DOCUMENT RESUME ED 445 294 CG 030 345 TITLE Marketing Violent Entertainment to Children: A Review of Self-Regulation and Industry Practices in the Motion Picture, Music Recording & Electronic Game Industries [with] Appendices A-K. Report. INSTITUTION Federal Trade Commission, Washington, DC. PUB DATE 2000-09-00 NOTE 345p. PUB TYPE Reports Evaluative (142) EDRS PRICE MFO1 /PC14 Plus Postage. DESCRIPTORS *Adolescents; Cultural Influences; Federal Regulation; Film Industry; *Films; *Mass Media Role; Parent Role; *Popular Music; *Video Games; *Violence IDENTIFIERS Clinton (Bill); Entertainment; Federal Trade Commission ABSTRACT In June of 1999, President Clinton empowered the Federal Trade Commission to study whether movie, music recording, and computer and video game industries were advertising products with violent content to youngsters. Specifically he raised two questions: Do these industries promote products they themselves acknowledge warrant parental caution in venues where children make up a substantial percentage of the audience? And are these advertisements intended to attract children and teenagers? The FTC designed a study to provide information to three groups of decision-makers:(1) elected officials and policymakers,(2) the entertainment media industries, and (3) parents. The report of this study is divided into seven sections. Section One is "Introduction." Section Two, "The Motion Picture Industry Self-Regulatory System," describes the rating process and advertising placement standards. Section Three, "Marketing Movies to Children," discusses the rating of films. Section Four, "The Music Recording Industry Parental Advisory Labeling Program," discusses labeling systems. Section Five, "Marketing Music Recordings to Children," addresses advertising. Section Six, "The Electronic Game Industry Self-Regulatory System," reviews game regulatory systems. Section Seven, "Marketing Electronic Games to Children," explains marketing of games. Section Eight, "Conclusion," argues whether the industry should expand codes that prohibit target marketing. The study found that members of the motion picture, music recording, and electronic game industries routinely target children under 17 as the audience for movies, music, and games that they themselves acknowledge are inappropriate for children or warrant parental caution due to their level of violence content. Three recommendations are made in the (1) the industries under review should establish or expand codes that prohibit target marketing and impose sanctions for violations;(2) the industries should improve self-regulatory system compliance at the retail level; and (3) the industries should increase parental awareness of the ratings and labels. A separate book includes 11 appendixes. (Author/JDM) Reproductions supplied by EDRS are the best that can be made from the original document. zr Nrn 1-1-1 Marketing Violent Entertainment to Children: A Review of Self-Regulation and Industry Practices in the Motion Picture, Music Recording & Electronic Game Industries [with] Appendices A-K. Report. U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) This document has been reproduced as received from the person or organization originating it. Minor changes have been made to improve reproduction quality e Points of view or opinions stated in this document do not necessarily represent official OERI position or policy. 2 BEST COPY AVAILABLE U.S. DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) This document has been reproducedas received from the person or organization originating it. Minor changes have been made to improve reproduction quality. Points of view or opinions stated in this document do not necessarily represent official OERI position or policy. MARKETING VIOLENT ENTERTAINMENT TO CHILDREN: A REVIEW OFSELF-REGULATION AND INDUSTRY PRACTICES IN THE MOTION PICTURE, MUSIC RECORDING & ELECTRONIC GAME INDUSTRIES REPORT OF THE FEDERAL TRADE COMMISSION SEPTEMBER 2000 .; 3 r-t Federal Trade Commission Robert Pitofsky Chairman Sheila F. Anthony Commissioner Mozelle W. Thompson Commissioner Orson Swindle Commissioner Thomas B. Leary Commissioner TABLE OF CONTENTS EXECUTIVE SUMMARY I. INTRODUCTION 1 A. President's June 1, 1999 Request for a Study and the FTC's Response 1 B. Public Concerns About Entertainment Media Violence 1 C. Overview of the Commission's Study 2 Focus on Self-Regulation 2 Structure of the Report 3 Sources 4 II. THE MOTION PICTURE INDUSTRY SELF-REGULATORY SYSTEM 4 A. Scope of Commission's Review 5 B. Operation of the Motion Picture Self-Regulatory System 6 1. The rating process 6 2. Review of advertising for content and rating information 8 C. Issues Not Addressed by the Motion Picture