era europe transatlantic regulatory update...transregulatory update rome 2013 agenda (1)the era...

133
ERA Europe Transatlantic Regulatory Update Rome 2013 Self Regulation Officer – Klaus Parchent

Upload: others

Post on 10-Feb-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERA Europe

Transatlantic Regulatory Update

Rome 2013

Self Regulation Officer – Klaus Parchent

Page 2: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Transregulatory Update Rome 2013

AGENDA

(1)The ERA Europe Self Regulation Program

(2)General Pitfalls within advertising

(3)Requirements in advertising nutrition or cosmetics

Page 3: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 1:The ERA-Europe Self Regulation Program

Why do we do it?

•Benefits for our industry:– Showing all stakeholders: Look, we are playing by the rules

– Controlling the quality of our industry - but by ourselves– Defocusing of regulatory bodies– Winning trust at our customers (Shop with confidence)

– Banning black sheep

•Benefits for our members displaying the seal:– Showing that you are a trustworthy business partner– Displaying a Quality seal without additional cost– Getting an additional source of support in difficult areas

– Having an intermediate step before an issue becomes a legal or a regulatory issue

Page 4: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 1: The ERA-Europe Self Regulation Program

What is the content of our commitment?

Content of commitments:

Fair, ethical and responsible trade.

Presenting products and services in a clear and honest way.

Complete and transparent pricing with no hidden costs.

Ensuring that customers can order without risk.

A proper and reliable returns policy.

Protecting customer data.

Page 5: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 1 – The ERA-Europe Self Regulation Program

What kind of issues are we expecting?

Typical consumer issues

-Returns incl. money restitution

-Warranty

-Data protection

Typical issues from SRO or members

-Product Claims

-Presentation

Page 6: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 2:General Pitfalls within advertising

Commitment: Presenting products in a clear and honest way

Claims substantiation:

- no deceptive implied claims- no omission of material information

- Reference to scientific proof or tests only if existing and backing the claim

- health or safety claims for products such as dietary supplements, drugs, diet and exercise products and medical devices require competent and independent scientific evidence and have to comply with EU-Health Claims Regulation

Page 7: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 2:General Pitfalls within advertising

Commitment: Presenting products in a clear and honest way

Demonstrations, testimonials and endorsements

- true testimonials or endorsements supported by the relevant documentation.

- demonstrations must not misrepresent any material feature or the product’s actual performance in real-life conditions.

- Be careful with comparative tests and demonstrations of competing products

- consumer testimonials must reflect honest opinions, findings, beliefs or experiences and be representative of the results to be expected by the average consumer.

- endorsement from a professional or an expert should be supported by the relevant documentation, ie qualifications or proof of profession.

- Testimonials should not be the only evidence to substantiate claims and any claim expressed must be supported by documentary evidence.

Page 8: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 3:Requirements in advertising nutrition and cosmetics

Nutrition products:

Specific legal environment: EU Health Claims Regulation since 2007

Aims: High level of consumer protection and avoidance of competition hinderances

Content: HC-Regulation takes care of commercial information referring to Nutrition claims: „sugars-free“, „low fat“, „rich on Vitamine C“ and Health claims: „reduces cholesterine“, „strengthens defensive forces“

Consequences: Preventive prohibition with possibility of approval; claims have to be approved (formal approval-procedure), have to be taken out of the EU-Register or have to fulfill the requirements of the nutrient profiles (not yet published) Regulation at least enables to make „risk-reduction-claims“

Before the HC Regulation: everything was allowed which was not explicitly forbidden

After the HC Regulation: everything is forbidden which is not explicitly allowed

Page 9: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 3:Requirements in advertising nutrition and cosmetics

Nutrition products:

EU-register, published on Jan. 31, 2010:

Out of 44.000 claims which have applied for approval, until now 2.102 claims have been authorized.

