The purpose of this article is to attempt to investigate the issue of product placement, to analyze and systematize this innovative legal subject, from the point of view of European law. The aim of this study is also to present the difference between product placement and advertising. The major objective of this research is the introduction to the European regulations, as well as an examination of their history, in terms of both advertising and product placement itself, likewise demonstration that all the amendments of existing directives, regarding advertising and product placement, were directly dictated by the continuous technological progress, causing changes in the audiovisual sector, thereupon existing regulations had to be adapted, to provide equal rights for all European Union Members.