Now Showing: Federal Scrutiny

Entertainment marketers respond to FTC complaints about targeting kids.

Entertainment marketers may face federal regulation if they don’t convince the U.S. Senate that they won’t market violent fare to kids.

The maelstrom began in September with the Federal Trade Commission’s report, Marketing Violent Entertainment to Children, which slammed marketers for targeting kids as young as six with films rated PG-13 and R, music with parental advisory labels, and adult-appropriate videogames. The FTC says marketers routinely ignore their own ratings systems and market to kids, which casts doubt about whether they can regulate themselves. (Electronic gaming is the only industry that restricts marketing based on content; film and music companies rate content, but haven’t restricted marketing efforts.) The FTC called for stricter self-regulation, suggesting the Senate set a deadline for marketers to shape up or face legal action for deceptive and unfair practices.

The report found that 80 percent of the 44 R-rated movies, 70 percent of the 118 electronic games with “mature” ratings (for violence), and all 55 music recordings with “explicit content” labels examined were marketed to kids under 17.

FTC chairman Robert Pitofsky cited several memos that identified a target audience of 12- to 17-year-olds. He criticized ad placement in media with kid audiences of greater than 35 percent, marketing events in schools, and focus groups with children.

The Motion Picture Association of America proposed to the Senate Committee a 12-point guideline for film marketing (see sidebar for highlights). Disney ceo Robert Iger suggests a universal ratings system across all entertainment media. Twentieth Century Fox and Warner Bros. pledge to stop advertising on TV shows or in magazines with high kid followings. MGM last year improved its production process so marketing executives would have an earlier, better understanding of film content, and banned under-17 viewers from test screenings unless accompanied by a parent.

For music, the Recording Industry Association of America (RIAA) last month refined its 10-year-old Parental Advisory system by adding uniform standards to guide studios’ and artists’ subjective control, and will now require that the Parent Advisory logo appear on all ads for recordings that carry the warning. It also set Internet marketing guidelines.

The Senate may consider legislation, and some local actions are already under way. South Carolina attorney general Charles Condon has threatened to sue the entertainment industry, as he did with tobacco marketers. Condon called other AGs to join him to invoke the Unfair Trade Practices Act. As of Oct. 1, no suit had been filed.

Videogame marketers won an injunction in August against an Indianapolis ordinance set to take effect Sept. 1 restricting kids’ access to arcade games. The American Amusement Machine Association, the Amusement and Music Operators Association, and the Indiana Amusement and Music Operators Association argue that the law restricts free speech. The law requires violent and sexually explicit arcade games to carry a warning label, sit 10 feet or more from non-violent games, and be separated by a partition or curtain. Kids can play them only if accompanied by parent or guardian. Arcades face fines of up to $200 a day and revocation of license after three violations. The law is a first in the U.S.

In the Senate Committee hearings, entertainment execs stressed that ratings are designed to help parents choose appropriate fare for their kids, not to ban access. FTC’s survey of parents found that 98 percent help choose the movies their kids will see, and 90 percent restrict kids’ viewing.

“It is simply wrong to suggest that any government regulatory action can substitute for [parental] involvement, particularly when it comes to art,” said RIAA ceo Hilary Rosen in her testimony.

– Codes that prohibit target marketing to children, with sanctions for violations, administered by trade associations.

– Increased compliance at retail, with ID checks and parental permission requirements before purchase.

– Increased parental understanding of ratings and labels, including reasons for ratings on packaging and ads.

Source: Federal Trade Commission

– Film companies will ask theater owners not to show trailers for films rated R for violence during G-rated films. MPAA member companies will not attach R-rated trailers to G-rated movies, videos, or DVDs.

– No film company will knowingly include persons under 17 in research screenings for such films unless accompanied by a parent or guardian.

– Each company will review its marketing and advertising practices, and appoint a senior executive compliance officer or committee to review its marketing practices.

– The MPAA will review annually how each member company is complying with these initiatives. It will also strongly encourage theater owners and video retailers to improve ratings system compliance.

– Companies will seek ways to include the reasons for ratings in print ads and official movie Web sites, and include ratings with reasons on all videocassette and DVD packaging.

Source: Motion Picture Association of America