- It lacks reasoning or supporting study.
- There are no clear benefits for consumers. On the contrary, processes will be hampered, which will make products more expensive.
- It does not consider the investment trends that constitute digital platforms.
CDMX, August 19, 2021. Litigation, media and entertainment industry experts from the law firm Santamarina y Steta have stated that the new Advertising Transparency Law, which is intended to protect advertisers and improve competition, will end up destroying small agents who will not be able to cope with the costs and procedures that media, agents and advertisers are now obliged to pay.
“From its explanatory statement, which is not very clear, and the body of its text, the new law does not seem to know how the sector works or distinguish the parts that compose it.", He said Efraín Olmedo, an expert in litigation, licensing and intellectual property, stressing that the document does not contain a single argument, study or analysis that describes a problem and therefore a solution.
The expert also explained that large advertisers buy advertising space in advance not only to obtain better discounts from the media, but also to launch promotional campaigns without having to go through any major purchasing procedures. “Now, the law hinders this ability to react”he said.
Efraín Olmedo added that major advertisers have supplier certification procedures that ensure the quality and effectiveness of their advertising messages, which will be affected because the new law eliminates already certified integrating agents from supply chains, forcing all of them to register in complex processes that require months of testing and verification of results with the advertiser.
For its part, Paola Morales, an expert in telecommunications, media and technology at Santamarina + Steta, pointed out that the new law does not make clear how the benefits for consumers will be reflected, given that the obstruction of the chain of production and distribution of advertising messages will incur higher costs for everyone. “On the contrary, in the end they will have an impact on costs for consumers,” said.
The expert explained that the drafting of this law did not take into account the operating standards of the Mexican industry or other parts of the world.There are provisions with uncertain definitions, which leave advertisers, media and agencies with a lot of uncertainty in interpreting the rules. And even more so if we take into account that there are new players, established in platforms that are already a growing trend for advertising investments and that often cover two or all three roles in the advertising production and distribution chain.”He said.
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