Advertising, Marketing & Promotion Comparative Guide

1 Legal framework

1.1 What are the main legislative and regulatory provisions that govern advertising in your jurisdiction?

Advertising in the Czech Republic is regulated by multiple legal acts, which are largely influenced by European law.

The key statute is the Advertising Regulation Act (40/1995 Sb), which sets out general rules on:

• advertising;
• the distribution of advertising;
• industry-specific advertising;
• advertising as an unfair commercial practice;
• the relevant supervisory authorities; and
• sanctions.

The Advertising Regulation Act also implements EU regulations on various issues of advertising law.

Further applicable legal regulations can be distinguished based on:

• the target of the ad (consumer, business entity);
• the method of advertising (eg, press, radio, television, internet, posters); and
• the products or services being advertised (eg, pharmaceuticals, banking and financial services, gambling).

Apart from the Advertising Regulation Act, other important statutes include:

• the Consumer Protection Act (634/1992 Sb);
• the Radio and Television Broadcasting and Operation Act (231/2001 Sb);
• the Civil Code (89/2012 Sb);
• the Information Services Society Act (480/2004 Sb);
• the Electronic Communications Act (127/2005 Sb);
• the Pharmaceuticals Act (378/2007 Sb);
• the Audiovisual and Media Services on Demand Act (132/2010 Sb);
• the Code of Administrative Procedure (500/2004 Sb); and
• the Liability for Offences Act (250/2016 Sb), as the basis for administrative procedures relating to the violation of public law.

It is also necessary to comply with the data protection regulations – in particular:

• the EU General Data Protection Regulation; and
• the Personal Data Processing Act.

Where advertising constitutes an unfair commercial practice (unfair competition), the civil law perspective is regulated by the Civil Code. From the public law perspective, in case of violation of the rules on unfair competition, the Criminal Code and/or the Act on Criminal Liability of Legal Persons and Proceedings against Them may also apply (both natural and legal persons may be found guilty).

Finally, ethical standards and decision-making of self-regulatory bodies play an important role in the advertising industry.

1.2 Which bilateral or multilateral instruments or treaties with effect in your jurisdiction (if any) have particular relevance for advertising in your jurisdiction?

As the Czech Republic is a member state of the European Union, the vast majority of supranational legal instruments and treaties with relevance in the Czech Republic come from the European Union.

The most important EU regulations and directives in the context of advertising are:

• Regulation 2017/2394 on cooperation between national authorities responsible for the enforcement of consumer protection laws;
• Directive 2006/114/EC concerning misleading and comparative advertising;
• Directive 2003/33/EC on the approximation of the laws, regulations and administrative provisions of member states relating to the advertising and sponsorship of tobacco products;
• Directive 2005/29/EC concerning unfair business-to-consumer commercial practices in the internal market; and
• Directive 98/6/EC on consumer protection in the indication of the prices of products offered to consumers.

1.3 What industry codes or guidelines have relevance for advertising in your jurisdiction?

The Czech Advertising Standards Council (CASC) has published the Code of Advertising Practice, which sets out moral and ethical rules on advertising. Although the code is not a legal regulation and is binding only upon members of the CASC, it is widely respected. The CASC is also qualified to provide expert opinions based on which the competent public authorities may impose sanctions under the applicable laws.

The Association for Internet Progress has also issued:

• two separate codes:
• • the Code of Ethics for Advertising and Marketing Communication via the Internet; and
  • the Code of Conduct for Taking Over and Use of Extraneous Content on the Internet; and
• two supporting documents:
• • the Rules on Native Advertising; and
  • the Influencer Code.

1.4 Which bodies are responsible for implementing and enforcing the advertising regime in your jurisdiction? What is their general approach in doing so?

There are multiple supervisory authorities whose competence is determined by:

• the advertised product; and
• related industry-specific regulation.

The only authorities with competence unrelated to advertised content or media type are trade licensing offices (which have residual competence). Authorities with limited competence include:

• the State Institute for Drug Control (pharmaceuticals);
• the Central Institute for Supervising and Testing in Agriculture (fertilisers and other agriculture-related products);
• the Agriculture and Food Inspection Authority (food and tobacco);
• customs offices (gambling);
• the Office for Personal Data Protection (protection of personal data and dissemination of electronic commercial marketing materials); and
• the Council for Radio and Television Broadcasting of the Czech Republic (radio and television).

In addition, municipalities may further regulate the placement and distribution of advertising materials – in particular:

• advertising in public places;
• periods and means of advertising that are prohibited; and
• events that are not covered by the advertising ban.

The courts will also play a role in the event of:

• a dispute resulting in an action or interim measures concerning an infringement of unfair competition law; or
• an appeal against a resolution of a relevant administrative body.

If a violation of the unfair competition rules intentionally causes harm or benefits on a large scale, such conduct may be considered a criminal offence, which will be investigated by the law enforcement authorities.

2 Authorisation and clearance

2.1 Do advertisers need any kind of licence or authorisation in order to operate in your jurisdiction?

No licence or authorisation is required for advertisers to operate in the Czech Republic, with the exception of a free trade licence. However, special restrictions apply to the advertising of certain products.

2.2 Do ads require any kind of clearance before they can be released in your jurisdiction?

There is no general legislation in place on the clearance of ads before their release. Therefore, no prior clearance is needed.

3 General advertising regime

3.1 What general rules and requirements apply to ads in your jurisdiction?

Pursuant to the Advertising Regulation Act, ‘advertising' encompasses an announcement, demonstration or other presentation disseminated – in particular, through the communication media – with the aim of promoting business activity, including in particular:

• the consumption or sale of products;
• the construction, lease or sale of immovable property;
• the sale or use of rights or obligations;
• the promotion of the provision of services; or
• the promotion of a trademark.

In general, advertising:

• must comply with applicable law;
• must be fair (ie, must not constitute an unfair commercial practice);
• must not be contrary to good morals or attack political beliefs; and
• must not promote behaviour that
• • is detrimental to health;
  • would endanger the safety of persons or property; or
  • is detrimental to environmental protection interests.

A commercial practice is considered to be unfair if it:

• is contrary to the requirements of due care; and
• substantially distorts or is likely to substantially distort the economic behaviour of the consumer:
• • to whom it is addressed; or
  • who can be affected by it in relation to the product or service.

The Consumer Protection Act further sets out a detailed list of unfair commercial practices (in relation to consumers).

There are also several basic principles that any advertiser should bear in mind when producing advertising materials.

3.2 What rules and requirements apply to puffery in your jurisdiction?

The use of claims that cannot be objectively measured (ie, puffery) is generally permitted. However, the specified general rules for advertising must be met (see question 3.1) – in particular:

• the advertising must not be deceptive, misleading or false; and
• it must be clear that the relevant claims or statements or other used means of communication are puffery.

