Intervention by the Danish Consumer Ombudsman on the subject.
Content:
Hidden advertising
Advertisements and the school
TV-advertising
Films
How will you secure ethics and thrustworthiness in the future?
"Is that supposed to be an article?
The Consumer Ombudsman is pleased to have the opportunity of a debate, particularly now when many people are of the opinion that the media are undergoing an essential change. Particularly, journalism is critisized for being deeply commercialized. Is it possible for journalists, under these circumstances, to maintain proper journalistic ethics, will you be able to keep up a trustworthy appearance, and are you trustworthy?
As Consumer Ombudsman I supervise the marketing, ethics and business methods of trade and industry. Many illegalities are only disclosed if you unveil them, also such illegalities which relate to your own profession.
What is the reason why the pressure on journalists seems to have increased?
The newspapers have problems.
In September it appeared from the daily press that the newspapers have a severe crisis. This is among other things due to the fact that the sale of advertisements is decreasing, but worst of all fewer people reads a daily paper. One of the media researchers claims that there is a need for great changes as regards co-operation and development of new media products. For instance there might be more production of mutual subject matters which fall outside the field of the newspapers' competition. Another researcher is of the opinion that the newspapers must conquer the classified advertisement columns on the Internet, because the development that the Internet is preferred for different advertisements is not stopping. Because it is cheaper for the sellers and quicker for the buyers.
The newspapers have missed the chance of establishing themselves strongly on the Internet. Professor of media sociology at Syddansk Universitet, Anker Brink Lund, therefore suggests, that the newspaper should open a common Internet portal. He finds that this is crucial in order to create a newspaper impact on the Internet. Together the newpapers can provide contents which people wants to use, and they may obtain an amount of trafic on the net which is interesting compared to banner advertisements and classified advertisements.
The newspapers seem to be open towards such transverse co-operation. Whether the newpapers are reacting too late is another question. However, Jakob Nielsen, a leading expert in creating home-pages, does not think so. He says that the strength of the newspapers lies in the well-known trademarks: "The newspapers have one big advantage. Many users find it difficult to see through who is behind the home-pages, but if the newspapers realize that trustworthiness is their tool they have good possibilities of making a popular portal".
New media create new roles for the journalists
The newspaper "Information" in September had an article by Steen K. Rasmussen, Center of Journalism and Supplementary Training, in which he pointed out that the Internet and the digitization means a revolution of journalism in Denmark. The article mentions the report "The convergence of the media - consequences for the roles and qualifications of journalists", which has been published recently. The report predicts that in the future - and many places already now - almost all journalists will have to get used to producing for 2, 3 or 4 media at the same time. Or as a minimum they have to consider the possibility of appearing simultaneously in another medium.
In the USA and in England it has already been possible to ascertain media convergence at a large scale - i.e. converged media of all possible kinds (Internet publishers, newspaper publishers and broadcasters) within one concern.
We have not come that far in Denmark, but the development is going on for instance in Denmarks Radio and at the Ritzaus Bureau (a news agency). Also, in the Danish media concern Morgenavisen Jyllands-Posten (a newspaper) the vision is that in the course of a few years the journalists must get used to working on two levels: in the first place as a kind of agency reporters who currently provide bits of news for the newspaper's different types of electronic services - so to speak at the same time as they write the story. Subsequently, the perspectives and the background of the story is to be incorporated in the article, which is to be published in the printed newspaper.
Many people fear that the quality of each media product will be deteriorated when the same journalist must be able to handle radio, TV and the Internet. The development of journalism in Denmark is by some considered a regular revolution which forever will change journalism, while others are of the opinion that it is an evolution - a natural and advancing process which build on existing journalism.
It is a good question how the role of the journalist is influenced by the progress of the new media. The Finnish journalist and researcher of journalism, Ari Heinonen, has one explanation in "Journalism in the age of the net: changing society, chang-ing professon" (in the series Acta Universitatis Temperensis). He concludes that the traditional role of the journalists as "gatekeepers" and mediators of information is changing. The public can get information directly from the source - only by means of a single click and even more important: without the journalist as a filter which may slow down or blur essential points. On the other hand, along with the growth (overgrowth) of information there is more than ever a need for media pro-fessionals, who can filter the information by means of the "ever valid" journalistic principles about trustworthiness, independence etc. The very fact that people have the possibility of using the Web-media will considerably increase the demand for accuracy and thoroughness in the journalistic process. In Ari Heinonen's opinion the chance for journalism to get safely through the media revolution is an increased consciousness about how the relations to the public are changing.
