Product Placements Get FCC Scrutiny

Federal regulators are beginning an effort to crack down on stealth advertising in television shows, a move aimed at letting consumers know when companies have paid to use their products as props. This week the Federal Communications Commission is expected to open a formal proceeding about new rules requiring more disclosure of product placement, a technique that has become a critical tool for Madison Avenue. Regulators say they've become more concerned about the issue as TV executives seem to be using more product placements to reach viewers, who are using digital video recorders to skip commercials. The rules wouldn't bar the practice of product placements or other in-show advertising designed to reach consumers who skip commercials. Regulators are mostly interested in improving the amount of disclosure advertisers and producers will have to provide for consumers during the TV programs.
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