• Adweek, Friday, April 13, 2007 11:45 AM

The Federal Trade Commission says that the entertainment industry may be undermining the principle of self-regulation by marketing products that are inconsistent with the ratings they assign to them.

In a report issued yesterday, the FTC notes that 90% of R-rated movie ads were placed on Web sites where children under 17 made up at least one-third of the audience. It also suggests that the movie industry examine whether the dissemination of unrated or "director's cut" versions of R-rated fare undermines the self-regulatory system.

The FTC also criticizes the music industry for advertising on cable shows and Web sites where teens make up a significant portion of the audience. The music industry also has ineffective policies when it comes to preventing kids from buying inappropriate CDs. On the positive side, FTC chairman Deborah Platt Majoras cites "improvement" on the part of the industry, while making it clear that there is still work to be done.

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