Management of Advertising in Cyber Space

Sep 27 2024 | Digital Economy

The current draft of the Advertising Law (amendment) mainly focuses on content control and does not recognize advertising as a service industry with a complete supply chain. This results in regulations that are not suitable for each individual or organization involved in this service supply chain. Therefore, it is essential to shift the approach from viewing advertising as a cultural field to recognizing it as a commercial service in order to design legal regulations that align with the actual development of the industry.

  • Online advertising involves advertisers, intermediaries, and consumers, with intermediaries enabling programmatic ads.

  • They shouldn't be liable for user content but should assist authorities.

  • Authorities must tackle false advertising and consider collective lawsuits for affected users.

Management of Advertising in Cyber Space

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Currently, the value chain of online advertising typically involves at least six stakeholders: advertisers (brands, individuals buying advertising space), advertising service providers (media companies), product distributors, internet intermediaries (Google, Facebook, TikTok, etc.), advertising space sellers (website owners, content channel operators), and advertising recipients (consumers).

Among these, internet intermediaries play a crucial role in providing a technology platform that connects those wishing to buy advertising space with those looking to sell it. When a buyer places an order for an advertisement, the algorithm processes and delivers the ad to the website the user is visiting within 100 to 150 milliseconds. This is known as programmatic advertising, which is bought and sold automatically with the support of digital technology.

Due to this technical characteristic, internet intermediaries do not intervene in the content creation process of users; they do not monitor user-generated content; and they are not jointly responsible for illegal content created by users. Therefore, there should be no obligation to monitor content imposed on internet intermediaries, as currently proposed in the amended Advertising Law draft. This is also to ensure consistency with regulations regarding intermediaries in the amended Intellectual Property Law 2022 and in line with international practices and the laws of developed countries and regions such as the United States and the European Union.

Instead, the amended Advertising Law draft should include some regulations regarding the obligations of internet intermediaries, such as: providing information to state agencies upon request in accordance with established procedures; developing advertising policies suitable for the Vietnamese market; designing features to label advertising content within applications to differentiate it from search results or organic content; and allowing users to report legal violations related to commercial advertising.

State management agencies, in addition to collaborating with internet intermediaries, should strengthen investigations and deal with individuals and organizations that exploit social media platforms to disseminate false advertisements, infringing upon the legitimate rights and interests of consumers.

Furthermore, the regulatory agency should promote collaboration with social organizations such as the Vietnam Advertising Association and the Vietnam Consumers’ Rights Protection Association to establish practical guidelines and codes of conduct for transparent and healthy advertising in cyberspace. These guidelines and codes of conduct could simultaneously address two issues. First, they would help make legal regulations regarding advertising content clearer and easier to comply with in the context of societal changes brought about by digital technology. Second, they would create stability in legal regulations, as false advertising always exists, while advertising formats evolve over time (from billboards and posters, to cultural and entertainment event advertising, to advertising in print media, on television, or online today).

Regarding false advertising related to influencers on social media, state authorities need to continue considering the inclusion of a collective lawsuit mechanism in Vietnam, as false advertising conducted by influencers primarily affects a group of users (usually their followers). This mechanism would save time, effort, and costs for plaintiffs, as they would not need to go through individual litigation procedures to prove damages; it would also alleviate the burden of conducting litigation procedures and save time for the courts.

(This translation was provided by an automated AI translation tool)

Author

Nguyen Lan Phuong

Nguyen Lan Phuong