Advertising, Marketing & Promotion Comparative Guide

1 Legal framework

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

Consumer rights in Cyprus are set out in the Consumer Protection Law 2021. This law outlines the parameters for misleading and comparative advertising, among other prohibited business practices. This law harmonises the national legislation with the relevant EU law, which serves as the main basis for regulating advertising. In addition, there is specific legislation that sets out guidelines for certain goods or communication channels.

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

There are no bilateral or multilateral instruments or treaties in Cyprus that target advertising specifically. Nonetheless, Cyprus, as an EU member state, is subject to EU law, which primarily determines advertising requirements, especially as against consumers. In addition, the Cyprus Advertising Regulation Organisation (CARO) – a self-regulatory organisation of the communication industry – is a non-profit organisation whose main object is the control of ads. It is also a member of the European Advertising Standards Alliance and closely follows the advertising standards and guidelines set by the alliance.

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

In general terms, CARO is the principal self-regulatory non-profit organisation in Cyprus for all media and for all industry sectors. CARO has published its own Advertising Ethics Code which, among other things:

• includes a brief description of the kinds of communications that are captured by the code; and
• sets out guidelines on the topics of alcohol, food and advertising addressed to children.

In addition, the Cyprus Radio-Television Authority (CRTA) is:

• the competent authority to regulate radio and television broadcasts, including advertising; and
• responsible for regulating the conduct of video sharing platforms that fall within the jurisdiction of Cyprus.

The CRTA has issued secondary legislation which regulates advertising in the media that fall within its jurisdiction.

Furthermore, the National Betting Authority has issued secondary legislation that regulates the advertising of gambling.

Finally, the Cyprus Brewers Association has entrusted to CARO the duty of regulating the advertising of beer especially, in addition to CARO's guidelines on the advertising of alcohol, as mentioned above.

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

Consumer Protection Service (CPS): This is the primary authority tasked with overseeing unfair commercial practices, including but not limited to misleading advertising. A department within the Ministry of Energy, Commerce and Industry, the CPS is responsible for:

• monitoring compliance with the Consumer Protection Law;
• investigating corporate practices when compelled to do so by a complaint or at its own discretion; and
• initiating legal proceedings against companies.

CRTA: The regulatory organisation in charge of regulating radio and television stations is the CRTA. The CRTA maintains its own set of rules, known as the Broadcasting Code.

2 Authorisation and clearance

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

In general terms, advertisers do not need any kind of licence or authorisation in order to operate. Nonetheless, there are specific laws (eg, the Medicinal Products for Human Use Law (70(I)/2001)) – that require a marketing authorisation before a product (eg, cosmetics or medicines) can be advertised.

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

Although a pre-approval procedure is not mandated before an ad may receive the green light, the Cyprus Advertising Regulation Organisation (CARO) offers the option for copy advice. Copy advice is available ahead of publication of an ad and is an advisory service that is offered in complete confidence. It involves the analysis of advertising content to check for any possible violations of the CARO Advertising Ethics Code and its annexes. Any advice offered in this case is not legally binding on either the individual seeking the advice or CARO, even if CARO is ultimately asked to decide on that ad following a complaint.

3 General advertising regime

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

In general, unfair commercial practices are prohibited. A trade practice is unfair when it:

• is contrary to the requirements of professional conscience;
• materially distorts or is likely to materially distort the economic behaviour of:
• • the average consumer reached or addressed by the product; or
  • the average member of a particular group of consumers which is targeted by a commercial practice;
• is misleading, as defined in the Consumer Protection Law; or
• is offensive, as defined in the Consumer Protection Law.

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

The Cyprus Advertising Regulation Organisation's (CARO) Advertising Ethics Code specifies that all marketing communications must be truthful and not misleading. Marketing communications should not encompass any statement or claim which – directly or by implication, omission, ambiguity or exaggeration – is likely to mislead the consumer. However, the Consumer Protection Law states that it is common and legitimate advertising practice to make exaggerated statements or statements that are not meant to be taken literally.

