9 February 2010
The Secretary of State for Culture, Media and Sport (Ben
Bradshaw): I would like to set out the Government’s plans for
product placement on television.
I announced on 9 November 2009 that the Government had decided to
consult again on this issue, and we did so between that date and 8
January this year. We had approximately 1480 responses to this
consultation. I am publishing these on my Department’s website
today and we will make a summary report of them available shortly.
As a result of this consultation the Government has concluded
that we will be able to allow television product placement in a
way which will provide meaningful commercial benefits to
commercial television companies and programme makers while taking
account of the legitimate concerns that have been expressed.
We have therefore decided to legislate to allow UK television
companies to include product placement in programmes which they
make or commission to appear in their schedules.
Adherence to our current position in which UK TV programme-making
cannot benefit at all from the income potentially to be generated
by product placement would lead to continuing damage to its
finances at a time when this crucial part of our creative
industries needs all the support we can give it.
It has become the more important to make this move now that every
other EU Member State, with the sole current exception of Denmark,
has either allowed television product placement already or has
expressed a firm intention to do so. Not to do so would jeopardise
the competitiveness of UK programme makers as against the rest of
the EU, and this is something which we cannot afford to do.
UK audiences have been used to product placement in films and,
subject to them not being unduly prominent, imported television
programmes, especially from the United States, for many years.
However, allowing television product placement in domestic UK
programming will be an important departure. It is right for us to
proceed with caution and in particular to be very careful about
the types of product for which it is permitted.
Our legislation will therefore specify some important exceptions,
in particular the prohibition of the placement of alcohol and
foods and drinks high in fat, salt or sugar (HFSS foods). The
Government also fully shares the concerns that have been expressed
about the potential impact of product placement on the editorial
independence of broadcasters and viewers’ trust in what they see
on television. We believe that our proposals will safeguard these.
Legislation The Government will lay Regulations under section 2
of the European Communities Act 1972, giving legal effect to the
requirements of the EU Audiovisual Media Services Directive on TV
product placement. However, TV product placement will not become
permissible immediately the Regulations come into effect.
Their effect will be to allow Ofcom to permit product placement
under its Code regulating the content of TV programmes, and Ofcom
will need to run a public consultation on the detailed changes to
this Code before these can come into effect.
Only after that has happened, and Ofcom has amended its Code,
will it be possible for TV companies to show programmes which they
have made or commissioned and which include product placement. We
envisage that this stage would be reached later this year.
The EU Directive requires that Member States prohibit product
placement but permits them to derogate from that in the four
separate genres of ‘cinematographic works, films and series made
for television or on-demand services, sports programmes, and light
entertainment programmes’. Our legislation would therefore follow
this pattern of imposing an overall ban on product placement
except in these four genres.
The legislation will not provide more precise definitions of
these terms. Instead, it will allow Ofcom to intervene in the
event that broadcasters unacceptably stretch the envelope and
include product placement in programming which cannot properly be
seen as falling into any of these permitted categories. The
existing powers, including the code-making powers, which Ofcom
have allow them to do that in an appropriate and effective way.
The responses to our consultation have confirmed that there is
concern about the possibility of product placement in current
affairs, consumer and religious programming. The Government shares
these concerns, since some programmes in these categories could be
seen as falling into the ‘series’ genre specified by the
Directive, and we have concluded that it is important that our
legislation ensures that product placement is not allowed in them.
It will therefore contain specific prohibitions to that effect.
News programmes and bulletins are not covered by the four genres
of programme which the EU Directive permits to contain product
placement. Our legislation will therefore have the effect of
preventing product placement in any TV news programming, as the
Directive requires.
Our legislation will not permit product placement in the BBC’s
licence-fee funded services. This will continue to be prevented by
the BBC’s Charter and its Agreement with the Government.
Products The Directive prohibits the placement of two specific
types of product, that is tobacco products (as well as any other
placement by or on behalf of a company whose principal activity is
the manufacture or sale of tobacco products) and prescription
medicines. The Government has decided to move significantly beyond
this. Our legislation will specifically prohibit the placement of
products and services in the following categories
* 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.
In reaching this decision the Government has had the issue of
potential effects on health and welfare, and especially children’s
health and welfare, particularly in mind. The Directive contains a
ban on product placement in ‘children’s programmes’, and our
legislation will enact that. However, children’s viewing is not
confined to children’s programmes.
An alternative to a ban on placement of HFSS foods and alcohol
might have been restrictions of some kind on their placement in
shows which have a large child audience, or which are shown before
the watershed. But this would be complex to administer and would
not provide the certainty which the Government seeks.
In the circumstances we intend to legislate for a complete bar on
placing these products. This as an important aspect of the
cautious approach that we need to take.
Other safeguards
Our legislation will also, as required by the Directive,
specify that product placement should not affect editorial
independence, be unduly prominent, or directly encourage purchase.
Ofcom will have the task of policing adherence to these requirements.
Ofcom will also be able to set further conditions for ensuring
editorial integrity, including in relation to the prominence of
products which have been placed in a television programme. The
Directive requires that audiences are alerted to the presence of
product placement in a programme by ‘signalling’ at the beginning
and end and after advertising breaks. The legislation will contain
this requirement and it will be for Ofcom to determine, after
their own consultation, how it is met.
The legislation will not affect requirements in respect of the
presence of product placement in imported, non-EU, programmes
which are transmitted by UK television broadcasters. This will
continue to be permissible within the boundaries set by the
Directive, provided that it meets Ofcom’s overall requirements
about, in particular, the avoidance of undue prominence.
Contacts:
DCMS Press Enquiries and Out of hours telephone pager
Phone:
020 7211 6263
Mobile: 07699 751153
NDS.DCMS@coi.gsi.gov.uk
Sandra McKay
Phone: 020 72116267
sandra.mckay@culture.gsi.gov.uk