In Russia, small businesses are counting losses due to the ban on the use of foreign words in signs - SZR
Kyiv • UNN
Entrepreneurs in the Russian Federation are forced to massively change advertising and packaging due to new language requirements. Rebranding costs are eating into small business profits.
In Russia, new rules regarding the use of foreign words in commercial activities came into force in March, forcing businesses to massively change signs, advertisements, packaging, and websites. The innovations have already led to additional costs for entrepreneurs and created legal uncertainty due to unclear criteria for the admissibility of words, reports UNN with reference to information from the Foreign Intelligence Service of Ukraine.
Details
According to the new legislative requirements, all signs, advertising materials, and product descriptions on websites and marketplaces must be exclusively in Russian. The use of Latin script, as well as words that may be deemed insufficiently "Russian," has been effectively banned.
For small businesses, the new rules have become a significant financial burden. Entrepreneurs are forced to urgently update signs, menus, packaging, and online platforms, spending tens of thousands of rubles on this. Large retail chains also incur significant costs, as they have to re-register hundreds of stores and advertising media.
How rebranding due to new language norms eats into business profits
Representatives of small businesses are already stating that updating branding and signs effectively absorbs several months' worth of profits. In particular, cafes, studios, and other establishments are even forced to change their names if previous formulations do not meet the new requirements. Attempts to retain familiar names through trademark registration do not always yield results.
In addition to financial costs, the innovations have also created legal risks. Business owners do not have a clear understanding of which words may be considered a violation and which are permissible. At the same time, fines for companies can reach hundreds of thousands of rubles.