FTC rejects product placement regulations

February 10, 2005 at 6:00 pm Leave a comment

Earlier today, the Federal Trade Commission (“FTC” or the “Commission”) rejected a petition from Commercial Alert, a consumer watchdog, asking that the Commission require that paid product placements in television programs be clearly labeled.# The Commission does not believe that such advertisements make objective claims that can be regulated. According to Advertising Age, the FTC stated that, “In most instances, the product placement appears on-screen or is mentioned, but the product’s performance is not discussed. Therefore, the rationale for disclosing that an advertiser paid … is absent.” However, the Commission did state that infomercials that make objective claims without disclosing that the programs are advertisements are deceptive. The FTC also stated that it will reexamine disclosure requirements for paid spokespersons who appear on news programs. Commercial Alert had complained about an appearance by Lauren Bacall on NBC’s “Today Show” where Bacall discussed a drug produced by a company she was paid to endorse. # Registration required for some content on linked website.

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Entry filed under: FTC.

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