The New Era in Administrative Sanctions of the Advertisement Board
In 2024, significant changes and developments occurred regarding the administrative sanctions of the Advertisement Board.
- The Law No. 7529 on Amendments to the Consumer Protection Law and Certain Other Laws, published in the Official Gazette No. 32707 dated 30 October 2024, introduced significant changes as of the date of publication, particularly concerning the administrative fines imposed by the Advertisement Board and the reconciliation against administrative fines.
- The Constitutional Court, in its decision dated 13 September 2023 and numbered 2022/70 E. - 2023/152 K., annulled the power granted to the Advertisement Board under Article 77 of the Consumer Protection Law No. 6502 (“Law”) to issue access-blocking orders against unlawful online advertising content. The annulment was based on the grounds that this power violated the principles of proportionality and necessity.[1] However, with the amendment made on 23 May 2024, the legislative authority restructured the Board’s power to block access in accordance with the principles of proportionality and necessity outlined in the Constitutional Court’s decision.
The following shall address the recent developments regarding the administrative sanctions of the Advertisement Board.
- Changes made regarding the amounts of administrative fines
Firstly, with the amendments made to the Consumer Protection Law on 30 October 2024, minimum and maximum limits were set for administrative fines. Depending on the medium in which the violation occurs, the lowest administrative fine was revised as TRY 60,000, and the highest administrative fine as TRY 22,100,000.
Subsequently, the administrative fines set as mentioned above have been increased by 43.93%, as per the revaluation rate announced by the Ministry of Treasury and Finance for the year 2024, being effective as of 1st of January 2025.
Accordingly, for deceptive and misleading commercial advertisements, administrative fines will range between TRY 158,323 and TRY 1,583,230 if the violation occurs through a local television channel, between TRY 3,180,853 and TRY 31,808,530 if it occurs through a national television channel, between TRY 863,580 and TRY 8,635,800 if it occurs through a national radio channel, between TRY 863,580 and TRY 8,635,800 if it occurs via satellite television or the internet, between TRY 403,004 and TRY 4,040,040 if it occurs through SMS, and between TRY 86,358 and TRY 863,580 for other mediums.
The Advertisement Board will consider factors such as the unfairness of the violation, the benefit gained or the harm caused by the violation, and the offence and economic status of the violator when applying the minimum and maximum limits for fines. The Advertisement Board’s prior authority to impose an administrative fine up to 10 times higher in the event of a repeated violation within one year, has been revoked.
- The re-established power to block access
The Advertisement Board's power to issue an access-blocking decision was re-established in cases of unlawful advertising activities occurring on the internet. In such instances, the Board will notify the advertiser via means of electronic communication using information obtained from the relevant webpage, such as contact details, domain name, IP address, and other sources. If the content is not removed within twenty-four hours after notification, the Board has the power to issue an access-blocking decision. This decision will primarily be limited to the content where the violation has occurred; however, if it is technically impossible to deny access to the content in relation to the violation or if blocking access to the content does not prevent the violation, the Board may also exercise its power to block access to the entire website.
- Providing the opportunity to apply for reconciliation
The amendments allow the possibility for reconciliation, subject to application by the concerned party, with the Ministry regarding the administrative monetary fines imposed by the Advertisement Board. If there is insufficient understanding of the law or a misinterpretation of those provisions, or if there is a difference of opinion between judicial decisions and the administration regarding the violation, the Ministry may agree to reach a reconciliation.
Evaluation
The minimum and maximum limits that have been set for the administrative fines, and the increase in the amounts of these fines, aim to enhance the effectiveness of oversight, prevent consumer deception and exploitation, and serve public interest. Reconciliation provisions are expected to expedite the resolution of violations and to reduce public costs. These changes are intended to increase the power of deterrence and ensure the effectiveness of the Advertisement Board’s activities. The Advertisement Board's power to block access is an important deterrent mechanism aimed at combating deceptive advertisements that mislead consumers and exploit their trust. This measure could also contribute to ensure effectiveness of the decisions. In conclusion, the effective use of the Advertisement Board's power to block access and administrative fines plays critical role in protecting consumers and ensuring fair competition in the market. Amendments and changes to regulations made in 2024 are considered to have enhanced the Board's oversight and enforcement capacity, while strengthening the deterrence against commercial advertisements and unfair commercial practices.