FTC, HHS Call for Strict Standards in Children's Food Marketing

Recommendations Tough, but no Legislation Yet

WASHINGTON (AdAge.com) -- Two government agencies are calling on advertisers to market only healthier food products to children in the continuing clampdown on children's obesity.
The FTC and HHS issued 78 pages of recommendations in the latest round of the children's obesity wars.
The FTC and HHS issued 78 pages of recommendations in the latest round of the children's obesity wars.


Controversial point
A controversial recommendation in a 78-page study released today by the Federal Trade Commission and the Department of Health and Human Services calls for marketers to adopt "minimum nutritional standards for the food they market to children" or at least focus marketing on lower-calorie, more-nutritious products.

The agencies didn't identify specific standards for what it considers healthy products, though they noted that the Institute of Medicine of National Academy of Science is developing guidelines for products used in schools. Marketers have opposed limits on advertising, arguing any food can be part of a good diet.

Recent progress
The two agencies held off for now recommending new laws or regulations saying they were "encouraged" by industry's own recent progress, but the report includes a clear warning that if changes aren't implemented, recommendations will be forthcoming. The industry's advertising guidelines for marketing to kids come from the Children's Advertising Review Unit of the Council of Better Business Bureaus. A review of the guidelines is now underway.

"The agencies have concluded that [CARU] should be given a reasonable amount of time to complete its review and develop and implement changes before determining whether to recommend other alternatives," said the report.

Mary Engle, the FTC associate director-advertising practices, said the agencies decided to urge voluntary rather than legislative action because there was a feeling that voluntary moves could happen sooner. "We think that the voluntary action has the ability to be quicker and more effective," she said, suggesting that any advertising regulation imposed could be caught up in court for years over First Amendment challenges.

Product placement an issue
The proposal to limit kids' food marketing to "good" products wasn't the only controversial one. The agencies also urged the ad industry to let CARU examine "whether product placement of foods is appropriate" and also the appropriate use of licensed characters in TV, along with product placement in movies, video games, and Web sites. The report suggested licensed TV and movie characters should be used only to promote more nutritious products. CARU's guidelines are aimed at products marketed to kids under 13.

It also asks the ad industry to expand CARU's focus to look at non- traditional as well as traditional advertising; to examine the feasibility of creating an independent third-party seal or logo to identify more nutritious, lower calorie foods that could be used by a number of marketers; and investigate the possibility of CARU being able to impose sanctions, especially for repeat offenders.

Moreover, it calls on food marketers to intensify efforts to create new products and reformulate current ones to make them more nutritious and lower calories while increasing their appeal to kids. It also asks marketers to facilitate good diets for kids by providing smaller portion sizes, single-servings or other steps.

"Responsible, industry-generated action and effective self-regulation are critical to addressing the national problem of childhood obesity," said FTC Chairman Deborah Platt Majoras. "The FTC plans to monitor industry efforts closely, and we expect to see real improvements."

"Businesses need to work with mothers, fathers and children to bring America's epidemic of childhood overweight under control," said HHS Secretary Mike Leavitt.

Cautious response
Advertising and food industry groups were circumspect. "At first blush, it appears fair and balanced," said Dick O'Brien, exec VP of the American Association of Advertising Agencies. He said many of the recommendations for changes were already under discussion within the industry.

Dan Jaffe, exec VP of the Association of National Advertisers, said the report would get and "extremely thorough and careful review" by the industry.

In a statement, Grocery Manufacturers Association President-CEO C. Manly Molpus also promised GMA and its members "will carefully consider all of the recommendations. While many companies are already engaged in a variety of initiatives, we welcome the agencies' suggestions regarding other ways in which we might be able to have positive impact on the health of all consumers, especially children."

James R. Guthrie, president-CEO of the National Advertising Review Council, which oversees CARU, issued a statement saying NARC is reviewing the recommendations, adding that some recommendations contained in the report had already been implemented.

Harkin wants legislation
Critics of food marketing offered differing views on the report. U.S. Sen. Tom Harkin, D-Iowa, said he was "disappointed" it offered only recommendations for voluntary action to an industry he called "largely out of control."