This assessment:

• must be conducted from the point of view of recipients who might be affected by the advertising; and
• should take into consideration in particular their age and ability to recognise the puffery.

3.3 Under what circumstances must claims in ads be substantiated?

There are no specific rules on the substantiation of advertising claims. However, the general rules apply (see question 3.1) and claims should be substantiated to avoid potential problems.

Pursuant to both the Consumer Protection Act and the Advertising Regulation Act, the supervisory authority is entitled to require an advertiser to submit evidence of the truthfulness of the factual statements (claims) made in the ad. This requirement must be proportionate to:

• the circumstances of the case; or
• the legitimate interests of the advertiser or another person.

In case of failure to submit such proof or if such proof is deemed insufficient, the factual claims are deemed incorrect.

In addition, the Advertising Regulation Act empowers the relevant supervisory authority to:

• order the removal or termination of advertising that is in violation of the law and set an adequate deadline for such removal/termination;
• prohibit inadmissible comparative advertising or unfair business practice as an infringement of EU Regulation 2017/2394;
• suspend the dissemination of unauthorised comparative advertising; and
• publish its decision and order publication of a corrective statement.

3.4 What rules and requirements apply to the use of the following? (a) Test results; (b) Survey results and (c) Testimonials.

(a) Test results

Under the Consumer Protection Act, a commercial practice is deemed to be misleading if, among other things, it:

• contains truthful information; and
• leads or is likely to lead a consumer to a purchasing decision which he or she would not otherwise have made because it misleads or is likely to mislead him or her in any way as to:
• • the existence and nature of the product or service; or
  • the main features of the product or service, such as the expected results of its use or the results of tests or controls carried out.

Taking the above into consideration, the use of test results may also constitute unfair competition under the Civil Code. In this regard, the question arises as to whether and how competitors can argue with the results of independent consumer tests and make them part of their own advertising. The short answer is that the results of a consumer test can be used if such use would stand up as admissible comparative advertising. They must not be interpreted in a one-sided way, cherry-picking partial data and thereby creating a distorted picture of reality. Advertising must refer to genuinely professional, independent and sufficiently representative tests; otherwise, it will most probably qualify as unfair competition.

(b) Survey results

In certain cases, the use of survey results may constitute:

• an unfair commercial practice under the Consumer Protection Act; and
• an act of unfair competition under the Civil Code.

(c) Testimonials

Under the Consumer Protection Act, where a seller provides consumer reviews, information on whether and how it ensures that the published consumer reviews come from actual consumers is also considered material information. Failure to provide this information is a misleading omission which constitutes a misleading commercial practice.

Furthermore, it is always a misleading commercial practice for a seller to:

• state that reviews of a product or service are from a consumer who has actually used or purchased the product without taking reasonable steps to verify that they are from such a consumer; or
• publish false consumer reviews or endorsements, engage another person to provide such consumer reviews or endorsements or misrepresent consumer reviews or endorsements on social media in order to promote a product or service.

3.5 What rules and requirements apply to the protection of minors?

Pursuant to the Advertising Regulation Act, if advertising concerns persons under the age of 18, it must not:

• encourage behaviour that would be detrimental to their health, physical or mental development;
• take advantage of the special trust put in their parents, legal representatives or other persons; or
• inappropriately depict them in dangerous situations.

Moreover, the Consumer Protection Act also defines a prohibited aggressive commercial practice of directly encouraging, through advertising, children to:

• buy a product or service; or
• persuade an adult person to buy a product or service.

Under the General Data Protection Regulation, children must be specifically protected with regard to their personal data, as they may be less aware of:

• the risks, consequences and safeguards concerned; and
• their rights in relation to the processing of personal data.

Special protection of children is also reflected in self-regulatory instruments, such as the following:

• The Code of Advertising Practice:
• • contains a separate chapter on advertising related to minors, including general rules as well as special rules related to the safety, food and non-alcoholic beverages advertising aimed at children and advertising in schools; and
  • refers to the use of the Code of Advertising and Marketing Communication Practice/International Chamber of Commerce Code of Advertising and Marketing Communication.
• The Code of Ethics for Advertising and Marketing Communication includes a provision stating that:
• • in marketing communications concerning products that are not suitable for children, these products should be appropriately denominated as such; and
  • where advertising and marketing communications are aimed at children, parents should be encouraged to participate in or supervise their children's interactive activities.

3.6 Are certain forms of advertising prohibited in your jurisdiction?

Apart from the general rules specified in question 3.1, the Advertising Regulation Act stipulates that the following forms of advertising are prohibited:

• unsolicited advertising in paper form, if it harasses the addressee – advertising directed at a specific addressee will be deemed to be harassing if the addressee has made it clear in advance that he or she does not wish to receive unsolicited advertising;
• advertising disseminated in publicly accessible places outside an establishment in a manner other than by means of advertising or promotional devices permitted pursuant to a special legal regulation; and
• the dissemination of an anonymous announcement concerning an election between the announcement of the election and the close of voting.

Municipalities can also issue their own special regulations on advertising, which may also relate to:

• certain public places, time periods and means of disseminating advertising; and
• certain events that are not covered by the advertising ban.

4 Misleading advertising

4.1 On what grounds will an ad be found to be misleading in your jurisdiction? How does the process unfold?

‘Misleading advertising' is defined in the Civil Code (from a private law perspective) as advertising which:

• relates to business activities or a profession;
• aims to promote the sale of products or the provision of services, including rights and duties;
• misleads or is capable of misleading the persons to whom it is addressed or whom it reaches through its presentation or in any other way; and
• is thus evidently capable of affecting the economic behaviour of such persons.

In determining whether advertising is misleading, account is taken of all its distinctive features.

The Consumer Protection Act:

• prohibits misleading advertising in relation to consumers; and
• defines and describes in detail two basic types of misleading practice by sellers/service providers when selling products or providing services:
• • misleading actions and
  • misleading omissions.

Compliance with the applicable law is overseen by various administrative authorities which usually commence an administrative proceeding (based on a complaint or on their own administrative activity) against the advertiser.

4.2 If an ad is found to be misleading, what are the consequences for the advertiser?

A person whose right has been threatened or infringed by advertiser's misleading advertising may:

• demand that the advertiser;
• • refrain from such activity; or
  • remedy the defect; and
• claim:
• • reasonable compensation;
  • damages; and
  • the payment of unjust enrichment.

The most common sanction for violation of the any of the aforementioned public laws is a penalty. Under the Advertising Regulation Act:

• natural persons may incur a fine of between €4,000 and €80,000; and
• legal persons may incur a fine of up to €200,000.