And where must truthworthiness still be the most important.
Advertising and marketing in the media may have many different forms and obviously it is an important and growing part of the media picture - advertisement supplements, free papers, TV-advertising, sponsoring, product planting. At the same time there are clear examples of journalistic products which are in fact hidden advertising. Businesses have paid newspapers in order to have influence on the editorial articles. Also there have been examples of businesses paying for journalists' travels, dinners, hotel accomodations and also arrangements of spectacular events in order to obtain reference in the editorial texts. Some people are even of the opinion that it is commonly used among journalists from practically speaking all media to accept these offers from the businesses - in return for being mentioned in the newspaper columns.
This gives the advertisers reason to be satisfied. Reference in editorial text is far better than advertising, they say. Because the readers believe that the text is real journalism and are thus left in the lurch. They have no information about who has paid for the journalist's costs. Thus, journalism has been mixed with the advertising industry. This has taken place during many years in the advertisement sponsored papers and magazines distributed to the households. But this also can be seen in special sections about gardening, cars, fashion, travel, which often come with the newspapers.
It is important that the readers receive exact information. It is decisive to know whether an enterprise or organisation has paid for the travel or covered the expenses which make a story possible. If you are not aware of the mixture of marketing and journalism then you, as a reader, is unaware of the influence which the article may have, consciously or unconsciously.
If you believe that you are reading an article based upon a journalistic development of an idea, and a research and critical investigation of sources, and what you actually are reading is a direct or indirect product of the marketing strategy of an enterprise, then you are caught off guard.
Advertising must have a factual informative content, they must not twist the truth, and they must give the consumer a correct basis to make a decision about what he wants to purchase. Today the media picture deals with lifestyle, experiences, dreams and entertainment, where there is a sliding change from actual advertising to for example music video. When too much focus is directed to the experience it does not leave room for an objective and fair information about what the products consist of. The hidden and insignificant advertising makes us, subconsciously, confident about products that we strictly speaking have not received any information about. This type of marketing deprives us, the consumers, our democratic right to a free choice of consumption, for example the right to opt out products which from an environmental point of view we find unethical.
Hidden advertising also makes it difficult to supervise unserious or even illegal advertising. It cannot be emphasized too often that the consumers have a right to know whether they are dealing with a commercial presentation or an independent evaluation.
As already mentioned some people are of the opinion that in these years we can observe an insideous commercialisation of the editorial texts. At the same time some are pointing to the matter about the newspaper Aalborg Stiftstidende (now Nordjyske Tidende) who had an advertisement section with a direct mixture of editorial text and advertisements. This case has made the problem obvious and it means that media organisations and other interested parties can contribute to change the development in this field. The Consumer Ombudsman is satisfied with this. Because in the Ombudsman's opinion there is a tendency that illegal advertising methods are transferred to the editorial columns, which are ruled by the Press Act, and thus are better protected against intervention by the Consumer Ombudsman on basis of the Marketing Practices Act.
At the same time, however, I refer once more to a feature in the Politiken (newspaper) of 19th November 1998 by Peter Harms Larsen (professor of journalism). He expresses a sharp critical angle towards the function, the quality and the reliability of Danish journalists' work. The professor is of the opinion that the journalists have problems among other things in connection with the entertainment industry and the advertising industry. In accordance with the professor's feature none of his 12 allegations are new. The new thing is, that the criticism is so persistant, and that to a large extent it comes from the profession itself, from common journalists as well as from their leaders. However, the professor finds comfort in that luckily there is much good will to find new ways of journalism and to shake up the present situation.
However, the Consumer Ombudsman agrees that the borderline between advertising and editorial text can be very difficult to find, especially because it is difficult to detect and consequently equally difficult to regulate hidden advertising. An example:
A youth magazine made a report/picture series with the title "When he says no" consisting of a series of pictures showing a girl who is waiting in front of the church, but the bridegroom never turns up. In the end of the series the jilted girl tries to commit suicide. The Consumer Ombudsman was of the opinion that the series actually was an advertisement - on the last page were stated the prices and trade marks of the clothes, which the girl was wearing.
