Key Issues to Watch in 2010

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The presentation portion from The Council of PR Firms' webinar "Key Issues to Watch in 2010" with Dan Jaffe of the Association of National Advertisers

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Key Issues to Watch in 2010

  1. 1. Key Issues to Watch in 2010 Council of Public Relations Firms Webinar December 18, 2009 Audio Info Dial In: 866-740-1260 Access: 9221202
  2. 2. A Tsunami of Issues
  3. 3. Key Issues for 2010 <ul><li>FDA and Social Media </li></ul><ul><li>Food Advertising, Children and Obesity </li></ul><ul><li>FCC Children’s Notice of Inquiry </li></ul><ul><li>Consumer Financial Protection Agency and </li></ul><ul><li>the FTC </li></ul><ul><li>DTC Prescription Drug Advertising </li></ul><ul><li>Endorsements and Testimonials </li></ul><ul><li>Green Guidelines </li></ul><ul><li>Tobacco Advertising </li></ul>
  4. 4. The Environment for Public Relations <ul><li>Anti-business and pro-regulation </li></ul><ul><li>Distrustful of self-regulation </li></ul><ul><li>Assumes advertising is causing major harm without strong data basis </li></ul><ul><li>Challenge: define issues for more level playing field </li></ul><ul><li>Courts are the final safety net </li></ul>
  5. 5. FDA Assault on Social Media <ul><li>DDMAC warned companies that use of sponsored links is misleading due to lack of risk information </li></ul><ul><li>End of “one click away” rule? </li></ul>
  6. 6. Multiple Attacks on Food Advertising <ul><li>Proposed advertising taxes </li></ul><ul><li>Increasing regulatory restrictions </li></ul><ul><li>Negative studies </li></ul><ul><li>Expanding coverage from kids to 17 and unders </li></ul><ul><li>Efforts to discredit self-regulatory efforts </li></ul><ul><li>Multiple agency review of food ads: FTC, FCC, FDA </li></ul>
  7. 7. Potential Ad Taxes Abound <ul><li>Kucinich: “fast food” ads should not be “subsidized” </li></ul><ul><li>Ortiz: New York should end deduction for food, video games and equipment, movies, videos or DVDs ads to kids to pay for obesity programs </li></ul>
  8. 8. Ad Bans and the Return of Unfairness <ul><li>Moran bill: </li></ul><ul><ul><li>FTC would have unfairness authority over children’s advertising restored </li></ul></ul><ul><ul><li>FCC could establish rules banning certain categories of food/beverage ads and setting strict time limits for others </li></ul></ul><ul><li>Senate HELP Chairman Harkin also wants to restore unfairness </li></ul>
  9. 9. Four Agency Working Group <ul><li>Omnibus: FTC, FDA, CDC and USDA to study and develop recommendations for food marketing standards directed at children 17 years old and younger </li></ul><ul><li>Report due to Congress by July 15, 2010 </li></ul>
  10. 10. FTC/FDA/CDC/USDA Proposed Draft Food Marketing Standards
  11. 11. <ul><li>“ The foods and beverages that could be affected if the proposed marketing restrictions became law include most sodas, candies, cookies, cereals and some types of yogurt. ” </li></ul><ul><li>“ Federal Group Proposes Curbs on Marketing Food to Kids,” wsj.com, 12/16/09 </li></ul><ul><li>It would cover many other products as well </li></ul>How Broad is This “Voluntary” Proposal? Margo Wootan, Director, Nutrition Policy, CSPI
  12. 12. Ads Under Fire at FCC <ul><li>FCC NOI has a massive range of questions that go beyond advertising and marketing </li></ul><ul><li>FCC assumes that exposure to “excessive and exploitative advertisements” is a significant risk </li></ul><ul><li>FCC also considering whether CTA should be extended to new media </li></ul>Julius Genachowski Chairman, FCC
  13. 13. FCC Has Just a “Few” Questions… <ul><li>Harms that may arise from advertising directed to children (obesity, alcohol use, violence, and other risky behavior) </li></ul><ul><li>What child psychologists, educators and academics know about the effects of advertising to children </li></ul><ul><li>Impact advertising in the digital media has on children – including interactive advertising, advergames, and embedded advertising </li></ul><ul><li>What actions government should take to limit exposure of children to ads </li></ul><ul><li>Whether voluntary efforts such as the Children’s Food and Beverage Advertising Initiative have proven effective </li></ul><ul><li>Whether current parental control tools are effective and easily understood </li></ul><ul><li>Some questions presume the answers such as prevalence of “exploitative advertising” </li></ul>
  14. 14. CFPA: The New Mega-Agency <ul><li>Largest reorganization of financial regulation since the Great Depression </li></ul><ul><li>Creates a new agency by taking power from six others, including the Federal Trade Commission </li></ul><ul><li>Agency is given vast powers including a broad definition of unfairness that differs from FTC </li></ul>
  15. 15. An FTC on Steroids? <ul><li>House CFPA bill and Senate FTC reauthorization give FTC greater powers: </li></ul><ul><ul><li>Enhanced rulemaking under 5 USC 553 </li></ul></ul><ul><ul><li>Immediate civil penalty authority </li></ul></ul><ul><ul><li>No DOJ oversight of civil penalty cases </li></ul></ul><ul><ul><li>Aiding and abetting powers </li></ul></ul>
  16. 16. DTC Under Attack <ul><li>Rep. Henry Waxman (D-CA), chairman of House Energy and Commerce Committee, plans to push a moratorium on DTC ads </li></ul><ul><li>Sens. Franken, Whitehouse and Brown pushing for an end to the deductibility of DTC ads in health care bill </li></ul>
  17. 17. Endorsements and Testimonial Changes <ul><li>New guidelines signal end of “results not typical” safe harbor </li></ul><ul><li>“ Material connections&quot; (in the form of an agreement, payment or free products provided to an endorser) must be disclosed – including in new media </li></ul><ul><li>“ Sponsored advertisers” fall under guidelines </li></ul><ul><li>Celebrity endorsers must also disclose ties to endorser </li></ul>
  18. 18. Green Guidelines <ul><li>Vladeck: FTC should conduct research into how public understands terms used in green marketing </li></ul><ul><li>New guidelines will be out by end of the year </li></ul>David Vladeck, Director, FTC Bureau of Consumer Protection
  19. 19. Tobacco Fight Heads to Court <ul><li>Lawsuit has been filed in Kentucky challenging advertising restrictions in bill: </li></ul><ul><ul><li>Ban on color and graphics in ads if too many kids in audience </li></ul></ul><ul><ul><li>Mandated warning text and images </li></ul></ul><ul><ul><li>Ban on outdoor advertising </li></ul></ul><ul><li>ANA plans to file amicus brief – due by 11/30 </li></ul>
  20. 20. Why You Should Care About Tobacco Suit <ul><li>Bill sets broad precedents for other categories of advertising </li></ul><ul><li>Kelly Brownell at California soft drink hearing: food = tobacco </li></ul>

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