3.3 Under what circumstances must claims in ads be substantiated?

According to the Consumer Protection Law, advertisers must be able to prove advertising claims when they are under investigation by the Consumer Protection Service. To this end, they must have in their possession the necessary documentary proof to support a truthful and accurate claim.

According to CARO's Advertising Ethics Code:

• marketers must be able to back up any claims they make in their commercials; and
• when testimonials are utilised, they must be real and based on first-hand knowledge.

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 and survey results

Ads must not misuse technical elements such as research results.

(b) Testimonials

CARO's Advertising Ethics Code prescribes as follows:

• Advertisers should be able to validate any claims made in their ads;
• Where testimonials are used, these must be authentic and centred on personal experience; and
• In the case of claims for categories of goods such as foods and beverage, all nutritional and health benefit information should be supported by comprehensive scientific analysis.

Under the Broadcasting Code of the Cyprus Radio-Television Authority (CRTA), testimonials by children in ads that advertise products addressed to children are not allowed.

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

CARO's Advertising Ethics Code includes guidance notes on the topic of advertising to minors. Children under the age of 12 are considered as minors according to CARO.

Several sections of the Broadcasting Code of the CRTA regulate ads directed towards children, covering matters such as:

• the timing of such ads;
• the products that may be promoted;
• the expectations that may be raised by the ads; and
• testimonials.

The EU Audiovisual Media Services Directive – which, among other things, states that ads for alcoholic beverages may not be directed at children or encourage excessive consumption – also falls under the authority of the CRTA.

The Digital Services Act additionally bans the targeted advertising of minors based on profiling.

3.6 Are certain forms of advertising prohibited in your jurisdiction?

The Consumer Protection Law 2021 prohibits unfair commercial practices and defines an ‘unfair commercial practice' as one which:

• is contrary to the requirements of professional diligence;
• distorts or is likely to substantially distort the purchasing behaviour of the average consumer; and/or
• is misleading and/or aggressive.

More specifically, the law lists certain practices that are considered as misleading under any circumstances, such as:

• false assertions of being a signatory to a code of conduct;
• unauthorised use of a quality, certification or other similar mark; and
• claims that goods can increase the chances of winning in games of chance.

Furthermore, the Consumer Protection Law defines both ‘misleading actions' and ‘misleading omissions', which are both considered as unfair commercial practices and are therefore forbidden.

4 Misleading advertising

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

Τhe Consumer Protection Law 2021 defines both ‘misleading actions' and ‘misleading omissions', which are both regarded as unfair commercial practices and are therefore prohibited.

A misleading action occurs where an advertising practice:

• misleads through the information it contains or is presented in a manner which is likely to cause deception (even if the information is factually correct); and
• causes or is likely to cause the average consumer to take a different transactional decision.

A misleading omission occurs where a trader, considering any limitations as to the means of communication of the commercial practice:

• omits major information required to make an informed decision; and
• as a result, causes or is likely to cause the average consumer to take a different transactional decision.

An omission will be considered to be misleading if:

• the trader:
• • is hiding material information;
  • is presenting material information with a lack of clarity or coherence, or in an untimely or ambiguous manner; or
  • is not mentioning the commercial intention of the practice, if not already evident; and
• this causes or is likely to cause the average consumer to take a different transactional decision.

Similar considerations are stipulated in the Cyprus Advertising Regulation Organisation's Advertising Ethics Code, which provides as follows:

• All marketing communications must be truthful and not misleading; and
• Marketing communications should not contain any statement or claim which – directly or by implication, omission, ambiguity or exaggeration – is likely to mislead the consumer regarding:
• • material characteristics of the product (eg, it nature, composition, method and date of manufacture, range of use, efficiency or performance);
  • the value of the product and the total price to be paid by the consumer;
  • terms for delivery, return, repair and maintenance;
  • IP rights such as patents, trademarks, designs and models and trade names; and
  • official recognition or approval and awards such as medals, prizes and diplomas.