Page 10: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Topic 3:Requirements in advertising nutrition and cosmetics

Cosmetics:

Specific legal environment: EU Cosmetic Regulation 1223/2009, coming into effect on July 11th, 2013

New requirements:

(1)Responsible person – for each product, residence in EU

(2)Nanomaterial ingredients – product registration 6 months before market entry

(3)Animal testing ban – for products and ingredients

(4)Notification portal – registering of each product

(5)Safety report and Product information file – wider documentation

(6)Access to information for the public – qualitative and quantitative composition

Page 11: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

1

© 2012 Venable LLP

Transatlantic Regulatory Panel

Claudia LewisPartner, Venable LLP

June 25, 2013

Page 12: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

2

Agenda

FTC

– Consent Decrees

– Affiliate Liability

– Endorsement & Testimonial Guidelines

– “Competent and Reliable”

– POM Wonderful

NAD/ESRP

– Recent Activity

State Activity– California

– Class Actions

FDA

– FSMA Registration

– Import Issues © 2012 Venable LLP

Page 13: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

3

FTC Recent Activity

Changes at the Commission

– New Commissioner Edith Ramirez

Focus may shift towards privacy

– 2013 Mobile Privacy Disclosures Report

• Sets forth best practices and urges disclosure and affirmative consent prior to collection of geolocation information

– Developing a “Do Not Track” standard

Identify theft has been reported as the top

consumer complaint to FTC

© 2012 Venable LLP

Page 14: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

4

Recent FTC Activity – Consent Decrees

Facebook– FTC investigated Facebook’s privacy practices– Consent decree requires separate disclosures and

affirmative express consent– Can’t share user’s nonpublic user information that

“materially exceeds” the restrictions of the privacy settings set by the users

– Data deletion requirements if users choose to remove data

Google– Settlement will allow competitors access – on fair,

reasonable, and non-discriminatory terms – to patents on critical standardized technologies needed to make popular devices such as smart phones, laptop and tablet computers, and gaming consoles © 2012 Venable LLP

Page 15: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

5

Affiliate Liability – Credit Card Processors

You CAN be liable if your affiliates engage in deceptive marketing practices.

2010 – Your Money Access, LLC – FTC joined forces with 7 states to bring complaint in

federal court– FTC alleged YMA debited consumers’ bank accounts

illegally on behalf of deceptive marketers telemarketers and Internet-based schemes that were violating the FTC’s Telemarketing Sales Rule and state consumer protection laws

– YMA played a critical role by providing access to the banking system and the means to extract money from consumers’ bank accounts.

– The FTC alleged that in many instances the merchants either failed to deliver the promised products or services or sent consumers relatively worthless items.

– $3.6 million judgment entered

© 2012 Venable LLP

Page 16: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

6

Affiliate Liability – Lessons Learned

Have a screening procedure AND make sure it is

implemented

– In YMA, the defendants claimed they required prospective clients to submit an application, including a sample of the product and sales scripts.

– But applications were accepted when new basic information about their identity or business practices was omitted.

Keep an eye on returned debits

– A high return rate is a major warning sign of unauthorized debiting.

© 2012 Venable LLP

Page 17: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

7

FTC’s Endorsement and Testimonial Guidelines

October 2009 – FTC revised its Guidelines

Updated examples to include social media– Blogger endorsements now explicitly included

Any ad that features consumers who characterize

their experience as “typical” when that is not the

case must also disclose the results a typical

consumer can actually expect to achieve.

Both advertisers AND endorsers may be liable for

false or unsubstantiated claims made in an

endorsement

Endorser must disclose material connections© 2012 Venable LLP

Page 18: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

8

FTC’s Endorsement and Testimonial Guidelines –

Legacy Learning Systems, Inc.– Company advertised using an online affiliate

program promote its guitar home-learning courses through endorsements in articles, blog posts, and other online editorial material

– Affiliates received substantial commissions on the sale of each product resulting from referrals

– This violated Guidelines because material connection not disclosed

– Settlement terms• Pay $250,000• Monitor and submit monthly reports about

their affiliate marketers, and make sure that they are disclosing that they earn commissions for sales

© 2012 Venable LLP

Page 19: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

9

“Competent and Reliable Scientific Evidence”

FTC typically requires claims about the efficacy or

safety of dietary supplements to be supported

with "competent and reliable scientific evidence”

Defined in FTC cases as:

– “Tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that have been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results."

