An advertisement is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media e.g. radio, tv, press, outdoor, cinema, electronic communication, Internet. ¹⁾

The rapid growth of the Internet and the incredible flow of information that the Internet has made possible, has transformed the business of advertising.

An advertisement in e-commerce, also known as online advertisement and internet advertisement is a paid message on a Web site, online services or rather interactive medium, such as instant messaging). ²⁾

There are numbers of difeerent forms of online advertisement:

• Display ads, banner ads,
• Rich media ads
• Search engine advertisement
• Sponsorships
• Referrals (affiliate relationship marketing)
• E-mail marketing
• Online catalogs
• Online chat
• Blog advertisement ³⁾

The traditional laws of advertising are enacted in the interest of all consumers to prevent deceptive and unfair acts or practices. These laws is also applicable to advertising on the Internet.

There are rules and guidelines that protect consumers and also help businesses by maintaining the credibility of the Internet as an advertising medium.

Generally speaking, an online advertisement should be legal, decent, honest and truthful. It should not be misleading and bring advertising into disrepute. It should respect the principles of fair competition generally accepted by business. In some areas the rules and laws are more restricted as gambling, alcoholic drinks, motoring, environmental claims, health and beauty products and therapies, children, weight control, betting and gaming, employment and business opportunities and tobacco. ⁴⁾

There are different organisations worldwide which deal with this issue creating rules, guidelines and laws e.g.:

• Advertising Standards Authority (ASA)- the self-regulatory organisation (SRO) of the advertising industry in the United Kingdom. Its code of advertising practice (CAP Code) broadly reflects legislation in many instances.
• Interactive Advertising Bureau (IAB) - an advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry.
• International Chamber of Commerce (ICC) - the largest, most representative business organization in the world which introduced the ICC Code of Advertising and Marketing Communication Practice to guide advertising and marketing professionals around the globe.
• Federal Trade Commission (FTC) - is an independent agency of the United States government. Its principal mission is the promotion of consumer protection and the elimination and prevention of anti-competitive business practices, such as coercive monopoly. The FTC Act prohibits unfair or deceptive advertising in any medium.
• Bureau of Consumer Protection (BCP) of FTC - is to protect consumers against unfair or deceptive acts or practices in commerce. It has prepared a guide: Advertising and Marketing on the Internet: Rules of the Road which describes the rules and guidelines that protect businesses and consumers - and help maintain the credibility of the Internet as an advertising medium.

• Advertising and Marketing on the Internet: Rules of the Road http://business.ftc.gov/documents/bus28-advertising-and-marketing-internet-rules-road

• CAP Code http://www.cap.org.uk/Advertising-Codes.aspx

• ICC Code of Advertising and Marketing Communication Practice http://www.codescentre.com