BRIEF NEWS OF NOTE
On June 13, 2008, Rep. Bobby L. Rush (D-IL), Chairman of the Committee on Energy and Commerce's Subcommittee on Commerce, Trade, and Consumer Protection, and Rep. Ed Whitfield (R-KY), Ranking Member of the Subcommittee, issued the following statements regarding the recent online advertising partnership agreement between Google and Yahoo and the Subcommittee's plan to hold a hearing examining online advertising issues this summer. Rep. Rush noted that, "Earlier this year Ranking Member Whitfield and I announced our intention to hold a hearing on the privacy and competition issues raised by a number of developments in online advertising. Yesterday's announcement of an online advertising partnership agreement between Google and Yahoo is yet another example of the rapid changes in this market, and further underscores the need for close scrutiny of the impact on consumers. We are preparing to hold a hearing on this important issue this summer." Rep. Whitfield added,
"Yesterday's announcement of an on-line advertising partnership between Google and Yahoo further highlights the need to examine what risks agreements such as these pose to consumer privacy. There remain a number of questions surrounding what personal information these types of companies collect from consumers' use of the Internet and how those data sets may be combined for future use. I look forward to working with Chairman Rush in the months to come, as well as with industry and consumer groups, to determine how best to protect consumer privacy in an ever-expanding, ever-changing on-line world without hindering consumer access to personalized Internet content."
(U.S. House of Representatives, Committee on Energy and Commerce, News Release, June 13, 2008.)
The Federal Communications Commission (FCC) will conduct a Notice of Proposed Inquiry on simultaneous disclosure of embedded advertising and a Notice of Proposed Rulemaking on all other aspects of product placement. FCC will solicit comment on the relationship between FCC's sponsorship identification rules and increasing industry reliance on embedded advertising techniques. FCC seeks comments on whether it should force broadcasters to include an on-screen "crawl" whenever there's product placement on TV. In its Notice of Inquiry, FCC said, "Due, in part, to recent technological changes that allow consumers to more readily bypass commercial content, content providers may be turning to more subtle and sophisticated means of incorporating commercial messages into traditional programming. As these techniques become increasingly prevalent, it is important that the sponsorship identification rules protect the public's right to know who is paying to air commercials or other program matter on broadcast television and radio and cable. Accordingly, we seek comment on current trends in embedded advertising and potential changes to the current sponsorship identification regulations with regard to embedded advertising."
(In the Matter of Sponsorship Identification Rules and Embedded Advertising, Before the Federal Communications Commission, MB Docket No. 08-90, Notice of Inquiry and Notice of Proposed Rule Making, Adopted: June 13, 2008 Released: June 26, 2008.)
Volume XXVIII
Issue 14
July 21, 2008
Page 2
Advertising Compliance Service is a REFERENCE COMPENDIUM of JLCom Publishing Co., L.L.C.
NOTICE: This publication is not intended to provide legal advice. Persons who need legal services should contact a duly licensed professional.
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