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WATCH OUT - HOW YOU MAY BE IMPACTED BY RENEWED GOVERNMENT EFFORTS TO CURB ADVERTISING OF ADULT-RATED PRODUCTS TO CHILDREN
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John Shaeffer, Esq.          &         Pierce O'Donnell, Esq.

O'DONNELL & SHAEFFER, LLP

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1. Introduction

2. The FTC Reports And Senate Bill
    A. Summary of the FTC Reports’ Findings.
 
   B. Summary of Senate Bill 792.

3. The First Amendement, Media And Children
    A. Regulation Beyond Advertising.
    B. FTC's Limited DEfinition of "Entertainment."
    C. Interpretation of "Deceptive" and "Misleading" Advertising.

4. Conclusion

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1. INTRODUCTION

On April 26, 2001, Hilary Clinton, Joseph Lieberman and others submitted Senate Bill 792 entitled the "Media Marketing Accountability Act." The necessity for this bill is summed up as follows:

Because the entertainment industry continues to target its advertising of adult-rated products to children, there is need for narrowly targeted legislation to prohibit, as a false and deceptive trade practice, the targeting of children in the advertisement and other marketing of products rated for adults, and to authorize the Federal Trade Commission to stop these practices.

Senate Bill 792.

This bill follows two reports by the Federal Trade Commission ("FTC"), the first of which outlined perceived marketing of "adult oriented" material by the motion picture, music and computer gaming industry to children, and the second which found that these industries were not adequately responding to concerns raised in the first report. (footnote 1) A third FTC report is already in the works, and the FTC has indicated that it will be an even harsher indictment of the industry.

This brief discussion hopes to offer some insights into the government's renewed focus on the media as a cause of social ills. My goal is not to engage in an academic exercise, but to provide those in the business with a clearer context of their legal rights as they attempt to wind their way through a politically uncomfortable situation.
2. THE FTC REPORTS AND SENATE BILL

The government's attention was again drawn to the impact of media on children following the Columbine High School shooting, when then President Clinton asked the FTC to investigate whether the entertainment industry was marketing "adult oriented" violent content to children. This curious Democratic Party effort stems from the still very controversial proposition that "media violence can be harmful to children." Senate Bill 792. By focusing on marketing rather than the content itself, there seems to be some expectations that there is a less significant First Amendment problem. See Central Hudson Gas & Elec. v. Public Serv. Comm'n, 447 U.S. 557, 566 (1980) (commercial speech is only afforded a qualified protection and there is no protection for misleading commercial speech). Similarly, the Supreme Court has repeatedly recognized that the protection of children is a legitimate governmental interest that may defeat a First Amendment challenge to legislation. See Ginsberg v. New York, 390 U.S. 629, 639 (1968) (upholding legislation prohibiting the sale of "girlie picture" magazines to minors). Interestingly, it was the Ginsberg case that prompted the motion picture industry to adopt its current voluntary rating system.

Significantly, the FTC in its reports expressly acknowledges the First Amendment problems with regulating media companies, and, for this reason, emphasizes that it prefers a resolution based on voluntary compliance by industry created ratings and enforcement systems. It is fairly clear that using the government's bully pulpit to prompt industry action does not run afoul of the First Amendment. Penthouse Int'l v. Meese, 939 F.2d 1011, 1017 (D.C. Cir. 1991) (requesting that magazine publishers answer questionnaires and attend public hearings did not violate the First Amendment). However, if the government's actions cross the line to coercion, then First Amendment problems can arise. Bantom Books, Inc. v. Sullivan, 372 U.S. 58 (1963) (government created Commission for the Encouragement of Morality that sent letters to book publishers and sellers about works they found offensive and noted that it would refer obscene matter to the attorney general for prosecution violated the First Amendment).

A. Summary of the FTC Reports’ Findings.

In its two reports, the FTC found that the motion picture industry, the music industry and the computer gaming industry had each established their own rating systems. The FTC, however, was troubled by the extent the industry advertised mature rated content in media predominately viewed by children. It is important to understand that the FTC is not concerned here with pornographic material, but rather mainstream media. For example, the FTC mentioned that MTV advertises music that includes explicit lyric warnings during times when a significant portion of the audience is under 17.

