What We're Reading 11/30/2009

What We're Reading

Google News: Google, Yahoo call for expanded online drug ads

Google, Yahoo and other Web companies joined the pharmaceutical industry Thursday in urging federal regulators to make it easier to pitch drugs in online advertisements.

 

Excite News: Swiss privacy watchdog to sue Google Street View

Google Inc.'s unstoppable drive to map and photograph the world has run into an immovable object - Switzerland's strict tradition of personal privacy.

 

Excite News: Twitter to scrap controversial suggested user list

Social-media site Twitter plans to scrap its hand-picked list of "suggested users" to follow after controversy erupted over the selection of people on the list, a company executive said Monday.

 

Media Decoder: N.F.L. Blows Whistle on Promotion for Liquor Brand

The National Football League is calling a halt to a promotion for Captain Morgan rum after a player struck a pose during a game that invoked the rum’s brand character.

 

Media Daily News: Star Power: Celeb Endorsements Click With Younger Demos

A new worldwide report by Mediaedge:cia says 30% of 18- to-34-year-olds would try a product promoted by a celebrity. Older consumers are much more resistant. Conversely, consumers 35-54 years old are moved only 14% of the time by celebrity endorsers. That number is steeper -- at 11% -- for those 55 plus.

FDA Seeks to Understand Social Media

Earlier this month, the Food and Drug Administration (FDA) held public hearings to better understand the role of, and the risks associated with, the promotion and marketing of FDA-regulated products using the Internet and social media. The last such hearing of this kind (which focused solely on the Internet) was organized by the FDA in 1996; and with a very different landscape before them, the FDA felt it was time to invite several of the industries’ players back to D.C. for another chat.

Of key concern to the FDA during the recent hearings were: (1) how can drug companies safely and effectively advertise on the Internet and via social media, and (2) how best can drug information and health side-effects be disclosed and managed in a social media context. This is no surprise, as FDA appears ready to develop a framework through which it will apply product advertising and promotional labeling statutory provisions and regulations to these communications. 

At the outset, both the FDA and its invited speakers, which included representatives from Eli Lilly, sanofi-aventis, Pharmaceutical Research and Manufacturers of America (PhRMA), Pfizer, Google, Yahoo and others, all agreed that the Internet and social media present both new opportunities and unique challenges, as compared with traditional promotional labeling and print, or broadcast advertisements. Today, drug companies have a greater ability to optimize their message and respond more quickly/more effectively to developments in the marketplace. On the other hand, everyone questioned how much control these same companies are expected to exercise over the enormous magnitude of user-generated content that is found across the Internet. As one presenter described the current landscape, “The industry’s share of voice on the Internet – especially the social media part of the Internet – is rapidly being dwarfed.” 

The prevailing view seemed to indicate a willingness and acceptance that drug companies should be responsible and held accountable for any content located on their corporate websites and on third-party sites (Facebook, Twitter, etc.) over which they exert or influence control. These same companies should not, however, be held responsible for content on third-party sites over which they have no control or influence. Along this line of thinking, online pharmaceutical-marketing expert John Mac of Pharma Marketing News, suggested that the FDA take the unprecedented step of requiring that drug manufacturers put “tags” on their Twitter posts in order to monitor and potentially censor discussions about specific products.

Another concern that was raised in the context of user-generated content across the Internet is the reliability and trustworthiness factor of information that is widely available on sites ranging from corporate websites to blogs to Wikis. PhRMA, among others, suggested the creation of an FDA-approved logo or seal of approval that could be affixed to a particular website, link, or even an information set that is presented on a third-party site. The seal would indicate that the FDA has reviewed and approved the information in question.

A focal point for the hearings was the issue of adverse events. Simply put, drug companies have a legal obligation to disclose adverse events that are brought to their attention in certain situations, even after the drug has been approved by the FDA and released to the market. Two specific issues arose on this topic:

  • Manufacturers were genuinely reluctant and hesitant to create a presence for themselves within the social media universe in order to avoid learning about potential adverse events associated with their drugs. Although the FDA has established guidelines and steps that must be followed by both consumers and health care professionals to report adverse events, there was still concern expressed that a manufacturer could suffer consequences by ignoring or refusing to investigate adverse events that it learns about through social media.
  • Both the speakers and the FDA alike uniformly acknowledged that the medium (i.e., the Internet) and its advertising vehicles (i.e., banners, paid search links, etc.) lend themselves to lesser rather than more disclosures. Hence, these same companies were concerned about how best to present and disclose these potential adverse events and other risks, and avoid running afoul of their reporting requirements, considering so little FDA guidance exists within this area at the current time.  

Thomas Abrams, Director of the FDA’s Division of Drug Marketing, Advertising and Communication, concluded the hearing by acknowledging the FDA has much work to do to further understand and institute guidelines for the promotion of FDA-regulated products on the Internet and social media sites. 

