The Ethiopian Broadcasting Authority has prepared a draft proclamation to govern the advertising business. The draft has been presented to stakeholders for discussion. The draft contains 38 articles. The draft requires any person who wants to engage in advertising activity to obtain an advertising business license. The contents of any advertisement must comply with the conditions laid down by the draft. Accordingly, any advertisement transmitted through the use of means of advertising dissemination or transmission shall be truthful, free from any unlawful, immoral, misleading and unfair content or presentation that may harm consumers. Advertisement which exposes the physical and mental health of the people to harm and which does not respect the social and traditional value of the society or does not protect the legitimate rights of the public is prohibited. Unlike most of the other proclamations issued by the parliament, violation of miscellaneous provisions of the draft proclamation does not entail severe penalty. Maximum penalty to be imposed for violation is fine not less than Birr 10,000 (ten thousand Birr)
The following is the text of the draft proclamation prepared by the Authority. Download the pdf file for full version.
WHEREAS, advertisement plays a significant role in the political, economic and social development of the country by determining the activities of the public in marketing exchange and services rendering;
WHEREAS, advertisement plays a significant role in establishing healthy market competition in which it relates to the market-led economic system of the country;
WHEREAS, apart from protecting the development of the sector, the existence of advertisement law can help to protect the rights and benefits of the people and the dignity and benefits of the country;
WHEREAS, because of the advertising agent, advertisement publishers and advertisers are required to undertake their tasks in proper manner with respect to the principles of advertising, it has been found essential to clearly define the rights and obligations of persons who undertake advertisement services;
WHEREAS, to these ends, it has been found essential to issue a law that governs advertisement activities;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the “Advertising Proclamation No._____/2011”.
In this Proclamation, unless the context requires otherwise:
1/ “Advertisement” means a message which is transmitted to publicize or promote sales of goods and services, name, logo, trademark, objectives or other related message.
2/ “The means of advertising dissemination or transmission” means that uses for advertising dissemination or transmission and that includes Advertisement through mass media, outdoor advertisement, telecommunication, postal, internet and fax services, cinema,film, video or any other related means of advertising dissemination or transmission.
3/ “Public Advertisement” means a message transmitted by a non-profitable organization or any institution that provides services to the public that transmits message for the purpose of charity, the benefit of the public, to educate or inform the public, or to request the cooperation of the public.
4/ “Advertising Activity” means engagement in an activity related to choosing media or means of advertisement, planning, designing, by assess the market rendering sales and promotion services, produce and publish advertisements and undertaking any activity related to advertisement activities.
5/ “Advertising Agent” refers to a person who is assigned by advertiser or advertising publisher that is engaged in an activity related to choosing media or means of advertisement, planning, preparing, by assess of the market rendering sales and promotion services, disseminating promotional materials or undertaking any activity related to advertisement activities.
6/ “Advertisement Publisher” refers to a person that disseminate or transmit advertisement through the use of means of advertising dissemination or transmission by providing transmission time, printing coverage or other related services.
7/ “Advertiser” refers to a person to whom a message is transmitted to publicize and promote his sales of goods and services, name, logo, trademark, objectives or other related message through the use of means of advertising dissemination or transmission.
8/ “Mass Media” means printed matter that includes periodical and broadcasting services.
9/ “Periodical” means printed material which is scheduled to appear in regular sequences of at least twice a year, which has a fixed title and which has a general distribution aimed at the entire public or a section thereof, and includes newspapers and magazines; and for the purpose of the execution of this proclamation, it shall include advertisement book, yellow page and telephone directory.
10/ “Broadcasting Service” means a radio or television transmission program conducted to educate, inform, entertain the public and disseminate or transmit advertisement.
11/ “Outdoor Advertisement” means any advertisement transmitted by utilizing outdoor advertisement board hanged up on a pole or planted things or a stand, billboard, electronics screen, moving picture, written on a wall, advertisement either hanged, erected or affixed to on planted things, building or vehicle, banner, poster, sticker, plastic card, leaflets, brochure or flier, packaging, sound, audio cassette, microphone and other related means of advertising dissemination or transmission.
