DISCUS Code of Responsible Practices Foundation of Guidance, Standards, Enforcement. Over 78 Years of Advertising Self-Regulation

Transcription

1 DISCUS Code of Responsible Practices Foundation of Guidance, Standards, Enforcement Over 78 Years of Advertising Self-Regulation

2 Components of Effective Self-Regulation Responsible Content: 34 provisions Responsible Placement: 8 provisions Detailed industry media buying guidelines No college or university advertising or marketing No outdoor ads within 500 ft. of schools/places of worship Internal Compliance Review System - Training programs for employees - Separate review of ads outside marketing department Code Review Board Operating for over three decades Charged with reviewing/deciding complaints promptly Outside Advisors Prevetting, third-party guidance, tie-breaking votes Semi-Annual Code Report Full public transparency Compliance and education tool 2

3 A Responsive, Tough, Active Code Decades of a strict advertising Code Standards higher than mandated by law or regulation Higher than government could set due to 1 st Amendment constraints Decades of compliance and enforcement 100% compliance by DISCUS members Overwhelming compliance by non-discus members Decades of quick action Members: less than a week from complaint receipt to resolution Non-DISCUS members: average time less than 60 days 3

4 Scope of Code s Provisions: All Inclusive All activities related to advertising and marketing Brand advertising/consumer communications Promotional events Packaging and labeling Distribution and sales materials Every type of print and electronic media TV, radio, magazines, newspapers, outdoor All on-line communications, including blogs, internet banners Every type of promotional or marketing activity Product placements Sponsorships and on-premise promotions Paraphernalia (no branded items intended for use by those under 21) 4

5 Coverage of Code: Significant Compliance and Enforcement Reach All spirits, wine, beer brands marketed by DISCUS members Reaches over 1,400 brands marketed by member companies Same principles apply across beverage alcohol categories Only industry code bringing all products under one tent DISCUS represents over 65% of U.S. spirits sales Non-DISCUS member spirits brands Historically nonmembers have followed Code and abided by decisions Companies with small portfolios, large portfolios and new entrants Supported and endorsed by other trade associations Kentucky Distillers Association and Presidents Forum New York Wine & Grape Foundation, with its over 100 winery members representing over 90 percent of New York s total wine production, and many individual companies 5

6 Strong Voluntary Code in Place Since 1934: Revised as social mores and technology change Core principle steadfast: To market our products to adults 21 years of age and older in a responsible and appropriate manner Code updated in 1996 to include broadcast advertising Code updated in 1998 to include websites and Internet advertising Brand website addresses available to parents/ net nanny companies 6

7 Code Enhanced Again in 2003, 2009 and 2011 Among the Key Changes: 2003: 70% 21 years of age and older demographic All ad models over 25 More explicit provisions prohibiting use of sex and depictions of excessive drinking Distinguished external advisory panel Transparency Semi-Annual reports 2009: Product placement guidelines for music videos, video games, more No supplier-sponsored promotions in college licensed establishments Rules on website downloadable advertising content No drinking games rewarding excessive consumption Code compliance seminars for members and non-members 2011: 71.6 % 21 years of age and older demographic Social media marketing guidelines 7

8 Summary of the Code s Content Provisions 1. Adult Audiences/ Underage Provisions 9. Responsible Drinking Statements 2. Websites 8. Alcohol Content Same Content Standards Apply Regardless of Placement 3. Social Responsibility 7. Product Placements 4. Good Taste 6. Promotional Events 5. Sexual Prowess and Success 8

9 Detailed Media Placement Buying Guidelines Specific criteria for placement in each medium Place ad based on prior two quarters of data Nielsen, Arbitron, Consolidated MRI 12+, comscore (digital uses most recent three-month site average) Semi-annual random post audits Post audits to verify past placement met standard Same tough content standards regardless of medium/placement 9

10 Magazine Special Binding Initiative Effective July 1, 2006 Special bindings (remove alcohol ads) for school library subscription copies of: Newsweek, People, Sports Illustrated, Time, U.S. News & World Report Magazines most commonly subscribed to by school libraries Voluntarily refrain from placing ads on inside/back covers if they cannot be segregated Page 10 10

11 Unmeasured Magazine Initiative Effective October 1, 2006 Initiative developed after a publisher provided conflicting demographic data to advertisers for an unmeasured magazine Requires third-party demographic survey by publisher before ad placement Applies to magazines intended for general circulation not measured by a syndicated data source Covers national consumer print publications, local consumer print publications with a subscription base, military publications Excludes trade publications (such as ABC journals), alumni publications, free local newspapers without a subscription base 11

12 Social Media: A New Way to Connect Proactively Addressing the New Media Landscape Connecting to your constituents Connecting to your licensees Connecting to your community and Connecting to your customers 12

13 New Media -- Same Principles Strong Voluntary Code Revised as Social Mores and Technology Change Core principles steadfast: To market our products to adults 21 years of age and older in a responsible and appropriate manner Proactively engage digital media experts Responsible content/placement provisions Detailed media buying guidelines Consult with online demographic data sources Regular meetings with social media cos. Establishing Code compliant tools 13