© 2012 Venable LLP

Page 20: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

10

“Competent and Reliable Scientific Evidence”

No fixed formula for number or type of studies

required.

If you assert a certain level of support for a claim

(e.g. “Scientists Now Agree!”), you must be able

to demonstrate this statement is accurate.

While well-controlled clinical trials are the most

reliable evidence, results obtained in animal and

in vitro studies can be considered.

The quality of studies is more important than

quantity.© 2012 Venable LLP

Page 21: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

11

POM Wonderful

POM contended FTC exceeded its statutory

authority in past cases involving Nestle and

Iovate:

– Disagreed with FTC’s interpretation of the “competent and reliable scientific evidence standard” and with requiring FDA pre-approval of certain health-related claims.

The FTC responded by filing a complaint against

POM, alleging that claims made by POM claims

that its products could treat heart disease,

prostate cancer and erectile dysfunction were not

adequately substantiated© 2012 Venable LLP

Page 22: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

12

POM Wonderful

FTC found POM’s claims were not adequately

substantiated.

FTC drew a distinction between general health

benefit claims and disease treatment, prevention

or risk reduction claims.

– Randomized controlled studies required for the latter, but not the former.

– Did not specify number of studies, but said POM needed 2 because of its history of deception and seriousness of the claims made

FTC did not require FDA pre-approval© 2012 Venable LLP

Page 23: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

13

POM Wonderful – Impact on the Industry

FTC indicating substantiation needed for health

claims regarding foods and beverages are

analogous to requirements for drugs.

While FTC did not say 2 randomized clinical

studies are always required to substantiate

disease claims, a prudent advertiser will have two

such studies for any claims of disease prevention,

risk reduction or treatment.

Case suggests using a “qualifier” (e.g. “may, can,

preliminary”) may not be sufficient.

© 2012 Venable LLP

Page 24: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

14

Recent NAD/ERSP Cases

Mix of challenger and NAD-initiated reviews

Recent focus on sleep products

– Meda Consumer Healthcare (June 2013)

• Recommended discontinuing claims regarding MidNite PM dietary supplement due to lack of product testing

• Could still claim product is “Amercia’s #1 Natural Sleep Remedy” based on sales data

– Sleep Science Partners (April 2013)

• Provided adequate support (clinical studies) for general performance claims for treating nighttime snoring © 2012 Venable LLP

Page 25: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

15

Recent NAD/ERSP CasesDietary Supplements

Abrexin Weight Loss Supplement (May 2013)

– NAD initiated challenge

– Claims included “Lose Weight While You Sleep!”

– Company stopped selling product in U.S.

Jack3d Products (April 2013)

– NAD requests substantiation for claims

– Claims include “Getting a pump as you drive to the gym”

– NAD found no product testing and no reasonable basis for ingredient claims

– Recommended discontinuing claims© 2012 Venable LLP

Page 26: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

16

State Activity – California Privacy

– California Online Privacy Protection Act (CalOPPA)

• Requires websites and other online services that collect personally identifiable information to post a privacy policy containing specific disclosures

– July 2012 - Privacy Enforcement and Protection Unit established within CA Department of Justice.

• Active in enforcing CalOPPA and other state privacy and consumer protection regulations

Prop 65– Labeling deadline for DEA, Cocamide DEA and

benzophenone passed on June 22, 2013– Dozens of companies have received notices of

violation on TiO2• Sunscreen products and personal care powders

© 2012 Venable LLP

Page 27: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

17

State Activity – “All Natural” Class Actions

Dole Salad Kits (March 2013)

– Alleged products contain synthetic ingredients and preservatives that can potentially be dangerous

Breyers Ice Cream (August 2012)

– Alleged products contain alkalized cocoa, a non-natural processed ingredient that additionally contains potassium carbonate, a man-made synthetic ingredient

– Unilever agreed to pay $2.5 million as part of a settlement

© 2012 Venable LLP

Page 28: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

18

FDA Activity Food Safety Modernization Act (FSMA)