The Press Council chose not to look into the matter.
In the same area may be mentioned an interesting decision of 19th June this year by the Finnish Market Court. The magazine "Family 2000" is a publication in the form of a magazine targeting children and young persons. On basis of the claim from the Finnish Consumer Ombudsman the judgement said: The Market Court forbids the advertising agency DVF-Finland Oy, Family 2000 ry and Jorma Kari Leppäniemi, managing director,
- to distribute the marketing material to minors or young people in schools and youth centers when the parents have not given their consent to the distribution,
- to present the marketing material in publications in texts, which appear to be articles, or in pictures or otherwise, in such a manner that it is not immediately, clearly and unambiguously apparent that it is an advertisement.
The prohibition is in force immediately, and is followed by a compulsive fine of 300.000 Finnish mark.
The Market Court stated as grounds for the judgment that the magazine as a whole is edited in such a manner that it strongly resembles an editorial publication. Children or young persons who present the products marketed in the magazine are often stated to be the authors of the articles, or as conveyors of the message. Together with the presentation are often mentioned the names, the trade marks or other commercial characteristics of the products. As the publication mostly targets children and young people there is a higher risk that the target group does not identify the articles as advertising.
In Denmark we have clear parallels such as "Chili" and "Tjek", which are advertisement sponsored periodical publications - protected by the Press Act and the total inactivity of the Press Council when it comes to mixture of advertising and text. These magazines are distributed everywhere in the schools.
Now that I mention advertisement magazines in schools I find it difficult not to mention that the ultimative victory of commercialization has been won in the Folkeskole (elementary schools). Now the children have to learn the trade marks and the child-oriented products by heart. They have to make calculations, so that they know how many Läkerol-pastils there are in a package! Maybe they also have to count how many cornflakes or coco-something there are in a package of Kelloggs.
So this is not only direct mail - it is mail with compulsory reading and grinding by means of an authority: the teacher. - And it is not the producers of the good products that are behind this. "Gyldendal", the publisher, says so. It is the Ministry of Education. And the Ministry claims that it is not their responsibility even if they use similar examples in the examination papers.
This simply is a matter of systematic "branding".
Even though the topic to-day is the written text I want to make a few comments on TV-advertising.
The advertisements should be clearly distinguishable as such - as advertisements. They are not always - this the Danish Radio and Television Advertising Board have ascertained, for instance in connection with Denmarks Radio's TV-series "Taxa", and now, according to reports, two large media agencies are planning to use advertising, which the consumers do not distinguish as advertising, but as a natural part of a TV-programme. In other words they will fool the Danish people to swallow hidden advertisements. These two media agencies together spend 2.5 billions DKr. per year on advertising.
In the sales material of one of the agencies you can read, in accordance with an article in Politiken (newspaper) of October 1st, that the thing is "to find just the time and place where the consumers are off guard and are susceptible to our communication". In accordance with the article one of the agencies declares that the traditional media like TV and newspapers simply is no longer enough. You have to find new ways to contact the customers more effectively. The other agency still believes in product placement in a mild form, but another possibility of programming is that the advertisers get more influence on the very programmes - the content of the programme is so to speak produced to suit the advertiser. But you are not allowed to bring commercial announcements in programmes - it is hidden advertising. Drawing a borderline is difficult. The so-called events may not be immediately comprised by hidden advertising, and then it is a question of the ethic of the person, who is responsible for the programme.
In the Consumer Ombudsman's opinion there is a certain parallel to the newspaper world.
In several cases the Danish Radio and Television Advertising Board has made decisions about hidden advertising. F.inst. the TV2 transmission of the cartoon "Pokémon", the DR-series "Dans på tværs" and TVDanmarks/Kanal 2's morning tv-programmes. In all these cases the Board found that the rules had been infringed, because the programmes contained hidden advertising.
