Crackdown on product placement announced
May 26th, 2005
Source: Reuters
Posted by: Peggy H

The Hollywood Reporter reports today that Washington is calling for a crackdown on product placement and paid product pitches claiming dubious practices must be investigated.

"The use of covert commercial pitches is penetrating deeper and deeper into media, (...) failure to disclose who is behind sponsored programing violates the law." said Jonathan Adelstein, a Democratic member of the Federal Communications Commission.

Although theatrical releases that air on broadcast and cable TV are exempted from disclosing product placements, Adelstein says the hidden pitches come under the nation's payola laws and need "clear and prominent" disclosures.

Adelstein criticized consumer-product reviewers who are covertly paid to mention products, and "rampant" product placement that puts products onscreen and in the plot lines of TV dramas and other shows.

"There is nothing inherently wrong with product placement -- so long as it is disclosed as required by law," he said.

It was unclear whether the Republican chairman of the FCC, Kevin Martin, who effectively controls the agency's agenda, shared Adelstein's enthusiasm for tougher vigilance regarding the growing practice of product placement.

Product placement is a growing pool for film financing. Corporations and studios alike are more and more incorporating PP in their infrastructure with departments and department heads. Adelstein's criticism, if heard and carried out could, turn subtle product placement into blatent infomercials and then where would we be!

Will keep you posted.

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