Vladeck Speaks at NAD Annual Conference

Headline: FTC Plans Effort To Educate Kids About Advertising
Source: Media Post – 10.05.09

David Vladeck, the new director of the Federal Trade Commission's Bureau of Consumer Protection, put attendees of the BBB's National Advertising Division Conference on notice on Monday: The commission is reviewing practices and standards on a number of fronts, particularly around advertising to kids.

The commission, said Vladeck, plans substantial efforts this year and next around food marketing to children and adults; Internet selling techniques; endorsements and testimonials; green marketing and privacy matters; and better coordination with sister agencies, especially the Food and Drug Administration.

The actions include a new campaign directed at tweens next year that will comprise advertising, interactive elements and in-school and library programs aimed at teaching kids how to recognize and analyze advertising.

Vladeck says the reasons to address marketing to kids -- particularly around food -- are more compelling now because of the rising number of incidences of obesity, cardiovascular disease and diabetes.

"Progress has been made because of self-regulatory initiative from the Council for Better Business Bureaus (of which the NAD is part) but more needs to be done," he said. Two weeks ago, he said, the FTC served notice to get approval from the Office of Management and Budget to do a major food marketing study that will allow a direct comparison of marketing spend, profile data and market data between the new study and one done two years ago.

The multimedia ad campaign, directed at kids ages 8 to 12, will include a Web site featuring a game that teaches core ad literacy concepts. The game will also be on mobile devices. In-school curricula developed with Scholastic magazine will deal with why, where, and how commercial messages are constructed and placed, per Vladeck.

"The distinction between ads and other content is often blurred to the point that even older kids may not get when they are being pitched," he said. "The goals are to teach kids to be aware of ads, analyze and understand them, and the benefits of being an informed consumer." He added that the effort focuses on three key questions: "Who is responsible for these ads?" "What does the ad say?" "What does it want me to do?"

Dan Jaffe, executive vice president, government relations for the Association of National Advertisers, tells Marketing Daily that a number of campaigns from the Ad Council have been extremely effective, but the key is how they target their audience with actionable proposals that are also meaningful.

He also argues that such a campaign should talk about regulations that exist now. "Advertising is one of the most regulated areas, and we have made major steps on a self-regulatory basis. It is important to tell kids they have to look at all messages critically, but it is no longer a caveat emptor world we live in. It is a highly regulated world and one with tremendous incentives for advertisers."

As for the new guidelines for endorsements, Jaffe argues that the FTC guidelines are implied by the existing rules and that in many cases, disclosures should be taken as prima facie statement of fact around cases where there is a wide variation of results, not merely an advertiser's attempt to seek a safe harbor.

Jaffe, therefore, sees the removal of safe harbor disclaimers as a danger for advertisers. "The question is what [the FTC] is going to consider as a trigger for [legal action] around disclosures. In a lot of areas, it could be very difficult. What has to be kept clear is that these are guidelines, and a lot of how this will play out will be when people make claims."

Per Vladeck, the FTC is also increasing efforts around environmental-marketing claims. He said the agency has launched a green initiative that includes a review of its own "green guides" and law enforcement around false or deceptive green claims. The FTC is also linking with the FDA and Office of Consumer Litigation of the Department of Justice to enforce rules around marketing of conventional food products; dietary supplements and over-the-counter drugs.