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

If the Consumer Protection Service identifies breaches of the relevant legislation, it can take the following actions:

• order traders and third parties such as domain owners, internet service providers and in general anyone hosting or reproducing the infringing content in any medium to:
• • remove content;
  • restrict access to it; or
  • place a written notice to consumers before accessing the content;
• apply to court for injunctive relief against infringing traders; and
• impose administrative fines of:
• • up to 5% of the annual turnover of the advertiser during the preceding year; or
  • up to €500,000.

The Cyprus Radio-Television Authority has its own Broadcasting Code and, following an investigation of a complaint, can take the following actions:

• impose administrative fines of up to €8,500;
• revoke a television or radio station's licence, either temporarily or permanently; and
• apply to court for injunctive relief.

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

According to the Consumer Protection Law, after establishing a violation or imminent violation of the law – even if actual or potential damage, fraud and/or negligence on the part of the merchant is not manifested – the director of the Consumer Protection Service may:

• investigate the violation;
• take numerous actions; and
• issue a reasoned decision.

A hierarchical appeal against the director's decision may be filed with the Minister of Energy Commerce and Industry within 30 days of notification of the decision to the offender. Anyone that is not satisfied with the decision of the minister may appeal within 75 days to the Administrative Court for a judicial review of the decision.

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 must objectively compare one or more characteristics which are material, relevant, verifiable and representative of the relevant products or services. Price can also be one of these characteristics.

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

The main criterion as to whether a sweepstake or chance-based contest is permitted is whether a participation or registration fee is necessary. If the sweepstake requires any form of consideration to be paid by participants, this activity is likely to be allocated as a lottery, which is plainly prohibited pursuant to the Lotteries Law (Cap 74).

Lotteries in general are not permitted under Cypriot law, unless they fall under one of the following exceptions:

• government lotteries;
• small lotteries whose proceeds are allocated for charitable purposes; or
• private lotteries in organisations which are limited to employees of the organisation.

Apart from the risk of chance-based contests being classified as a lottery, sweepstakes are largely unregulated. However, the general advertising framework and provisions ensuring the protection of consumers should nonetheless be followed.

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

The two main statutes that regulate personal data processing in Cyprus are:

• the EU General Data Protection Regulation (2016/679) (GDPR); and
• the Cyprus Personal Data Law (125(I)/2018), which implemented certain provisions of the GDPR and repealed the Processing of Personal Data (Protection of Individuals) Law (138(I)/2001).

Under the GDPR, an entity that uses direct marketing will first need a legal basis in order to proceed with the processing of personal data. Depending on the specific circumstances, the available legal grounds for targeted advertising are consent and legitimate interest. According to recent guidance published by the European Data Protection Board, in order for the ground of legitimate interest to apply, the following conditions should be satisfied:

• There is a legitimate interest pursued by the controller or a third party;
• The data processing is necessary (prior examination is required regarding whether less invasive methods are available); and
• A balancing test is satisfied, examining whether the processing is proportional and ensuring that the legitimate interest is not overridden by the individual's fundamental rights and freedoms.

(d) Native advertising

There are no isolated guidelines that apply to native advertising, apart from the general advertising legislation.

(e) Influencer advertising

Cyprus has no legislation or guidelines on the use of influencers in advertising campaigns and, similarly to social media, this is largely unregulated. However, it is anticipated that the Digital Services Act and the enhanced disclosure obligations will affect the use of influencers in advertising campaigns. Users should be able to identify clearly:

• when content on a platform is sponsored or unsponsored; and
• whether influencers are advocating commercial messaging.

It is suggested that:

• the general rules and regulations regarding misleading advertising in Cyprus be observed; and
• influencers disclose whether there is a material relationship with a brand or advertising agency.

(f) Ambush marketing

Cyprus has no specific legislation directly related to ambush marketing. However, there are methods and alternatives to prevent ambush marketing – mainly by marketers ensuring contractual safeguards or having to rely on relevant general laws.

Most notably, the best protection against ambush marketing lies in the contractual terms which regulate the rights of event organisers to offer spaces of the event to third parties for marketing.