In addition to the power to impose a fine, the supervisory authorities usually have the power to:

• order the removal or termination of advertising that is in breach of the law; and
• suspend the commencement of or continued dissemination of unauthorised comparative advertising or advertising which constitutes an unfair commercial practice.

4.3 Can the advertiser appeal the decision? If so, what is the process for doing so?

If a civil action is brought against the advertiser and the court rules against it, it can appeal to the High Court and further to the Supreme Court if necessary.

If an ad is found to be misleading, a decision of the supervisory (administrative) authority can generally be appealed. In principle, the appeal is handled by:

• the higher administrative authority in the case of an appeal; or
• the remonstrance committee/head of a central executive body within the supervisory authority (in the case of a remonstrance).

In addition, any decision can subsequently be brought before the administrative court (provided that all available remedies have been used to overrule the decision). The administrative court then issues a decision, which will either:

• uphold the administrative authority's decision; or
• cancel it and return it to the administrative authority for further proceedings.

The judgment of the administrative court can also be challenged, if the necessary conditions are met, by means of an extraordinary remedy called a ‘cassation appeal'. This must be filed with the Supreme Administrative Court within 14 days of the judgment. The Supreme Administrative Court will either:

• uphold the administrative court's decision; or
• cancel it and return it to the administrative court for further proceedings.

5 Specific advertising regimes

5.1 What rules and requirements apply to the following types of advertising in your jurisdiction, and what best practices should be considered in each case? (a) Comparative advertising; (b) Promotional marketing (eg, competitions, lotteries and sweepstakes); (c) Interest-based advertising (ie, tailored advertising based on data collected from internet browsing); (d) Native advertising; (e) Influencer advertising; (f) Ambush marketing; (g) Country-of-origin marketing; and (h) Green marketing.

(a) Comparative advertising

‘Comparative advertising' is defined in the Civil Code as advertising which directly or indirectly identifies another competitor or its products or services. It is permitted if it meets the following conditions:

• It is not misleading;
• It compares products or services that satisfy the same need or are intended for the same purpose;
• It objectively compares one or several relevant, important, verifiable and typical properties of products or services, including price;
• It compares products with a designation of origin only to products with the same designation;
• It does not disparage a competitor, its position, its activities, its results or its identification, or unfairly benefit therefrom; and
• It does not present the advertiser's products or services as an imitation or copy of:
• • the trademarked products or services of a competitor; or
  • the competitor's name.

Furthermore, the Advertising Regulation Act sets out specific rules on:

• the comparative advertising of pharmaceuticals; and
• the enforcement of compliance with the rules on comparative advertising.

Finally, the Consumer Protection Act stipulates that a commercial practice will also be deemed to be misleading if, in its material context, taking into account all features and circumstances:

• it leads or is likely to lead the consumer to make a purchasing decision which he or she would not otherwise have made; and
• it involves any marketing of a product or service, including comparative advertising, which leads to confusion with another product or service, or the trademark, trade name or other distinctive signs, of another seller.

(b) Promotional marketing (eg, competitions, lotteries and sweepstakes)

The basic legal regulations governing chance-based games/skills-based contests are:

• the Civil Code; and
• the Consumer Protection Act.

The following should also be considered:

• advertising law (Advertising Regulation Act);
• personal data protection rules (EU General Data Protection Regulation); and
• tax law (Income Taxes Act and Gambling Tax Act).

There are specific rules in the Consumer Protection Act on consumer competition, which stipulate that it is a competition, survey or other event organised for consumers:

• that is directly connected to the promotion/offer/sale of a product or service;
• in which the seller undertakes to pay cash or non-cash prizes to participants identified at random; and
• where participation in the competition depends on:
• • the purchase of a certain product or service;
  • the conclusion of a contract with the seller; or
  • the consumer's participation in a marketing action of the seller.

If the competition meets the definition of a ‘gamble' (ie, a game/bet/lottery in which the player places a bet whose return is not guaranteed, and where winning or losing depends in whole or in part on coincidence or chance), further rules will apply as stipulated by the Gambling Act.

Regardless of the specific type, any promotion should be described through clear and comprehensive rules in the Czech language which should be provided or at least available to all entrants.

(c) Interest-based advertising (ie, tailored advertising based on data collected from internet browsing)

Pursuant to the Electronic Communications Act, an opt-in regime is in place for the use of cookies. Therefore, anyone that intends to use or uses electronic communications networks to store data or to access data stored on the terminal equipment of subscribers or users must obtain prior demonstrable consent from those subscribers or users to the scope and purpose of the processing (including in particular advertising and analytical cookies; passivity of the subscriber/user is insufficient). The only exception are cookies necessary for the functioning of the website itself or other services explicitly requested by the user (eg, tools used solely to add items to a shopping cart and complete the order process) – the user need not consent to the use of these.

The use of cookies is also regulated by data protection laws; and official communications on this topic are also published by:

• the Czech Data Protection Office; and
• the European Data Protection Board.

(d) Native advertising

Native advertising is not specifically regulated under Czech law. Therefore, general rules for ads will apply.

From a self-regulatory perspective:

• the Code of Advertising Practice:
• • contains a section dedicated to the identification of advertising that resembles editorial content; and
  • sets out specific rules on personal recommendations in advertising (these are widely used by influencers); and
• the Code of Conduct for Taking Over and Use of Extraneous Content on the Internet – in particular, its supplementary Rules for Native Advertising – covers in-feed units (PR article is the most common case of native advertising in the Czech online media).

(e) Influencer advertising

Since there are no specific laws on influencer advertising, the general requirements on advertising will apply. Tax regulations – which were the first to regulate influencer marketing in any way – will also apply.

It must be clear to users that the content is advertising – that is, ads must be visibly and clearly labelled as such, with such label being available long enough for the viewer or follower to notice and read it.

The Code of Conduct for Taking Over and Use of Extraneous Content on the Internet – in particular, its supporting Influencer Code – stipulates soft-law rules on cooperation with influencers. The basic rule reflects the abovementioned principle, – that is, if there is a paid or barter business cooperation between the influencer and the contracting party, the influencer must include textual or audible information on the business cooperation in content that is created for such purposes.

Furthermore, if the influencer is entitled to receive money or other consideration for the promotion of products and services, it should follow several additional rules, including:

• ensuring that the cooperation is properly labelled;
• adapting the published content to the target group;
• ensuring the truthfulness of the experience with the products and services (an influencer must not lie or withhold information about his or her experience);
• taking into consideration:
• • advertising to target groups if at least one-quarter of the intended audience is under 18 years of age; or
  • advertising products or services listed in the Advertising Regulation Act;
• complying with the rules of the relevant platform; and
• complying with general legal regulations and respecting any request of self-regulatory bodies to rectify any violation.

