Government makes final decision to legalise TV product placement

The Government has completed a consultation on the issue and has decided to press ahead with its plans. Last year it rejected the idea, but later reversed that decision.

In a written ministerial statement, Culture Media and Sport Secretary Ben Bradshaw said that the decision could prove a boost in revenues for broadcasters who are losing audiences to other media platforms and facing falling advertising revenues.

"This crucial part of our creative industries needs all the support we can give it," he said. "We will be able to allow television product placement in a way which will provide meaningful commercial benefits to commercial television companies and programme makers while taking account of the legitimate concerns that have been expressed."

The European Union's Audiovisual Media Services (AVMS) Directive, a replacement for its earlier Television Without Frontiers Directive, allows broadcasters to accept payment from the producers of goods for those goods to appear within actual programmes, rather than just in adverts between them.

Until now such placement was not allowed in programmes made by or for UK broadcasters. UK stations can show programmes made for other markets that contain placements as long as the placement is not unduly prominent.

"Adherence to our current position in which UK TV programme-making cannot benefit at all from the income potentially to be generated by product placement would lead to continuing damage to its finances," said Bradshaw.

The AVMS Directive prohibits the placement of tobacco products or prescription medicines. The Government will increase the prohibition to include the placement of alcoholic drinks; foods and drinks high in fat, salt or sugar; gambling; smoking accessories; over-the-counter medicines; and powdered baby milk.

In line with the EU rules, placement will also be banned in news, current affairs and religious programmes. The Government said that it had listened to opponents of the plan who expressed worries about possible negative effects on content and programming decisions.

"Government ... fully shares the concerns that have been expressed about the potential impact of product placement on the editorial independence of broadcasters and viewers’ trust in what they see on television," said Bradshaw. "We believe that our proposals will safeguard these."

"Our legislation will also, as required by the Directive, specify that product placement should not affect editorial independence, be unduly prominent, or directly encourage purchase," he said. "Ofcom will have the task of policing adherence to these requirements."

Product placement will not be allowed as soon as the law is passed, the Government said. Media regulator Ofcom will regulate the placement through its Code regulating broadcast programme content.

"Ofcom will need to run a public consultation on the detailed changes to this Code before these can come into effect," said Bradshaw. "Only after that has happened, and Ofcom has amended its Code, will it be possible for TV companies to show programmes which they have made or commissioned and which include product placement. We envisage that this stage would be reached later this year."

Bradshaw said that Ofcom would monitor the prominence of product placements, and that broadcasters would have to tell viewers which programmes contained placement.

"The Directive requires that audiences are alerted to the presence of product placement in a programme by ‘signaling’ at the beginning and end and after advertising breaks," said Bradshaw. "The legislation will contain this requirement and it will be for Ofcom to determine, after their own consultation, how it is met."