To prevent ambush marketing, sponsors should ensure that contractual safeguards are in place or alternatively rely on the following relevant laws:

• The Trademarks Law (Cap 268) applies in case of trademark infringement; and
• Passing off claims, as defined by the Civil Wrongs Law (Cap 148), in case of unfair competition, can also be initiated under the tort of passing off, where the owner of an unregistered mark may take action only for passing off.

Sponsors are also highly recommended to:

• insist that all advertising in the vicinity of an event is strictly regulated by contract; and
• focus on the exclusivity of their sponsorship to limit access to other competitors.

(g) Country-of-origin marketing

EU Regulation 1151/2012 should be followed in relation to:

• protected designations of origin;
• geographical indications; and
• traditional specialities.

(h) Green marketing

The Cyprus Advertising Regulation Organisation's Advertising Ethics Code contains provisions on environmental claims and a new chapter on environmental claims in advertising has been adopted, which should be read in conjunction with the general code.

Ads are typically prohibited from promoting conduct that is incompatible with what is commonly regarded as appropriate environmental behaviour. In addition, as regards environmental claims, the following should be noted:

• Environmental signs or symbols should be used in marketing communications only where:
• • the source of those signs or symbols is clearly indicated; and
  • there is no risk of confusion over their meaning.
• Environmental claims should not be introduced in such a way as to imply that they relate to more stages of a product's lifecycle, or to more of its properties, than is substantiated by the evidence.
• Claims such as ‘environmentally friendly' or ‘ecologically safe', which imply that a product or an activity has no impact or only a positive impact on the environment, should not be utilised unless a very high standard of proof is available.
• Any comparative claims should be specific and the cornerstone for comparison should be clear. Environmental superiority over competitors should be claimed only where a significant advantage can be illustrated. The products being compared should meet the same needs and be intended for the same purpose.

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.

(a) Telemarketing

The broadcasting of telemarketing messages during children's programming is expressly forbidden by the Radio and Television Broadcasting Stations Law 1998 (as amended), which governs telemarketing operations. The sale of pharmaceutical drugs through telemarketing is also prohibited.

With regard to the sale of alcoholic beverages through telemarketing, the law stipulates, among other things, that interested companies must ensure that such ads:

• are not directed towards minors;
• do not depict minors consuming such beverages;
• do not encourage the undue consumption of alcoholic beverages; and
• do not present a negative impression of abstinence from consumption or measured consumption.

A violation of the above provisions may result in the imposition of a fine of €8,500 for each day that the violation takes place by the Cyprus Radio-Television Authority.

(b) Email marketing

The two main statutes that regulate personal data processing in Cyprus are:

• the EU General Data Protection Regulation (2016/679) (GDPR); and
• the Cyprus Personal Data Law (125(I)/2018), which implemented certain provisions of the GDPR and repealed the Processing of Personal Data (Protection of Individuals) Law (138(I)/2001).

The GDPR requires a legal basis before processing personal data for an organisation to utilise direct marketing and email marketing. While there are some exceptions where it is permitted to send emails to clients without their consent, in this case consent is the proper legal foundation.

The Electronic Communications and Postal Services Law (112(I)/2004) implemented the Directive on Privacy and Electronic Communications (2002/58/EC) (as modified) into Cypriot law. Email marketing, which is regarded as a direct marketing method, is regulated under the Privacy Communications Law and opt-in consent is required before a data subject's personal data can be processed. However, if a data subject's information was collected in the course of the provision of services in the past and that individual was given the ability to opt out, emails may be sent on an opt-out basis, as long as the marketing relates to similar products/services for which the data subject's details were originally collected.

(c) Direct mailings

Direct marketing includes text messages (SMS) and emails that a customer receives from a service. Please see question 6.1(b).

(d) Opt-out marketing

The Electronic Communications and Postal Services Law implemented the Directive on Privacy and Electronic Communications (2002/58/EC) (as modified) into Cypriot law and regulates matters concerning electronic communications.

If the data subject's information was collected during the provision of services in the past and that individual was given the ability to opt out, emails may be sent on an opt-out basis, as long as the marketing relates to similar products/services for which the data subject's details were originally collected.

