Progress In Action: Children’s Food & Beverage Advertising Self Regulation

A Report From the BBBFTC/HHS Forum

July 18, 2007

Elaine D. Kolish, DirectorElaine D. Kolish, DirectorChildren’s Food & Beverage Children’s Food & Beverage Advertising InitiativeAdvertising InitiativeCouncil of Better Business BureausCouncil of Better Business Bureaus

The BBB• Nearly a century of service dedicated to

advancing trust in the marketplace• 128 Bureaus throughout the United States

and Canada• Both consumers and businesses served

– Millions of consumers served annually– 400,000 small & medium size business

members– Hundreds of multi-national corporate

members based in North America

Self Regulation In Action

• Background on the Children’s Food and Beverage Advertising Initiative

• Overview on Initiative Progress • Highlights On Company Pledges • Report on the Children’s Advertising

Review Unit (CARU) Program Updates• Next Steps

The Initiative’s Origin

• Joint FTC/HHS workshop July 2005• Joint FTC/HHS Report April 2006• Recommendations for self-regulation

– Improve CARU process– Modify self regulation to assist in

combating childhood obesity• BBB/National Advertising Review Council

undertake comprehensive CARU Guidelines review

The Initiative’s Goals

• All goals relate to advertising primarily directed to children under 12 (“child-directed” advertising)

• Change mix of ads on TV, print, radio & Internet – Promote better-for-you foods or healthy lifestyles

• Reduce use of Third Party Licensed Characters in ads

• Address advertising in– Editorial/Programming Content (product placement)– Elementary schools– Company-owned websites – Interactive games

Highlights on Initiative’s Progress

• Pledges from all 11 companies approved

• Pledges will have significant effect on ads– Type of products advertised – Number of ads shown by participants

• Pledges’ implementation ongoing– Full implementation by end of 2008

Changes in Child-Directed Ads

• Virtually all child-directed advertising will be tied to nutrition standards

• 8 companies: 100% of advertising will be for better-for-you foods

• 3 companies: No advertising of traditional candy & snacks, or beverages

• 1 company: no ads or ≥ 50% for better-for-you product

Basis for Better-For-You Products

• Product selection based on nutritionist-developed criteria

• Criteria primarily based on government standards and recommendations – FDA standards for “healthy,” “low,”

“reduced”– DHHS/USDA 2005 Dietary Guidelines

• Overall limits on fats, sodium, sugar• Foods recommended for increased intake• Nutrient shortfalls for children

Better-For-You Products

• Qualify in one or more ways• Provide needed foods & nutrients

– Whole grains, vitamins/minerals, fruits and vegetables

• Meet certain nutrient specifications• Contain less calories, fat, sugar or

sodium• Provide functional benefit

Other Pledge Highlights• Third Party Licensed Characters

– Limited to better-for-you products or healthy lifestyle messages in advertising primarily directed to children under 12

• Product Placement– Will not be sought out or paid for in child-directed media

• Elementary Schools– Stopping advertising of food & beverages to children

• Company-Owned Sites Directed to Children Under 12– Limited to for better-for-you products/healthy lifestyle

messages

• Interactive Games Directed to Children Under 12– Limited to better-for-you products/healthy lifestyle messages

Advertising Tied to Nutrition Standards

• 100% commitment to better-for-you food advertising to children under 12– Campbell Soup Company– General Mills– Kellogg Company– Kraft Foods– Mars– McDonald’s USA– PepsiCo– Unilever United States

Campbell Soup Company• 100% commitment to advertise better-for-you

foods to children under 12– Soups with less sodium and/or include a full

serving of vegetables– Crackers with <35% calories from fat, 10% sat

fat, modest sugar (<1g)– Canned Pasta with less sodium, <35% calories

from fat & include serving of vegetables, other positive nutrients

• Implementation—FY 2007-2008– No advertising to children under 6; policy

formalized in 2006

General Mills Inc.• 100% commitment to advertise better-for-you foods to

children under 12 – Revised Healthy Dietary Choice nutrition criteria

• 175 calories per serving, and either• Meets FDA definition of healthy, or• Includes 1/2 serving of foods targeted for increased

consumption and meets sat fat, trans fat & sodium limits

– New 12 gram per serving sugar guideline (exclusive of sugars from fruit and dairy)

• Implementation—No later than Dec. 31, 2008– Most advertising will comply during entire period (6/07-