Hidden advertising (product placement) can also appear in films. In 1995 the Consumer Ombudsman ascertained - after hearing a number of organisations and cultural authorities - that the impression was that hidden advertising was not usual in Danish films. But in connection with the production of films the enterprises often provided products/requisites without having any influence on the contents of the film. Normally, it was the property master who contacted the enterprises in order to get requisites. Throughout the film history it has been usual that everyday products appear in films in order to give a natural atmosphere and to create a reflected image of reality. In this connection were shown everyday items, including trade mark products.
Most of the people who were contacted were of the opinion that product placement in Danish films was at a far lower level than in many other countries. Nothing indicated that enterprises normally paid for having their products placed in films. Moreover, the Consumer Ombudsman asked his network colleagues - the Consumer Ombudsman is a member of the IMSN. International Marketing Supervision Network - about their experiences, if any, in relation to hidden advertising in films. The Federal Trade Commission, Washington, some years earlier had considered the problem. The Commission (FTC) refrained from making rules, but they emphasized the claim that advertising must be distinguishable The other countries only had little or no experience as regards hidden advertising in films.
At the time the Consumer Ombudsman followed the example set by FTC. But maybe now conscious product placement is used to a greater extent in Denmark.
Børsens Nyhedsmagasin of 3rd May 1999 thus have a detailed description of how the cult film "Bleeder" have co-operated commercially with 15 trade marks, so that each party could benefit from the other party's image. "A real knock off commercial profusal bleeding" as the article describes it.
In Politiken of 1st October 2000 it is stated in an article headed "Advertising by the back door" that it is not incidental that James Bond uses BMW, Ericsson and Omega, or that Julia Roberts picks up a package of Lucky Strike from the bra in the film "My best friend's wedding". The same goes for the Danish film "Krummerne", where a number of Danish products have important subordinate roles.
The ICC's International Code of Advertising (which represents trade and industry's own ethical evaluation and standard) has in article 12 a general rule to the effect that advertisements should be clearly distinguishable, regardsless of their form and in which media they are brought. When an advertisement is published in a medium, which brings news or editorial text, it must be presented in such a manner that it is immediately apprehended as advertising. Thus, it is an infringement of this rule and of the rules for good marketing, cf. § 1 (now sections 1 and 2) of the Danish Marketing Practices Act, to use hidden advertising. Gross cases may also involve an infringement of the prohi-bition against misleading, cf. § 2 (now section 3) of the Act. However, legal usage in this field does not give a precise demarcation. Therefore, the interpretation of the rules of the Marketing Practices Act in relation to the regulation of hidden advertising may cause some doubt even if there are numerous examples of hidden advertising.
It might be reasonable to believe that the comprehensive discussion in trade and business about self-regulation should have had an impact on the individual enterprises. But no - one thing is nice talk (in order to avoid law regulation) another thing is profit.
The Consumer Ombudsman finds it necessary that legal usage is now finally clarified, f.inst. by a specification in the Marketing Practices Act to the effect that advertising must be clearly distinguishable. The Swedish Marketing Practices Act, § 5, has a regulation, which the Consumer Ombudsman finds expedient. "All marketing must be formulated and presented in such a manner, that it clearly appears, that it is marketing. It must also clearly appear who is responsible for the marketing".
There are clear rules about advertising on radio and television, but the Danish Radio and Television Advertising Board has suggested in a statement of November 1998 to the Minister of Cultural Affairs about the experiences in connection with hidden advertising that a general rule, like mentioned above, should be incorporated in the Marketing Practices Act. The purpose of such a rule is to secure a more effective prevention of hidden advertising, so that not only the radio and TV-media can be sanctioned in cases of hidden advertising, but also the advertisers (the ordinary sanction system of the law may then be used against the advertisers), and that hidden advertising is also prohibited in other media.
The Radio and Television Advertising Board's above mentioned statement about experiences in connection with hidden advertising was, in March 2000, a part of the media political compromise incurred by the Minister of Cultural Affairs. It appears from the compromise that "the suggestions by the Board regarding experiences in relation to hidden advertising should be carried into effect". Consequently, the Minister of Cultural Affairs last month contacted the Minister of Trade and Industry asking her to investigate the possibilities of an amendment of the Marketing Practices Act, so that hidden advertising is not allowed - including other media than radio and TV. As far as I understand there will now be a thorough investigation of the experiences in connection with hidden advertising, and a mapping of the extent of this problem! The media compromise will be carried into effect as of January 1, 2001!