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

Under the Audiovisual Media Services Directive, which was transposed into national law by the Radio and Television Broadcasting Stations Law 1998 (as amended), product placement is allowed, except in the following types of programmes:

• news and current affairs programmes;
• consumer affairs programmes;
• religious programmes; and
• children's programmes.

In addition:

• programmes must not give undue prominence to the product in question;
• viewers must be clearly informed of the existence of product placement through an appropriate identification; and
• any product which is subject to an advertising ban, such as tobacco, cannot be promoted through product placement.

(b) Sponsorship

This type of marketing is also regulated by the same laws as mentioned above for product placement. In short:

• a sponsored product must be identified as such;
• news and current affairs programmes cannot be sponsored;
• sponsored programmes must not directly encourage the purchase or rental of goods or services; and
• tobacco and prescription-only medicines cannot be used for sponsorship purposes.

(c) Loyalty programmes

There are no specific rules or regulations regarding loyalty programmes in Cyprus. However, rules should:

• be clear and unambiguous; and
• comply with the general consumer protection legislation and the data protection legislation if the details of the owner of a personalised loyalty card are stored in a central database.

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 advertising of gambling activities in Cyprus is regulated by a Code of Practice issued by the National Betting Authority pursuant to the Betting Law (37(I)/2019). The code of practice offers comprehensive guidelines detailing the general principles that govern the advertising of gambling, such as:

• the protection of minors;
• specific broadcasting times; and
• direct marketing.

(b) Alcohol

The Cyprus Advertising Regulation Organisation's (CARO) Advertising Ethics Code contains specific provisions that apply to the advertising of alcoholic beverages. Among other things, they stipulate that ads for alcoholic beverages must:

• be socially responsible; and
• not include anything that might encourage irresponsible consumption.

In relation to the sale of alcoholic beverages through telemarketing, the law stipulates, among other things, that interested companies must ensure that ads:

• are not aimed at minors;
• do not portray minors consuming such beverages;
• do not encourage the excessive consumption of alcoholic beverages; and
• do not present a negative impression of abstinence from consumption or measured consumption.

(c) Tobacco

The Protection of Health (Control of Smoking) Law (24(I)/2017) prohibits the advertising of tobacco products.

(d) E-cigarettes

The Protection of Health (Control of Smoking) Law imposes a complete ban on tobacco advertising in any available medium.

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

In accordance with the Medicinal Products for Human Use Law (70(I)/2001), no medicinal or cosmetic product can be advertised without first having obtained a marketing authorisation from the Cypriot pharmaceutical authorities. The advertising of prescription-only medicinal products is prohibited. Under the Medicinal Products Law, particular claims made to consumers in relation to medicinal products in the background of ads – such as indicating that the effects are assured, without any adverse reactions or superior and more effective than those of other products or treatments – are also prohibited.

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

According to CARO's Advertising Ethics Code:

• any claims of nutritional properties or nutritional and health benefits must be supported by robust scientific evidence; and
• any statements or implications made must be conveyed plainly and truthfully.

Secondary legislation – namely Order 449/2004, which implements Directive 2002/46/EC – states that no person is allowed, without the prior permission of the director of the Public Health Service of the Ministry of Health, to publish any ad that intends to advance food supplements on the market for consumer purposes.

In general, any ad for food supplements must not contain any suggestion that a balanced diet cannot be a source of suitable nutrients. Generally, in an ad that promotes food products correlated to weight loss, it is prohibited to:

• make any mention of the time required or range of weight that can be lost due to the use of such product; or
• include any reference that this food product can lead to reduced hunger pains.

(g) Food

Any assertion made in relation to the nutritional elements of food products must comply with the requirements of EU Regulation 1924/2006. For instance, when claiming that a product is rich in fibre, certain information must be provided to the consumer in this respect.

Furthermore, EU Regulation 1169/2011 regulates food information to be provided to consumers and establishes the core principles to be followed, particularly in relation to labelling. Section 6 of the Food Law (54(I)/1996) prohibits the sale of food that is inappropriate (eg, food that is not suitable for human consumption; food that has been processed in an unhealthy manner).