– Both foreign and domestic facilities must register– All food facilities must renew registration every other

year– If foreign food facility fails to register, food from that

facility is subject to refusal

Final Rule on Information Required in Prior Notice of

Imported Food (Issued May 2013)– Person submitting prior notice of imported food,

including food for animals, must report the name of any country that has refused entry of that product

U.S. becomes “listed” country with the European

Commission – U.S. companies need not obtain an export certificate

from the FDA before shipping certain pharmaceutical products to Europe © 2012 Venable LLP

Page 29: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

19

© 2012 Venable LLP

Contact Information

Claudia Lewis, [email protected] 202.344.4359f 202.344.8300

www.Venable.com

Page 30: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

U.S. Advertising IndustrySelf-Regulation Overview

The Electronic HomeShopping ConferenceRome, ItalyJune 24, 2013

Peter MarinelloDirector, Electronic Retailing Self-Regulation Program (ERSP)VP, Council of Better Business Bureaus, Inc.

Page 31: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Advertising Regulation in the U.S.

• Federal Trade Commission Act:– Unfair and Deceptive Practices in or

affecting Commerce are prohibited– Objective Claims must be substantiated

• Implied claims• Express claims

• Apply to commercial speech in all media

Page 32: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Objective claims for products or services represent explicitly or by implication that the advertiser has a reasonable basis supporting these claims.

The Commission's determination of what constitutes a reasonable basis depends, as it does in an unfairness analysis, on a number of factors relevant to the benefits and costs of substantiating a particular claim. These factors include: the type of claim, the product, the consequences of a false claim, the benefits of a truthful claim, the cost of developing substantiation for the claim, and the amount of substantiation experts in the field believe is reasonable.

Page 33: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Long-Standing U.S. Government Support

Page 34: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

The Value of Self-Regulation

“Self-regulatory initiatives also make good business sense. The more energy an industry puts into regulating itself, the less chance the government will get involved in trying to legislate the same results. In addition, developing and implementing self-regulatory initiatives can protect and improve an industry’s reputation and goodwill with consumers.”

— J. Thomas Rosch, Commissioner, FTC

Page 35: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

NO Formal Relationship betweenSelf-Regulation and Government

“The Commission traditionally has enjoyed a close working relationship with self regulation groups and government agencies whose regulatory policies have some bearing on our law enforcement initiatives. The Commission will not necessarily defer, however, to a finding by a self-regulation group. An imprimatur from a self-regulation group will not automatically shield a firm from Commission prosecution, and an unfavorable determination will not mean the Commission will automatically take issue, or find liability if it does. Rather the Commission will make its judgment independently, evaluating each case on its merits. We intend to continue our useful relationships with self-regulation groups and to rely on the expertise and findings of other government agencies in our proceedings to the greatest extent possible.”

– FTC Policy Statement Regarding Advertising Substantiation, 1984

Page 36: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Self-Regulation Components

Online Interest-Based Accountability Program

Regulates online behavioral advertising (OBA) across the

Internet

Page 37: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERA’s Involvement

In 2004, ERA stepped forward to create a credible self-regulatory program, dedicated to review of claims made in direct response marketing.

Page 38: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Four Characteristics of Effective Self-Regulation

• Meaningful Standards

• Independent: Administered by a respected third party – Council of Better Business Bureaus.

• Transparent: The outcome of every case is publicly reported.

• Accountable: Companies that refuse to comply are publicly identified and referred to the appropriate government agency.

Page 39: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Non-Compliance? Non-Participation?FTC Bans Colon-Cleanse Marketer from Infomercials

“This case came to the attention of the FTC as a referral from the Electronic Retailing Self-Regulation Program.”

Page 40: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERSP Goals & Procedures• Improve/restore

consumer and industry confidence in electronic retailing

• Provide a quick and efficient mechanism for reviewing direct response advertising campaigns

• Demonstrate to the regulatory agencies the direct response industry’s commitment to strong self-regulation and compliance with legal requirements

Page 41: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Issues & Claims Reviewed by ERSP

“Lose 287% the weight compared to placebo”

“The World’s Fastest Weight-Loss

Solution”

“Within 7 days my acne completely disappeared”

“The Clinically Proven Weight Loss

Supplement!”

