Currently browsing posts about: FTC (Federal Trade Commission)

I could not go to the Federal Trade Commission’s December 15 forum on food marketing to children (see previous post), but from all reports I missed quite a show.

Officials of four federal agencies involved in food and food regulation – FTC, FDA, USDA, and CDC – released the results of their collaborative efforts to set standards for marketing foods to kids through an Interagency Working Group on Food Marketed to Children.  Congress established this group through the 2009 Omnibus Appropriations Act.  It specified that the group was to set up standards for identifying foods that should not be marketed to children and to publish them by July 15, 2010.

And what standards did the four agencies come up with?  Here are the working group’s recommendations:

Take a look at these “Tentative Proposed Standards for Marketing Food to Children 2-17” and decide for yourself whether they are even remotely meaningful.

The Standards are divided into three categories: Standard 1 is real (largely unprocessed) foods with no added sweeteners or functional ingredients.  These could be marketed to children with no further scrutiny.

Foods that do not meet Standard 1 would be required to meet both Standards 2 and 3 in order to be marketed to children.

Standard 2 applies to foods that “must provide a meaningful contribution to a healthful diet” in one of two ways: containing 50% by weight of real foods (Option A), or by containing defined amounts of some useful nutrients per RACC (Option B).  RACC is a new term to me.  Apparently, it means “reference amount customarily consumed.”   I have no idea what these are but let’s call them serving size.

And what about the cut points?  No foods marketed to children can exceed Standard 3 (“nutrients to limit”):

• Saturated fat: 1 gram or less per serving and not more than 15% of calories
• Trans fat: less than half a gram per serving
• Sugar: no more than 13 grams per serving
• Sodium: no more than 200 mg per serving (equivalent to half a gram of salt)

Got that?  It’s enough to make me weep.

Apparently, the agencies did not give examples of products that might qualify or not, so you have to do your own work on this.  So that leaves me with some questions about the tentative proposed standards:

• Which products qualify and which do not?  It looks to me like the criteria will continue to permit the marketing of questionably nutritious products to kids.  Sugary kids’ breakfast cereals should easily qualify; most do not contain more than 13 grams of sugars per serving or more than 200 mg sodium.
• What is the definition of RACC?  I don’t see a definition in the document.  Without a definition, are companies permitted to define serving sizes for themselves and, maybe, reduce the stated serving size to meet the standards?
• Is there any accountability for meeting the standards?  The entire program is voluntary. Alas, we have already had years of experience with industry “self-regulation” and know that it does not work.

This is the best government agencies could come up with?  I see this as further evidence for the need to stop companies from marketing foods to kids.  Period.

Or am I missing something?

The FTC forum on food marketing to kids takes place tomorrow, December 15.  Recall that the industry-sponsored Children’s Food and Beverage Initiative says the industry doesn’t need regulation, as its self-regulation policies are working just fine.

The research, alas, says otherwise.  According to a report released today, self-regulation is a joke.  An independent investigation of industry marketing-to-kids practices, by Dale Kunkel and his colleagues from the University of Arizona, concludes:

• Most ads for foods produced by self-regulating companies are for junk foods
• Ads for healthy foods are virtually non-existent
• Licensed cartoon characters are increasingly used to market junk foods to kids
• At least a quarter of junk food ads come from companies that do not self-regulate
• Improvements are negligible

Senator Tom Harkin, who has been introducing legislation to restrict children’s food advertising, says he’s disappointed:

The food industry vowed to limit the amount of advertising dollars spent to promote unhealthy foods to children, and focus more on nutritious items.  That’s why I am so discouraged by this report out today.  When private interests work against the public good, government is obliged to act. We need to examine this issue more closely and figure what needs to be done to achieve balance on the airwaves so that we can improve the health and wellness of our children.

Jeffrey Chester, of the Center for Digital Democracy, points out that he, Kathryn Montgomery of the Center for Communications at American University, and Lori Dorfman of the Berkeley Media Studies Group, have been studying the way food companies advertise on the Internet.  Kathryn Montgomery will be presenting their conclusions from a series of papers examining digital advertising, along with some more recent examples of food marketing to kids in action.

The food industry’s job is to sell more food, not less.  Because restrictions on advertising are not in industry’s best interest, it is unreasonable to expect self-regulation to work.  That is why we need government to get in there and establish some checks and balances.  The forum should be interesting.  I’m hoping it will lead to FTC action.  Maybe it will even get some of Harkin’s colleagues to do some real work on this issue.  Fingers crossed!

Update, December 15: Here’s what The FTC released at the forum – standards for the kinds of products that food companies can market to children.  These look good but are voluntary. Good enough? I don’t think so.  And here’s a report on what happened.

The Federal Trade Commission is the third agency dealing with food policies, this time advertising.  As I’m fond of saying, the FTC is not exactly a consumer protection agency.  Its main purpose is to make sure that businesses stay competitive.  In 1978, under the leadership of Michael Pertschuk, the FTC made a valiant attempt to regulate food marketing to children.  That disaster, which I have discussed in previous posts, kept the FTC from doing anything about marketing to kids – until recently.

On December 15, it is holding a forum on food marketing to children in Washington, DC.  Here’s the agenda and information about registration.  They will also do a webcast linked to that site.

Guess what?  A forum like this isn’t necessary, says the industry-sponsored Children’s Food and Beverage Initiative. We are doing just fine, it says, and we don’t need regulation.

