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Participation TV: protecting viewers and consumers, and keeping advertising separate from editorial

Summary

Objectives of the consultation

1.1 UK television has a long-established tradition of participation by audiences at home. Viewers enjoy taking part in programmes and having an opportunity to win a competition, influence the outcome of a programme or otherwise contribute to the programme. Increasingly, audience participation involves premium rate telephony services (‘PRS’). This raises two separate and important issues:

1.2 It is essential therefore to consider how PTV should best be regulated, with a view to finding the right balance between protecting viewers and protecting consumers, ensuring consistency with the legal framework and respecting broadcasters’ right to freedom of expression.

Protecting viewers and consumers

1.3 Recent events have raised serious concerns about the integrity of programmes using PRS. Viewers’ trust in these programmes has been damaged. Therefore, earlier this year, Ofcom commissioned an inquiry (‘the Inquiry’), led by a member of the Ofcom Content Board, Richard Ayre, which was charged with making recommendations on actions needed to restore confidence and trust in the use of PRS by television broadcasters. The Inquiry is now complete and has made a series of recommendations to Ofcom intended to ensure that audiences, including those who choose to participate, are adequately protected. The published version of the Inquiry’s report is available at http://www.ofcom.org.uk/tv/ifi/prsinquiry/ayrereport/

1.4 The Inquiry’s key recommendation was that broadcasters should be held directly responsible, under their broadcasting licences, for PRS compliance throughout the supply chain. This PTV consultation paper takes this recommendation forward, and proposes a draft licence variation, which would set out new licence obligations for broadcasters.

1.5 The Inquiry also recommended that broadcasters be required under the broadcasting licences to undertake an independent third party audit. Ofcom agrees that some form of independent third party verification is essential. This consultation paper therefore considers the option of a prescriptive audit specification and other possible options involving independent verification, and seeks views from stakeholders. Whilst the Inquiry focussed upon television, Ofcom and ICSTIS(-1-), the regulator for the PRS industry, are currently investigating a number of cases involving PRS on radio and Ofcom believes that radio audiences should also be protected against failures involving PRS. Ofcom therefore proposes that the licence variation set out in this document should apply to both television and radio.

1.6 It should be noted here that ICSTIS has recently consulted on a prior permission regime for PRS used in TV and radio programmes. Ofcom and ICSTIS have agreed that, in the light of Ofcom's consultation on PTV, it would be premature for ICSTIS to form any conclusions about its recent consultation. Ofcom and ICSTIS have further agreed to assess the responses to ICSTIS in the light of the PTV consultation responses, and to work together to introduce a clear and effective regulatory framework which provides clarity and certainty to all stakeholders.

Separation of advertising from editorial

1.7 A fundamental principle of European broadcasting legislation is that advertising and editorial must be kept separate (‘the separation principle’)(-2-). However, dedicated PTV – which in the main is categorised and regulated as editorial - often appears to include characteristics of advertising; for example repeated calls to action, prominent display of PRS numbers, and promotion of services which are not clearly connected to editorial content. This raises questions as to how such content should be appropriately regulated: for example, should it remain categorised as editorial and subject to Ofcom’s Broadcasting Code, which sets standards for programmes, or should it instead be categorised as advertising and subject to the relevant regulation, in particular the BCAP Television Advertising Standards Code (‘the BCAP Advertising Code’)?

1.8 The consultation paper sets out four options, ranging from maintaining the status quo to reclassifying dedicated PTV content as teleshopping, a form of advertising. Ofcom is open as to which of these options is the most appropriate and is therefore seeking representations on all of them. However, subject to those representations and further consideration of all the issues set out in this consultation paper, Ofcom’s current view is that Option 2 (still editorial but subject to new, tighter rules to ensure appropriate separation) may, on balance, be the most appropriate. That said, stakeholders should also note that there is regulatory activity in this area at European level which, independently of Ofcom’s consultation, will also examine whether quiz TV (and possibly other genres of dedicated PTV) is in fact teleshopping or editorial.

Footnotes:

1.- Independent Committee for the Supervision of Standards of the Telephone Information Services, to be renamed ‘PhonePayPlus’

2.- See Section 3 for further discussion of the regulatory background. In light of its statutory duties in relation to the setting of standards in broadcasting, Ofcom’s Broadcasting Code also requires that the separation principle applies to radio.

The full document is available below:



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