OREANDA-NEWS. February 22, 2008. The 9th Arbitration Appeal Court heard an appeal against the ruling of the Moscow Arbitration Court, which sustained the resolution of the Federal Antimonopoly Service (FAS Russia) on imposing a fine upon "Oriflame Cosmetics" Ltd. for breaching the advertising legislation of the Russian Federation, reported the press-centre of FAS Russia.

The Company breached the law by distributing the "Oriflame Mir [World]" magazine, where advertisements exceed 40% of the content of a printed publication.

Earlier FAS Russia recognized that the "Oriflame World" magazine was not registered as an advertising media, and the content of advertising materials in №№ 15, 16, and 17 for 2006 exceeded 40% of the printed publication, which breached Article 16 of the Federal Law "On Advertising". FAS Russia fined "Oriflame Cosmetics" Ltd. 40 000 Rubles for the violations.

"Oriflame Cosmetics" Ltd. disagreed with the position of the Antimonopoly Authority and appealed to the Moscow Arbitration Court.

The Moscow Arbitration Court, however, sustained the FAS Russia's resolution as valid and justified.

The 9th Arbitration Appeal Court upheld the ruling of the Moscow Arbitration Court, confirming, therefore, validity of the FAS Russia's resolution.

Reference:
Article 16 of the Federal Law "On Advertising": advertising in periodical print publications, that do not specialize in advertising materials and communications, must not exceed 40% of the content of a single issue of periodical print publications. The content requirement is not applicable to the periodical print publications, registered as specializing in advertising materials and communications if information regarding such a specialization is put on their cover and imprint.