FOR RELEASE: DECEMBER 11, 1992
FTC DENIES CSC'S PETITION TO PROMULGATE RULE ON PRODUCT PLACEMENT IN MOVIES
The Federal Trade Commission today denied a petition requesting that it require disclosures to audiences when manufacturers pay to have their products placed in movies. In a petition filed last year, the Center for the Study of Commercialism (CSC), five other organizations and three individuals, asked the FTC to order motion picture companies to stop using undisclosed product placement in movies, and require production studios to disclose paid for product placements at the beginning of any film containing them, among other things.
The FTC's letter in response to the petition said that, "Due to the apparent lack of a pervasive pattern of deception and substantial consumer injury attributable to product placements, the Commission has determined that an industry-wide rulemaking is inappropriate at this time." If, however, particular instances of product placement arise where there is significant evidence of consumer injury, the Commission said it would consider these matters on a case-by-case basis.
Copies of the petition and the Commission's response are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY 1-866-653-4261.
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MEDIA CONTACT: Brenda A. Mack, Office of Public Affairs 202-326-2182
STAFF CONTACT: Judith Wilkenfeld, Bureau of Consumer Protection, 202-326-3150 or Beth Grossman, Bureau of Consumer Protection 202-326-3019
(FTC File No. P914518) (csc-Pet)