The FTC also focused on the fact that the industry was not enforcing its own ratings systems. For example, children were getting into R rated movies unaccompanied by an adult and children were able to purchase music with explicit lyrics at any retailer.

At the conclusion of its reports, the FTC sums up what it expects from the entertainment industry to remedy this problem:

1. The industry should establish a rating system that can be understood by parents and adopt     an outreach program to educate parents about their rating system;

2. The industry should establish a code that prohibits the marketing of "adult oriented material"     to children; and

3. The industry should improve its self regulating system to ensure compliance with the rating     system at the retail level - i.e., prevent children from buying music with explicit lyric     warnings.

B. Summary of Senate Bill 792.

While the FTC clearly noted the First Amendment problems with anything other than industry self-regulation, Senate Bill 792 arguable crosses the line from voluntary self-regulation to compulsion. Senate Bill 792 empowers the FTC to prosecute as false and deceptive advertising advertisements of "adult oriented" media to children. While Senate Bill 792 provides a safe harbor, like the FTC's recommendation, the safe harbor requires the industry to undertake a course of conduct far beyond simply restricting their advertising. In particular, Senate Bill 792 requires the industry to adopt policies that will further restrict minor's access to the "adult oriented" content and develop a procedure to sanction those in the industry who fail to comply.

3. THE FIRST AMENDEMENT, MEDIA AND CHILDREN

A few things quickly jump out when considering both the FTC reports and Senate Bill 792.

A. Regulation Beyond Advertising.

First, despite their respective titles, both the FTC reports and the Senate Bill, reach far beyond advertising. Both demand improved rating systems, which begin to smack of constitutionally impermissible compelled speech. Riley v. National Federation of the Blind of North Carolina, Inc., 487 U .S. 781, 795 (1988) (Striking down disclosure requirement for charitable organization). Secondly, both demand that the industry create a sanction that is based on the content of speech, the most constitutionally suspect of regulations. Reno v . ACLU, 521 U.S. 844, 879 (1997) (striking down effort to restrict "indecent" material on the internet to protect children).

Supporters of this effort no doubt will focus on the permissible regulation of radio and television airwaves to protect children from indecent material as a justification for the present action. See FCC v. Pacifica Foundation, 438 U.S. 729 (1978) (upholding FCC regulation aimed at protecting children by limiting the time when "indecent" material can be broadcast over the radio); Denver Area Educational Telecommunications Consortuim Inc. v . FCC, 518 U.S. 727 (1996) (upholding the exclusion of adult channels from the must carry requirements of cable television in order to protect children). This line of cases, however, is immediately distinguishable due to the uniqueness of the mediums at issue. See Sable Communications of California v. FCC, 492 U.S. 115 (1989) (refusing to apply the Pacifica line of cases to dial a porn). In particular, the Court has held that because of the scarcity of television and broadcast spectrums and the invasiveness of the medium within the home, regulation narrowly designed to protect children can withstand constitutional scrutiny. Reno v. ACLU, 521 U.S. 879 (1997) (holding that the scarcity and invasiveness element is not applicable to the internet). Movie theatres, music stores and retailers selling games do not have the same types of scarcity and invasiveness found relevant in these cases.

B. FTC's Limited Definition of "Entertainment".

A second troubling aspect of this renewed governmental effort is that it addresses only a limited category of what is perceived as entertainment. While the FTC wants to prevent a child from buying an album by Eminim, there is absolutely no discussion or concern about a child buying a book by the Marques de Sade. Similarly, while the FTC wants to ensure that children do not see films like "American Pie," it does not advocate any rating requirements to prevent a child from viewing the nudity in a live theatre production like "Hair." The most likely response to this obvious anomaly will be that this effort is focused on the advertising of content and not the content itself. As has been demonstrated above, however, this is simply not the case.

