Whether the movie, music and video game industries markete

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Marketing Violent Entertainment to Children

• The FTCs Reports on Self-Regulation and Industry
  Practices in the Motion Picture, Music Recording
  Electronic Game Industries
• National Media Education Conference
• June 29, 2003
• Mary K. Engle, Federal Trade Commission
• Mengle_at_ftc.gov 202-326-3161

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Why Is the FTC Involved?

• Four years ago, President Clinton asked the FTC
  to study the motion picture, music recording, and
  video and computer game industries.
• In particular, we looked at these industries
  self-regulatory rating and labeling systems, and
  their marketing practices.

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What We Asked

• Whether the movie, music and video game
  industries marketed to children products that
  they
• designated as unsuitable for children, or as
  requiring parental accompaniment or a parental
  advisory,
• due to the products violent content.
• For all three industries, the answer was yes.

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What We Did

• Contacted trade groups regarding their
  self-regulatory rating and labeling systems.
• Asked companies to give us their marketing plans.
• Did an undercover shop to see if children could
  buy age-restricted or parental-advisory labeled
  products.
• Surveyed parents and children regarding their use
  and understanding of the rating and labeling
  systems.
• Issued a report in September 2000

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What We Found

• 80 of the R-rated movies selected for the study
  were targeted to kids under 17.
• 100 of the explicit-content labeled CDs studied
  were targeted to kids under 17.
• 70 of the Mature-rated video games studied were
  targeted to kids under 17.

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Undercover Shopper Survey

• The FTC contracted for an undercover shopper
  survey of nearly 1200 theaters and stores across
  the U.S.
• Kids aged 13-16 went to theaters and stores
• Without their parents
• And tried to buy tickets to R-rated movies,
  explicit-content labeled CDs, and M-rated video
  games.

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Undercover Shopper Survey Results

• Movies 46 of the time, the children were able
  to buy tickets to R-rated movies.
• Music 85 of the time, the children were able
  to buy explicit-content labeled CDs.
• Video Games 85 of the time, the children were
  able to buy M-rated video games.

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Survey of Parents and Kids

• The FTC contracted for a telephone survey of
  parents and children on their use and
  understanding of the movie, music, and video game
  rating and labeling systems.
• Most parents say they restrict what movies their
  kids watch, music their kids listen to, and video
  games their kids play
• But, except as to movies, most parents dont use
  the rating systems to do so.

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What We Recommended

• Because of First Amendment protections given to
  movies, music, and video games, the FTC did not
  recommend legislation or government regulation.
• Instead, the FTC encouraged increased industry
  self-regulation.

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Why Self-Regulation?

• Movies, music, and video games are considered
  speech or expression under the First Amendment,
  so there is a very limited role for government
  regulation.
• Given past Supreme Court and recent Court of
  Appeals decisions, government attempts to
  restrict marketing to kids, or kids access to
  these products, would face very difficult
  challenges.
• Therefore, its better and faster to encourage
  stepped-up self-regulation by industry.

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Recommended Self-Regulatory Changes

• Stop targeting kids. Establish or expand codes
  that prohibit target marketing to kids and impose
  sanctions for violations.
• Improve self-regulatory compliance at retail
  stores and theaters, by checking I.D. or
  requiring parental permission before selling.
• Increase parental awareness of the ratings and
  labels, especially by including the reasons for
  the rating/label in all ads.

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Can Self-Regulation Work?

• Yes, if there is continued scrutiny by parents
  and childrens advocacy groups, and the U.S.
  Congress.
• FTC has continued its efforts and has released
  three follow-up reports.
• Some good news -- the industry has changed.

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FTC Follow-Up Reports

• The FTC has issued three follow-up reports -- in
  April and December of 2001, and June of 2002 --
  focused principally on
• Whether the entertainment industries continue to
  advertise R-rated movies, explicit-content
  labeled music, and M-rated games in popular teen
  media, and
• Whether they include rating information in
  advertising.

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Follow-Up Reports -- Key Findings

• The video game and movie industries have made
  progress in limiting advertising in popular teen
  media and in providing rating information in ads.
• The music recording industry has not changed its
  ad placement practices but is increasingly
  including explicit content advisories in
  advertising.
• Retailers have not changed their sales practices.

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Movies -- Some Good News

• Compliance w/industry promises not to place ads
  on TV shows where under-17 audience is more than
  35
• Compliance with industry promises not to run
  trailers for R movies before G and PG films.
• No ads for R-rated movies in teen magazines.
• Reasons for ratings now in advertising.
• Nearly all web sites included rating, some
  displayed reasons for rating and linked to sites
  for more information on the rating system.

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Movies

• Still room for improvement
• Ads for R-rated movies still appeared on TV
  programs popular with teens
• Reasons for ratings in ads were often small,
  fleeting, or inconspicuously placed

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Music -- Only a Little Change

• Ads for explicit music routinely appeared on
  popular teen TV shows and in magazines with
  substantial under-17 audiences.
• On a more positive note
• Increasing number of ads now include the parental
  advisory label.
• BMG instituted policy of adding reasons for the
  advisory on the label and in advertising.

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Music

• On the flip side
• Except for BMG artist ads, reasons for the
  parental advisory label were never provided.
• Most artist web sites did not include the
  recordings lyrics.

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Video Games Many Efforts

• Widespread compliance with industry guidelines on
  ad placement (under-17 audience must be less than
  35 for TV ads, 45 for print and Internet).
• Few ads for M-rated games on popular teen TV
  shows.
• Print ads nearly always included the rating and
  content descriptors (rating reasons).
• TV ads had both audio and video disclosure of
  games rating.
• Game maker web sites gave games rating.
• More consumer education in print ads and in
  stores.

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Video Games

• Still room for improvement
• M-rated games ads still appeared in gaming
  magazines with a substantial under-17 audience.
• Content descriptors did not appear in most TV ads
  and on some web sites.

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Follow-Up Undercover Shopper Survey Results (Dec.
2001)

• Little change from 2000
• Movies children able to buy tickets to R-rated
  movies 48 of the time.
• Music children able to buy explicit-content
  labeled CDs 90 of the time.
• Video Games children able to buy M-rated video
  games 78 of the time. (versus 85 in 2000).

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More to Come . . .

• Continued monitoring of industry ad placements
  and disclosure of rating information.
• Assess new technological developments.
• Another undercover shop.
• A workshop in the fall on retailer and industry
  practices.
• Another Report.

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For more information www.ftc.gov www.donotcall.g
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