14 Results of Proactive Outreaches New Internet/Digital Media Buying Guidelines Issued internet buying guidelines used across entire industry: effective Jan. 1, 2008 Applies to all forms of digital media Videos, pop-ups, blogs, and more Use Nielsen or comscore data to place ads Requires independent demographic survey for unmeasured digital media Post audits to verify Code compliance 14

15 Pioneering Social Media Tools Constantly Evolving to Address the Future 15

16 Facebook Pages: Alcohol Settings The Facebook Page Terms require that all content on a Page that is advertising in nature (such as commercial content) must comply with the Advertising Guidelines, which include the Facebook minimum age targeting for alcohol ads and Alcohol-Related Page & Application Settings: Anyone of Legal Drinking Age (as determined by Page Settings) will be able to see their friends engagement with Beverage Alcohol Brands. Anyone under Legal Drinking Age will not be able to see their friends engagement with Beverage Alcohol Brands. This is addressed in Facebook Page Terms: 16

17 User Flow Brand Channels for Non-Customized Gadgets A21+: Registered & Logged In Sees Omlie s Gin Brand Channel Ad Types in Omlie sgin <21: Registered & Logged In Will not see Omlie s Gin Ads Types in Omlie sgin

18 User Flow Example: Promoted Videos A21+: Registered & Logged In Clicks on PV ad driving to watchpage Clicks on PV ad driving to channel <21: Registered & Logged In Clicks on PV ad driving to watchpage Clicks on PV ad driving to channel

19 DISCUS Social Media Marketing Guidelines Effective September 30,

20 About the Digital Marketing Guidelines Important supplement to the DISCUS Code Scope: Social networking sites, blogs, mobile communications, apps, websites Basic principles: 71.6% 21+ placement standard for all communications 21+ age gating before direct dialogue between an advertiser/consumer Regular monitoring and removal of inappropriate user-generated content Privacy policies to protect collection and use of personal information Clearly identify brand marketing as such in blogs, etc. Procedures for forwarding downloaded digital content only to 21+ Developed with EU counterparts Digital media easily transcends geographical boundaries Guidelines will be reviewed regularly and updated as needed Recognition that new technology trends are likely to occur rapidly 20

21 Responsible Digital Marketing Communications Guidelines Intended for LPA Transparent as brand marketing Media site should be 71.6% LPA Respect User Privacy DISCUS BASIC PRINCIPLES Direct interaction w/ user = Age Affirmation (mm/dd/yyyy) Instructions to Not Forward Downloaded Content to Under LPA User- Generated Content must be monitored and moderated on regular basis 21

22 Basic Principle 1: Intended for Adults LPA+ Foundation of the DISCUS Code Over 78 Years of Advertising Self-Regulation 22

23 Basic Principle 2: 71.6% Placement Standard 71.6% LPA+ Compliant Less Than 71.6% LPA - No Placement 23

24 Basic Principle 3: Age Affirmation Before Direct Interaction on Controlled Sites (Month/Day/Year) Direct interaction is a two-way communication between the user and brand advertiser on a social media site or web page controlled by the advertiser Occurs when the user affirmatively interacts with the brand advertiser, such as responding to a direct communication from the brand advertiser User sends content (posts comment, personal information, text, video, rich media, etc.) to a brand controlled site Advertiser sends content to an individual user ( , custom content, etc.) Social Media Site Social Media Site Website Controlled by Advertiser User Signs Up, Age Gate Again 24 24

25 Under LPA: Redirect to a Responsibility Site centurycouncil.org/acceptresponsibility.org 25

26 Age Affirmation Page 26

27 After the Age Gate 27

28 Basic Principle 4: Monitor/Moderate User-Generated Content User-generated content (UGC) on a site or web page controlled by the advertiser must be monitored and moderated on a regular basis UGC on a site controlled by a brand should be monitored each business day or, at a minimum, every 5 business days If content is inappropriate, material should be removed promptly Notify users that all inappropriate content will be removed 28

29 Basic Principle 4: Monitor/Moderate User-Generated Content What do we delete? Offensive comments Sexually explicit language Comments regarding overconsumption and/or illegal activity of any kind Comments that degrade or demean the human form, image or status of women, men or the members of any group based on race, religion, ethnic background, sexual orientation, or any other minority status Language or images that also are inconsistent with other provisions of the Code Overconsumption References to Drugs 29

30 Basic Principle 4: Monitor/Moderate Photos and Videos What do we delete? Overconsumption Underage in Video Posted by LPA user Provocative Content 30

31 Basic Principle 5: Do Not Forward to Those Underage 31

32 Basic Principle 6: Privacy What Does Privacy Involve: The handling and protection of sensitive personal information that individuals provide in the course of every day transactions The exchange or use of data electronically or by any other means, including telephone, fax, written correspondence, and even direct word of mouth 32

