Warning shot on World Cup advert rules

Shops, restaurants and other businesses near stadiums hosting Rugby World Cup games are about to get a warning shot about rules aimed at stopping "ambush advertising" during the event.

A law passed by the previous government imposes penalties of up to $150,000 on anyone who breaches strict advertising and merchandising rules likely to be in place during next year's tournament.

The Major Events Management Act includes provisions for "clean" advertising zones around stadiums and penalties for businesses that falsely claim an association with the event.

The law can cover any event deemed "major", but was passed after New Zealand won the 2011 World Cup hosting rights to ensure the tournament runs within International Rugby Board requirements.

New Zealand lost the co-hosting rights to the 2003 cup after the Rugby Union could not guarantee "clean" stadiums.

The act is designed primarily to stop "ambush advertising", which usually involves rivals to the sponsors of big events placing prominent advertising in areas where it is likely to get coverage.

Restrictions in clean zones include a ban on companies giving clothing with their logos to large numbers of people heading into stadiums. Clean zones also ban unauthorised street vendors. The act also provides for fines of up to $5000 for ticket scalpers.

Tournament organiser Rugby World Cup is preparing guidelines on what is and is not likely to be allowed, but general manager Ross Young is promising it will not be a "great sledgehammer" to stop people going about their normal business.

"The rule of thumb is, if you're a business and you run your business normally now and you continue to run your business with the signage that's in place identifying you as a business within that area, that's fine.

"The issue we would have is, if you're a shop owner, for example, and somebody comes along and you close your shop for a month and give it to a potential rival to a sponsor to reclad [with their advertising]. That's the sort of thing we want to clamp down on."

The guidance would be available through the Economic Development Ministry and New Zealand 2011 websites in the next few weeks and briefings would be given to business groups and chambers of commerce.

Wellington Regional Chamber of Commerce chief executive Charles Finny said applying the rules was a "potential problem area", but the chamber was working closely with tournament organisers.