FCC Proposes Revamping On-Screen ID's
Ponders Removing Theatrical Film Waiver, Extending Rules To Cable, 
Clarifying Kids Tv Ad Rules
By John Eggerton -- Broadcasting & Cable, 6/26/2008 4:12:00 PM

http://www.broadcastingcable.com/article/CA6573686.html

The FCC has proposed mandating that on-screen disclosures of product 
sponsorships be a certain size and duration, as is the case now with the 
disclosures of sponsors of political ads. It is also pondering extending 
product-integration rules to cable and removing a waiver for 
identification of plugs used in feature films aired on TV.

Currently, the FCC only requires that the sponsorship ID appear once 
during a show and remain on long enough to be heard or read by the 
average viewer.

The FCC is proposing changes to its 70-plus-year-old sponsorship 
identification rules to reflect the rise of VNR's, product placement and 
product integration.

In a notice or proposed rulemaking combined with a notice of inquiry 
issued Thursday night, the FCC confined its proposal to the size and 
duration of the disclosure, but asked lots of other questions. Those 
included whether there should be contemporaneous on-screen 
indentifiation of product placements and whether plugs in feature films 
aired on TV should have to identify the product sponsors. Currently 
those films get a pass.

The commission also asked for comment on whether it should clarify its 
rules governing advertising in children's programming to expressly 
prohibit embedded advertising, which arguably already violates the FCC 
requirement that there be a buffer between programming content and ads. 
Commissioner Michael Copps certainly argues for that reading of the law. 
"[I]t is my strong initial belief that embedded advertising in 
children’s programming is already prohibited because it would run afoul 
of our existing requirement that there be adequate separation between 
programming content and advertising," he wrote Thursday in a statement.

The vote was unanimous and commissioner Jonathan Adelstein, who has made 
addresing imbedded advertising a priority, said the FCC action was a 
step in the right direction. But he but would have preferred more meat 
in the rulemaking. "I would have liked to have gone further in asking 
more questions in the NPRM, rather than shunting them off to a Notice of 
Inquiry," he said... Because an NOI cannot lead directly to rule making, 
the result may be a piecemeal approach to reforming these rules," he said.
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