Taiwan:Rules on product placement

In response to reactions over excessive product placement and a lack of clear rules for sponsorship, the National Communications Commission (NCC) made modifications to the Satellite Broadcasting Act and announced principles of “Three Nos One Exposure” — not affecting operations of independent programs, not encouraging the audience to purchase any products, not overemphasizing any particular products, and properly exposing brand names of the advertisers — for all broadcasters to follow.

The authority held a public hearing yesterday with broadcasters and scholars discussing related modifications for the existing Satellite Broadcasting Act, which regulates commercials of programs but not product placement or sponsorship. The NCC expects the modifications will set up clearer principles for broadcasters to follow.

As for guidance toward modifications, the authority concluded that it would allow product placement and sponsorship to be transmitted via all programs, except news reports, children's programs, and banned products like cigarettes or alcoholic rules beverages, and international marriage arrangements.

Director of the NCC Department of Content Affairs Ke Chi-sen (柯吉森) stated the modifications will follow the principle of “Three Nos One Exposure,” aiming to direct programs to be designed under a “natural frame,” i.e. to limit the duration of product placement to 5 percent of the entire program and to limit the screen size of product placement to a quarter of the entire space available. As for rules of appearance of brand names, only titles of sponsors, trademarks and related acknowledgements can be placed in the program.

Verification of Violations

Last week, the NCC asked CtiTV CEO Ma Yung-jui ( 馬詠睿) to give a report on its internal affairs management. Yesterday, the authority investigated the broadcaster's principles and stated that both CtiTV and NextTV have deviated from professional broadcasting principles and obviously violated journalists' prime rule of objectivity. The NCC stated that the broadcasters' news titles and subject matter were exaggerated and contrary to broadcasting principles