“The #1 Doctor Recommended Joint Supplement”

- Testimonials/Endorsements

- Before and After Depictions

- Weight Loss

- Health and Safety

- Establishment Claims

- Disclosures

- Social Media

- Puffery

- Demonstrations

- Earnings

“I’ve made as much as $253,741.99 In A Single Month!”

Page 42: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERSP by the Numbers

• 9 years (founded in 2004)• 319 cases closed• Average days to close: 65 business

days• Challenges: 96• Government Referrals: 25• Compliance Rate: 95%

Page 43: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERSPTelemarketing Review

Page 44: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Telesales Assessment

• Participating companies grant ERSP access to call system

• ERSP provides the company with an assessment that focuses on issues including: Caller Identification Misleading Sales Pressure Earnings Claims Testimonials

Page 45: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Strength of Self-Regulation v. Government Regulation

• Brings the accumulated wisdom of the industry to problem solving

• Is more flexible than Government regulation and more dynamic

• Is almost always faster and less burdensome

These are especially beneficial in the regulation of advertising.

Page 46: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERSP Case ReportsERSP decisions are available by subscription on the ASRC Online Archives.

Press Releases can also be found online atwww.asrcreviews.org

Page 47: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Thank You!

Peter [email protected]

www.asrcreviews.orgwww.ersp.blogspot.com

Page 48: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

2013 ERA EUROPE: Home Shopping Conference

Avv. Felix HoferStudio Legale Hofer Lösch TorricelliVia Giambologna, 2 rosso I - 50132 Firenze

www.hltlaw.it

Page 49: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Transatlantic Regulation: What You Should Know (And Care About)

New Tech. Challenges & Legal Implications

European Privacy Rules

Unfair Commercial Practices

Products Relevance or Media Focus

Things You Don't Want To Happen

Page 50: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

New Challenges & Business Directions,New Business Partners

2013 mobile search clicks = likely 20-25% of total search clicks

Instant reaction algorithms tracing upcoming search queries and allowing in-advance guesses about potential search trends

Relationship with Big Data Companies/Brokers

Page 51: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

What Does It Mean to You?

Dealing with Big Data and their combination

Adopting profiling and targeting practicesPerforming online behavioral advertising

(OBA)

And, when doing business in Europe:

Becoming subject to EU privacy regulations,

Facing restrictions and limitations,Confronting Lawmakers and Regulators.

Page 52: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

The European Privacy Rules:

Apply to the use of cookies (save tech'ical - functional)

Cover data handled via technical equipment in Europe

Demand compliance from DM performed on SNs

Set a strictly “opt-in” system for all tracking devices

Consider geo-location on mobile devices as offering ‘intimate overview’ on owner’s habits and patterns and capacity of building detailed user profiles as well as of ‘singling out’ individuals

Page 53: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

European Privacy Regulators:

Find EASA/IAB Best Practice on OBA as ‘incompliant’

Hold facial recognition technology capable both, of ‘uniquely identifying’ an individual as well as of resulting in ‘biometric data’ (as such apt to “reveal biological properties, behavioral aspects, physiological characteristics, living traits or repeatable actions where those features and/or action are both, unique to that individual and measurable”)

Infer applicability of the General Data Protection Directive to these practices

Page 54: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

European Privacy Rules - Coming Up:

The New EU Regulation – Pros & Cons:Single set of data protection rules, valid

across the EU“One-stop shop" approach for companies

& consumersConsent to be clear & unambiguous (no

implication)Right to easy access (& transfer)

personal information Right to ‘be forgotten’ Increased enforcement powers to

national DPAs

Page 55: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Why to worry about the EU rules?