In general terms, this law sets out the standards with which food must comply in order to be sold on the market. In particular:

• the food must be of the requisite quality; and
• it must be stored with appropriate care, depending on the type of food.

Anyone that does not comply with this law can face up to six months in prison or a £3,000 fine, or both, if convicted of contravening the Food Law. The director of the Public Health Service of the Ministry of Health also has the power to impose administrative fines if he has a reasonable suspicion that a person has contravened the Food Law.

(h) Financial products and services

The applicable law regulating the marketing of financial products is the EU Second Markets in Financial Instruments Directive, which was transposed into Cyprus national law by the Investment Services Law (87(I)/2017). The Investment Services Law mandates that advertising communications to customers or potential customers must be accurate, clear and not misleading.

The Contracts of Consumer Credit Law (106(I)/2010) transposes into domestic law, Directive 2008/48/EC. In short, this law aims to protect consumers who enter into credit agreements with creditors. A creditor can be either a legal or natural person who is acting in the course of his trade, business or profession. The Contracts of Consumer Credit Law applies to credit agreements regardless of the way those are formed (i.e distance contract etc.) However, this Law excludes from its scope certain credit agreements which exceed or are below certain thresholds or secured with mortgage. In terms of advertising, the Law, lists certain standardised information that must be provided to the consumer by the creditor, for the advertisement of a credit agreement.

The EU Markets in Crypto-Assets Regulation (2023/1114) (MiCA) introduces a new regulatory framework for crypto-assets, as defined in the regulation. According to MiCA, information contained in the Crypto-Asset White Paper and in relevant marketing communications – such as advertising messages and marketing material – should be fair, clear and not misleading. Advertising messages and marketing material should be consistent with the information provided in the Crypto-Asset White Paper.

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

An advertiser may challenge claims made by competitors in the following ways.

Civil action: An advertiser may commence a civil court action seeking interim and final relief.

Consumer Protection Service (CPS): An advertiser may lodge a complaint with the CPS, which in turn may:

• order the competitor to take remedial actions such as amending the ad;
• prohibit publication of the ad;
• impose fines in case of non-compliance; and
• initiate proceedings for court measures against the competitor, including injunctions.

Cyprus Advertising Regulation Organisation (CARO): An advertiser may file a complaint before CARO in relation to any claim made by a competitor. If CARO agrees with the complainant, it may request that the ad be either withdrawn or modified.

(b) Consumer associations

On 13 October 2023, a new law was issued on the issuance of court orders and the filing of representative actions for the protection of the collective interests of consumers.

‘Representative actions' are defined as actions:

• for the protection of the collective interests of consumers;
• which are brought by a qualified entity; and
• which seek a court order in the name of consumers with the aim of taking measures to stop or prohibit illegal behaviour of suppliers or restitution measures.

(c) Members of the public

The Consumer Protection Law has, for the first time, introduced a private cause of action in which any consumer whose economic interests have been negatively affected through any breach of law may bring an action against any trader that took part in deceptive or misleading advertising practices.

The authorised service according to the Consumer Protection Law has the power to examine, following the submission of a complaint and/or ex officio, any violations of law. Such an examination may concern more than one trader, separately or jointly, in the same professional sector, as well as professional associations.

CARO is the principal self-regulatory non-profit organisation in Cyprus for all media and for all industry sectors.

Any consumer or member of the public can file a complaint with CARO with respect to an ad which he or she considers to be misleading or contrary to CARO's code.

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

An advertiser may commence a civil court action seeking interim and final relief, following the civil claims court procedure in Cyprus.

Consumers and businesses can file a named complaint with CARO by submitting all the necessary information.

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

The Consumer Protection Law introduced a private cause of action for any consumer whose economic interests have been negatively affected by any breach of the legislation. As a result, a consumer can take action against any trader that has engaged in deceptive or misleading advertising practices.

Consumers and businesses can file named complaints through a dedicated form with CARO.

CARO operates a fast-track procedure in which the views of both parties (the complainant and the advertiser) are considered before a decision is reached within two weeks.

