For Release:
August 7, 1998
Contact: George
Hacker, CSPI (202) 332-9110
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CSPI BACKS
FTC ACTIONS ON ALCOHOL ADS
Search for Data on Industry Self-Regulation Sets Stage for Tighter Voluntary and
Governmental Standards to Protect Underage Persons
Center for Science in the Public Interest (CSPI) today applauded
long-awaited actions by the Federal Trade Commission to
address alcohol advertising abuses. "These enforcement actions send a forceful
reminder to alcohol promoters that some ad pitches are clearly out of bounds. They remind
the rest of us that industry self-regulation is inadequate, and that voluntary industry
advertising codes are weak, ambiguous, and unenforceable," said George Hacker,
director of CSPI's alcohol policies project. "We expect the Commission will reach the
same conclusion when it scrutinizes alcohol companies' efforts to comply with their
industries' voluntary advertising standards."
The Commission has ordered leading beer and liquor companies to
provide information about their self-regulation of advertising practices and their efforts
to avoid appealing to underage consumers. "This FTC inquiry lays the groundwork for
improvements in industry self-regulation and eventual adoption of more effective
governmental regulation of alcohol advertising that targets and appeals to young
people," added Hacker.
This week, the FTC settled two cases involving televised ads for
Beck's beer and Kahlua White Russian pre-mix cocktail. The Beck's ad, which depicted young
people drinking on a boat, violated the FTC Act by presenting alcohol consumption in a
potentially dangerous situation. Intoxication is a common risk factor for falling
overboard and drowning. The ad for Kahlua White Russian misrepresented the product, which
contains 5.9 percent alcohol by volume, as a "low alcohol" beverage. Under the
settlements, both companies would be prohibited from running those and similar ads in the
future.
On the heels of the settlements, the Commission also
issued orders to four major brewers and four major distillers seeking "special
reports" about efforts those companies have undertaken to comply with voluntary
advertising guidelines designed to prevent targeting alcohol advertising to underage
consumers. The requested information will assist the FTC in reporting to Congress on
alcohol advertising and marketing that may impact underage consumers.
For the first time, the Commission has asked major beer
marketers (among the other companies from whom information was sought) Anheuser-Busch and
Miller Brewing Co. to "provide information on the appeal of certain advertising
techniques and themes to those under the legal drinking age" and to detail
"company efforts to ensure that any marketing activities on college campuses are
directed to an adult audience."
Hacker commented, "Those brewers, in particular,
use a variety of characters, spokes people, music, sports themes, and adolescent humor
that have inherent appeal among young people, including children and teenagers. It comes
as no surprise that children ages 6 to 17 who responded to an advertising agency survey
named Budweiser ads (which feature animated frogs and lizards) their favorites. Those
companies will have a lot of explaining to do."
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CSPI is a nonprofit health-advocacy
organization that focuses on alcoholic-beverage problems, nutrition, and food safety. It
is based in Washington, D.C., and is supported largely by more than one million
subscribers to its Nutrition Action Healthletter and foundation grants. It does not
accept industry or government funding. CSPI led efforts to win passage of the law
requiring warning labels on alcoholic beverages and has publicized the nutritional content
of many popular restaurant foods.
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