Why This Matters

If Facebook were a country, its user base would make it the fourth-largest country in the world. The number of users participating in some form of social media interaction is increasing at explosive rates day-by-day. Social media has quickly become an environment in which all manner of communication, information sharing and commerce exists. Although drug companies, large and small, are eager to embrace and engage this environment, many have largely avoided using social media out of fear that its use may result in FDA enforcement action. However, the pressure to adopt social media despite this risk continues to increase as competition grows and more consumers adopt these communication tools.

FDA’s social media hearing was a welcome relief to many. It provided industry leaders and stakeholders an opportunity to take an early lead in contributing to the FDA’s emerging policy on Internet advertising and promotional labeling. FDA is accepting public comments until Feb. 28, 2010 on specific questions it posed to the public (FDA Docket No. FDA-2009-N-0441) (74 Fed. Reg. 48083 (September 21, 2009). With the advent of these meetings, and the likelihood that FDA will begin to apply advertising standards to Internet communications in a more consistent manner – and perhaps continue to engage the industry throughout 2010 and beyond – drug companies should begin to think about and act on: (1) any FDA requests for industry input and guidance on social media and industry regulations; and (2) the creation of social media policies and procedures covering everything from employee do’s and don’ts to the management of adverse event information that surfaces through user-generated content. Companies should also be developing strategies to deal with misinformation about their drugs that they become aware of on blogs and Wiki’s. Lastly, companies must continually keep current on positions, approaches and policies taken or instituted by the FDA.

For more information on contemporary legal issues in social media, including many of the points raised above, we encourage you to download our White Paper entitled, “Network Interference: A Legal Guide to the Commercial Risks and Rewards of the Social Media Phenomenon.

For a detailed analysis of the recommendations and themes raised at FDA’s hearings, please see the Reed Smith Life Sciences Legal Update Blog.

What We're Reading 11/25/2009

What We're Reading 

Broadcasting & Cable: ATSC Makes Progress On Loudness Problem

Approves recommended practice for broadcasters to follow

The Advanced Television Systems Committee (ATSC), the U.S. digital TV standards body, has formally approved technical guidelines that networks and stations can follow to avoid wide variations in volume between different programs and excessive loudness in commercials.

 

Excite News: FDA warns Web companies not to sell flavored cigs

The Food and Drug Administration said Friday that it has warned several companies to stop selling banned flavored cigarettes to U.S. consumers online.

 

ClickZ: EU Adopts Law Requiring User Consent for Cookies

The EU has passed a law requiring internet users' consent before cookies can be placed on their machines. The development could have huge implications for the online advertising industry, much of which uses cookies for functions such as ad targeting and audience segmentation.

 

Adweek: Good Old Longevity! It Has Appeal in Ads

With the recession driving companies out of business, some of the older ones that have survived (so far) make a point of mentioning their longevity in their ad campaigns. While this assures consumers they're not fly-by-night outfits, does it also make such companies seem stodgy and/or old-fashioned?

Status of Legislative, Regulatory and Legal Issues Affecting Advertising - A Report from the ANA

This post was written by Dan Jaffe.

Adlaw by Request is pleased to present you with the Association of National Advertisers' recently released Study, entitled "Status of Legislative, Regulatory and Legal Issues Affecting Advertising". This is an important read that covers a very broad range of contemporary issues affecting almost every sector of industry.

If you have any questions about this study, please contact Dan Jaffe / Keith Scarborough in ANA’s Washington, D.C. office at (202) 296-1883, or Doug Wood / Adam Snukal in New York.

Social Media and the Law

Reed Smith just released its White Paper on legal issues surrounding social media. You can download "Network Interference: A Legal Guide to the Commercial Risks and Rewards of the Social Media Phenomenon", a 69-page, 10-chapter White Paper positioned to be the definitive source for information about legal issues in social media. The White Paper covers a myriad of practice areas, including Advertising & Marketing, Commercial Litigation, Data Privacy and Security, Employment Practices, Government Contracts & Investigations, Litigation, Evidence & Privilege, Product Liability, Securities, and Trademarks. We will keep building the White Paper to ensure that it remains the definitive source addressing social media issues and solutions.

More New Faces at the FTC; Reed Smith Client Alert

As we continue to follow the important (and seemingly daily) developments within the Federal Trade Commission, it's our pleasure to provide you with the following Client Alert that discusses President Obama's very recent nomination of Julie Brill and Edith Ramirez to open FTC Commissioner Post.

GRP Model - PricewaterhouseCoopers (PwC)

This post was written by Kathleen C. Quinn, VP, Director Production Services, American Association of Advertising Agencies.

Per the 2009 SAG/AFTRA Commercials Contract, SAG, AFTRA, and the JPC have agreed to conduct an in-depth study of the Gross Ratings Point Talent Compensation Model ("GRP Model").

