For Release: November
21, 2000 FTC Calls for Continued Congressional
Oversight of Self-Regulatory Efforts by Entertainment Industry; Cites Significant Legal
Obstacles to Law Enforcement Action
Today, the Federal Trade Commission responded to inquiries from members of Congress
regarding whether Section 5 of the Federal Trade Commission Act prohibiting
"deceptive" or "unfair" marketing would apply to the practices of the
entertainment industry outlined in its September 11, 2000 report, "Marketing Violent
Entertainment to Children: A Review of Self-Regulation and Industry Practices in the
Motion Picture, Music Recording & Electronic Game Industries." The Commission
finds significant legal limitations, including First Amendment concerns, to carrying out
an effective law enforcement effort in this area. Given these issues, the Commission
supports stepped-up self-regulation by the industry coupled with Congressional oversight
of those efforts as the best approach to protecting children from exposure to violent
entertainment products.
In the letters signed by Chairman Robert Pitofsky, the Commission states that the
review by its staff concluded that "significant and unsettled First Amendment issues
exist that may affect the viability of an FTC action or remedy." The Commission would
likely face considerable difficulties in proving a deception or unfairness case, and
questioned whether legal actions premised on self-regulatory programs would provide a
disincentive to self-regulation. "Finally, whatever the outcome of FTC enforcement
actions under these theories, it seems clear that because of the substantial First
Amendment protections accorded these products, a comprehensive and effective
self-regulatory response could have a more prompt and substantial impact on the problems
described in the Commission's report than would FTC enforcement actions. For these
reasons, the Commission believes that the best course is for the Congress to continue
efforts to promote substantially improved, voluntary, self-regulatory efforts."
The letters stated "[i]f additional self-regulatory efforts are not forthcoming,
then the Commission believes that the Congress should consider whether there are narrowly
tailored legislative actions that could encourage more robust self-regulatory
initiatives." The letter adds that continued encouragement by Congress of
"further, needed reforms can more quickly accomplish many of the same goals that
might otherwise be achieved by law enforcement initiatives." The Commission also
stated its willingness to assist Congress in this effort in any way possible.
These letters were approved by a Commission vote of 5-0. |