For Immediate Release	CONTACT:	Brett Kay
9/10/99		(202) 835-3323

NCL Supports FTC Proposal for Tougher Standards and Third Party Review of Alcoholic Beverage Advertising

WASHINGTON, DC . . . Consumers may soon have a greater say in how beer, wine, and distilled spirits are advertised, according to a new report released today by the Federal Trade Commission (FTC). The report entitled "Self-Regulation in the Alcohol Industry" encourages all segments of the alcoholic beverage industry to raise their standards of advertising responsibly and to adopt a voluntary independent third party review system to address and adjudicate complaints about advertising.

"The ultimate goal is to reduce or eliminate underage drinking," says Linda F. Golodner, president of the National Consumers League. "Consumers will benefit if a new system is put in place which assures that complaints about all types of alcohol advertising are heard and adjudicated by one independent panel rather than by producers of alcoholic beverage products or their trade associations as is the case today," said Golodner. The new voluntary system would supplement advertising review and enforcement currently within the jurisdiction of the Federal Trade Commission and state consumer protection agencies. "We challenge the industry to adopt the FTC recommendations and to move immediately to utilization of tougher standards," Golodner added.

"If the alcohol industry truly believes it is a responsible advertiser, then it has nothing to fear from independent third party review of its advertising. In fact, if the industry embraces this new system, it would help build trust with consumers that it is a responsible industry that does not seek to target kids," she said.

NCL supports tougher best practices to be a part of a single alcoholic beverage advertising code:

• For ad placement: Raise the percentage of audience 21 years and over to 70 percent.
  
• For ad content: Prohibit ads with substantial underage appeal.
  
• For product placement in movies and television: Restrict the promotional placement of alcohol products to "R" and "NC-17" rated films.
  
• For college marketing: Prohibit on-campus and spring break sponsorships and advertising.
  The system recommended in today's FTC report is similar to the Children's Advertising Review Unit (CARU) established by the Better Business Bureau in 1974 to promote responsible children's advertising and to respond to public concerns. CARU reviews and evaluates children's advertising and works with advertisers to correct any advertising deemed misleading. It has been an effective instrument for consumers and advertisers by responding to legitimate complaints in a timely fashion.

In implementing the FTC recommendations, NCL challenges the industry to work together to ensure that the new system put in place is consumer friendly. "This means ease of use--one point of complaint for beer, wine, and distilled spirits advertising--and public disclosure of decisions about complaints. We look forward to working with the industry on implementation of this new system," Golodner said.

Finally, we ask that the FTC conduct another assessment within two years to determine whether the tougher code and third party review system is resulting in greater accountability and reductions in underage drinking.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern.