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The UK government has announced plans to permit product placement on television. After a DCMS consultation, Ben Bradshaw, the Culture Secretary, released a written statement on 9 February 2010 confirming that the government would authorise product placement in four separate genres of broadcast content: “cinematographic works, films and series made for television, sports programmes and light entertainment programmes”.
This brings the UK into line with the majority of EU member states, which have either allowed product placement or stated an intention to do so. The change is intended to improve the finances of UK television production at a time when it “needs all the support we can give it”.
Background
The Audio-Visual Media Services (AVMS) Directive was incorporated into UK law on 19 December 2009. The AVMS Directive allows member states to relax the previous outright prohibition on product placement under the Television Without Frontiers Directive. In a u-turn on its previous stance against product placement (as we reported here), the government consulted between November 2009 and January 2010 on allowing product placement in programmes made to be shown on UK television.
Consultation responses and prohibitions
The consultation responses confirmed that there was concern about the inclusion of product placement in current affairs, consumer and religious programming. As a result the government has proposed legislation against product placement in such programmes.
There will be a blanket ban on product placement in children’s programmes, as required by the AVMS Directive. The BBC's constitution prevents it from accepting product placement in its services funded by the licence fee, and that will remain the case; however, the BBC's UK commercial services (which are operated through BBC Worldwide) will be subject to the same rules on product placement as other broadcasters.
The AVMS Directive imposes a blanket prohibition on the placement of tobacco products (as well as placement by or on behalf of a tobacco company) and prescription medicines. The government intends to expand on this, barring placement of the following products and services: alcoholic drinks; foods and drinks high in fat, salt or sugar; gambling; smoking accessories; over-the counter medicines; and infant formula and follow-on formula.
The AVMS Directive makes clear that product placement must not affect editorial independence, be unduly prominent or directly encourage purchase, and that audiences must be alerted to the presence of product placement in a programme by “signalling” it at the beginning and end of a programme and after advertising breaks.
Product placement in imported, non-EU programmes that are transmitted by UK television broadcasters will continue to be permissible within the Directive boundaries, as long as it meets Ofcom’s overall requirements (including, in particular, about undue prominence).
What next
The government will now lay Regulations under section 2 of the European Communities Act 1972, giving legal effect to the requirements of the AVMS Directive on TV product placement and its proposals.
Product placement will not, however, be permitted as soon as those Regulations come into effect. The Regulations will merely permit Ofcom to allow product placement under its Broadcasting Code, and Ofcom is required to carry out a full public consultation on any proposed changes to the Code. Only after that consultation will Ofcom have the power to amend the Code to permit product placement and, until the Code is changed, product placement will not be permitted. The government anticipates that the new regime will be in place later this year.
Ofcom will be responsible for policing product placement and will have the authority to set further conditions for ensuring editorial integrity. Ofcom will also determine, after its consultation, how audiences should be alerted to the presence of product placement in programmes.
Comment
The imminent introduction of product placement is an exciting development and should be a welcome financial reprieve for TV producers and broadcasters, which have been hit recently by the migration of advertising to internet channels. Manufacturers and brands will also benefit from the potential for extra exposure for their products.
We still need to wait for the new Regulations to come into effect (and for Ofcom to consult on and implement changes to its Code) before we can see the results.
Jonathan Blair
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