(f) Ambush marketing

The term ‘ambush marketing' is not defined in Czech law and there are no special legislative provisions aimed at preventing ambush marketing in general.

However, there are certain laws which are more or less infringed by entities that use this kind of offensive marketing technique. These include, among others:

• the provisions of the Civil Code on competition law – in particular, infringement of the prohibition of unfair competition; and
• the provisions of the Copyright Act on copyrighted works – ambush marketing may, under certain circumstances, lead to the misuse of visual, musical or cinematic materials created for a sports event that are used for marketing purposes without the consent of their owner (mutatis mutandis, a breach of trademark rights may occur).

The Act on the Protection of Olympic Symbols is one of the few special laws that address the issue of ambush marketing in the Czech Republic. The act:

• defines the Olympic symbols;
• confirms that the Olympic symbols are registered in accordance with the applicable legislation and international agreements for the protection of industrial and intellectual property by which the Czech Republic is bound;
• stipulates that the act must be followed by anyone that wishes to be linked with the Olympic movement or the Olympic Games; and
• stipulates that any use of the Olympic symbols for commercial, advertising or other similar purposes is possible only on the basis of a prior written authorisation granted by the Czech Olympic Committee to any designation which forms or contains the Olympic symbols or a part thereof.

(g) Country-of-origin marketing

Under the Consumer Protection Act, a commercial practice is deemed to be misleading, among other things, if it:

• contains truthful information that leads or is likely to lead the consumer to a purchasing decision which he or she would not otherwise have made; and
• misleads or is likely to mislead the consumer in any way as to:
• • the existence and nature of the product or service; or
  • the main features of the product or service, such as geographical or commercial origin.

The Radio and Television Broadcasting Operation Act and the Audiovisual Media Services on Demand Act prohibit commercial communications which suggest that the country of origin is the Czech Republic if the conditions set out in the Food Act are not met.

Furthermore, in its rules on comparative advertising, the Civil Code stipulates that comparative advertising is permitted, among other things, if it compares products with a designation of origin only to products with the same designation (the so-called ‘champagne clause'). However, this condition applies only to the comparison of products and not services, since only the result of an activity can relate to specific characteristics linked to its origin.

(h) Green marketing

There is no specific regulation of green marketing in the Czech Republic. However, the Czech Republic has implemented the European legislation on the use of green marketing, including:

• Directive 2005/29/EC, as amended by Directive (EU) 2019/2161; and
• Directive (EU) 2006/114.

These are reflected in the Consumer Protection Act and the Advertising Regulation Act, which prohibit unfair commercial practices and in particular misleading advertising.

Pursuant to the Consumer Protection Act, a commercial practice is deemed to be misleading if it:

• contains truthful information that:
• • leads or is likely to lead a consumer to a purchasing decision which he or she would not otherwise have made; and
  • misleads or is likely to mislead the consumer in any way as to the existence and nature of the product or service, or the main features of the product or service (eg, benefits, manufacturing process, expected results of use or results and tests or controls carried out); or
• in its material context, taking into account all of its features and circumstances:
• • leads or is likely to lead the consumer to make a purchasing decision which he or she would not otherwise have made; and
  • involves a failure to comply with a clear commitment contained in a code of conduct to which the seller has demonstrably committed itself.

Therefore, green marketing is legal, provided that it is not unfair and otherwise meets the general rules on advertising (see question 3.1).

The European Commission has also adopted a proposal for a Directive on Green Claims that should significantly help in regulating green claims and combat greenwashing.

6 Direct marketing

6.1 What rules and requirements apply to the following types of direct marketing in your jurisdiction, and what best practices should be considered in each case? (a) Telemarketing; (b) Email marketing; (c) Direct mailings; and (d) Opt-out marketing.

The types of direct marketing discussed in this question (see below) all fall within the general definition of ‘advertising' under the Advertising Regulation Act. Therefore, the general rules on advertising will apply (see question 3.1).

Furthermore, direct marketing must also comply wit

h the data protection legislation – if personal data is processed for direct marketing purposes, the advertiser must ensure full compliance with the General Data Protection Regulation (GDPR).

The provisions on unfair competition in the Civil Code and the Information Society Act also address direct marketing. They define ‘unsolicited advertising' as:

• disclosing information about a competitor, products or services, or offering products or services by telephone, fax, email or similar means, where the recipient clearly wishes to be subject to no such activity; or
• sending ads:
• • through which the originator conceals or disguises information which allows for its identification; and
  • do not specify how the recipient can request the cessation of the advertising without incurring extraordinary costs.

However, where advertising is sent to an email address which an entrepreneur has acquired in connection with the sale of products or the provision of services, it does not constitute unsolicited advertising if:

• the entrepreneur uses that address for the direct advertising of its own products or services; and
• the other party has not prohibited such advertising despite being clearly informed by the entrepreneur in the acquisition of the address and each time it was used to advertise of the right to have the advertising cease without any additional costs.

(a) Telemarketing

Apart from the above general regulations that apply to direct marketing, telemarketing is regulated by:

• the Electronic Communications Act;
• the Civil Code; and
• the Consumer Protection Act.

Under the Electronic Communications Act, telemarketing is prohibited unless:

• the number owner has indicated in the public directory that he or she wishes to be contacted for marketing purposes; or
• the telemarketer has the consent of the number owner or the number owner is the telemarketer's customer.

Telemarketers cannot contact number owners on the basis of randomly generated telephone numbers. Direct marketing through automated calling systems without human intervention is also prohibited unless the caller has the prior consent of the number owner. The above applies mutatis mutandis to the data of number owners who are legal persons.

The Civil Code further stipulates as follows:

• Where a trader contacts a consumer by telephone or similar device, the trader must, at the beginning of each call, disclose to the consumer:
• • the business purpose of the call;
  • details of his or her identity; and
  • if he or she is telephoning on behalf of another person, details of that person's identity; and
• an offer made during a call pursuant to the above must be confirmed by the trader to the consumer in text form without undue delay. The consumer will be bound by the offer only after he or she has given his consent electronically or by signing the confirmation of the offer on a document (conclusion of the contract via telephone only is thus impossible).

Telemarketing calls may also be assessed as an aggressive commercial practice under the Consumer Protection Act.

(b) Email marketing

Apart from the above general regulations that apply to direct marketing, email marketing is regulated in particular by the Information Society Act, which stipulates that all forms of communication – including advertising and solicitation to visit websites – intended to directly or indirectly promote the products or services or image of a person's business are considered commercial communications. Email marketing thus falls within the definition of a ‘commercial communication'.

