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Marketing Violent Entertainment to Children

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Marketing Violent Entertainment to Children Marketing Violent Entertainment to Children: A Fifth Follow-up Review of Industry Practices in the Motion Picture, Music Recording & Electronic Game Industries A Report to Congress Federal Trade Commission April 2007 FEDERAL TRADE COMMISSION Deborah Platt Majoras Chairman Pamela Jones Harbour Commissioner Jon Leibowitz Commissioner William E. Kovacic Commissioner J. Thomas Rosch Commissioner Report Contributors Richard F. Kelly, Bureau of Consumer Protection, Division of Advertising Practices Keith R. Fentonmiller, Bureau of Consumer Protection, Division of Advertising Practices Carol Jennings, Bureau of Consumer Protection, Division of Advertising Practices Richard Quaresima, Assistant Director, Bureau of Consumer Protection, Division of Advertising Practices Mary K. Engle, Associate Director, Bureau of Consumer Protection, Division of Advertising Practices Research Assistance Manoj Hastak, Bureau of Consumer Protection, Division of Advertising Practices Joseph Mulholland, Bureau of Economics, Division of Consumer Protection Brendan Cunningham, Bureau of Economics, Division of Consumer Protection Diana Finegold, Bureau of Consumer Protection, Division of Advertising Practices Katherine Zownir, Bureau of Consumer Protection, Division of Advertising Practices Advertising Review Sallie Schools, Bureau of Consumer Protection, Division of Advertising Practices Aine Farrell, Bureau of Consumer Protection, Division of Advertising Practices Lynne Colbert, Bureau of Consumer Protection, Division of Advertising Practices Monica Wilson, Bureau of Consumer Protection, Division of Advertising Practices Rachel Lang, Bureau of Consumer Protection, Division of Advertising Practices Wesley Romeiser, Bureau of Consumer Protection, Division of Advertising Practices Commissioner Rosch did not participate by reason of recusal. With special thanks to Dawne Holz, Division of Business and Consumer Education, for formatting this Report for publication. Contents EXECUTIVE SUMMARY ........................................................................................................................ i I. INTRODUCTION ..............................................................................................................................1 A. Commission Reports on Marketing Violent Entertainment to Children .......................................1 B. Sources of Information for this Report ..........................................................................................2 II. MOTION PICTURES ........................................................................................................................2 A. Comments on Current Rating System ...........................................................................................2 B. Restrictions on Marketing to Children: Advertising Placement ...................................................4 1. Television ads .........................................................................................................................4 2. Print ads ..................................................................................................................................5 3. New media and marketing methods .......................................................................................6 C. Disclosure of Ratings and Reasons for Ratings in Ads .................................................................7 D. Industry Efforts to Enforce Rating System in Theaters and at Point-of-Sale ................................8 1. Box office enforcement of the rating system..........................................................................8 2. Home video retailers and online sellers .................................................................................8 3. DVD vending kiosks ............................................................................................................10 E. Analysis of Current Industry Practices ........................................................................................10 III. MUSIC RECORDINGS ..................................................................................................................11 A. Comments on the Current Rating System ..................................................................................11 B. Restrictions on Marketing to Children: Advertising Placement ...............................................13 1. Television ads .......................................................................................................................13 2. Print ads ................................................................................................................................13 3. New media and marketing methods .....................................................................................13 C. Disclosure of Advisory Labels and Reasons for Labels in Ads ...................................................15 D. Industry Efforts to Enforce the Rating System at Point-of-Sale .................................................16 E. Analysis of Current Industry Practices .......................................................................................16 IV. ELECTRONIC GAMES .................................................................................................................17 A. Comments on Current Rating System .........................................................................................17 B. Restrictions on Marketing to Children: Ad Placement ..............................................................20 1. Television ads .......................................................................................................................20 2. Print ads ................................................................................................................................21 3. New media and marketing methods .....................................................................................21 C. Disclosure of Ratings and Reasons for Ratings in Ads ...............................................................22 D. Industry Efforts to Enforce the Rating System at Point-of-Sale .................................................23 1. Mystery shops ......................................................................................................................23 2. Mobile phone games ............................................................................................................24 E. Analysis of Current Industry Practices .......................................................................................24 V. THE COMMISSION’S 2006 PARENT-CHILD SURVEY ON VIDEO GAME RATINGS .....25 A. Background ..................................................................................................................................25 B. Results .........................................................................................................................................27 1. Awareness and use ................................................................................................................27 2. Parental monitoring of video game purchases, rentals, and play .........................................28 3. Parental satisfaction and agreement with ESRB ratings ......................................................29 C. Analysis of Survey Findings .......................................................................................................30 VI. CONCLUSION .................................................................................................................................31 Endnotes Appendix A: The First Amendment and Government Efforts to Regulate Entertainment Media Products with Violent Content Appendix B: Mystery Shopper Survey Appendix C: The Commission’s Survey of Parents and Children Regarding Video Games and the ESRB System Appendix D: Internet Surveys Appendix E: Data Collection Methodology and Television and Print Demographics EXECUTIVE SUMMARY This is the sixth Commission Report on the marketing to children of violent entertainment products by the motion picture, music recording, and electronic game industries. The Commission’s initial report, released in September 2000, examined the structure and operation of each industry’s self-regulatory program, parental familiarity and use of those systems, and whether the industries had marketed violent entertainment products in a manner inconsistent with their own parental advisories. The 2000 Report found that industry members routinely targeted children in their advertising and marketing of violent entertainment products and that children under age 17 could purchase these products relatively easily. The Commission called upon the industries to strengthen their self-regulatory programs by: (1) prohibiting target marketing to children and imposing sanctions for violations; (2) improving self-regulatory programs at the retail level; and (3) increasing parental awareness of the ratings and labels. The Commission has continued to monitor industry self-regulation in this area, releasing four subsequent reports, all finding that the movie and electronic game industries had made progress in limiting marketing of R- and M-rated products to children, but that the music recording industry had not significantly changed its marketing practices since the Commission’s initial report. This Report documents the current state of marketing in the areas addressed in the Commission’s previous reports. It includes a review of marketing documents from
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