Broadcasting (Oct 1931-Dec 1932)

Chicago Stations Plan Housecleaning Strict Standards for Radio Advertising Will be Adopted At Meeting This Month; Business Bureau Aiding Hal Totten By HAL TOTTEN IT'S WASH-DAY for radio advertising in the Chicago district. When the scrubbing is completed in the near fut u r e , listeners served by Chicago stations will be able to rely upon advertising carried by those stations as being truthful, clear and fair. There will be no throatcutting, no over-advertising, no misleading or false statements, no covering-up and nothing disparaging or offensive in the sponsored programs offered by the Chicago broadcasters. Chicago broadcasting stations have been offered a cooperative opportunity of cleaning up their commercial broadcasts, and they have entered into the task diligently. And if any "naughty" little Chicago broadcaster does not fall in line with the move for confidence and cleanliness, the Better Business Bureau of Chicago, which brought the matter originally to the attention of the stations, promises full cooperation and support in the form of action before the Federal Radio Commission against any station in the district that fails to comply with the code adopted by the majority of the broadcasters. The first step in this self-regulating move on the part of the Chicago stations was taken on Dec. 2 when representatives of eleven Chicago broadcasting units met with Flint Grinnell, general manager of the Better Business Bureau of Chicago. The broadcasters represented were from WMAQ, WENR, WBBM, WLS, WSBC, WCFL, WIBO, KYW, WAAF, the CBS and the NBC. Mr. Grinnell reminded them that certain radio advertising practices were getting a bit lax, to say the least, and asked if something couldn't be done about it. As a suggestion he offered a tentative draft of "standards of practice" to govern the local situation. The stations immediately took the draft under advisement, and a meeting was scheduled for Dec. 29. At that time the code, revised by the stations as they think advisable, will be submitted to each station with an invitation to sign it and abide by it. Mr. Grinnell explained that his organization will continue to cooperate to the fullest extent with the stations and that failure on the part of any Chicago station to conform to the standards advanced by the majority will be regarded by the Chicago Better Business Bureau as sufficient cause to file a complaint with the Federal Radio Commission on the ground that persistent violation of the standards constitutes an offense against public interest, convenience, and necessity. The recommended Standards of Practice for the Acceptance of Broadcast Advertising, as the code is called, is to be presented for the stations' approval in the following form : Text of Proposals "AN AGREEMENT— We, the undersigned, hereby agree that we will conform to the following provisions of the Standards of Practice, adopted by the National Association of Broadcasters, on March 25, 1929, as follows: "1. Recognizing that the radio audience includes persons of all ages and all types of political, social and religious belief, every broadcaster will endeavor to prevent the broadcasting of any matter that would commonly be regarded as offensive. "2. When the facilities of a broadcaster are used by others than the owner, the broadcaster shall ascertain the financial responsibility and character of such client, so that no dishonest, fraudulent or dangerous person, firm or organization may gain access to the radio audience. "3. Matter which is barred from the mails as fraudulent, deceptive or obscene shall not be broadcast. "4. Every broadcaster shall exercise great caution in accepting any advertising matter regarding products or services which may be injurious to health. "5. No broadcaster shall permit the broadcasting of advertising statements or claims which he knows or believes to be false, deceptive or grossly exaggerated. "6. Every broadcaster shall strictly follow the provisions of the Radio Law of 1927 regarding the clear identification of sponsored or paid-for material. "7. Care shall be taken to prevent the broadcasting of statements derogatory to other stations, to individuals or to competing products or services, except where the law specifically provides that the station has no right of censorship. "It is further agreed that in the enforcement of these Standards of Practice we will cooperate with the Better Business Bureau of Chicago to the end that the highest standards of broadcast advertising be maintained; and that for the guidance of station managers and salesmen the following standards will be used to determine the acceptibility of contracts for broadcast advertising: Standards for Advertising "1. Superlatives and Unproven Statements — Unwarranted superlatives, exaggerations and unproven statements shall be considered as not acceptable. "2. Ambiguous Statements — No statements capable of misunderstanding shall be acceptable. This is to avoid the possibility of deception. "3. Infringements — No program will be accepted which through plagiarism or imitation will have a tendency to deceive or confuse the radio audience. "4. Disparaging Statements — No broadcast will be accepted which disparages or reflects on competitors or their products in any manner. "5. Offensive Statements — No program or announcement will be accepted that is slanderous, obscene, profane, vulgar, repulsive or offensive in either theme or treatment. "6. Bait — No bait broadcasts will be acceptable, (Baiting is the practice of offering at a low price merchandise which the advertiser does not intend to sell but uses as a come-on to sell higher priced goods. An example would be the use of well-known brands or tradenames when only a very limited quantity in undesirable patterns is available.) "7. 