Ad Industry Pushes Back on Product Placement

Shortly after a majority of Federal Communications Commission (FCC) members voted to review disclosure rules for product placement on television, the advertising industry is lobbying the agency to slow down. American Association of Advertising Agencies and Association of National Advertisers representatives met with FCC commissioner Robert McDowell, arguing that "if the FCC did anything, it should open an inquiry rather than proposing rule changes," reports Broadcasting & Cable. The industry groups called the current sponsorship identification rules sufficient, noting "the Federal Trade Commission's 2005 finding that no action was warranted on product placement absent a showing that it was unfair, deceptive or harmful." They also stressed that there are "differences between paid endorsers, products that are 'embedded' in programming but are not sponsored, products that are embedded but make no claim about a product and paid-for product integration." TV Week reports that "spending on product placement on TV topped $941 million in 2005, up 70.5% from 2004."