Department for Culture, Media and Sport proposals cover the temporary “management of advertising and trading in open spaces within a few hundred metres around the Olympic and Paralympic venues and road race routes”.
Outdoor ads, giveaways, projected advertising and aerial advertising will all be covered. Standard shop signage and in store advertising will be exempt.
Traders that want to setup in the covered area will need to apply to the Olympic Delivery Authority (ODA) for a licence.
Olympic chiefs hope that commercial income will make up more than half of the £2bn needed to stage the Games. Top-level sponsors including Lloyds Banking Group, BA and BT have paid millions to advertise in and near the venues.
London venues affected include Earls Court, the ExCel, Greenwich Park, Horse Guards Parade, Hyde Park, Lord’s Cricket Ground,
Olympics Minister Hugh Robertson, says: “Sponsorship is part of modern international sport providing a vital source of funding.
“Like many other sporting events, the London Olympic and Paralympic Games could not go ahead without its sponsors so it is important that we protect their investment as well as creating a welcoming and unobtrusive atmosphere for people arriving at venues.”
A consultation on the plans will run until 13 May.
Full details can be found here.