The first rule of email marketing is that contact details may be used for the electronic dissemination of commercial communications only with the recipient's prior consent (compliant with the GDPR). Regardless of the first rule, if a person (either natural or legal) obtains contact details of a customer in connection with the sale of a product or service (compliant with the GDPR), it may use those contact details to disseminate commercial communications relating to its own similar products or services, provided that the customer is given a clear and unambiguous opportunity to refuse consent to such use in a simple manner, free of charge or at the expense of that natural or legal person, when sending each individual message, if the customer did not initially refuse such use.

Email marketing is prohibited if it:

• is not clearly and unambiguously marked as a commercial communication;
• conceals or disguises the identity of the sender on whose behalf the communication is made; or
• is sent without a valid address to which the addressee can directly and effectively send information that he or she does not wish to receive such information from the sender.

(c) Direct mailings

Apart from the above general regulation applicable to direct marketing, direct mailings are regulated by the Advertising Regulation Act, which stipulates that the dissemination of unsolicited advertising in paper form is prohibited if it harasses the addressee. Advertising directed at a specific addressee will be deemed to be ‘harassing' if the addressee has made it clear in advance that he or she does not wish the unsolicited advertising to be disseminated to him or her. Direct mailings may thus be deemed unsolicited advertising if the addressee has made it clear in advance that he or she does not wish the unsolicited advertising to be disseminated to him or her (usually by way of a sign placed on his or her mailbox).

The Advertising Regulation Act also stipulates that municipalities may regulate the dissemination of advertising (both paper and electronic) in publicly accessible places.

(d) Opt-out marketing

As follows from the above, the only type of direct marketing to which an opt-out regime currently applies is direct mailing. Other types of direct marketing are currently subject to an opt-in regime.

7 Indirect marketing

7.1 What rules and requirements apply to the following types of marketing in your jurisdiction, and what best practices should be considered in each case? (a) Product placement; (b) Sponsorship; and (c) Loyalty programmes.

(a) Product placement

Product placement is primarily regulated by:

• the Audiovisual Media Services on Demand Act; and
• the Radio and Television Broadcasting Operation Act.

Product placement is not permitted in:

• news and political-publicist programmes;
• consumer publicity programmes;
• religious programmes; and
• children's programmes.

However, where there is no payment but only the provision of certain products or services free of charge – in particular, production props or prizes for competitors – with a view to their inclusion in a programme, this is not deemed to constitute product placement.

Programmes containing product placement must also comply with the following requirements:

• They must be clearly identified as containing product placement at the beginning, at the end and after each commercial break, so that viewers can in no way be misled as to the nature of the programme;
• Their content and inclusion in the programme must not be affected in such a way as to prejudice the editorial responsibility and independence of the media service provider;
• They must not directly encourage the purchase or rental of products or services – in particular, by making specific reference to those products or services for the purpose of promoting them; and
• They must not unduly emphasise the product placed.

Programmes may not contain product placement of:

• tobacco products, electronic cigarettes or their refills (or product placement by a person whose principal activity is the manufacture or sale of cigarettes, other tobacco products, electronic cigarettes or their refills); or
• medicinal products or therapeutic procedures which are available in the Czech Republic only on prescription.

If the product placement does not comply with any of the above conditions, the Advertising Regulation Act stipulates that it will constitute an unfair commercial practice (under the Consumer Protection Act).

(b) Sponsorship

The Advertising Regulation Act:

• provides general definitions of ‘sponsorship' and ‘sponsor'; and
• stipulates that the provisions of act also apply to sponsorship if not stipulated otherwise therein.

It further provides as follows:

• Sponsorship of tobacco products is prohibited, with the exception of sponsorship of motorsport competitions and sponsorship communications at the venue, with the exception of sponsorship of events or activities which:
• • involve several EU or European Economic Area (EEA) member states; or
  • otherwise have cross-border effects.
• Any form of sponsorship of events, activities or individuals whose purpose or direct or indirect effect is to promote e-cigarettes or e-cigarette refills is prohibited where the object of the sponsorship:
• • concerns several EU or EEA member states; or
  • otherwise has cross-border effects.
• Sponsorship of the following is prohibited:
• • meetings attended by experts and held for the purpose of promoting the prescription, sale, dispensing or consumption of medicinal products for human use and in vitro diagnostic medical devices; and
  • scientific congresses attended by experts, including reimbursement of travel and accommodation costs related to their participation, which is considered advertising (these costs must be appropriate to the purpose of the meeting; otherwise they are prohibited).

The Audiovisual Media Services on Demand Act and the Radio and Television Broadcasting Operation Act set out:

• a special definition of ‘sponsorship' and
• specific rules for sponsorship in these types of media (similar to product placement), including a prohibition against sponsorship of:
• • news and political-publicist programmes; and
  • channels in which more than half of the daily broadcasting time consists of programmes that cannot be sponsored.

Sponsorship must also be addressed from a tax perspective.

(c) Loyalty programmes

Czech law does not explicitly regulate loyalty programmes. However, loyalty programmes fall within the general definition of ‘advertising', as they aim to promote the sale of products and services. Therefore, general rules on advertising must be followed (see question 3.1). Moreover, as operators in principle must handle the personal data of the participants of these programmes, full compliance with the General Data Protection Regulation and the Personal Data Processing Act is necessary.

As long as the obligations of both the participant and the operator are stipulated in the rules of the loyalty programme, a contractual relationship is concluded on the participant's acceptance of the rules of the loyalty programme. Therefore, the rules should be prepared thoroughly, also taking into consideration:

• the conditions of membership termination; and
• the possible termination of the whole programme.

8 Industry-specific regimes

8.1 What regulatory regimes apply to advertising in the following industries in your jurisdiction, and what best practices would you highlight? (a) Gambling (including lotteries); (b) Alcohol; (c) Tobacco; (d) E-cigarettes; (e) Pharmaceuticals (prescription and over-the-counter); (f) Therapeutic products (ie, products which claim to have health benefits but which are not medicines or pharmaceuticals, such as vitamin supplements); (g) Food; and (h) Financial products and services.

(a) Gambling (including lotteries)

The rules on advertising in the field of gambling are primarily stipulated in the Advertising Regulation Act. It is generally permitted, but three main principles apply:

• It must not contain any communication from which one may think that gambling may be a source of financial means in a similar way as earning money from dependent, individual or other activity.
• It must not be aimed at persons under the age of 18 – in particular, in the form of depictions of such persons or through the use of elements, means or actions which predominantly address such persons.
• It must contain:
• • a statement prohibiting the participation of persons under the age of 18; and
  • a visible and clear caution stating: "The Ministry of Finance warns: Participation in gambling may lead to addiction!"