At best, the government is deriving some distinction between what it considers high art and less worthy entertainment. However, can anyone really make a compelling argument that morality is more severely undermined by an entertaining picture compared with a tediously written group of words. While this distinction may border on the absurd, there is a long line of case law that shows the government's continued desire to draw such a distinction. In upholding a state board of film censors, the Supreme Court held in 1915 that motion pictures

are mere representations of events and ideas and sentiments published and known; vivid, useful and entertaining no doubt, but as we have said, capable of evil, having the power for it, the greater because of their attractiveness and manner of exhibition.

Mutual Film Corp. v. Industrial Commission of Ohio, 236 U.S. 230, 244 (1915) overruled in Burstyn v. Wilson, 343 U.S. 495, 501 (1952) ("The importance of motion pictures as an organ of public opinion is not lessened by the fact that they are designed to entertain as well as to inform.").

Similarly, there is precedent to support the constitutionality of legislation designed to restrict entertainment that promotes violence. Winter v. New York, 333 U.S. 507, 509 (1947) ("We have recognized the importance of the exercise of a state's power to minimize all incentives to crime, particularly in the field of sanguinary or salacious publications with their stimulation of juvenile delinquency.") Additionally, it must be remembered that the Supreme Court has upheld regulatory systems that restrict minor's access to entertainment so long as the regulation is not unduly intrusive on adults. See Ginsberg v. New York, 390 U.S. at 639. And this precedent supports the constitutionality of a ratings board. But see Interstate Circuit, Inc. v. City of Dallas, 390 U.S. 676 (1968) (in striking down a motion picture rating board, the Court held that "[v]agueness and the attendant evils . . . are rendered no less objectionable because the regulations of expression is one of classification rather than direct suppression.").

C. Interpretation of "Deceptive" and "Misleading" Advertising.

A final troubling aspect of this current governmental effort is its contention that the challenged advertising is somehow deceptive or misleading. Although a piece of music may contain a warning about explicit lyrics, there is no law or internal industry regulation prohibiting the sale of such music to minors. Similarly, while a movie is rated R because of adult content, the industry rating simply requires that a parent accompany any minor to the movie. Advertising of either media to children is not misleading in the common sense because children are not barred from viewing or listening to the media. The FTC contends that such a construction of misleading and deceptive is overly circumscribed and points to its ability to regulate the time and manner of direct marketing as an analogy. Arguably, however, at least one justice on the Supreme Court does not believe that the government needs to make such a stretch in order to fall within the meaning of deceptive and misleading. U.S. v. Playboy Entertainment Group, Inc., 529 U.S. 803 (2000) ("We have recognized that commercial entities which engage in 'the sordid business of pandering' by 'deliberately emphasize[ing] the sexually provocative aspect of [their nonobscene products], in order to catch the salaciously disposed,' engage in constitutionally unprotected behavior.") (Scalia dissenting).

4. CONCLUSION

While it is unlikely that Senate Bill 792 will pass, the entertainment industry should expect significant political pressure over the foreseeable future in the area of the availability of its content to minors. Each of the three industries targeted by this report have already undertaken action in an effort to reach sufficient compliance with the governments objectives. The real sticking point will come when the industry starts to deal with the issue of enforcement and sanctions. At present, there are no sanctions for the sale of music with explicit lyrics to children and a movie can still be released without an MPAA rating. The government obviously wants this to stop. If the industry ultimately accedes to the government's "requests," the issue remains open as to whether such private regulation could withstand a First Amendment challenge by a maverick.

FOOTNOTE:
(1)FTC Report to Congress "MARKETING OF VIOLENT ENTERTAINMENT TO CHILDREN: A REVIEW OF INDUSTRY PRACTICES IN THE MOTION PICTURE, MUSIC RECORDING & ELECTRONIC GAME INDUSTRIES" September 2000; FTC Report to Congress "MARKETING OF VIOLENT ENTERTAINMENT TO CHILDREN: A SIX-MONTH FOLLOW-UP REVIEW OF INDUSTRY PRACTICES IN THE MOTION PICTURE, MUSIC RECORDING & ELECTRONIC GAME INDUSTRIES" April 2001.

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