their own regulations, there are precedents in which content creators have been involved in illegal electoral advertising practices, but in the absence of a specific regulatory framework, the corresponding authorities have had the necessity to opt for other regulations to sanction.

What can we expect for the future?

Although there is no certainty of when will the Mexican authority will elaborate on more legal frameworks in order to address these issues. We consider it is very likely that the Mexican government will back down in its efforts to regulate this aspect of the advertising industry.

Considering that advertising, electoral and social activities through social networks are increasing every day, as well as the unlawful practices that occur in them, it would therefore be unreasonable not to address this priority issue, since the authorities themselves are affected by a lack of tools to address the problems involved with advertising of any kind on social networks.

Therefore, we consider that it is almost certain that, eventually, more legal tools will be available to handle social media activities in advertising.

In view of these circumstances, we recommend consulting experienced counsel if you are interested in engaging in activities related to social media advertising in Mexico, as it is important to ensure compliance with the current applicable regulations, as well as to be aware of the status of upcoming laws, authorities and legal challenges related to influencer activities.

Arochi & Lindner, S.C.

Insurgentes Sur 1605 - Piso 20
Col. San José Insurgentes
C.P. 03900 Ciudad de México
México

+52 55 4170 2050

+52 55 4170 2113

info@arochilindner.com www.arochilindner.com
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Arochi & Lindner is one of the most respected and recognized names in Latin American intellectual property protection, handling all aspects of IP including trademark, patent, copyright, IP litigation and dispute resolution, IP rights enforcement, life sciences, domain names, trade secret protection, as well as, advertising, marketing, data privacy, blockchain, web 3.0 and the metaverse, civil and commercial litigation, corporate and regulatory law. The firm’s IP portfolio includes IP rights holders from the following sectors: information technologies, entertainment, food and non-alcoholic beverages, alcoholic beverages, pharmaceutical, automobile, apparel, luxury brands, video games, fast-moving consumer goods, sports, retailers, advertising agencies, among others. A&L provides comprehensive coverage against piracy and counterfeiting, and in general terms, of IP rights observance. The firm handles more than 40% of the IP litigation cases in Mexico. Since 1994, A&L has distinguished itself with its legal expertise and exceptional understanding of business needs, expanding their areas of expertise over the years.

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Arochi & Lindner is one of the most respected and recognized names in Latin American intellectual property protection, handling all aspects of IP including trademark, patent, copyright, IP litigation and dispute resolution, IP rights enforcement, life sciences, domain names, trade secret protection, as well as, advertising, marketing, data privacy, blockchain, web 3.0 and the metaverse, civil and commercial litigation, corporate and regulatory law. The firm’s IP portfolio includes IP rights holders from the following sectors: information technologies, entertainment, food and non-alcoholic beverages, alcoholic beverages, pharmaceutical, automobile, apparel, luxury brands, video games, fast-moving consumer goods, sports, retailers, advertising agencies, among others. A&L provides comprehensive coverage against piracy and counterfeiting, and in general terms, of IP rights observance. The firm handles more than 40% of the IP litigation cases in Mexico. Since 1994, A&L has distinguished itself with its legal expertise and exceptional understanding of business needs, expanding their areas of expertise over the years.

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