Glenn Smith
Nov 5, 2008

Taiwan channels over-step product placement limits

TAIPEI - Hard-pressed Taiwanese TV broadcasters are testing the legal limits of product placement in programmes, and are facing fines from the island's National Communications Commission (NCC).

Taiwan channels over-step product placement limits
On 29 October, the NCC levied a fine of NT$1.6 million (US$48,000) against Formosa Television (FTV) and NT$840,000 against Chinese Television System (CTS).

FTV’s infractions occurred in popular soap operas. In its hit show ‘Love’, the male lead was shown sitting inside his car, where he spent a full three minutes discussing the merits of its onboard TV. In another drama, ‘Nyangjya’, the lead actor waxed lyrical over the virtues of his mobile phone.

“This is getting to be like The Truman Show” said Jason Ho, head of the NCC’s broadcasting content department.

Four additional infractions were for FTV news programmes. “None of these was a paid insertion,” said Paul Tsai, deputy manager of FTV’s news department. “All of them were in the 10pm evening news. One was a story where we mentioned an ice cream maker reducing prices from NT$30 to NT$10. It was summer. That was news.”

“Another was when we mentioned that our drama, ‘Love’, reached a rating of 9.5. That isn’t product placement. We didn’t pay ourselves.”

CTS was fined for inserting reports on women’s underwear, an online game and organic food in its news programmes.

The NCC has received 20 complaints from consumers during the past two months, and 13 of the cases were deemed questionable. But only FTV and CTS were fined, the rest receiving warnings.

The NCC follows guidelines similar to those in the European Union and the US, and product placement in news broadcasts and children’s shows are considered more serious than in dramas, sports or variety programmes.

Product placement has a long history in Taiwan. But some claim it took off in March 2002 when then Government Information Office director-general Arthur Lap began using product placement in the media mix for its national advertising. That legitimised it in the minds of broadcasters. “Television management needed other sources of revenue, and this has since become significant. Product placement is no longer used by the GIO,” said the NCC’s Ho.

Source:
Campaign China

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