Volume II Number 9

A publication of the National Association of Theatre Owners

Advertise in In Focus

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Focuses On Advertising
FTC Media Violence
Report: Round Four

by Jonathan Yarowsky
NATO Washington Counsel

On June 28, the Federal Trade Commission (FTC) released its fourth report on violent content and the marketing practices of the entertainment industry. This latest report focuses principally on advertising placement; theatres receive relatively minor treatment. However, the report does discuss theatre Websites in some detail, and suggests the need to improve ratings information on these sites. At the same time, it is clear that the FTC will return to the subject of ratings compliance at the box office in future reports.

Report Summary:

Since the first media violence report was issued in September 2000, the FTC has responded to congressional direction that it supply periodic updates to its initial inquiry. This fourth report “documents what further progress, if any, has been made in the two areas examined in the Commission’s previous follow-up reports – whether violent R-rated movies, explicit-content labeled music, and M-rated games are advertised in popular teen media, and whether rating information is included in advertising for these products.” The following areas should be of interest to NATO members:

Enforcement. The FTC noted that NATO reports that many of its members have made substantial efforts to: 1) train staff on ratings enforcement; 2) add ratings enforcement compliance inspection to the duties of managerial personnel who visit theater locations and/or have permanent compliance officers to monitor all theatres; and 3) post personnel at the auditorium entrance for extreme R-rated films and all NC-17-rated films. The FTC also makes positive reference to NATO members’ pledge not to show trailers for R-rated films before PG-rated films and before PG-13-rated films on a case-by-case basis.

Ratings information placement on theatre Websites. The FTC reviewed a total of 16 theatre websites – 12 NATO member sites and 4 non-member sites – with regard to placement of ratings information. According to the FTC, there was only one category where NATO sites provided less information than non-NATO sites. The report finds that: 1) 100 percent of NATO sites and 75 percent of non-member sites display the actual movie ratings; 2) 50 percent of NATO sites and no non-member sites display the reason for the rating; 3) 58 percent of NATO sites and 100 percent of non-member sites provide information about the MPAA ratings system; 4) 83 percent of NATO sites and 75 percent of non-member sites sell movie tickets online; and 5) 58 percent of NATO sites and 75 percent of non-member sites link to ratings info at MPAA.org, parentalguide.org or filmratings.com.

In the report’s general conclusions about the motion picture industry, the FTC acknowledges both the diligence and progress made by the industry: “Industry members have greatly improved the disclosure of rating information in advertising, and the studios have enhanced efforts to avoid specifically targeting teens for R-rated films.”

Ratings and Reasons for Ratings in Ads. The FTC notes approvingly that in response to its previous reports on violent content issues in the movie industry, “NATO has also encouraged the MPAA and the studios to include reasons for the ratings of films in all print advertising.”

Report Conclusion. With regard to the retail sector of the industry (which, of course, includes NATO members), the report states that the FTC “continues to encourage retailers and theater owners to adopt or enforce policies to discourage the sale of R- or M-rated or explicit content-labeled entertainment products to children. Such a step would help limit the influence of industry ad placements that promote violent entertainment products in media popular with youth. To encourage continued voluntary compliance and to document any changes in self-regulatory efforts, the commission will monitor the entertainment industry’s marketing practices through the next year, and will then issue another follow-up report.”

Unlike earlier FTC reports on media violence, there was not included a “mystery shopper survey” designed to evaluate how theatres are enforcing the ratings at the box office. Nonetheless, from the FTC’s statements at the report’s conclusion, we should fully expect that a mystery shopper survey will be part of the next report due this winter. But the inclusion or omission of such a survey in any particular FTC report is really beside the point, for, as good corporate citizens, and as concerned members of the communities in which we live, the need for NATO members to remain vigilant at the box office in order to properly protect our children is a civic duty, and not simply one imposed by a governmental agency.

For members who would like to read the full report, it is available on the FTC Website at http://www.ftc.gov/opa/2002/ 06/mvec0602rev.htm.

 

 

 

 

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