Advertising in Nepal । Advertisement Law

Introduction to Advertising in Nepal

For Advertising in Nepal, companies deal with the exclusive regulation and management of all forms of advertising laws in Nepal, emphasizing television and physical board advertisements. Advertisement Act has established Crimes related to advertising, the requirement of a License to advertise and the restrictions on Advertising in Nepal.

Laws Governing Advertising in Nepal

Advertisement Regulation Act 2019

The Advertisement Regulation Act 2019 laid the fundamental foundation for regulating Advertising in Nepal. It has dealt with the restrictions of advertising, the forms of advertising and the content restrictions on such advertising.

Advertisement Regulation Rules 2020

To lay down the Procedural Laws of the Advertisement Regulation Act 2019, Advertisement Regulation Rules 2020 was passed. It has laid down a detailed framework for implementing the provisions of the Substantive Act for enforcement purposes.

Licensing for Advertisement

For Engaging in Advertisement in Nepal, Individual Advertisers or Advertisement Agencies/Organizations must obtain a license from the Local Level (Municipality or Village Municipality) to display such advertisements.

The license must contain the Terms and Conditions of Advertising and lasts for a Specific Period, after which the advertisement cannot be kept.

The advertisement must contain the basic information about the Provider of the Advertiser, including their Name, address, Contact, etc. Further, warnings about the potential effects of consuming the advertised Goods and Services must be displayed.

Restrictions on Advertisement in Nepal

The Following Forms of Advertisement has been strictly prohibited in Nepal:

1. Encouragement on production, sales, distribution, utilization or use of any products, substances or services which is prohibited by the prevailing laws for production, sales, distribution, utilization or use;
2. Encouragement for gambling or unauthorized betting, which is regulated without obtaining permission pursuant to prevailing laws;
3. Encouragement for use or preservation of any matters, goods or service which is deemed to be obscene under prevailing laws;
4. Encouragement on production, sales, distribution or use of any weapons, explosives and similar products;
5. Sale of medicines without the recommendation of doctors;
6. Matters or services which have not obtained approvals as per prevailing laws for distribution or use;
7. Advertisement of matters that have been prohibited pursuant to the prevailing laws;
8. Advertisement in the books of schools and universities except for educational information; and
9. Encouragement of superstition.

Moreover, these elements have also been restricted:

1. Prohibited Products
2. Gambling and Betting.
3. Inappropriate Content
4. Weapons and Explosives
5. Medicines without Prescription
6. Advertisement requiring Trademark and Patent Approval
7. Religious and Cultural Sensitivities
8. Disrespectful Content
9. Unauthorized Use of Trademarks
10. Misinformation
11. Advertisement harming Sovereignty and National Integrity
12. Contempt of Court

Requirements and Regulations of Advertisement in Nepal

Hoarding Boards

It requires Approval from the Local Level for appropriate display in Public Areas with the terms and conditions of the advertisement. Moreover, the Material must be removed.

Television

Foreign Television Channels in Nepal aren’t allowed to broadcast Foreign Advertisements. Nepali Media Channels are prohibited from dubbing and broadcasting Foreign Advertisements.

Written Advertisement

Printing and Press-Related Advertising is also regulated in Nepal.

Social Media

Advertisement Regulation Act hasn’t laid down the restrictions on Social Media Advertising in Nepal.

Advertisement Board of Nepal

The Advertisement Board was established as the leading regulatory government body to govern Advertising in Nepal. The Advertisement Board regulates the Standards of the Advertisement the content of advertisements and distributes government advertisements to media houses.

Functions, Powers and Duties of Advertisement Board

1. To make recommendations to the Ministry of Communication and Information Technology by determining the national policy relating to advertisement;
2. To prepare the standards based on examination of the broadcasting content of advertisements through the media;
3. To formulate a code of conduct relating to the production, broadcasting and distribution of advertisements;
4. To encourage publication and broadcasting by formulating advertisements relating to national interest and public interest;
5. To investigate whether advertisements are carried out that spread rumour, excitement, discrimination or contrary to the Advertisement Regulation Act;
6. To investigate advertisements broadcasting from foreign channels if such broadcasting is found against the standards and recommend the Ministry to take action against such Act;
7. To coordinate between the Government of Nepal, advertising agencies, advertisers, media and relevant government authorities;
8. To recommend for regulation of necessary program to the Ministry for the development of advertising business and professional’s qualification and capacity;
9. To conduct consumer awareness programs;
10. To reward those who perform excellent in the advertisement area;
11. To provide necessary direction to manufacturer, producer, distributor or broadcaster of advertisement; and
12. To distribute all advertisements from the Government of Nepal to the media through the Board on a proportional basis.

Offences and Punishment of Advertisement in Nepal

For the Violation of the Restrictions mentioned earlier on Advertisement, the advertiser is liable to a sentence of Imprisonment of up to 1 year and a fine of up to NPR 10,000. Further, for conducting an advertisement on a hoarding board without obtaining the required license, the advertiser must be fined up to NPR 1 Lakhs. If Clean Feed is Violated in Nepal, the Offender is liable to a Fine of up to NPR 5 Lakhs.

1. For the Offenses listed below, the Act has prescribed a fine of up to NPR 1 Lakhs:
2. Advertisements in Prohibited Areas
3. Advertisement during the Prohibited Period
4. Advertisements without the Name and address of the Advertiser
5. Advertisements by Email or SMS without Consent
6. Advertisement violating the proceedings and standards pursuant to prevailing Laws
7. Advertisement without Official Information.