Self-Regulatory System 10 1. Accessibility of reasons for ratings 10 2. Advertising placement standards 11 III. MARKETING MOVIES TO CHILDREN 12 A. Background 12 B. Marketing R-Rated and PG-13-Rated Films to Children 13 1. Television advertising 14 R-rated films 0 14 PG-13-rated films 15 2. Trailers 15 3. Promotional and "street marketing" 17 R-rated films 17 PG-13-rated films 17 4. Radio and print advertising 17 5. Internet marketing 18 C. Box Office Enforcement 19 D. Retailing of Movie Videos 20 IV. THE MUSIC RECORDING INDUSTRY PARENTAL ADVISORY LABELING PROGRAM 21 A. Scope of Commission's Review 22 B. Operation of the Music Recording Labeling Program 23 1. The labeling process 23 2. The use of the advisory label on packaging 24 3. "Clean" versions 25 C. Issues Not Addressed by the Music Recording Labeling Program 26 1. Access to important information about explicit recordings 26 2. The placement of an advisory on digital music 28 3. Advertising disclosure and placement standards 28 D. Recent Changes to the Music Recording Labeling Program 30 V. MARKETING MUSIC RECORDINGS TO CHILDREN 30 A. Background 30 B. Marketing Explicit Content Recordings to Children 31 1. Print advertising 31 2. Television promotionscable music channels 32 3. Other television advertisements 32 4. Internet marketing 33 5. Street marketing 33 6. Radio 34 7. Licensing 34 C. Retailing of Music Recordings 35 VI. THE ELECTRONIC GAME INDUSTRY SELF-REGULATORY SYSTEM. ..36 A. Scope of Commission's Review 37 B. Operation of the Electronic Game Self-Regulatory System 38 1. The rating process 38 2. Requirements for packaging, advertising, and marketing 39 a. Disclosure of rating information on product packaging and in advertising 39 b. Limits on violent content in advertising 42 c. Limits on marketing to minors 44 VII.MARKETING ELECTRONIC GAMES TO CHILDREN 44 A. Background 44 B. Marketing M-Rated Games to Children 45 1. Print advertising 47 2. Television advertising 48 3. Internet marketing 49 C. Marketing T-Rated Games to Children 49 D. Licensing Products Based on M- and T-Rated Games 50 E. Retailing of Electronic Games 51 VIII. CONCLUSION 52 Industry should establish or expand codes that prohibit target marketing and impose sanctions for violations 54 Industry should improve self-regulatory system compliance at the retail level... 55 Industry should increase parental awareness of the ratings and labels 55 ENDNOTES 57 APPENDIX A: A Review of Research on the Impact of Violence in Entertainment Media APPENDIX B: Children as Consumers of Entertainment Media: Media Usage, Marketing Behavior and Influences, and Ratings Effects APPENDIX C: First Amendment Issues in Public Debate over Governmental Regulation of Entertainment Media Products with Violent Content APPENDIX D: An Overview of the Entertainment Media Industries and the Development of Their Rating and Labeling Systems APPENDIX E: Entertainment Industry Information Requests APPENDIX F: Mystery Shopper Survey and Parent-Child Survey APPENDIX G: Third-Party Views and Suggestions for Improvement of the Entertainment Media Rating and Labeling Systems APPENDIX H: Entertainment Media Rating Information and Self-Regulatory Efforts on the Internet APPENDIX I: Television, Print, and Online Demographics APPENDIX J: Electronic Game Industry Compliance with Self-Regulatory Code RPplirementc to nicrin.S'Rating I-formation on Product Packag,ing, in Advertising, and Online APPENDIX K: Application of Antitrust Principles to Voluntary Industry Efforts to Restrict Marketing and Sales of Entertainment Media Products to Children EXECUTIVE SUMMARY On June 1, 1999, President Clinton asked the Federal Trade Commission and the Department of Justice to undertake a study of whether the movie, music recording, andcomputer and video game industries market and advertise products with violent content toyoungsters. The President's request paralleled Congressional calls for such a study. The President raisedtwo specific questions: Do the industries promote products they themselves acknowledgewarrant parental caution in venues where children make up a substantial percentage of the audience? And are these advertisements intended to attract children and teenagers? For all three segments of the entertainment industry, the answersare plainly "yes." Although the motion picture, music recording and electronic game industries have taken steps to identify content that may not be appropriate for children, companies in those industries routinely target children under 17 as the audience for movies, music andgames that their own rating or labeling systems say are inappropriate for children or warrant parental caution dueto their violent content. Moreover, children under 17 frequently