Wednesday, May 17, 2006

STATE AGs ASK FTC TO STUDY ALCOHOL ADS

A group of 20 state attorneys general, led by two from Utah and Main, has taken aim at the alcohol industry's advertising and marketing practices, asking the Federal Trade Commission to collect "updated data from alcohol advertisers, including data on expenditures, marketing practices and independent review procedures." The information they want regulators to get includes actual spending, both on traditional media advertising and various promotions, sponsorships and even product placement. The attorneys general are also requesting that the alcohol industry only advertise to audiences where 85% of the people are 21 and older. Currently, the industry adheres to a 70% self-imposed guideline.

"Alcoholism is a major pediatric disease in this nation," said Steve Rowe, the AG from Maine. "Young people are starting to drink at an earlier age and drinking more aggressively than ever before. We are troubled by this growing thirst for alcohol among young people. We believe this thirst is driven by a culture of drinking created in part by alcohol industry marketing." Pretty harsh.

However, the FTC has rejected the 85% standard before. In a report to Congress in 2003, the FTC said that while the proposed 85% threshold of a 21 plus audience would reduce underage exposure, it would also "prevent the companies from advertising in media where there is substantial adult interest." Ironically, the Center on Alcohol Marketing and Youth at Georgetown recently published a study that the number of youth exposed to alcohol advertising in magazines has dropped 31% from 2001 to 2004.