As you know, the Press Act also stipulates a rule of "good conduct" - the contents of the mass media and their conduct must be in accordance with good press ethics.
Besides journalists have press ethical rules of their own - in Denmark as well as abroad.
In the guidelines for good press ethics it is stated that "There should be a clear borderline between advertising and editorial text. Text and pictures which are due to direct or indirect commercial interests should only be brought if there is an obvious journalistic critirion for publication".
In the guidelines it is also stated that infringement of good press ethics also includes indulgence to outside influence on the contents of the mass media, if such indulgence can lead to doubt about the freedom and independence of the mass media.
The Danish Newspaper Association and the Danish Journalists Organisation in 1980 made a statement about text advertising, which by way of introduction establishes that the newspapers have two main tasks, viz. to bring an editorial text and to bring paid advertisements. Moreover, it says that it is important for the newspapers and their relationship to the public that these two tasks are kept apart. The text brings information and comments of general interest, i.e. which are of interest to the readers, as readers. The responsibility for the reliability and the objectiveness of the lies with the editor.
Normally, advertisements can be inserted by anyone who wish to point out things, which he wants to bring to the knowledge of the readers. The advertisement may have a straightly commercial purpose, but it may also be inserted by interest organisations or by public authorities. The advertiser pays for his advertisements and is responsible for their content.
The separation between editorial text and advertisements is of crucial significance to the confidence in the press of the public and the readers, and also their confidence in the independance of the individual newspaper. An editorial presentation of offers of goods and services therefore may give cause to the suspicion that the newspapers have irrelevant motives. A claim to have an influence on the editorial text in return for inserting advertisements therefore must clearly be refused.
Offers of paying editorial expenses, free travels etc. must be refused if they have, or may be presumed to have, relation to an attempt of conveying advertising in the editorial text. Gifts should not be accepted.
In case advertisements have a form or content, which resemble editorial text, it must clearly be indicated, that the text is an advertisement.
When the newspaper, in order to fulfill its task as a conveyer of news and information, brings editorial texts, which indirectly may have the effect as an advertisement, it must be based upon a clear, journalistic motivation.
In December 1999 the Danish Newpaper Association referred to the above mentioned statement of text advertising from 1980 as the best basis for internal evaluation of the borderline between text and advertising. Also two new supplementary types of text advertising were mentioned. These have mainly been used after 1980: Special advertisement supplements with enterprise portraits, and supplements where the senders are societies who want to influence the public opinion. In such cases it is particularly important that the effect of the editorial text, and the relation between text and advertising, are carefully considered.
But are the guidelines for journalism insufficient?
Apparently. On the 7th of January 2000 - i.e. immediately after the injunction of the above statement from the Danish Newspaper Association regarding text advertising - the Børsen Weekend brought advertiments for houses suitable for horse-owners showing the happy seller, the singer Hanne Boel, and with a direct reference to the "journalistic article". A clear contravention of the statement of text advertising!
Sweden has press ethical rules which are very clear as regards mixture of advertisements and articles or other editorial text. The rules cover the same problems as your rules, but they are more specific.
In Norway the journalist profession tries to solve its own problems. This was explained by the Norwegian Consumer Ombudsman, Torfinn Bjarkøy, at a theme debate in Denmark in January 1999 (the theme debate will later on be mentioned). He said that the whole journalist profession in Norway is having an open debate about the so-called hidden advertising in apparently editorial texts. In the "Journalisten" he is quoted: "Journalists and editors have entered a co-operation about a strict self-regulation. And a letter like the one distributed by Aalborg Stiftstidende would immediately have been stopped by the involved parties. I would not have to lift a finger".
And what about the countries south of our border? In September, Børsen had an article about a number of german newspapers and financial magazines' hard fight about new ethical rules for the employees. Apparently, it is the American press ethics and some financial scandals which have brought ethics on the agenda. Interesting that this has not happened till year 2000. And what is going on in Germany.