SAG, AFTRA, and the JPC have selected PricewaterhouseCoopers ("PwC") to conduct this study, which commenced on October 26, 2009. The study is composed of six stages and will last approximately 2 years.

Please see the attached memo from Doug Wood, JPC Lead Negotiator and Counsel, for additional details.

Children's Advertising - Fast Food Industry Initiative

This post was written by Peter Le Guay, Partner at Thomson Playford Cutlers.

The Initiative

Childhood obesity has become a major public health issue in Australia with evidence showing that excessive consumption of foods high in fat, sugar and salt is a major contributor to childhood obesity.

One of the most recent steps implemented to combat childhood obesity is the Quick Service Restaurant Initiative for Responsible Advertising and Marketing to Children (“Initiative”) developed by the Australian Association of National Advertisers (“AANA”) in conjunction with a number of fast food companies in Australia.

The Initiative, a self-regulatory scheme, commenced on 1 August 2009 and covers fast food ads run during children’s television viewing times as well as internet sites and computer games targeting children.

The aim of the Initiative is to ensure that only food and/or beverages that represent healthier choices are promoted directly to children (defined as being persons under the age of 14 years) and to ensure that parents or guardians can make informed product choices for their children.

The Initiative requires signatories to ensure that advertising or marketing to children for food and/or beverages represents:

(a)   healthier choices as determined by a defined set of nutritional criteria (being new sugar, salt and fat limits prepared in consultation with dieticians); and
(b)   a healthy lifestyle designed to appeal to the audience through messaging which encourages healthier choices and physical activity.

In addition, signatories must:

  • not engage in product related communication in Australian schools except where specifically requested or agreed to with the school administration;
  • not use popular personalities or licensed characters to promote food or beverage products to children unless that communication complies with (a) and (b) above;
  • not advertise premium offers in any medium directed to children; and
  • ensure that nutritional information is provided on packaging wherever possible including on company websites or upon request.

Major fast food companies such as McDonalds, KFC, Pizza Hut, Hungry Jack’s, Oporto, Red Rooster and Chicken Treat have supported the Initiative. However, other major fast food companies such as Nandos and Dominos Pizza are yet to sign.

Complaints in relation to alleged breaches of the Initiative can be made in writing to the Advertising Standards Bureau.

In addition to adhering to the specific rules set out in the Initiative, signatories are also required to abide by the following Codes of the AANA:

1.      AANA Code for Advertising & Marketing Communications to Children

The object of this Code is to ensure that advertisers and marketers develop and maintain a high sense of social responsibility in advertising and marketing to children in Australia. The Code contains, among other things, a prohibition on the sexualisation of children (defined as being a person aged 14 years or younger) or using sexual imagery in advertising/marketing to children that is contrary to prevailing community standards, as well as a prohibition on the portrayal of unsafe situations or unsafe use of products which may encourage children to engage in dangerous activities.

2.      AANA Food and Beverages Advertising & Marketing Communications Code

The object of this Code is to ensure that advertisers and marketers develop and maintain a high sense of social responsibility in advertising and marketing food and beverage products in Australia. The Code states, among other things, that advertising/marketing to children (defined as being 14 years or younger) must be designed and delivered in a manner to be understood by those children and shall not mislead or deceive in relation to any nutritional or health claims. Also, such communications must not state or imply that possession of or use of a food or beverage product will provide physical, social or psychological advantage over other children and shall not include any “pester power” appeal to children to urge adults responsible for their welfare to buy a particular food or beverage item for them.

3.      AANA Code of Ethics

The object of this Code is to ensure that advertisements are legal, decent, honest and truthful and that they have been prepared with a sense of obligation to the consumer and society and a fair sense of responsibility tocompetitors.

The Initiative follows recent changes to the new Children’s Television Standards (2009) which come into effect on 1 January 2010. Details of the 2009 Standards are set out below.

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What We're Reading 11/3/2009

What We're Reading 

Dow Jones Newswire: FTC To Target Advertisers, Not Bloggers, In New Guidelines

The Federal Trade Commission doesn't intend to bring individual cases against bloggers or tweeters who accept cash or gifts to tout a company's products or services, an FTC official said Wednesday.

 

Excite News: Book scanning prompts review of EU copyright laws

The European Commission said Monday it may revise copyright law to make it easier for companies like Google Inc. to scan printed books and distribute digital copies over the Internet. 

 

Environmental Leader: Samsung Pays $205K for False Environmental Claims About Keyboard

Samsung, having advertised that its keyboards were antimicrobial and could inhibit germs and bacteria, found itself in the cross-hairs of the Environmental Protection Agency.

 

Environmental Leader: Sweden Mandates Carbon Emissions Labels on Food

New labels listing the carbon dioxide emissions associated with the production of foods, from whole wheat pasta to fast food burgers, are appearing on some grocery items and restaurant menus in Sweden, which is expected to cut the nation’s emissions from food production by 20 to 50 percent, reports the New York Times.