A special provision of the Gambling Act stipulates that no advertising or communication may be placed on a building or in a publicly accessible part of a building in which gaming premises are located.

The Code of Advertising Practice contains a special chapter called "Lotteries, Betting and Gaming" which stipulates the applicable self-regulatory rules. These include the following:

• Advertising in this field must be socially responsible;
• It must not encourage excessive betting; and
• It must not:
• • direct or depict minors; or
  • be placed in media intended primarily for minors.

(b) Alcohol

Alcohol advertising is primarily regulated by the Advertising Regulation Act. It is generally permitted, but it must not:

• encourage the immoderate use of alcoholic beverages or negatively or ironically depict abstinence or chastity;
• be aimed at persons under the age of 18 – in particular, it must not:
• • depict persons under the age of 18, or who look like they are under the age of 18, consuming alcoholic beverages; or
  • include any elements, means or events addressed to persons under the age of 18;
• associate alcohol consumption with enhanced performance or use in connection with driving a vehicle;
• give the impression that alcohol consumption contributes to social or sexual success;
• claim that alcohol:
• • has medicinal qualities or a stimulating or calming effect; or
  • is a means of solving personal problems; or
• emphasise the alcohol content as a positive feature of the beverage.

There are also special provisions in the Audiovisual Media Services on Demand Act and the Radio and Television Broadcasting Operation Act on commercial communications about alcoholic beverages, stipulating criteria which are very similar to those mentioned above. In addition, these acts explicitly refer to self-regulatory codes that set out more detailed requirements on the advertising of alcohol, which aim to effectively limit the exposure of minors to audiovisual commercial communications relating to alcoholic beverages. These codes include the Code of Advertising Practice, which includes a whole chapter dedicated to alcohol advertising and also stipulates rules on alcohol advertising aimed at minors.

(c) Tobacco

The advertising of tobacco is primarily regulated by the Advertising Regulation Act. It is generally prohibited, with certain exceptions. The prohibition also applies to:

• sponsorship whose purpose or (in)direct effect is the advertising of tobacco products; and
• the sponsorship of events or activities which:
• • involve or take place in several EU or European Economic Area member states; or
  • otherwise have cross-border effects.

The following also constitute ‘advertising' within the above meaning:

• any form of business communication whose purpose or (in)direct effect is to promote a tobacco product;
• distribution of a tobacco product free of charge, the purpose or (in)direct effect of which is to promote a tobacco product or which has such an (in)direct effect in connection with sponsorship; and
• advertising which does not explicitly mention a tobacco product, but which uses the trademark, emblem or other characteristic hallmark of the tobacco product.

The exceptional cases in which tobacco advertising is permitted (upon meeting further conditions below) are as follows:

• advertising (in periodicals, non-periodicals, leaflets and other printed materials) aimed at experts in the tobacco business;
• advertising in specialised shops and displays/signs of such shops;
• advertising of tobacco products in establishments where a wide range of products and services are sold or provided, if the advertising is placed in that part of the establishment intended for the sale of tobacco products;
• sponsorship of motorsport competitions and sponsorship communications at the venue (except for the sponsorship of events or activities which involve several EU or European Economic Area member states or which otherwise have cross-border effects); and
• publications printed and published in third countries (if not in particular intended for the internal EU market).

Tobacco advertising must also:

• include a clear warning (the wording is stipulated in the Advertising Regulation Act); and
• not be aimed at persons under 18 years of age or encourage smoking.

There are also special provisions in the Audiovisual Media Services on Demand Act and the Radio and Television Broadcasting Operation Act which prohibit:

• audiovisual commercial communications relating to tobacco products (including product placement); and
• sponsorship of programmes and services by persons whose main activity is the manufacture or sale of cigarettes or other tobacco products.

This field is also subject to self-regulation under the Code of Advertising Practice, which sets out detailed rules on the advertising of tobacco products.

(d) E-cigarettes

The advertising of e-cigarettes is regulated by the Advertising Regulation Act. Similarly to tobacco products, the advertising of e-cigarettes is generally prohibited if the aim or (in)direct effect of such advertising – disseminated by various means (with the exception of publications dedicated to professionals involved in the business of e-cigarettes and their refills, if such publications are not primarily targeted at the internal EU market) – is the promotion of e-cigarettes and their refills.

Likewise, any form of sponsorship is prohibited if:

• its aim or (in)direct effect is the promotion of e-cigarettes and their refills; and
• the subject of the sponsorship concerns several EU member states or the event otherwise has a cross-border effect.

Further rules on the advertising of e-cigarettes and refills are stipulated in the Radio and Television Broadcasting Operation Act and the Audiovisual Media Services on Demand Act, which prohibit:

• audiovisual commercial communications relating to e-cigarettes and their refills (including product placement); and
• sponsorship of programmes and services by persons whose main activity is the manufacture or sale of e-cigarettes or their refills.

(e) Pharmaceuticals (prescription and over-the-counter)

The advertising of pharmaceuticals is governed by the Advertising Regulation Act. The respective provisions:

• concern medicinal products for human use; and
• vary depending on whether the advertising is aimed at the general public or at experts.

In case of advertising aimed at the general public, only medicinal products for human use which, according to their composition and purpose, are adapted and conceived in such a way that they can be used without diagnosis, prescription or treatment by a general practitioner or on the advice of a pharmacist may be subject to advertising. Further conditions include the following:

• Only properly registered medicinal products for human use may be advertised;
• Any information contained in an ad must correspond to the information listed in the overview of such medicine; and
• The ad must support rational use of the medicine by objectively introducing it without overstating its properties.

On the other hand, the advertising of prescription-only medicines and medicines containing narcotic drugs and psychotropic substances aimed at the general public is prohibited.

Advertising aimed at experts may be disseminated only through means of communication intended mainly for such experts (eg, professional non-periodical publications, professional periodicals, professional audiovisual programmes). Further conditions are imposed in relation to the content of such advertising. Comparative advertising for medicinal products for human use and healthcare services is allowed upon meeting the conditions stipulated in the Civil Code, but only if it is aimed at experts.

Further rules on the advertising of pharmaceuticals are stipulated in the Radio and Television Broadcasting Operation Act and the Audiovisual Media Services on Demand Act, which prohibit in general the advertising of prescription-only medicines or medicinal procedures, but which allow the promotion of a sponsor's name or image in public.

The advertising of medicines (and medical devices) is also subject to self-regulation, in particular under the Code of Advertising Practice.

