CYPRUS Law and Practice Contributed by: Stelios Christophides and Vasilis Charalambous, George Z Georgiou & Associates LLC
1.4 What Is Advertising? In the CP Law of 2021, the term “advertising” is defined broadly as any announcement made in the course of a commercial, industrial, craft, or profes - sional activity with the aim of promoting the supply of goods or services, including the transfer or other disposal of property, rights, or obligations. CARO’s Code provides a brief description of the kind of communications that are considered to be adver - tising. Examples include advertisements on television and radio stations, on the internet, in newspapers and magazines, in all kinds of external advertising media such as posters, signs, and electronic displays, bro - chures, catalogues, postal letters with advertising messages and presentations, advertising messag - es and promotional material sent by fax, e-mail, or through any other electronic and/or printed informa - tion medium, advertising messages in product pack - aging, labels, and point-of-sale materials, and cinema advertisements. 1.5 Pre-Approvals Although there is no mandatory pre-approval process before an advertisement can run, CARO provides the possibility for copy advice. This procedure is an advi - sory service provided with absolute confidentiality, before the publication/broadcast of an advertisement, and concerns the evaluation of advertising material, in order to identify possible violations of CARO’s Code and its annexes. It should be noted that any advice given in this context is not binding on the person seek - ing the advice, nor is it binding on CARO in case there is any future complaint in relation to that advertise - ment. 1.6 Intellectual Property and Publicity Rights The CP Law of 2021 contains provisions as to the use of a competitor’s marks or trade marks in the context of comparative advertising. With regards to public - ity rights, there are no special rules to govern their use in the context of advertising; however, the GDPR and privacy law, and especially Article 8 of the Euro - pean Convention on Human Rights (right to privacy) could provide a general framework regarding the use of image rights in advertising, particularly without the individual’s consent. In addition, considerations are set out in CARO’s Code specifying that all marketing
television stations within the Republic of Cyprus and for assessing the appropriateness of the measures (procedural and technical) to be taken by video-shar - ing platforms under the jurisdiction of Cyprus. The RDSA maintains its own set of rules known as the Broadcasting Code, and subsequent to an inquiry prompted by a complaint, it possesses the capability to implement the following measures. • Impose administrative fines of up to EUR8,500. • Revoke a TV or radio station’s licence either tem - porarily or permanently. • Apply to court for injunctive relief. 1.3 Liability for Deceptive Advertising According to established principles of Cypriot com - pany law, companies have a separate legal personal - ity from their owners/shareholders, and as a result, if the company has used misleading advertising, liability does not extend to these individuals. However, the CP Law 2021 establishes that a trader for the purposes of the legislation includes not only the natural/legal entity engaged in the trading prac - tice but also anyone acting on behalf of the trader. Consequently, consumers may file an action against directors or other officers of the legal entity which is responsible for deceptive advertising, seeking the remedies identified below. Criminal Offences According to Article 64 of the CP Law 2021, any per - son who takes any action that may hinder or delay the work of the CPS whilst investigating any com - plaint – ie, by providing false or inaccurate informa - tion – commits a criminal offence which is punishable with up to six months imprisonment or a fine of up to EUR100,000 or both of these penalties, and this extends to the directors of a legal person as well. Third Parties Where third parties are involved, such as domain own - ers, internet service providers, and in general anyone hosting or reproducing the advertisement in any medi - um, the failure to comply with the instructions of the CPS will have the effect that the third party and its directors will have committed a criminal offence.
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