12/ “Outdoor Advertisement Service” means an advertisement which a person undertakes to announce products, services, name, logo, trademark, objectives or any related message by utilizing the advertisement media listed in Sub-Article (11) of Article 2 of this Proclamation.
13/ “Sponsored Program or Print” means a program or print the transmission cost of which is paid directly or indirectly or the payment of which is promised or the material, intellectual property or any service of which is provided as a support or cooperate.
14/ “Sponsor” means a person who supports or cooperates with an organizer of a program by providing financial, material, intellectual property or other service to a program or print of another person with the aim of promoting his own or another person’s product, services, name, logo, trademark, objectives or other related messages.
15/ “Infomercial” means an advertisement enduring more than two minutes including teleshopping, home shopping, direct marketing and direct sales, which is transmitted through television broadcasting service after being prepared as a program format to promote the products or services of the contracting party who agreed to pay to the broadcaster for such service and it does not include Public Advertisement.
16/ “Inserted Advertisement” means an advertisement inserted in a form of sound or image to promote the products or services of any person from whom the broadcaster has earned money or obtained benefit.
17/ “Split–ScreenAdvertisement” means an advertisement shown adjacent to a program disseminated by television, video or film screen.
18/ “Counter Advertisement” means an advertisement transmitted to correct wrong public opinion created by previously transmitted advertisement in contradiction to the law and ethics of the profession and thereof to protect and ensure the legal benefits of the victim of such violation.
19/ “Program” means voice or visual or audiovisual arrangement transmitted to inform, educate or entertain the public or an all inclusive transmission program and it includes news.
20/ “News and Current Affairs” means news, documentary, feature or analysis transmitted through mass media about any regional, national or international event which has current political, economical or social relevance.
21/ “Daily Transmission Time” means the broadcasting service transmission in the 24 hours starting from 6 hour in the morning.
22/ “Lottery” means any game or activity in which the prize winner is determined by chance, drawing of lots or by any other means and includes tombola or raffle, lotto, Toto, instant lottery, number lottery, multiple prize lottery, promotional lottery, bingo, sport betting lottery and other similar activities.
23/ “Appropriate Governmental Body” means federal or regional governmental body to which the responsibility is legally vested to execute the provisions of this proclamation.
24/ “Regional State” means any of the regional states specified under Sub Article 1 of Article 47 of the Constitution of the Federal Democratic Republic of Ethiopia, and shall, for the purpose of this Proclamation, includes the Addis Ababa and Dire Dawa City Administration.
25/ “Authority” means the Ethiopian Broadcasting Authority.
26/ “Person” means a physical or juridical person.
3. Scope of Application
This Proclamation shall be applicable to:
1/ Any advertising agent, advertisement publisher and advertisers engaged in advertising activities within the territory of Ethiopia; and
2/ Any advertisement prepared and transmitted in Ethiopia through mass media, outdoor advertisement, telecommunication, postal and internet service, fax transmission, moving picture, sound, audio-cassette, film or video and advertisement transmitted by an organization established in Ethiopia or a person who reside in Ethiopia through the internet service which is designed in Ethiopia or internet website designed out of Ethiopia.
3/ A foreign mass media from abroad or transmitting in Ethiopia which focus primarily on domestic issues and which have been produced primarily for local audiences.
A PROCLAMATION TO AMEND THE COMMERCIAL REGISTRATION AND BUSINESS LICENSING
WHEREAS, it has been necessary to amend some provisions of the commercial Registration and Business licensing Proclamation No 67/1997 and to include some additional provisions to encourage investment.
NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the “Commercial Registration and Business Licensing (Amendment) Proclamation No. 376/2003.”
The Commercial Registration and Business Licensing Proclamation No 67/1997 (as amended) is hereby amended as follows.
1/ The following new Sub-Articles (9), (10), (11) and (12) are added to Article 5 of the proclamation.