We have been informed that the leadership of the leading German business news-paper Handelsblatt already has outlined new ethical rules. The purpose is to pre-vent that the newspaper and the journalists mix up journalism with private interests. There are rules about owning shares, and rules that the newspaper will no longer accept to have travel expenses paid by the enterprises. It is expected that this will increase the newpaper's travel expenses by 20%. Süddeutche Zeitung also has the goal that the newsper pays for all report travels, also travels they are invited for abroad.
Apparently invited travels are normal in German press, i.e. enterprises invite journalists from all over the country to press conferences, which include presentation of accounts and products, and where the distances are so long that it is necessary to go by air and stay the night at a hotel. It is also quite normal that new products, f.inst. cars, are presented abroad with all expenses paid by the enterprises. Handelsblatt also refuses to accept that journalists are given the possibility of purchasing goods, including cars, at a special discount price for journalists, and the value of gifts may not exceed 60 Mark, which is appr. 240 Dkr.
The Norwegian as well as the German debate require certain consideration.
In the Consumer Ombudsman's opinion it is necessary to have a debate about how journalists avoid exploitation by smart advertising people, enterprises and maybe in the future also by their own employer. It is worth taking into consideration whether one is being used, and will allow oneself to be used, as a tool in promotional campaigns. Are your articles and news features going to function as more or less hidden advertisement display pillars? What is the individual journalist's attitude to journalistic ethics, and is it no so that the media themselves have a responsibility? Shouldn't the media themselves consider how to protect their users against "advertisement contaminated" editorial content?
Of course the newpapers and other media need advertising in order to make both ends meet - and as far as the Consumer Ombudsman is concerned they may have as many advertisements as they like. However, it must be clearly distinguishable what is factual, documented and well reseached information - and what is advertising.
A good advice is that you use your own press ethical rules. I believe that the readers' confidence in the medias will be undermined if they are mixed up with too much advertising. I to a bit further, I believe that it is dangerous to democracy if you cannot believe more in an article than in an advertisement for beer. What is the reader going to believe about a journalist who one day makes text advertisements for a shop which does not have a good reputation, and the next day he acts as the watchdog which the press is supposed to be.
In January 1999 the Consumer Ombudsman hosted a theme debate day about the interplay of advertising and the press. We discussed the question about hidden advertising and the borderline between advertisements and editorial text, and also the use of strong effects in the advertisements were discussed. About the last mentioned topic I can point out that the advertisers and the advertising agencies increasingly have been using very strong effects in the advertisements. An intervention by the Consumer Ombudsman several times had resulted in such an extensive coverage of the "event" that actually the intervention had a positive marketing ef-fect for the advertiser in question. In spite of differences of opinion the debate gave reason to believe that advertisers as well as the media world would try to work out these problems. The Consumer Ombudsman also encourages them to do so.
A press who offers hidden advertising is in the Consumer Ombudsman's opinion untrustworthy. The Consumer Ombudsman finds that the increasing commercialization - where among other things articles and TV-programmes contain advertising - is destructive for maintaining a decent, respectable journalistic ethic. In regard of the development mentioned above I find it imperatively necessary that journalists keep their trustworthiness and independence and keep in mind that the ideal of the journalists should be to work in the interest of the public, the society and the truth. This also means that the readers, the viewers, the listeners must have information about unethical journalism.
I think it would be interesting to know what you yourselves will do in order to secure the trustworthiness of the media. The problem is also interesting in relation to yourselves. You may presumably be prepared that there will be an even stronger pressure on each individual journalist as a consequence of the increasing commercialization, the strained economy and new journalist roles. Can you deny to write or produce text advertising? Will you think about it and take a discussion when you are asked to go on holidays paid by the travel agencies, and should your newspaper accept at all that journalists' travels are paid by the travel agencies? Several German newspapers have decided not to accept this. Would you make questions and behave in a critical manner - also in cases where you as private persons loose experiences or goods by behaving in an ethical manner?
In this relation I cannot help mentioning a feature in Berlingske Tidende (newspaper) of the 15th October this year, by the editor, Bjarke Larsen, entitled: "The non-ideological Journalist". Is there any truth in this, and how does it influence the attitudes to the "golden journalistic principles", which I so much look for in connection with hidden advertising?
Let me hear some opinions!