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Sizing up Food Marketing and Childhood Obesity Transcript 1 1 2 3 4 UNITED STATES OF AMERICA 5 FEDERAL TRADE COMMISSION 6 7 8 9 10 SIZING UP FOOD MARKETING AND CHILDHOOD OBESITY 11 12 13 14 TUESDAY, DECEMBER 15, 2009 15 16 17 FEDERAL TRADE COMMISSION 18 601 NEW JERSEY AVENUE, N.W. 19 WASHINGTON, D.C. 20 21 22 23 24 25 2 1 I N D E X 2 3 4 AGENDA ITEM: PAGE: 5 Welcome, Chairman Jon Leibowitz 5 6 Remarks by Secretary Kathleen Sebelius 15 7 Presentations: New Research on Food 8 Marketing to Children 31 9 Discussion Moderated by David Britt 10 and Pauline Ippolito 79 11 Panel: Advertising to Children and 12 the First Amendment 85 13 Panel: Self-Regulatory Initiatives 142 14 Presentation and Town Hall Discussion: 15 Interagency Working Group on 16 Food Marketed to Children 207 17 Next Steps/Adjourn 259 18 19 20 21 22 23 24 25 3 1 P R O C E E D I N G S 2 - - - - - 3 MR. FENTONMILLER: If everyone could take a 4 seat, we are going to begin shortly. 5 Good morning. Am I loud enough, can you hear 6 me? I will project my voice until they adjust the 7 volume accordingly. 8 Good morning, and welcome to the FTC's forum on 9 sizing up food marketing and childhood obesity. My name 10 is Keith Fentonmiller. I'm a senior attorney here at 11 the Federal Trade Commission. Just a few quick 12 procedures before we begin. 13 First, I'm required to make some security 14 announcements. Keep your name tag on, the sticky pad 15 that is, on at all times. If you leave the building for 16 fresh air or a cup coffee or a bottle of 100 percent 17 juice or skim milk, you will need to go through the 18 magnetometer and x-ray machine again. 19 In the unlikely event of a fire or evacuation, 20 please leave the building in an orderly fashion. We 21 would proceed across New Jersey Avenue to the sidewalk 22 area to the left of Georgetown Law Center, and if an 23 emergency makes it unsafe to go outside, you will be 24 told where to go inside the building. 25 In the case of suspicious activity, if you spot 4 1 it, please notify security, and that does not include 2 smuggling in a flask of sugary soda. 3 Restrooms are through the FTC lobby, follow the 4 signs or ask our security personnel for directions. 5 Cell phones, please be aware that the 6 microphones are on all day, although apparently not very 7 loud, so just make sure to preserve your privacy as best 8 as possible, make calls in the lobby area or outside. 9 Actually, now would be a good time to either turn off 10 your cell phones or put them on vibrate. 11 For two of the panels today, the agenda calls 12 for question and answers or comments from the audience. 13 The staff will be walking up and down the aisles with 14 portable microphones for that purpose. For people who 15 are participating by the webcast, you can send your 16 questions or comments by email to 17 [email protected], and in case you didn't get 18 that, that email address will be posted on one of the 19 PowerPoint slides at the appropriate time. There should 20 be some literature on the back tables in the outside 21 lobby, for people who wanted to bring literature, it's 22 there. 23 That's it as far as the housekeeping matters and 24 it's my great honor to introduce the chairman of the 25 Federal Trade Commission, John Leibowitz. 5 1 (Applause.) 2 CHAIRMAN LEIBOWITZ: Thank you so much. Good 3 morning. What a thrill it is to see this kind of 4 turn-out, as some of you may know, because I see you as 5 sort of repeat offenders in the audience. This is our 6 ninth, I think, day of workshops in the last three weeks 7 and they have ranged from things like the future of news 8 journalism to debt collection to merger guidelines and 9 we're especially delighted to be able to welcome HHS 10 Secretary Kathleen Sebelius as our keynote speaker, who 11 is seated over here. If you could all give her a round 12 of applause. We're not introducing you yet. 13 (Applause.) 