33 Basic Principle 6: Privacy What We Do Under Our Guidelines: User information collected from LPA+ only Opt-in before receiving a direct digital marketing communication and opt-out to discontinue receiving those communications No information collected will be sold nor shared with third parties unrelated to the brand advertiser Privacy policy prominently displayed and simple to understand Consumers know who to contact if they have any questions/concerns 33

34 jackdaniels.com 34

35 Basic Principle 7: Transparency of Brand Marketing Consumers must know they are reading/viewing brand advertising Brand pages Blogs: whose blog is it? FTC s 2009 Guides Concerning the Use of Endorsements and Testimonials in Advertising [FTC.gov] Be careful when soliciting endorsements; disclosure is important Key: clearly identify communication by any employee or anyone hired by brand 35

36 How the Code Review Process Works Each complaint given identical consideration and priority status Complaint sent to advertiser for response DISCUS members respond forthwith Non-members 15 business days to respond Code Review Board convenes Advertiser invited to participate Board deliberates and issues decision Advertiser notified of decision Public report on complaint decisions and advertiser s response Board decisions also posted on DISCUS website pre-publication 36

37 Outside Advisory Board Members: Guidance, Ad Prevetting, Tie-Breakers Dr. Deno Curris Distinguished Educator Former President of the American Association of State Colleges and Universities, former President of Clemson, Murray State and Northern Iowa Universities, with 42 years of service in higher education and actively engaged in addressing alcohol abuse among college students Ms. Jodie Bernstein Distinguished Public Servant Former Director of Consumer Protection Bureau of the FTC, leader in creating the National Advertising Review Council of the Better Business Bureaus, appointed to review self-regulatory guidelines for CARU, and recipient of the BBB International Trade Torch award for Consumer Leadership for significantly advancing marketplace trust through consumer advocacy and leadership in the area of advertising self-regulation Mr. Rick Gitter Distinguished Advertising Executive Former NBC Vice President of Advertising Standards and Program Compliance with 30 years of experience overseeing network advertising compliance 37

38 Transparency: Semi-Annual Reports First Public Complaint Reports Issued by Industry Trade Group Self-regulatory process more visible, transparent and understandable Over 1,000 copies of each report distributed Federal and State Officials Attorneys General Advocacy and Consumer Groups University and College Presidents Federal and State Agencies Industry Members Positive response from all sectors Commended by Industry Critics Winner - Best Business Ethics Communications Finalist - Best Corporate Social Responsibility Program 38

39 Inside the Report 39

40 Transparency Commended by Industry Critics THE CENTER ON ALCOHOL MARKETING AND Youth Jim O Hara, Executive Director, The Center on Alcohol Marketing and Youth Today s report by the Distilled Spirits Council of the United States (DISCUS) on how well liquor companies have complied with the DISCUS marketing code is a step in the right direction. It shows DISCUS has heard the need for transparency, as recommended by the Federal Trade Commission in (March 2005) Robert I. Reynolds, Director, Alcohol Policy Initiatives, PIRE The inaugural DISCUS Code Report contributes to building public trust in the integrity of alcohol industry self-regulation. DISCUS is to be congratulated for recognizing the need for public disclosure of its process for handling complaints regarding violations of its voluntary advertising code and the findings of its review panel. (March 2005) 40

41 Distillers as a Model of Effective Self-Regulation Other industry groups are starting to copy the Council s approach to self-policing The fabulous thing about self-regulation is that they can address things that couldn t be touched by a government agency because of the First Amendment. This is a far step above and beyond what other companies are doing. -- Janet Evans, Federal Trade Commission DISCUS member companies had a 100% compliance rate in addressing ad standard violations. The DISCUS approach to revealing all its policing actions is a breath of fresh air that food companies might consider 41

42 2006, 2008, 2010, 2011, 2012 Best Practices Media Summits Buying for Radio Buying for Television Broadcast and Cable Buying for Print Magazine and Newspaper Product Placements in Cinema and Broadcast Buying for Digital Media Social Networking Sites: Demographic Tools & Beyond Emerging Marketing Platforms (smartphones and more) 42

43 Fifth Annual DISCUS Best Practices Media Summit DISCUS Media Summits are the place to go for companies of all sizes and from all sectors to learn and share best practices in selfregulation. (Janet Evans, FTC) November 2012 Full-day session focusing on social media and Code compliant tools 110 attendees: all sectors, media experts, FTC, TTB Top executives speakers from social media platforms and disciplines Facebook, Google/YouTube, Twitter, Evidon, DEI Worldwide, Nielsen, comscore FTC officials presented and commended DISCUS for leading the way Partnerships continue with leading experts to ensure effective self-regulation 43

44 DISCUS Best Practices Media Summit Award DISCUS Honored for Exemplary Program within the Beverage Alcohol Industry; Only Private Sector Group Recognized by NCSLA for Best Practices 44

45 Linking to the DISCUS Code Link to the Code for rapid consideration of any questions/complaints Educate constituents about the Code and its review process Utah/Nevada Attorneys General link to the DISCUS Code along with 15 State ABCs, the FTC, NCSLA, and NABCA For more about the Code: 45