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December 2009 Update
The following summarizes key government affairs activities of the Entertainment Merchants Association during the past month.
FTC Report on Marketing of Violent Entertainment to Children
On December 3, the Federal Trade Commission (FTC) issued the latest in its series of reports on the marketing of violent entertainment to children, which once again included surveys of retailer education on entertainment ratings and enforcement of those ratings. The report is available at www.ftc.gov/os/2009/12/P994511violententertainment.pdf.
Video game enforcement remains at 80%, and continues to lead all entertainment categories (the turn-down rate is 83% when weighted for retailer market share). Individual retailer enforcement levels range from 91% to 56%. Signage was found at 70% for retail locations. See page 61 of the PDF.
The FTC was critical of retailer enforcement of DVD ratings, several times calling it "poor" (with the exception of one retailer). The overall turndown was 46% for R-rated DVDs (down from 53% in the 2008 report) and 42% for unrated DVDs (previously 49%). (2009 weighted rates are 58% for R-rated DVDs and 53% for unrated DVDs.) Individual enforcement rates range from 17% to 92%. Rating information for R-rated DVDs was noted in only 36% of locations, and 37% of locations for unrated DVDs. See pages 60 and 61 of the PDF.
The FTC also surveyed retailer websites (pages 95, 96, and 104 of the PDF). The agency noted that "[t]he electronic game industry also performed well with respect to prominent disclosure of rating information in ads and retailer websites" (page 7 of the PDF). Regarding DVDs, the agency found that, of five sites selling DVDs that it surveyed, "[a]ll the sites provided some type of indication that [a] movie was not rated" and "[t]hree of the five sites also provided cautionary statements related to the movies." It also found that "[o]nline DVD rental websites always displayed the ratings. Two of the three DVD rental websites also displayed the rating reasons" (pages 18-19 of the PDF).
The FTC expressed concern over the ability of minors to purchase R/unrated DVDs and M-rated video games online, especially using gift cards.
The FTC recommended that:
Retailers and theater owners should continue to strengthen enforcement efforts restricting the sale of tickets to R-rated movies, R-rated and unrated movie DVDs, PAL-stickered music, and M-rated games to children, paying attention to possible enforcement gaps created by the use of gift cards for online purchase.
Consumer Products Safety Improvement Act
On December 10-11, the Consumer Products Safety Commission (CPSC) held a workshop on "CPSIA Product Testing." The workshop was designed to enable CPSC staff to gather input from the public on test programs, third-party testing, component testing, and "material" changes to children's products as they relate to the Consumer Products Safety Improvement Act. (The workshop was solely an information-gathering exercise; no conclusions were reached.)
According to the CPSC, the workshop was attended by more than 500 individuals, both in person and online. Participating in panel discussions were representatives of toy manufacturers, clothing manufacturers, publishers, printers, consumer organizations, environmental organizations, materials testing laboratories, and retailers.
The workshop exposed that a great deal of uncertainty and confusion remains about the scope of the act and required testing.
Recordings of, and presentations, from the workshop are available at http://www.cpsc.gov/about/cpsia/cpsiatesting.html.
Following the workshop, the CPSC announced that it would continue the stay of enforcement of third-party testing of lead in children's products until February 10, 2011 and indefinitely stay enforcement of third-party testing of phthalates in children's toys (until it completes its associated rule-making).
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