'Seconds, Not First Quality, Rebuilt — Seconds, reconditioned, or merchandise of imperfect quality shall be so designated in all broadcasts. "8. Guarantees — All statements relative to guarantees shall be direct, qualify as to the exact meaning, and be without subterfuge of any nature. "9. Time Limit— When 'Time Limits' are accepted in broadcasts, such as 'from 9 to 12 Monday morning,' the advertiser should understand that the sale must be continued at that time. Otherwise the 'time limit' ceases to be of value. Proof Required "10. Direct From Factory — No claims, such as 'Direct from factory to you,' or other statements creating a factory appeal, will be considered as acceptable unless supported by proof of their accuracy from the advertiser. "11. Wholesale — No claims of selling at wholesale to the public will be acceptable unless positive proof is given of the accuracy b... the advertiser. "12. Going out of Business; Bankrupt — Going out of business sales, closing out sales, fire and bankrupt sales, and others covered by the Illinois statute regulating distressed goods sales will be considered as not acceptable until proved bona fide and until a license to conduct such a sale is obtained from the city clerk by the advertiser. "13. Comparative Prices — Comparative prices are susceptible to misunderstanding if employed and should never be used to mislead or deceive the public. "14. Overloading — This station will not permit the overloading of a program with advertising matter either through announcements or by too frequent mention of trade names and products. "15. Reputation — No advertising matter, announcement or program will be accepted by this station which may, in its opinion, be injurious or prejudicial to its reputation or to honest advertising and the good will of its audience." There were 20 radio station, originally invited to take part i the discussion and to participate i the drawing up and signing of thi set of standards. They include member stations of the NAB a well as the others. It is not es pected that all of the stations i the district will sign, but the majc ones — or most of them — have ind cated their intention to do so an a strict watch is going to be estak lished with action promised agaim all violators. Mellon Urges ATa? On Sets, Message; A FLAT five per cent tax o "manufacturers' sales" of radi and phonograph equipment an accessories and a graduated ta: ranging from five to ten cents o l charges for radiograms, telegrapl cable and long-distance telephon messages, were recommended t Congress Dec. 9 by Secretary o the Treasury Mellon. These taxe were included among the so-calle luxury taxes recommended by th Treasury as a means of derivin revenue to help offset the $2,000 000,000 deficit facing the govern ment for the current fiscal year. No estimate was made by Mi Mellon or Internal Revenue official as to the amount of revenue th Government hoped to realize fror the radio taxes alone. It wa stated officially that these figure had not been broken down, an might vary widely from the est mates. It was plainly intimate that it might arouse the oppositio of the various industries involve to stipulate that a given contri bution was expected. There is no assurance that Cor gress will enact the new tax schec ule so that the taxes would becom immediately effective. Democrat) leaders in the House, where sue legislation must originate, indi cated that they would take thei time, and that six months migb elapse before a schedule is worke out. The Treasury does not intend t suggest a tax on the "sponsore program" receipts of stations a proposed by Representative La Guardia, Republican, of New Yorl Internal Revenue officials said tha broadcasting stations, like othe corporations and organization; would be affected in any possibl increased taxation through incom and corporation tax increases, rath er than on such an intangible com modify as the program itself. Th suggested Treasury tax on tele phone, telegraph, cable and radii messages is five cents for charge; in the amount of 14 to 50 cent and 10 cents for rates in excess o 50 cents. Cuts Off "Sexy" Song JOHN L. CLARK, program direc tor WBZ-WBZA, Boston, recent! cut the program of Joe Rines, danc band leader, off the air when th latter scorned the station's ban o sexy songs and started to sin "Here Comes the Missus." Clar was attending a luncheon of th Boston Advertising Club, whic was being entertained by Rine; when he ordered the broadcas halted. Page 8 BROADCASTING • December 15, 193