Weekly television digest (Jan-Dec 1960)

8 JANUARY 18, 1960 Advertising FTC FIRES ANOTHER SALVO: Four of TV’s heaviest advertisers & their agencies came under a concerted barrage of FTC charges last week in the agency’s war against deception on the air (Vol. 16:2 p7). And FTC kept up its fusillade against payola, bringing 4 more record manufacturers & distributors into its gunsights. Accused of “deceptive demonstrations over TV and in other advertising media” were Standard Brands Inc., Colgate-Palmolive Co., Aluminum Co. of America and Lever Bros. Co. Also cited were Ted Bates, agency for Standard Brands & Colgate-Palmolive; Ketchum, Macleod & Grove for Alcoa; and Foote, Cone & Belding for Lever Bros. In addition, Foote, Cone & Belding vp-account exec. William H. Bambric was accused of complicity in the challenged Lever Bros, commercials. Cited in FTC’s anti-payola campaign — marking up a total of 31 complaints since that phase of the broadcasting wars started last Dec. 3 — were: United Telefilm Records Inc., 701 7th Ave., N. Y., and Pres. Morton Craft; M. S. Distributing Co., 1700 S. Michigan Ave., Chicago, and Pres. Milton T. Salstone & vp M. G. McDermott; A & I Record Distributing Co., 1000 Broadway, Cincinnati, and Pres. Isadore Klayman; James H. Martin Inc. & Music Distributors Inc., 2419 & 1343 S. Michigan Ave., Chicago, both headed by Pres. James H. Martin. Meanwhile, FTC Chmn. Earl W. Kintner disclosed he will ask Congress — as expected — for a 10% increase in its $7-million dollar annual budget to help pay for its stepped-up drives against false advertising & payola. He said about 100 payola cases already are in his agency’s active investigative files. Kintner Asks Business Cooperation In a speech prepared for the Institute of Distribution in N.Y., Kintner said businessmen must “look beyond their noses” to make sure they don’t operate against the public interest. Referring to FTC’s anti-deception war, he added: “It must deserve & receive the active cooperation of business in prosecuting the slick operator who has only contempt for the law.” And in an interview in Jan. 15 Sales Management, Kintner said: “The Federal Trade Commission will be as tough as is necessary to encourage the advertising industry to clean its own house.” In last week’s advertising cases, FTC alleged that “various demonstrations over TV or, in some cases, in newspapers or periodicals, do not prove what they purport to prove,” namely: (1) That Standard Brands’ Blue Bonnet Margarine “is superior to competitive margarines.” (2) That ColgatePalmolive’s Palmolive Rapid Shave Cream has special “moistening properties” in “actual shaving use.” (3) That Alcoa’s “new super-strength” aluminum wrap “has certain qualities superior to ‘ordinary wrap.’ ” (4) That Lever Bros.’ Pepsodent Toothpaste “is effective in removing tobacco stains from the teeth of all smokers.” Said FTC in announcing the complaints Jan. 14: “These misrepresentations tend to deceive purchasers and have diverted trade unfairly from the manufacturers’ competitors in violation of the FTC Act.” FTC challenged such TV commercials as these: Standard Brands: “Blue Bonnet is made by the new exclusive ‘flavor gem’ process. When Blue Bonnet is spread like this, you see ‘flavor gems’ just like on the ‘high price’ spread . . . but no ‘flavor gems’ appear on this other popular margarine . . .” Colgate-Palmolive: “Video advertising shows a hand holding a razor & shaving what purports to be a piece of dry sandpaper to which Palmolive Rapid Shave has been applied. The misleading implication here is that the preparation’s ‘moisturizing’ action makes it possible to immediately shave off the sandpaper’s rough surface . . . The truth is . . . the supposed sandpaper is actually a ‘mockup,’ made of glass or plexiglas [with] sand applied.” Alcoa: “Look! These leftover hams were wrapped & unwrapped the same number of times. The ordinary foil is tattered & torn. Ham is dried out, tasteless . . . but not a rip in new Alcoa wrap. Ham is juicy, tasty!” Lever Bros.: “This is a cigaret-smoking machine. It deposits yellow smoke-stain on enamel like the hard surface of your teeth. [Sound of rapping on enamel.] With the Pepsodent, we brush across the stain. Then rinse with plain water. [Water effect] . . . See? The smoke stain is gone w'here we used Pepsodent.” Each of the advertising-case respondents was given 30 days from Jan. 14 to file answers to the complaints. Similar 30-day deadlines for the payola complaints were set. At the same time London Records Inc., N.Y., one of the first record manufacturers cited by FTC for payola (Vol. 15:49 pl2), denied any illegality in such practices. In a formal answer to the FTC complaint, London conceded “it has directly & indirectly given valuable consideration to disc jockeys.” But the firm said FTC should dismiss “each & every allegation” because payola isn’t unlawful. Another manufacturer named in the initial batch of payola complaints — RCA — chose not to contest the charges, signed consent order last month (Vol. 15:51 p6). AAAA Moves in Ad Cleanup: The American Assn, of Ad vertising Agencies is speeding up the process of having member agencies act as watchdogs against “objectionable advertising in TV, radio & print” placed by other 4-A agencies. It is now “the responsibility of the agency which placed the advertising to take corrective action” and to reply to the complainant. Failure to comply with the new system can bring a report by the 4-A Committee on Improvement of Advertising Content to the 4-A board, and possible expulsion of the member agency. One major indication last week that ad agencies were already going to some lengths to keep in the clear with their own association as well as industry & govt, regulatory groups came in Advertising Age’s report that “virtually every major advertising agency is in the process of revising commercials or making new ones to replace some current sell.” The story added that film industry sources estimate “there will be $500,000 worth of new commercials” — above the routine crop — made to comply with the FTC’s current get-tough policies (Vol. 15:48 pi et seq.). “The 6 leading cigaret companies, jointly, are spendat the rate of between $1.8-1.9 million dollars a week on nighttime network TV . . . Two computers of cigaret sales disagreed on which brand came through 1959 as No. 1 brand. One gave it to Pall Mall and the other to the longtime champ. Camels. They also differed on total turnout: 63.2 billion vs. 65.2 billion.” — Spoyisor. Information clearing house for advertising executives has been established by the Advertising Federation of America’s Bureau of Education & Research. The service offers library, bibliographical and reference sources on all phases of advertising & marketing. George T. Clarke is director. TIO recently announced a similar service for TV.