9.4 What costs are incurred?

Consumer Protection Law: Where a lawsuit is filed under the Consumer Protection Law, the prescribed fees for parties to civil proceedings and attorneys' fees will apply.

9.5 What defences are typically raised by the advertiser?

The advertiser is generally charged with advertising:

• something that is not factually true or possible; or
• something that is misleading.

The most common defence is to:

• provide justification, proof or explanations as to why the relevant claims in the ad were made;
• present cogent reasons as to why certain aspects of the ad cannot be fulfilled based on common logic; or
• highlight reasonable limitations to the ad that may be inferred from common sense.

9.6 What remedies are available?

Consumer Protection Law: The court can issue the following remedies to consumers:

• Declare that a contract is illegal and the consumer thus is no longer legally bound by it;
• Order a price reduction of any goods or services which are the subject matter of the contract;
• Award the consumer damages which the court considers reasonable; and
• Issue any other any other remedy that the court considers reasonable under the circumstances.

Additionally, consumers can seek interim and final measures pursuant to Article 62 of the law. In such case, a trader may be ordered, among other things, to:

• immediately terminate and/or refrain from repeating the infringing acts;
• take remedial action at the discretion of the court with a view to remedying the unlawful behaviour; and
• publish all or part of the court judgment or a remedial statement with a view to rectifying the continuing effects of the breach.

CARO: CARO has established a two-tier system for examining complaints, under which the following remedies are available:

• withdrawal of the offensive ad; or
• amendment of the ad to render it compliant with the CARO Advertising Ethics Code.

While CARO does not have the authority to enforce its decisions or to order monetary relief against the advertiser, it can enforce its decisions indirectly by taking the following actions:

• publish its decision on its website;
• inform media providers through which the ad has been disseminated of its decision and request the immediate removal of the ad (most media providers have contractually agreed to comply with CARO's decisions); and
• inform other agencies with extensive regulatory powers – such as the Consumer Protection Service, the Cyprus Radio-Television Authority and the Press and Information Office – to take action against the advertiser.

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

If CARO issues a decision through its first-instance board, the party which is the subject of that decision can apply to the second-instance board for a review of the first-instance decision. If the party is dissatisfied with the decision of the second-instance board, it can appeal to the Administrative Court under Article 146 of the Constitution.

Where a civil action is brought against an advertiser, the advertiser can appeal the district court's decision to the Court of Appeal and then to the Supreme Court under Article 146 of the Constitution.

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?

In the fast-evolving landscape of marketing and advertising, it is vital for both professionals and consumers to follow all regulatory updates. The emergence of artificial intelligence (AI) in marketing has revolutionised the methods and strategic outcomes of customer engagement. The Digital Services Act has thus become as a critical framework, which highlights accountability, transparency and safety. The DSA, the EU General Data Protection Regulation and the E-Privacy Directive further safeguard consumers' data and privacy.

In the past year, many new advertising approaches have been adopted due to the emergence of the next generation of cutting-edge technologies, such as AI, augmented reality, virtual reality, non-fungible tokens and crypto-assets. These trends are changing how ads are delivered, created and consumed.

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?

The Consumer Protection Law and the Cyprus Advertising Regulation Organisation's (CARO) Advertising Ethics Code include similar provisions and can influence the impact opportunities of companies within the market.

The fundamental guidelines within the CARO code provide that all ads should:

• adhere to the law;
• maintain standards of decency, truthfulness and honesty;
• be created with social responsibility in accordance with relevant principles of fair competition; and
• never erode public trust.

The Consumer Protection Law provides that unfair commercial practices are prohibited. Trade practices are ‘unfair' where:

• they:
• • contradict the professional ethics requirements; and
  • significantly influence the behaviour of the average consumer or a typical member of a targeted consumer group; or
• they constitute deceptive or offensive conduct as outlined in the law.

Adherence to both the law and the code will help advertisers to avoid penalties (eg, fines and withdrawal notices), which can result in the loss of funds and reputational damage.

The main takeaway is to ensure that ads are not misleading, false or untrue.

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.