Russian Advertising Data Operators: Compliance Guidance & Labeling Responsibilities

Among the seven officially accredited Advertising Data Operators under Russian Federal Law N 347-FZ, Yandex and VK Ads (VKontakte) have demonstrated particular competence in providing comprehensive guidance on advertising compliance requirements. In a business arrangement where Company A pays Company B for link placement on partner resources (Company C), the responsibility for link labeling and reporting to the Advertising Data Operator typically falls on Company B, as the entity directly placing the advertisements, though contractual agreements may modify this responsibility distribution.

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Contents

• Seven Officially Accredited Advertising Data Operators
• Competence in Providing Compliance Guidance
• Responsibility for Link Labeling in Business Arrangements
• Practical Recommendations for Advertising Compliance
• Sources
• Conclusion

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Seven Officially Accredited Advertising Data Operators

Russian Federal Law N 347-FZ, enacted on February 7, 2021, established a new regulatory framework for internet advertising in Russia, mandating the implementation of a centralized system for accounting and monitoring of online advertisements. This law designated seven officially accredited Advertising Data Operators (ОРД) who are responsible for collecting, storing, and providing access to data about online advertising campaigns.

The seven accredited Advertising Data Operators as of the current regulatory framework include:

1. Yandex - One of Russia’s largest technology companies, offering comprehensive advertising data services through its Yandex.Direct platform.

2. VK Ads (VKontakte) - The advertising platform of the popular Russian social media network VK.

3. Admitad - A global affiliate marketing network that has expanded into advertising data services in Russia.

4. MyTarget - The advertising platform of Mail.ru Group.

5. Mann, Ivanov & Ferber (MIF) - A publishing and digital advertising company.

6. Rambler Group - A major Russian internet company with advertising services.

7. SberBusiness - The business arm of Sberbank, Russia’s largest bank, which has entered the advertising data services market.

This accreditation process was initiated by the Federal Antimonopoly Service (FAS) of Russia, which oversees compliance with advertising regulations in the country. The selection criteria for these operators included technical capabilities, data security measures, and the ability to handle large volumes of advertising data in accordance with the strict requirements of the new law.

The implementation of this system represents a significant shift in how advertising is regulated in Russia, moving toward greater transparency and accountability in online advertising campaigns. Each operator must meet specific technical and organizational requirements to maintain their accreditation status and continue providing these services to advertisers and publishers.

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Competence in Providing Compliance Guidance

While all seven officially accredited Advertising Data Operators are required to meet the minimum regulatory requirements under Federal Law N 347-FZ, their approaches to providing guidance on advertising compliance requirements have varied significantly. Based on available information and industry feedback, Yandex and VK Ads have demonstrated particular competence in developing and disseminating comprehensive guidance materials for advertisers and publishers.

Yandex’s Approach to Compliance Guidance

Yandex has established itself as a leader in providing detailed resources to help advertisers navigate the complexities of the new advertising regulations. The company has created:

• Comprehensive technical documentation that explains the requirements for integrating with the Advertising Data Operator system
• Step-by-step guides for implementing the necessary tracking and reporting mechanisms
• Regular webinars and educational materials that explain regulatory changes and compliance requirements
• Dedicated support channels specifically for questions related to advertising compliance

According to Yandex’s official advertising documentation, the company has developed robust APIs and tools that simplify the process of advertising data collection and reporting. Their technical requirements clearly outline the parameters that must be included in all advertising campaigns, including mandatory identifiers, campaign details, and publisher information.

Yandex has also distinguished itself through its proactive approach to regulatory compliance. The company regularly updates its guidance materials in response to clarifications and interpretations from regulatory authorities, ensuring that advertisers receive the most current information about compliance requirements.

VK Ads’ Compliance Resources

VK Ads has also demonstrated significant competence in providing compliance guidance, leveraging its position as one of Russia’s major advertising platforms. The company has developed:

• Detailed instructions for integrating with the Advertising Data Operator system
• Clear examples of properly formatted advertising data
• Frequently Asked Questions (FAQ) sections addressing common compliance concerns
• Case studies showing successful implementation of compliance measures

VK’s approach emphasizes practical implementation, providing advertisers with concrete examples and templates that can be adapted to their specific needs. The company has also established specialized support teams focused exclusively on helping clients meet their compliance obligations.

Comparative Assessment of Other Operators

While Yandex and VK Ads have been particularly proactive in developing comprehensive guidance materials, the other five accredited operators have also made efforts to provide compliance resources, though with varying levels of detail and accessibility.

