FTC: TV need not disclose product placements

The advertising industry apprently dodged a bullet when the U.S. Federal Trade Commission Thursday declined to require that television stations disclose all instances of paid product placements to viewers.

"A one-size-fits-all rule or guide would not be the most effective approach to addressing any potential for deception in some forms of product placement," wrote Mary K. Engle, associate director for advertising practices at the FTC.

Commercial Alert, a Portland, Ore.-based consumer advocacy group founded by Ralph Nader, had asked the FTC to require that television networks reveal all paid placements--both at the beginning of shows and at the time the placements appear. Specifically, Commercial Alert wanted networks to place the word "advertisement" on the screen during the paid placement.

The FTC yesterday declined to order such a disclosure on the theory that simply showing or mentioning a product without also touting its merits doesn't necessarily mislead or deceive viewers. "In product placement, few objective claims appear to be made about the product's performance or attributes," wrote Engle.

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