But that’s not all the FTC is doing. It had so much fun trying to get information from food companies about their marketing-to-kids practices that it is trying the same thing with quick service and fast food restaurants.  The FTC says it is seeking “Information from those companies concerning, among other things, their marketing activities and expenditures targeted to children and adolescents and nutritional information about the companies’ food and beverage products marketed to children and adolescents.”  This sounds easy, if a bit confusing, but my guess is that the FTC will have to pull teeth to get it.

In the meantime, a few comments have already been filed in response to the notice.   The ones from industry are predictable: too expensive! Too difficult! My guess is that they have this information readily available but are embarrassed to reveal it. Why? It undoubtedly will show that the companies spend the most money on the junkiest (and most profitable) products.

Michael Pertschuk, by the way, is still going strong.  In June, he wrote an article on the FTC for The Nation. His article has much to say about the way the FTC is operating these days and is well worth a look.  As he explains, the FTC was

created in 1914 during the Progressive Era, [and] was endowed with a potent authority for promoting competition and consumer protection that it has never fully used. This includes investigative authority over virtually all businesses, backed by subpoena power and the capacity to demand reports of data that corporations would rather withhold from public view…For the first time in decades, the Senate and House authorizing and oversight committees and the judiciary committees are pressing the agency to act more aggressively on the consumer-protection and competition fronts and are prepared, as needed, to strengthen its enforcement powers….But Congress needs to take action to unleash the FTC’s full potential. First, it remains a small agency with broad and complex responsibilities and cumbersome procedural burdens, especially in rule-making. Here, the FTC’s champions in Congress can make certain that Congress supplies more resources and streamlines the FTC’s authority. The agency also has a chronic problem of setting priorities: wherever it turns, there are corporate malefactors, large and small, deserving of prosecution.

But read the whole thing and see whether you think his optimism is justified.  Better yet, go to the workshop on the 15th!

Thanks to Margo Wootan of CSPI for sending me the text of a speech by David Vladeck, the new director of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection, in which he discusses his agency’s priorities.  One of these is marketing to children.

And about time too.  The last time the FTC wanted to restrict advertising to kids was in 1978.  Then, Congress ridiculed the agency (What?  Restrict free speech?  Horrors!), and promptly passed a law preventing the FTC from taking action.  The head of the FTC, Mike Pertschuk, was fired and that was that (see Giant Killers, for his version of what happened).

Well, times have changed.  Kids are a lot fatter.  Trying to stop relentless food marketing aimed at children now seems like a pretty good idea.  Can’t wait!

First, the cartoons: this week’s question from Eating Liberally’s kat has to do with whether it makes sense to put cartoon characters on eggs or, for that matter, fruits and vegetables.  I vote no, of course, and the illustrations alone explain why.

Next, the scholarship: The latest volume of Annual Reviews of Public Health contains excellent reviews of studies of the influence of the food marketing environment on child and adult health.

Sara Bleich et al explain why obesity has become so common in the developed world.

Kelly Brownell’s group reviews the effects of food marketing on childhood obesity.

David Katz discusses school-based obesity interventions.

Mary Story et al describe policy approaches to creating healthy food environments.

And the American Association of Wine Economists (a group new to me, but interesting) forwards its Working Paper #33:

Janet Currie et al on the effect of fast food restaurants on obesity.

Finally, the action: Perhaps in response to all this, language inserted into the congressional spending bill asks the Federal Trade Commission to set up an interagency committee to set nutritional standards for products allowed to be marketed to children age 17 or under.  According to Advertising Age, the food industry thinks this is not a good idea.

The FTC has released its new report on food marketing to kids.  The big news?  The food industry only spends $1.6 billion for this purpose, a figure nobody I know believes.  The FTC had to subpoena this information and I’m sure that companies gave the lowest number they could.  Kellogg may spend $32 million just for media advertising for Cheez-Its, but I’m sure it’s hard for the company to figure out how much of that goes for packages with cartoons on them.  The FTC press release compliments food companies for all the great things they are doing to protect kids from what they used to do.  It makes recommendations that begin with words like “work toward,” “encourage,” “continue,” and “consider,” but nothing much that says “stop!”  I think $1.6 billion is likely to be an underestimate but it doesn’t really matter.  The number should be zero, no?

Thanks to Michele Simon for the heads up on the Federal Trade Commission’s new report on how much the food industry spends on marketing to kids.  The FTC is releasing the report Tuesday at 11:00 a.m.  I can’t wait to see what it says.  View the webcast!

My mailbox is flooded this week with notices about the Washington Post’s front-page series on childhood obesity, in so many parts that it’s hard to keep up with. The series will run all week, apparently. Here’s are the starter links for the multiple stories on Sunday, May 18, for those on Monday, May 19, and for those on Tuesday, May 20. I’ll add the others later, but you have to scroll around to find all the parts. One, well hidden, was sent to me by Mike Pertschuk, who was the head of the Federal Trade Commission (FTC) in 1978 when it tried to regulate food marketing to kids. One reason his efforts failed was opposition from the Washington Post. Here is its 1978 editorial ridiculing the FTC for even suggesting that food marketing might have something to do with childhood obesity. Times have changed and let’s hope the FTC has another chance to deal with this question.

Here’s the link to Wednesday, May 21.  And the one to Thursday, May 22.