Paris escapes action over advert law

Date: 27/03/1997

By Simon Coss

THE European Commission has backed away from plans to challenge controversial French restrictions on alcohol and tobacco advertising, amid signs that Paris may be about to water down its tough legislation.

Internal Market Commissioner Mario Monti sent a warning letter to Paris last summer in the wake of numerous complaints against France's Conseil Supérieur de l'Audiovisuel (CSA), which has banned television broadcasts of football and rugby matches because shirt or hoarding advertisements were sponsored by alcoholic drinks companies.

But when the so-called 'Loi Evin' was discussed at last week's meeting of the full Commission, Monti's argument that the ban contravened single market rules on the freedom to provide services lost out to counterclaims that it was justified on the grounds of protecting public health - precisely the argument France has used in its defence.

“The Commission will always try to strike a balance in such cases. On this occasion, the health aspect outweighed the single market considerations,” said a close Monti aide.

The advertising industry's reaction to the decision has been surprisingly muted, largely because of press reports that a relaxation of the French law is imminent.

“Clearly, if the Commission is really backing down over this, then that is very bad. But there are suggestions that the French themselves are preparing to announce a dilution of the law,” said an official at the European Association of Advertising Agencies (EAAA).

The EAAA believes that Paris is planning to reform the controversial advertising rule because it has realised that, as it stands, the Loi Evin could seriously jeopardise possible cash returns from football's 1998 World Cup, which will be hosted by France.

The Commission is already investigating a separate complaint from a UK-based alcoholic drinks firm which claims it was banned from sponsoring the event because of the law.

If France is indeed planning to backtrack, there are certainly precedents for such a move. Tobacco advertising is now allowed at Formula One motor racing events after Grand Prix organisers threatened to drop France from the international circuit if the ban was not lifted.

Critics also point to the fact that the rules on advertising certain alcoholic drinks were relaxed after French wine producers complained they were losing money as a direct result of the law.

“These examples show the law is clearly a protectionist measure. As soon as they need some revenue, they bend the rules. The public health argument is clearly a spurious pretext. There is no proven link between reduction of advertising and reduction of alcohol consumption,” said one advertising industry expert.

The Commission says it has had no official word from Paris about its alleged intention to change the law.

The French government is facing a growing challenge to the legislation from many quarters, with publishers of foreign newspapers and magazines among the latest to join in.

They are increasingly concerned that their products could be banned from distribution in France if they carry advertisements for alcoholic drinks.