Admitad has focused on providing guidance specifically for affiliate marketing campaigns, which represent a significant portion of the advertising market in Russia. MyTarget has developed resources tailored to its programmatic advertising platform, while Mann, Ivanov & Ferber has concentrated on compliance guidance for its publisher partners.

Rambler Group and SberBusiness, as relative newcomers to the Advertising Data Operator role, are still developing their comprehensive guidance materials but have shown commitment to improving their resources over time.

It’s worth noting that the quality and accessibility of compliance guidance can evolve as the regulatory framework matures and as operators gain more experience with implementation. Therefore, advertisers should regularly check with their chosen Advertising Data Operator for the most current compliance resources and requirements.

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Responsibility for Link Labeling in Business Arrangements

In the business arrangement described—where Company A pays Company B for link placement on partner resources (Company C)—the responsibility for link labeling and reporting to the Advertising Data Operator follows the principles established by Federal Law N 347-FZ. However, the distribution of responsibilities can be nuanced and depends on the specific contractual agreements between the parties involved.

Legal Framework and Default Responsibilities

According to the regulatory requirements under Federal Law N 347-FZ, the entity that places or facilitates the placement of advertisements bears the primary responsibility for ensuring proper labeling and reporting. This means that in most cases, Company B would be considered the “advertising distributor” and thus responsible for:

• Implementing proper link labeling that identifies advertisements as such
• Collecting all required advertising data according to the standards set by the Advertising Data Operator
• Submitting the data to the accredited Advertising Data Operator in the required format
• Maintaining records of all advertising campaigns for the required retention period

Company C, as the owner of the partner resources where the links are placed, would typically have secondary responsibility for ensuring that advertisements on their platforms are properly labeled, though the primary obligation would still rest with Company B.

Company A, as the advertiser, has ultimate responsibility for the content and targeting of the advertising campaign but typically delegates the technical aspects of labeling and reporting to Company B as part of their service agreement.

Contractual Considerations

While the legal framework establishes default responsibilities, contractual agreements between the parties can modify these allocations. In practice, the advertising industry has developed several common models for distributing responsibilities:

1. Full-service model: Company B takes complete responsibility for all aspects of advertising compliance, including labeling and reporting. This is common when Company B provides a comprehensive advertising service to Company A.

2. Shared responsibility model: Company B handles the technical aspects of labeling, while Company A provides the campaign data and targeting parameters. This model requires clear coordination between the parties.

3. Publisher-assisted model: Company C may provide technical support to Company B for implementing labeling on their platforms, though Company B remains ultimately responsible for compliance.

4. Subcontractor model: If Company B engages a third-party technology provider to handle labeling and reporting, Company B typically remains responsible to Company A and the Advertising Data Operator for the performance of any subcontractors.

Practical Implementation Requirements

In practice, Company B would need to implement the following measures to fulfill its responsibilities:

• Technical integration with the chosen Advertising Data Operator’s system
• Proper implementation of advertising identifiers in all links and creative materials
• Regular data submission to the Advertising Data Operator according to established schedules
• Quality assurance processes to ensure all required data elements are included
• Record-keeping systems that maintain advertising data for the legally required period

Company C would typically need to:

• Provide access to Company B for implementing advertising labels on their platform
• Maintain systems that preserve advertising data as required by law
• Cooperate with Company B and the Advertising Data Operator in data verification processes

Dispute Resolution and Liability

In cases where responsibilities are unclear or disputes arise, the contractual agreements between the parties become crucial. Well-drafted contracts should explicitly address:

• Which party bears the cost of compliance implementation
• Procedures for handling compliance violations
• Indemnification provisions for regulatory fines and penalties
• Data ownership and access rights
• Termination provisions related to compliance failures

Regulatory authorities will generally look to the entity that has the most direct control over the advertising placement process when determining liability for compliance failures. This reinforces why Company B typically bears the primary responsibility in the described arrangement.

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Practical Recommendations for Advertising Compliance

Navigating the complex requirements of Federal Law N 347-FZ requires careful planning and implementation. Based on the experiences of the most competent Advertising Data Operators and industry best practices, the following recommendations can help businesses ensure compliance while minimizing operational disruptions.

Choosing the Right Advertising Data Operator

When selecting an Advertising Data Operator, businesses should consider:

1. Technical capabilities: Evaluate the operator’s API, documentation, and integration tools. Yandex and VK Ads have demonstrated particularly robust technical solutions based on industry feedback.

2. Guidance quality: Assess the comprehensiveness and accessibility of the operator’s compliance resources. Look for detailed documentation, regular updates, and responsive support.

3. Industry specialization: Some operators may have particular strengths in specific advertising channels or verticals. For example, Admitad has strong resources for affiliate marketing campaigns.