(f) Therapeutic products (ie, products which claim to have health benefits but which are not medicines or pharmaceuticals, such as vitamin supplements)

The advertising of therapeutic products is generally permitted and is subject to the general advertising rules, which are supplemented by special conditions. Under the Advertising Regulation Act, it is prohibited to suggest, in an ad for a health-targeted product which does not constitute one of the following, that the product is in fact one of the following:

• a medicinal product;
• a medical device;
• an in vitro diagnostic medical device; or
• a food for special medical purposes.

Furthermore, an ad for a product which is none of the above, or any other product for which the act provides otherwise, must not:

• imply that use of the product will improve or maintain the health of the user;
• imply that failure to use the product may adversely affect the health of persons; or
• recommend the product based on the recommendations of scientists, medical experts or persons who are not such experts but who, by virtue of their actual or presumed social status, could support the use of the product.

Further rules are stipulated in the Radio and Television Broadcasting Operation Act and the Audiovisual Media Services on Demand Act for foods and beverages containing nutrients and substances whose excessive intake is not recommended (in particular fat, saturated fat, trans-fatty acids, salt and sugars).

Several rules on therapeutic products are also included in the Code of Advertising Practice.

(g) Food

The advertising of food is primarily regulated by the Advertising Regulation Act, which stipulates that nutrition and health claims:

• may be used in food advertising only under the conditions stipulated in EU Regulation 1924/2006; and
• must also comply with:

• the Food Act (in particular, the specific conditions for use of the term ‘Czech Food');
• EU Regulation 1169/2011 on the provision of food information to consumers; and
• EU Regulation 1151/2012 on quality schemes for agricultural products and foodstuffs.

Advertising on food supplements and food for particular nutritional uses must include a clear and readable statement (in case of printed advertising) reading ‘food supplement' or ‘food for particular nutritional uses'. There are also special provisions on the advertising of infant and follow-on formula.

Further rules on the advertising of food are stipulated in the Radio and Television Broadcasting Operation Act and the Audiovisual Media Services on Demand Act, which prohibit commercial communications suggesting that the country of origin is the Czech Republic where the conditions set out in the Food Act are not met.

There is also a special provision in the Consumer Protection Act which prohibits the offer of products that are dangerous due to their interchangeability with food.

The Code of Advertising Practice sets out:

• further rules on the advertising of food in general; and
• specific rules on ads for food aimed at children.

Among other things, advertising must not:

• support excessive consumption of food or cast doubt on the value of a healthy and balanced diet;
• question the role of parents in determining a suitable diet for their children; or
• misuse the imagination of children (eg, through animations or fantasy features) to promote unhealthy eating habits.

(h) Financial products and services

The regulation of advertising of financial products and services is fragmented – specific provisions are contained in:

• the Banking Act;
• the Consumer Credit Act;
• the Collective Investments Act; and
• the Supplementary Pension Insurance Act.

In particular, the Consumer Credit Act contains regulations on the advertising of consumer credit. In general, it stipulates that:

• when communicating with consumers, providers and intermediaries may not use unclear, false, misleading or deceptive information; and
• where an offer of consumer credit or its intermediation which includes any costs is advertised, it must include a representative case containing specific information set out in the Consumer Credit Act.

9 Enforcement

9.1 On what grounds can the following parties take action against ads in your jurisdiction? (a) Competitors; (b) Consumer associations; and (c) Members of the public.

(a) Competitors

From a public law perspective, competitors may contact the relevant supervisory authorities regarding any potential infringement of public law (including the Advertising Regulation Act).

From a private law perspective, the Civil Code stipulates that anyone that, in the course of economic dealings, breaches the good morals of competition through conduct that is capable of causing harm to other competitors or customers is guilty of an act of unfair competition, which is prohibited. The Civil Code establishes the right of a person whose rights have been threatened or infringed by an act of unfair competition to:

• demand in particular that the offender refrain from unfair competition or remedy the defect; and
• claim:
• • reasonable compensation;
  • damages; and
  • the payment of unjust enrichment.

The grounds on which a competitor may take action will therefore generally vary depending on the specific claim. Usually, action will be taken by a competitor on the grounds of a violation of the Civil Code provisions on unfair competition. The most commonly cited are those concerning:

• comparative advertising;
• likelihood of confusion;
• free riding; and
• disparagement of a competitor.

The Civil Code also provides that a person whose right has been jeopardised or violated by a prohibited restriction of competition has the same rights as those outlined above.

(b) Consumer associations

Consumer associations and other legal entities associated with consumer protection have legal grounds to step in under:

• the Civil Code; and
• the Consumer Protection Act.

Under the Civil Code, the right to demand that an offender refrain from competing unfairly or remedy a defect may be also asserted (with the exception of free riding, bribery, disparagement of a competitor and breach of business secrets) by a legal person that is entitled to defend the interests of competitors or customers. The grounds will include, among others:

• misleading advertising or identification of products or services;
• comparative advertising (unless allowed as admissible);
• likelihood of confusion;
• unsolicited advertising; and
• threats to health or the environment.

The Consumer Protection Act further stipulates that a motion for the commencement of proceedings before a court to refrain from unlawful action in a matter of consumer protection may be brought by:

• an association or professional body with a legitimate interest in consumer protection; or
• an entity listed in the list of persons (maintained by the European Commission) that are entitled to bring an action for injunctive relief in the field of consumer protection (without prejudice to the right of the court to review whether the application for the commencement of proceedings has been brought by an entitled entity).

In such case the relevant body will be a party to the proceedings.

(c) Members of the public

Members of the public, as the targets of advertising, can take action against ads.

From a public law perspective, members of the public are usually consumers and as such may (and do) contact the Czech Trade Inspection Authority in relation to infringements of the Consumer Protection Act. Members of the public may also contact other relevant supervisory authorities regarding any potential infringement of public law (including the Advertising Regulation Act).

From a public law perspective, the Civil Code stipulates that a person whose rights have been threatened or infringed by unfair competition (including members of the public) has a right to:

• demand in particular that the offender refrain from unfair competition or remedy the defect; and
• claim:
• • reasonable compensation;
  • damages; and
  • the payment of unjust enrichment.

The grounds on which a member of the public may take action will therefore generally vary, depending on the specific claim against the offender. Usually, action will be taken on the basis of a violation of the Civil Code provisions on unfair competition. In this context, the most commonly cited provisions are those governing:

• misleading advertising and identification of products and services; and
• unsolicited advertising.

9.2 What mechanisms are available to them to do so, and what are the pros and cons of each?

The competent supervisory authorities are usually contacted through a written or oral complaint. The advantage is that submission of a complaint is usually free of charge and therefore incurs almost no costs for the complainant.

