Broadcasting Telecasting (Oct-Dec 1959)

The threat of criminal sanctions against advertisers found guilty of false and misleading advertising in the food, drug and cosmetic fields has arisen following a series of recent meetings between the Federal Trade Commission Chairman Earl W. Kintner and Attorney General William P. Rogers. The move is an intensification of the regular liaison between the two federal agencies and is an outgrowth of the concern of both agencies with deceptive practices in radio and tv. The Dept. of Justice was charged by President Eisenhower last October to look into the quiz show scandals. Its report is expected to be sub FTC, Justice Dept. huddle on ad frauds mitted to the President this week, it is understood. The FTC Act provides for a $5,000 fine and six months in jail for first offenders, and double that for second offenders. Over the years, however, the FTC has used this authority sparingly, since its efforts have been directed at eliminating deceptive advertising rather than prosecuting advertisers. Criminal prosecutions by a federal agency are handled by the Justice Dept. Mr. Kintner, in acknowledging that he had "stepped up" his agency's contacts with the Dept. of Justice, emphasized that consideration of criminal moves against advertisers would include advertising in all media. "As I've said before," Mr. Kintner remarked, "this is a problem common to all media." The FTC already has stepped up its attack against false advertising on tv as well as in newspapers and magazines. In the last few months it has questioned advertising involving Colgate Dental Cream with Gardol, Libbey-Owens-Ford and General Motors, and Life Cigarettes. It also has moved against payola in the record industry, with the first consent order signed by RCA last week (page 46). that the trade outs amounted to more than $1V4 million in the aggregate. All except one of the examples used in the FTC complaint involved New York network-owned stations; the other was the ABC television station in Chicago. Tie-in plans evolve In general, merchandising tie-ins have been decreasing except for some stations in the larger cities or markets. Networks per se did not engage in such practices but some of their owned outlets did, hence the FTC move against the networks. In other words, networks were cited for the actions of its owned stations. WRCA New York (NBC-owned) still operates its "Chain Lightning." This plan has several thousand food stores participating including food groups and "several chains and independents." "Chain Lightning" has been modified since FTC originally filed in 1956 and in And so no force, however great can stretch a cord however fine into a horizontal line* William Whtwell 'Elementary Treatise on Mechanics" No matter how you stretch it KROC-TV still averages over 80% of Rochester's TV viewing audience. $2,000,000 A DAY CHANGES HANDS IN THE ROCHESTER AREA KROC-TV CHANNEL ROCHESTER 10 MINNESOTA NBC Represented by Meeker Co. G. David Gentling, gen'l. mgr. 52 (GOVERNMENT) fact has been changed "accordingly". These modifications are principally in two areas: 1 . The area of participation has been broadened. The plan has been made more readily available to every retailer of any size so all can take part should they wish to. 2. An exact payment formula for the participating store has been set up (it's no longer possible to give a chain of stores a "deal" because of circumstances other than a formula based on store volume). There are no "arbitrary decisions" as to what a store will pay, with payment made according to store volume and other such fixed factors. "Chain" has at least four big promotions per year and year-round servicing. Exchange of displays in stores for time on the air is still an integral part of the plan. WCBS New York has its "Total Merchandising Plan" which also has been modified to accommodate its workings to the FTC position. A few large independent radio stations have variations on the merchandizing theme; most stations, however, use the more simplified platform of window streamers and in-store displays as support to advertisers etc. • Government brief Allows move • Hearing Examiner Herbert Sharfman issued an initial decision on Dec. 9 affirming the Dec. 18, 1957 grant of an application of Video Independent Theatres Inc. to move the transmitter of KVIT (TV) Santa Fe, N.M., from approximately 3 miles outside of Santa Fe to Sandia Crest, about 43 miles southwest of Santa Fe and 14 miles northeast of Albuquerque. The decision also allows the ch. 2 station to move its main studio from its present transmitter site to Santa Fe and to increase its visual ERP from 0.324 kw to 28.2 kw. BROADCASTING, December 21, 1959