"Current efforts at industry self-regulation through CARU are completely inadequate," he said. "If industry fails at the task of self-regulation, stronger government action will be necessary. Parents are sick and tired of food companies undermining their rules and their values."

But Margo G. Wootan, nutrition policy director for the Center for Science in the Public Interest, praised the report. "It makes some sensible recommendations, which I hope food and media companies will follow," she said. Ms. Wootan noted that the marketing industry is coming around to the view that it should be advertising healthier products to kids and is likely to comply, rather than fight.

"I think companies are very sensitive and are concerned about being blamed for rising obesity rates, don't want negative publicity or to be sued."

 

 

May 3, 2006
 

Industry Urged to Offer More Nutritious Foods for Children

As childhood obesity rates climb, the food industry needs to improve the way it markets its products to children, according to a government report released yesterday.

The report, from the Federal Trade Commission and the Department of Health and Human Services, urges food companies to develop products that are more nutritious and to "review and revise" its marketing practices. It also suggests that the Children's Advertising Review Unit, which was set up by the industry, consider creating minimum nutrition standards for foods advertised to children.

Consumer groups hailed the report as a step in the right direction. "This is the first acknowledgment by the F.T.C. that there should be nutrition standards for food that's marketed to kids," said Margo Wootan, director of nutrition policy at the Center for Science in the Public Interest, a nutrition advocacy group and frequent critic of junk-food marketing.

But advocates also said that the report's conclusions and recommendations did not go far enough.

"I am disappointed that the report makes only recommendations, without imposing any requirements on an industry largely out of control," Senator Tom Harkin, a Democrat from Iowa who has been a vocal critic of junk-food marketing to children, said in a statement. "If industry fails at the task of self-regulation, stronger government action will be necessary."

The Grocery Manufacturers Association, a lobbying group that represents packaged food manufacturers, said that the food industry had already undertaken "initiatives to help families improve their health and wellness." The changes, the group says, include new and reformulated products that are healthier, products that are portion-controlled to have just 100 calories and the addition of "healthy lifestyle messages" on food package labels.

"We welcome the agencies' suggestions regarding other ways in which we might be able to have a positive impact on the health of all consumers, especially children," said C. Manly Molpus, president of the association.

General Mills, one of the largest food companies, says that, partly in response to a similar report done in December by the Institute of Medicine, a scientific advisory group, it has tightened its marketing guidelines. Tom Forsythe, a company spokesman, said that in advertisements aimed at children 12 and under, it will feature only products that have fewer than 175 calories a serving and that meet certain nutritional guidelines, for example, by containing half a serving of whole grains.

These guidelines, however, do not address one ingredient that consumer advocates have frequently cited: sugar, a core ingredient of many of General Mills' children's cereals.

"We believe that calories are the most important thing and that the emphasis on sugar is misplaced," Mr. Forsythe said. He said that General Mills planned to post the new guidelines on its Web site within the next month.

Previously, Kraft had been the only food company to make changes to its marketing guidelines for children.

Yesterday's report took a much softer tone than the earlier report from the Institute of Medicine. That report, which was done at the request of Congress, concluded that food marketing practices geared to children "are out of balance with healthful diets and contribute to an environment that puts their health at risk." The report found that 80 percent to 97 percent of the food products now aimed at children and teenagers were of "poor nutritional quality."

The poor quality of food has helped contribute to rising obesity among children, the institute said. According to government data, 15 percent of children and teenagers in the United States are obese. Rates have tripled among adolescents and doubled among younger children.

The Institute of Medicine said that if the food industry did not make progress within two years, Congress should take action. J. Michael McGinnis, a senior scholar at the institute and one of the authors of the report, called for the creation of a division in the federal Department of Health and Human Services to assess the food industry's progress.

Yesterday, the Federal Trade Commission and the Department of Health and Human Services said they planned to "monitor closely" the industry's progress. They did not offer a timeline for changes or suggest what would happen if food companies did not make recommended changes.

Susan Linn, associate director at the Judge Baker Children's Center, a nonprofit group in Boston, said the report gave too much leeway to the industry. "I don't think corporations should be the guardians of public health," Ms. Linn said. "I think the government is going to have to take a more active role if we really want to do something about the marketing of unhealthy food to kids."