12/08)• Foods will meet criteria or will not be advertised

– No advertising to children under 6 since 2005

Kellogg Company• 100% commitment to advertise better-for-you

foods to children under 12 – Newly adopted nutrition criteria must be met

• ≤ 200 calories per serving• ≤ 2g sat fat, 0 Trans fat• ≤ 230mg sodium (460 for waffles)• ≤ 12g sugars (excluding sugars from fruit and

dairy)• Implementation—no later than Dec. 31, 2008

– Foods will meet criteria or will not be advertised – No advertising to children under 6 since 2005

Kraft Foods• 100% commitment to advertise better-for-you

products to children under 12– Detailed criteria by product category– Based on Sensible Solution nutrition

criteria• Implementation—Completed (2006)

– Participating in Initiative to provide greater public transparency and BBB oversight

– No advertising to children under 6 under longstanding policy

McDonald’s USA, LLC

• 100% commitment to advertise better-for you meals to children under 12– Based on newly established nutrition criteria

• ≤ 600 calories, ≤35% of calories from fat, 10% from sat fat, and 35% sugar by weight

– Advertising will feature the following Happy Meal

• 375 calorie 4 piece Chicken McNuggets Happy Meal with Apple Dippers, Low-fat Caramel Dip, & 1% low-fat white milk

• Implementation—January 2008

PepsiCo, Inc.• 100% commitment to advertise better-for-you

products to children under 12– Based on Smart Spot nutrition criteria

• Specified fat, cholesterol, sodium & sugar limits, and requirements for certain nutrients, or

• Functional health or wellness benefit, or• 25% reduction in calories, fats, sugar or

sodium • Implementation—January 2008

– No advertising directed to children under 8 since 2006

Unilever United States• 100% commitment to advertise better-for-you

products to children under 12• Products must qualify for new “Eat Smart-Drink

Smart” logo program• Based on US Dietary and International

Guidelines• Benchmarks for 5 key nutrients

– Trans fat, sat fat, sodium, sugar and cholesterol

• Implementation—Sept. 2007– No advertising to children under 6 since 2006

No Advertising Group

• Cadbury Adams will either – No longer advertise Bubblicious gum,

or ≥ 50% advertising of product that meets

Initiative healthier food criteria

• Coca-Cola• Hershey• Mars (traditional candy & snacks)

Cadbury Adams USA, LLC• Company will either

– Not advertise Bubblicious gum, or– ≥ 50% media impressions for version

meeting Initiative’s healthier food criteria

• Currently, Bubblicious is only product advertised to children under 12

• Implementation—March 2008– No advertising to children under 8 since

2004

The Coca-Cola Company

• No advertising targeted primarily to children under 12

• Implementation—Completed– Publicly committing now to adhere to

its longstanding practice in the U.S. to not target ads to children under 12

The Hershey Company

• No advertising of candy on programs and media primarily directed to children under 12

• Implementation—Completed January 2007– 2006--400 million media impressions

were directed at children under 12

Mars

• No advertising primarily directed to children under 12 of traditional candy and snack products

• Implementation—Completed June 2007

• Better-for-you snacks would be advertised-if at all-to children 9 & older

• Products meet specified nutrition criteria

The CARU Program

• Adopted Guidelines for marketing to children under 12 in 1975

• Monitors child-directed advertising for all products in all mediums

• Assesses how products are presented– Truthful, fair, and appropriate

CARU Program Enhancements• CARU Advisory Board expanded

– Includes more children’s health and nutrition experts

• Online complaint form added – Facilitates filing of complaints from the

public• CARU resources increased

– Initiative resources are additional (2 staff)• Food ad prescreening increased

– Based on additional support from GMA

CARU Guideline Updates

• Revised Guidelines to make scope clearer – Expansive definition of “national advertising”

added – Advergaming provision added

• Updated guidance on food advertising– Food quantities shown being consumed tied to

labeled serving size– No disparagement of healthy foods/lifestyles– Mealtime depictions of foods in framework of

a nutritionally balanced meal

Next Steps

• Monitoring– Companies will submit compliance

reports – BBB will independently monitor– Public comments welcomed

• Reporting publicly on results & compliance

• Conducting program evaluation in 3 years• Recruiting additional participants

More Information

• Pledges available online – Visit www.cbbb/initiative.org

• Comments and inquiries welcomed– Send to kidsinitiative@cbbb.bbb.org