Regulation of Television Advertising in the United States

1
Regulation of Television Advertising in the
United States

• Jonathan D. Levy
• Deputy Chief Economist
  
• Federal Communications
  Commission
• Washington, DC 20554
• ltjonathan.levy_at_fcc.govgt
• Presented to the
• Second Telecommunications and Television Summit
• for Regulatory Authorities
• Cartagena, Colombia
• 22 February 2006

2
DISCLAIMER

• The opinions expressed in this talk are those of
  the speaker and do not necessarily represent the
  views of the FCC or any other member of its staff.

3

• FCC Regulation of Television Advertising
• FCC Regulation of Public Television Corporate
  Support
• Announcements
• FTC Regulation re False, Deceptive, or Unfair
  Advertising

OUTLINE
4
FCC Regulation of Television Advertising

• Sponsorship Identification
• Political Advertising
• Tobacco, Liquor, and Gambling Advertisements
• Advertising During Childrens Programming

5
Sponsorship Identification

• Inform viewers of who paid for the programming
• Applies to any matter transmitted in exchange
  for money, service, or other valuable
  consideration
• See 47 C.F.R. 73.1212
• Applies to product placements
• Re political advertisements specific rule
  regarding size of letters and duration on screen
  of notice

6
Political Advertising

• Mandatory access for legally qualified candidates
  for federal office (US House, US Senate, Vice
  President, and President). 47 U.S.C. 312(a)(7)
• Equal opportunity (if one candidate has access,
  then all must have it on same terms) extends to
  candidates for state/local offices. 47 U.S.C.
  315
• Conditions on advertising sales
• Reasonable amount of airtime must be sold
  (Licensee discretion)
• Advertising must be sold at lowest unit charge
  during 45 days prior to primary elections and 60
  days prior to general elections

7
Tobacco, Liquor, Gambling

• Tobacco statutory prohibition, as of Jan. 1,
  1971, of advertising cigarettes and little
  cigars
• smokeless tobacco ban added in 1986
• Liquor no legal prohibition but voluntary
  industry limits
• Liquor trade association code bans advertisements
  directed at those under 21
• Liquor trade association HAD until 1996 a
  voluntary ban on television advertising
• Gambling
• Casino gambling-no prohibition
• Lotteries-limitations possible in some
  circumstances

8
Childrens Programming Advertising

• What is childrens programming?
• Programs originally produced and broadcast
  primarily for an audience of children 12 years
  old and under
• Limits on the number of advertising minutes in
  childrens programming, broadcast and cable
• 12 minutes/hour weekdays
• 10.5 minutes/hour weekends
• See 47 C.F.R. 73.670 and 76.225
• Program-length commercial policy
• Advertising in a childrens program cannot
  include references to a product that is related
  to the same program
• Host-selling policy
• Host-selling is prohibited (character endorsement
  of a product that has the effect of confusing the
  child viewer, blurring the distinction between
  program and non-program material)

9
Public Television Broadcasting

• Public television stations may not advertise
• Public television stations may acknowledge
  corporate support via enhanced underwriting
• Enhanced underwriting can include
• Corporate logos (symbols) or slogans that
  identify but do not promote
• Information on location
• Listings of products, services, brand and trade
  names
• Value neutral product/service descriptions
• Enhanced underwriting may NOT include
• Price information, comparative or qualitative
  descriptions
• Announcements with a call to action or inducement
  to purchase
• See 47 U.S.C. 399(a), (b) and 47 C.F.R.
  73.621

10
False, Deceptive, or Unfair Advertising (1)

• Federal Trade Commission responsibility
• Authority from the Federal Trade Commission Act
  15 U.S.C. 45, 52, 55
• Advertising cannot be false
• Advertising must not be deceptive
• Cant contain statement or omit information that
  could mislead a reasonable consumer
• Statement/omission must be material, i.e., it
  shapes the consumers purchasing decision

11
False, Deceptive, or Unfair Advertising (2)

• Advertising must not be unfair
• Cant cause unjustified consumer injury
• Injury must be substantial, not outweighed by
  countervailing consumer benefit, and not
  reasonably avoidable by the consumer
• FTC Deception Policy Statement http//www.hardlink
  .net/Policy/deceptionpol.html
• FTC Unfairness Policy Statement
  http//advertising.utexas.edu/research/law/UnfairP
  olicy.html

12

• FOR MORE INFORMATION
• www.fcc.gov/Reports/1934new.pdf
  Communications Act of !934
• http//wireless.fcc.gov/rules.html FCC
  regulations from the C.F.R.-Code of Federal
  Regulations
• http//www.gpoaccess.gov/uscode The U.S.C.-
  United States Code (federal laws)
• THANK YOU