A natural or legal person may also lodge a complaint about a specific ad (or advertising campaign) with the Czech Advertising Standards Council (the self-regulatory body). The council will subsequently decide whether the ad is in compliance with the Code of Advertisement Practice. Any complaint concerning a breach of legal regulations in force in the Czech Republic will be forwarded to the competent public authorities and institutions.

In case of private law (typically, a violation of the Civil Code provisions on unfair competition), the aggrieved party may assert its claim directly against the offender. If it is not satisfied with the outcome, it may file a civil lawsuit or a request for an injunction with the competent court. Unfair competition is assessed from the perspective of the so-called ‘average consumer', assuming that this average consumer has sufficient information and is reasonably cautious with regard to social, cultural and linguistic factors. The disadvantage of this process is that a court fee must be paid in order for the court to hear the case.

9.3 How does the procedure typically unfold and how long does it take?

In the event of a violation of the advertiser's obligations in the field of public law, an investigation may be initiated on the basis of a complaint or ex officio. The competent supervisory authority will usually investigate the case and, if a breach is found, will subsequently initiate administrative proceedings against the offender. This process usually takes weeks or months (depending on the competent authority).

If it is established in the proceedings that an infringement has occurred and the legal conditions for a decision have been met, the competent authority will usually impose a fine on the offender. The Advertising Regulation Act also empowers the relevant supervisory authority to:

• order the removal or termination of advertising that is in violation of the law and set an adequate deadline for such removal/termination;
• prohibit inadmissible comparative advertising or unfair business practices as an infringement of EU Regulation 2017/2394;
• suspend the dissemination of unauthorised comparative advertising; and
• publish its decision and order publication of a corrective statement.

In private law infringement cases, which most often involve a claim by a competitor or a customer, the process commences even earlier than the filing of a lawsuit. To assert a claim against the offender, the aggrieved party usually first sends a written letter in which it specifies its claims and sets a reasonable deadline for the offender to comply. If this deadline elapses and the offender has not satisfied the claims, the aggrieved party then files a lawsuit. If the injured party fails to send such notice, it may not be awarded the full costs of its legal representation in court.

After a lawsuit has been filed but before the court proceedings begin, the court will invite the parties to participate in conciliation and, in many cases, will order formal mediation with the aim of reaching an out-of-court settlement. If the parties do not reach agreement and there is still a dispute, a standard civil proceeding is held, which can take a very long time, depending on the case.

If the court determines that there was unfair competition, it may order the remedies which the plaintiff claimed in the action (eg, to refrain from unfair competition or to remedy the defect, and to pay reasonable compensation, damages or unjust enrichment). The losing party must also pay the other party's legal costs to the extent provided by law (however, these will not cover the actual cost of legal services).

9.4 What costs are incurred?

The costs of the average administrative procedure will vary from case to case. A complaint to the competent supervisory authority can be brought by virtually anyone; and if the complaint is clear and simple, the cost of preparing it can be zero. However, in more complex cases, it is advisable to leave the preparation of the complaint to an expert or a consumer association.

In a civil lawsuit, the court fee will depend on the remedies sought. The court costs for a civil lawsuit relating to unfair competition are equivalent to €200.

9.5 What defences are typically raised by the advertiser?

The defence will depend on the case in question, but it will often involve challenging the specific conclusions reached by the supervisory authority. For example, advertisers often argue that the facts were incorrectly or insufficiently established. In the vast majority of cases, advertisers also claim that the authority's decision is unreviewable due to various deficiencies (set out in Czech administrative law). They may also contest the interpretation of various legal concepts and their applicability to the case in question (supported by the fact that the legislation is not comprehensively contained in a single regulation).

Advertisers also commonly argue that their ads contains mere hyperbole or humour, and that any ordinary viewer of the ad would understand this as such. Cases targeting children are common, in which advertisers must prove that the ad does not encourage children to engage in dangerous activities. If advertisers use nudity or any other sexual element in an ad, they must show that this is not sexist.

In some cases (particularly where a fine is imposed), the advertiser may argue that the act in question is not socially harmful. In the case of pharmaceutical products, for example, the advertiser will usually seek to prove the functionality and positive effects of the product, including all studies and research results. If opinions or experience-based claims are made in the ad, the advertiser will try to prove that:

• these claims have not been manipulated; and
• the people depicted are real and have not been manipulated into making such claims.

In unfair competition proceedings, the advertiser most often tries to prove that:

• its conduct:
• • was not contrary to good morals of competition; and
  • was not capable of causing harm; or
• the harm caused was not directly related to the advertiser's conduct.

9.6 What remedies are available?

No answer submitted for this question.

9.7 Can the decision be appealed? If so, what is the process for doing so?

A decision of the supervisory authority can generally be appealed. This appeal is usually handled by:

• the superior administrative authority (in the case of an appeal); or
• the remonstrance committee/head of a central executive body within the supervisory authority (in the case of a remonstrance).

The appellation period is usually 15 days from notification of the decision and the appeal is usually filed with the administrative authority that issued the decision in question. In principle, the appeal should be resolved within 30 days; but it is not uncommon for this time limit to be exceeded.

The decisions of appellate bodies can be challenged before the administrative courts; and in certain cases, the judgments of administrative courts may be challenged before the Supreme Administrative Court. In such cases, however, the duration of the dispute increases to months or years.

A decision of a civil law court (typically in an unfair competition case) may be appealed within 15 days of receipt of a written copy of the decision to the court against whose decision it is directed. There is no statutory period set for processing the appeal, but this usually happens within six to 18 months. Furthermore, the decision of the appellate court may be challenged before the Supreme Court within two months of delivery of the appellate decision. In such cases, however, the total duration of the dispute is usually years.

Even a constitutional complaint to the Constitutional Court is possible if the conditions are met.

10 Trends and predictions

10.1 How would you describe the current advertising landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The Czech advertising landscape has changed in recent years. The usual driver is EU law, which the Czech Republic must implement (which usually happens with some delay). In this regard, we are awaiting new EU rules on political advertising, which are currently under discussion.

In the long term, we envisage a greater focus on social media advertising and influencers, and on the digital arena in general. Without the adoption of new legal rules in this sphere, over time the supervisory authorities may well need to step up their game.

We also expect that the current trend of using artificial intelligence in advertising will be regulated in some way. However, Czech law in this respect seldom anticipates global or EU regulations, so we assume that rules will first be adopted at the EU level and only then will be implemented into the Czech legal system.

11 Tips and traps

11.1 What are your top tips for companies that advertise their products and services in your jurisdiction and what potential sticking points would you highlight?

As the regulation of advertising is highly fragmented in the Czech Republic, we recommend that legal experts be consulted before preparing and publishing any ad in order to avoid any issues with state institutions, competitors or consumers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.