Review of law sciences
(2020) 130-139
6
taking into account of not only the corporate behaviour, but also consumer behaviour as well.
Therefore, the model supports less than strict regulation for misleading advertising in order to
provide consumer welfare and economic efficiency in the market [36]. The modern model suggests
the application of content-based standard for regulation and effect-based approach for evaluation
and decision-making concerning misleading advertising [37]. The traditional competition model,
differently, supports the ban of misleading advertising by using form-based approach for
evaluation and decision making [38]. Thus, developed countries have already shifted from
traditional to effective competition law model, while most of developing countries are still on
transition way.
III. Regulatory Approach on Misleading (Improper) Advertising in Uzbekistan
The CIS and its impact on Uzbekistan
The competition law and policy concerning misleading advertising in the Commonwealth of
Independent States (CIS) [39], has not been truly "home-grown", indeed they are adopted as formal
response to regional (international) obligation within CIS agreements [40], rather than gradual
national awareness [41]. Most of the CIS member states introduced and developed EU competition
law without sufficient understanding on its part of what misleading advertising entails and what
the advertisement role in the economy should be [42]. The legislature of member states attempted
to apply deregulation towards misleading advertising by changing strict scrutiny to less restrictive
regulation, however, those efforts were incorrect. Especially, legislature designed the regulative
standards in the mixture of content-based and non-content based standards. However, this kind of
"quick-fix" for the problems has had negative impacts on substantial legal components and their
application in practice [43]. Moreover, although the strict scrutiny was rejected, the government
has been reluctant to relinquish its control over misleading advertising, because according to the
government`s viewpoint, there is only one authoruty that can provide protection for public interest.
Thus, CIS member states have applied traditional competition law model with some elements of
effective model, which is no longer seen as conductive for the attainment of effective competition
goals.
Why competition law and policy of Uzbekistan cannot deal with misleading advertising:
substantive, institutional and enforcement problems.
Substantive law problems
The competition law and policy is relatively new legal institution in Uzbekistan. Untill the
independence, Uzbekistan did not have any experience in legal regulation of advertising due to the
existence of social ownership, which excluded the competition and marketing communication in
centrally planned economy [44].
After 1991, the year of independence, Uzbekistan chose market economy based on free and
fair competition. In this regard, the legislature designed general and specific legal basis for
competition law and policy regarding misleading advertising. As a general legal act, the Law on
Restriction of Monopolistic Activity (Antimonopoly Law, 1992) [45] determined misleading
advertising as unfair competition, which is based on the "unfair methods of competition" principle
[46]. Later, the Law was adopted in new editions, such as the Law on Competition and Restriction
of Monopolistic Activity in the Commodity Markets (Antimonopoly Law, 1996) [47], and the Law
on Competition (Competition Law, 2012), which is currently in force [48]. However, current
Competition law does not define misleading advertising. As a specific law, Uzbekistan adopted
the Law on Advertising (Advertising law, 1998), which set the legal standards for misleading
advertising [49]. In particular, misleading advertising in Uzbekistan is defined Improper
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