14 CHAIRMAN LEIBOWITZ: Today, of course, we are 15 going to discuss one of the most serious threats to the 16 well-being of our children, and that's childhood 17 obesity. As all of you know, childhood obesity is more 18 than a social stigma, it has been an epidemic of 19 alarming proportions. Obesity rates among children six 20 to 11 have doubled since 1980, and since that time, they 21 have more than tripled for teens 12 to 19. About one in 22 five young people is now obese, a condition that puts 23 those children or those teens at risk for heart disease, 24 diabetes, osteoarthritis, and cancer. Indeed, 25 physicians no longer use the term "adult onset diabetes" 6 1 anymore, because so many children are getting it. They 2 now call it Type 2 diabetes. 3 This epidemic is affecting not only the quality 4 of our children's lives, but also their life span. 5 Sadly, this may be the first generation of American 6 children with a shorter life expectancy than their 7 parents. 8 Now, as many of you know, it's been more than 9 four years since we held our first conference on food 10 marketing and childhood obesity. The immediate response 11 of the food and beverage industry to that workshop in 12 2005 was heartening. Several companies pledged to make 13 changes to what and how they advertise to children. 14 Others have followed since. We've seen, I think, some 15 successes. 16 Soda consumption in our schools is down. 17 President Clinton's Alliance For a Healthier Generation 18 reports that calories from beverages shipped to schools 19 has dropped about 41 percent. As an LA Times story this 20 morning noted, Kraft has actually stopped advertising 21 Chips Ahoy and Oreos, although I still saw my daughter 22 sneaking a few Oreos last night at around 10:30. That's 23 another story. That was a joke, it was a bad joke, but 24 I guess it's early in the morning. 25 These changes, as we all know, have, however, 7 1 come in small increments. Obesity rates and 2 obesity-related problems continue to grow, and we really 3 have to do better. 4 Today we are calling on the food industry to 5 tackle this threat and boldly re-invent the food 6 marketplace. Whether or not you are part of the 7 problem, you need to be part of the solution. Put 8 simply, it is time for industry to supersize it's 9 efforts. 10 Now, we had all hoped that the progress thus far 11 had been more substantial and apparent. Instead, the 12 Rudd Center at Yale University reported this fall that 13 cereals marketed to children contain 85 percent more 14 sugar, 65 percent less fiber and 60 percent more sodium 15 than adult cereals. These numbers, of course, put 16 bluntly, are very disturbing, and hopefully General 17 Mills won't be the only company to respond, as they did 18 last week by cutting the sugar content of many of their 19 kids brands. 20 Children's diets are still far from balanced. 21 Potato chips and french fries account for more than half 22 of all vegetables consumed by children, and despite the 23 progress made in schools, the majority of teens are 24 drinking the equivalent of 39 pounds of sugar each year 25 from soda and other sugar-sweetened beverages. Just 8 1 think of it. 2 We all realize that marketing is just one of the 3 many influences on children's diets, and as a parent, I 4 can appreciate that getting children to eat better is no 5 easy task. That's why we really need the industry's 6 help. 7 As you know, the FTC looked at the children's 8 food marketplace in 2006, just as industry, under the 9 auspices of the Better Business Bureau, was beginning to 10 take its first self-regulatory steps, and I see Lee 11 Peeler in the audience, who was instrumental, and maybe 12 Elaine Kolish, in making that happening, so thank you. 13 Our comprehensive report on food marketing, a 14 review of industry expenditures, set the benchmark for 15 measuring industry's efforts. Our report also included 16 a number of specific recommendations to address 17 shortcomings in these efforts. Four in particular help 18 frame our discussions today. First, the FTC called on 19 all food and beverage companies to adhere to meaningful 20 nutrition-based standards for foods marketed to 21 children. To their credit, 16 have already signed CBBB 22 pledges. Others have taken action on their own, but 23 many companies that market heavily to children and teens 24 have yet to join or make their own commitments. 25 Why, for instance, hasn't Yum! Brands, with its 9 1 KFC, Taco Bell and Pizza Hut chains, stepped up, or 2 Chuck E. Cheese or IHOP, or the marketers of Airheads or 3 Baby Bottle Pops.
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