8. Founders or members of a Business Organization shall sign their memorandum or Article of association at the office of the registration of Acts and documents, according to standardized samples of memoranda and Articles of Associations sent to same office by the appropriate Authority, before applying for commercial registration, except any amendments to these signed and registered memoranda and Articles of Association.
9. Before signing their memoranda and Articles of Association, Founders or members of a Business organization shall get the verification of the appropriate Authority that the name of the Business Organization has not been occupied by another business person.
10. Where, the successors of a sole Business person, who engaged in transport business, do not want to form a business organization, one of the successors can be registered in the commercial register according to the power of attorney given to him by the other successors.
11. The agreement of founders or members of a Business organization on the valuation of contribution in kind shall be stipulated in the memorandum of association.
2/ Article 8 of the proclamation is being canceled and replaced by the following new Article 8.
8. Legal Personality of business Organization
1. Business Organizations shall acquire legal personality by registering in the commercial register with out being publicized in a newspaper as provided for under Article 87. 219, 220, 223, and 224 of the commercial code for their establishment and amendments to their memoranda of Associations.
2. The commercial Register of Business organizations shall be made open for the reference of third parties.
3/ Article 9 of the proclamation is being canceled and replaced by the following New Article 9.
9. Effective date of Registration
Any commercial Registration shall be effective from the date of the Registration of the applicant in the commercial register.
4/ Sub-Article (5) of Article 20 of the proclamation is being canceled.
5/ Sub-Article (2) and (3) of Article 22 of the proclamation are being canceled and replaced by the following new Sub-Article (2) and (3) a new Sub-Article (4) is added.
2. The applicant shall submit a signed verification that the requirements determined by directive issued by the appropriate Government institution, for the license applied for, are fulfilled. The appropriate authority shall inform the concerned government institution about the implementation of the directive.
3. Without prejudice to the provision of Sub-Article (2) above, the Council of Ministers may be Regulations determine Businesses for which certificate of competence or ownership is needed and the Government offices which have to issue the same.
6/ The following new Sub-Article (3) is added to Article 23 of the proclamation.
3. Where, the successors of a sole Business person, who was engaged in transport Business, do not want to form a business organization, a business license can be given in the name of one of the successors in accordance with the power of attorney given to him by the other successors, after being registered in the commercial register pursuant to Article 5 Sub-Article (11) of this proclamation.
7/ Sub-Article (3) of Article 25 is being canceled and replaced by the following new Sub Articel (3).
3. The holder of a business license who has failed to have it renewed within the time specified under Sub Article (2) of this Article, shall have it renewed with in the next six months i.e. from ‘Tir’ 1 to ‘Sene’ 30, by paying in addition to the renewal fee, a penalty of Birr 2,500 (two thousand five hundred) for the month ‘Tir and Birr 1,500 (one thousand five hundred), for the next each month of delay.
8/ Sub-Article (4) and (6) of Article 28 are being canceled and replaced by the following new Sub Article (4) and (6).
4. A business person whose business license is canceled for any reason other than that under Sub Article (1) (e) of this Article obtains the same business license as new, after one Year.
6. A business person who returns his Business license to the appropriate Authority pursuant to Sub-Article (5) of this Article or who wants to obtain the same business license as new, after being canceled pursuant to Sub-Article (4) of this Article or a business person who demands the issuance of a substitute Business license Pursuant to Article 29 of this proclamation, shall submit a tax clearance for the duration he used the returned or the canceled or the substituted business license.
9/ Sub-Article (3) of Article 29 is being canceled and replaced by the following new Sub Articel (3).
3. The appropriate Authority, to which application for a substitute business License is submitted under Sub-Article (1) of this Article, shall issue to the applicant a substitute upon payment of the fee prescribed by the Regulations and signing a liability undertaking for the lost business License.
10/ The following new Sub-Article (3) is added to Article 35 of the proclamation.
3. The appropriate sectorial Government organ shall in form the appropriate authority, as to the Administrative measure to be taken, when the Business person acts other wise than the criteria on which the Business License was issued or when he commits a fault.
3. Effective Date
This Proclamation shall enter in to force as of the 13th day of November, 2003.