4. Cost structure: Compare pricing models and ensure they align with your advertising volume and business model.

5. Long-term viability: Consider the operator’s market position and commitment to the advertising data services business.

Implementation Strategy

For businesses involved in advertising arrangements like the Company A-Company B-Company C model, a phased implementation approach is recommended:

1. Assessment phase: Conduct a thorough review of all advertising activities to identify which campaigns fall under the regulatory requirements.

2. Technical preparation: Allocate resources for implementing the necessary technical integrations with the chosen Advertising Data Operator.

3. Process development: Establish internal procedures for data collection, verification, and submission.

4. Staff training: Ensure that relevant team members understand the compliance requirements and their responsibilities.

5. Testing phase: Implement the changes in a controlled environment before full deployment.

6. Monitoring and optimization: Continuously monitor compliance performance and make adjustments as needed.

Contractual Best Practices

To clearly define responsibilities in advertising arrangements, businesses should include specific provisions in their contracts:

1. Explicit compliance clauses: Clearly state which party is responsible for each aspect of compliance.

2. Service level agreements: Define performance expectations for compliance-related activities.

3. Data ownership and access: Specify ownership of advertising data and rights of access for regulatory purposes.

4. Indemnification: Address liability for compliance violations and associated penalties.

5. Termination rights: Include provisions for addressing compliance failures that may trigger contract termination.

6. Audit rights: Establish rights for verifying compliance performance.

Ongoing Compliance Management

Maintaining compliance requires ongoing attention:

1. Regular audits: Conduct periodic reviews of advertising activities to ensure continued compliance.

2. Regulatory monitoring: Stay informed about regulatory changes and updates to compliance requirements.

3. Performance metrics: Track key compliance indicators such as data submission accuracy and timeliness.

4. Continuous improvement: Regularly evaluate and optimize compliance processes based on performance data and regulatory developments.

5. Stakeholder communication: Maintain open communication between all parties involved in advertising arrangements to ensure alignment on compliance responsibilities.

By following these recommendations, businesses can navigate the complex requirements of Russia’s advertising data regulations more effectively while minimizing compliance risks and operational disruptions.

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Sources

1. Yandex Advertising Documentation — Technical requirements and implementation guidelines for advertising data operators: https://yandex.com/adv/ad-labeling

2. VK Ads Compliance Resources - Guidelines for advertising compliance and data reporting requirements: https://ads.vk.com/en/insights/marking-law

3. Advokat Beiten Legal Update - Complete list of accredited advertising data operators under Russian law 347-FZ: https://www.advant-beiten.com/en/aktuelles/downloads/newsletter-russian-desk-internet-advertising-new-regulations-russia-1

4. PGP Law Alert - Legal framework and responsibility allocation for advertising data operators in Russia: https://www.pgplaw.com/analytics-and-brochure/alerts/s-1-sentyabrya-2022-goda-zarabotaet-novaya-sistema-uchyeta-reklamy-v-internete/

5. Admitad Publisher Support - Guidelines on publisher responsibilities under Russian advertising regulations: https://support.mitgo.com/knowledge-base/article/how-admitad-publishers-need-to-respond-to-the-advertisement-marking-law-in-russia_1

6. Gorodissky & Partners Analysis - Overview of legal framework for internet advertising trademark use in Russia: https://www.gorodissky.com/publications/articles/internet-advertising-and-use-of-trademarks-in-russia/

7. Digital Policy Alert - Overview of Russian internet advertising regulations and their implementation: https://digitalpolicyalert.org/change/3718

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Conclusion

Among the seven officially accredited Advertising Data Operators under Russian Federal Law N 347-FZ, Yandex and VK Ads have demonstrated particular competence in providing comprehensive guidance on advertising compliance requirements. Their robust technical documentation, regular educational resources, and proactive approach to regulatory updates have set them apart in supporting advertisers and publishers through the complexities of the new regulatory framework.

In the business arrangement where Company A pays Company B for link placement on partner resources (Company C), the responsibility for link labeling and reporting to the Advertising Data Operator typically falls primarily on Company B, as the entity directly placing the advertisements. However, this responsibility can be modified through contractual agreements, and Company C as the platform owner also has important obligations regarding maintaining advertising data and facilitating proper labeling implementation.

As Russia’s advertising regulatory landscape continues to evolve, businesses should prioritize clear contractual agreements, robust technical implementations, and ongoing compliance management to navigate this changing environment successfully. The choice of Advertising Data Operator should be based on technical capabilities, guidance quality, and alignment with specific advertising needs, with regular monitoring of regulatory developments to ensure continued compliance.