The Federal Trade Commission (FTC) recently hosted a workshop on digital native advertising as part its effort to ensure that “consumers can identify advertisements as advertising wherever they appear.” Titled “Blurred Lines: Advertising or Content?,” the workshop examined “the practice of blending advertisements with news, entertainment, and other content in digital media,” bringing together publishers, marketers, consumer advocates, academics, and self-regulatory organizations to discuss: (i) “the ways in which sponsored content is presented to consumers online and in mobile apps”; (ii) “consumers’ recognition and understanding of it”; (iii) “the contexts in which it should be identifiable as advertising”; and (iv) “effective ways of differentiating it from editorial content.” Building on recent updates to FTC’s guidance on search engine advertising, dot com disclosures, and endorsements and testimonials, the workshop is reportedly the latest step in the commission’s efforts to ensure that digital advertisers conform to rules intended to help consumers distinguish between…
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The U.K. Advertising Standards Agency (ASA) has upheld a complaint claiming that a TV advertisement with a “prices may vary” disclaimer was misleading because the complainant was unable to purchase the product for the stated price. Created by Kentucky Fried Chicken (Great Britain) Ltd. (KFC), the commercial in question indicated that families could “save a fiver” by purchasing “the new KFC Family Burger Box,” instead of buying the components a la carte. On-screen text apparently clarified, “Item[] shown £20.51 if bought individually. Prices may vary.” According to ASA, Kentucky Fried Chicken explained that the phrase “prices may vary” “referred to both the a la carte menu pricing of individual items, the price of the Family Burger Box and the exact saving made between those two prices.” To convey this information, the company chose the text “prices may vary” rather than “price may vary” “to be clear that this referred to…
U.S. Sens. Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), John Rockefeller (D-W.V.), and Edward Markey (D-Mass.) have written a letter to Rockstar, Inc. CEO Russell Weiner, questioning the energy drink company’s relationship with Ronin Syndicate, the manufacturer of remote-controlled toys crossed-branded with the Rockstar logo. Responding to consumer complaints on social media sites, the senators pointed to a July 31, 2013, hearing held by the Commerce, Science, and Transportation Committee investigating the alleged health risks of caffeinated energy drinks. In particular, they noted that Rockstar Chief Operating and Financial Officer Janet Weiner told committee members that “Rockstar’s target demographic is persons 18 to 35 years of age and their company does not market products to children under 12 years of age.” “Despite statements from your company that Rockstar, Inc. does not market to children, examples of what appear to be targeted marketing of your products to children have come to our attention,”…
U.S. Sen. Edward Markey (D-Mass.) and U.S. Rep. Joe Barton (R-Texas) have reportedly introduced joint legislation (S. 1700 and H.R. 3481) that would expand the Children’s Online Privacy Protection Act of 1998 (COPPA) to cover children older than age 12 and establish new rules for collecting, storing and disclosing their personal information. Titled the Do Not Track Kids Act of 2013, the initiative includes provisions that “would extend protection to teens ages 13 to 15 by prohibiting Internet companies from collecting personal and location information from teens without their consent and would create an ‘eraser button’ so parents and children could eliminate publicly available personal information content, when technologically feasible.” According to Markey, who in September 2013 asked the Federal Trade Commission to investigate Facebook’s decision to change its privacy settings for teens, the legislation seeks to draw congressional attention to “the speed with which Facebook is pushing teens to…
According to New York Times food commentator Mark Bittman, Beyoncé Knowles has joined a list of celebrities who have entered endorsement deals for products “that may one day be ranked with cigarettes as a killer.” The singer has apparently agreed to “have the Pepsi logo painted on her lips and have a limited-edition Pepsi can bearing her likeness.” She will also be seen during the “Pepsi Super Bowl halftime show, where she’ll be introduced by 50 of her luckiest and best-gyrating fans who have been selected through a contest.” In his article titled “Why Do Stars Think It’s O.K. To Sell Soda?,” Bittman notes that Knowles supported first lady Michelle Obama’s “Let’s Move” campaign by stating that she was “excited to be part of this effort that addresses a public health crisis,” but has now “become part of an effort that promotes a public health crisis.” He observes that product…
The Yale University Rudd Center for Food Policy & Obesity has released an updated report on food advertising to children and teens that criticizes the fast-food industry for failing to meet its own marketing standards. Funded by the Robert Wood Johnson Foundation, “Fast Food FACTS 2013” claims that fast-food restaurants spent $4.6 billion on total advertising in 2012, an 8 percent increase over 2009. In particular, the report notes that even as “older children’s total exposure to fast food TV and internet advertising declined,” “fast food marketing via social media and mobile devices—media that are popular with teens—grew exponentially.” According to the Rudd Center, which reportedly surveyed the menus and marketing practices of 18 top fast-food restaurants in the United States, children aged 6-11 saw 10 percent fewer fast-food TV ads in 2012 compared to 2009, while many chains discontinued popular websites geared toward younger audiences. At the same time,…
Wooden Nickel Music, which owns the copyright to the musical composition “Lady” and the sound recording embodying that composition by the group Styx, has filed an infringement action against Anheuser-Busch, LLC (AB) and a film company that purportedly created a video, currently on YouTube, including part of the recording. Wooden Nickel Music v. Anheuser-Busch, LLC, No. 13-8145 (C.D. Cal., filed November 4, 2013). The video, titled “Bud Light Commercial – The Elevator,” features a scheme in which young men cause an elevator with an attractive woman to stop between floors, so one of the men can share a beer and dance with the woman and, in the process, obtain a phone number. “Lady” is one of the songs played during the dance scene. According to the complaint, AB’s associate general counsel claims it has no record of the company “ever having seen the referenced work using Bud Light indicia” and…
The American Academy of Pediatrics (AAP) recently issued a policy statement calling on doctors to review patient media use and work with parents to scale back their children’s “entertainment screen time.” The latest in an ongoing series of policy statements addressing media violence, infant media use, and obesity and the media, AAP’s recommendations include encouraging parents to (i) “limit the amount of total entertainment screen time to <1 to 2 hours per day,” (ii) “discourage screen media exposure for children <2 years of age,” (iii) “keep the TV set and Internet-connected electronic devices out of the child’s bedroom,” and (iv) “monitor what media their children are using and accessing, including any Web sites they are visiting and social media sites they may be using.” In addition, AAP has requested that physicians “ask two media questions and provide age-appropriate counseling for families at every well-child visit: How much recreational screen time…
Mondelēz International reportedly intends to introduce “smart shelves” whose sensors first identify the age and gender of grocery shoppers and then deliver targeted ads via video display. “Knowing that a consumer is showing interest in the product gives us the opportunity to engage with them in real-time,” Mondelēz CIO Mark Dajani said in a recent Wall Street Journal article. Dajani noted that the smart shelves will respect consumers’ privacy because no photos, video or personal information will be captured. See Wall Street Journal, October 11, 2013.
Led by the Center for Digital Democracy (CDD), a coalition of public health, media, youth, and consumer advocacy groups has written a letter to the Federal Trade Commission (FTC), asking the agency to review Facebook’s recent decision to relax its privacy protections for teenage users. According to an October 20, 2013, press release, the letter raises concerns about the social networking site’s new terms of service agreement, which, among other things, apparently gives Facebook “permission to use, for commercial purposes, the name, profile picture, actions, and other information concerning its teen users.” It also objects to a new condition of service that asks 13-to-17-year-olds to “represent that at least one of your parents or legal guardians has also agreed to the terms of this section (and the use of your name, profile picture, content, and information) on your behalf.” In particular, the coalition argues that these proposed changes “would expose…