New Regulation will cover (to a certain extent) data

handling performed by foreign companies,

Data retention must be coherent with initial purpose of collection (‘proportionality’ principle)

DPAs entitled to serve penalties of up to Euro 1 million or up to 2% of a company’s global annual turnover

Non-compliance with privacy requirements can result in criminal offense

Page 56: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

So, You Better:

Think carefully of what you’re doing!Always check your data sources!When relying on third party data,

find out how your business partner addresses data processing!

Beware of ‘one fits all’ solutions!Re-consider your standard

contracts/forms from a privacy perspective and with respect to safe processing!

Page 57: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Unfair Commercial Practices Regulation (= Directive 2005/29/EC of May 11th, 2005)

Practice unfair when: contrary to criteria of professional

diligence, distorting (or capable of) consumer's

economic behaviour

May result in: - Positive actions (deceptive or false

information)

- Omissions (hiding material information - providing it in

unclear, unintelligible, ambiguous or untimely manner)

- Aggressive attitude (impacting on consumers' free choice

through harassment, coercion, undue influence).

Page 58: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Unfair Commercial Practices (2)

- EU Dir. 2005/29 provides a black list of 31 practices

(to be held as 'unfair' in any case and therefore banned)

- Such black list considers (among others):

- not existing endorsements or authorisations,

- false claims on products' “curative” potential,

- untrue information about legality of product's supply,

- persistent unwanted cold calling,

- bait advertising,

- cheating on product's availability on the market.

Page 59: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Coming Up in the EU

Review of Dir. 2006/114 (misleading & comp'tive advertising)

Commission flags:- more attention for cross-border marketing

practices,

- need to address mass marketing schemes,

- demand for increased protection for small companies and

independent professionals,

- call for better definition of 'advertising',

- insufficient certainty on the concept of 'misleading',

- lack of cross-border coop. & of effective enforcement powers,

- need of black list.

Page 60: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Coming UP, Really? Or Already There?

- Austria, Denmark, France, Germany, Sweden have extended

provisions on misleading & comparative adv'sing from B2C

context to B2B marketing,

- Since January 24th, 2012 Italy has extended protection to

commercial communication directed to 'micro-enterprises'

(= less than 10 employees and less than Є 2.000.000 in

annual turnover). Since 2010 enforcement powers of national

Authority significantly increased: fines from Є 5.000 to Є

500.000 + suspension from business + corrective adv'sing).

Page 61: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Coming Up in the EU with respect to UCPs:

EU Commission pursues more effective enforcement by:

Strenghtening European Consumer Protection Network &

promoting coordinated enforcement actions (“sweeps”),

Offering further guidance and sharing best practices,

Preparing 'enforcement indicators' (to detect shortcomings),

Coordinating and training national enforcers.

Page 62: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Critical Products' Top List

The likely leaders: - Weight loss products?

- Fitness/wellness devices products or treatments?

- Cosmetics (anti-aging, -wrinkling products)?

- Products/services offered in digital-online markets?

Speaker’s Educated Guess: All and None of Them!

Relevant, from a legal perspective: not What you sell,

but Where and How you do it.

Page 63: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Be Aware: “They Are Watching!”

Your Business Practices Are Monitored! The ECC-NET's & the Nordic ECCs perform

periodic surveys

and reports (e. g. European Online Marketplace)

Findings:

- Most targeted countries: N, SF, UK, I, S, F.

- Offenders' location: G, E, Lux, NL, A, UK.

- Most cases/complaints: originate from offers (of free product

samples – free services) available on the Internet (56% of

31.000 compl., in 2011, relate to online purchases; e-comm.

& dist. selling = 59 & 95 of total).

Page 64: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Be Aware: “They Are Watching!”

UK Watchdog (Advertising Standards Authority – ASA)

announces “Big Five” priorities for its 2013 scrutiny:

Free trials (tying consumers into on-going paid relationship)

Daily deal websites (unclear T&Cs and exaggerating savings)

Misleading pricing (e. g. “bait-” and “drip-pricing” structures)

Testimonials & reviews (calls for improved transparency

around paid endorsements) Misleading health claims (found as

'seriously risky')

with special focus on Social Media

Page 65: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

What You Don't Want to Happen:

Constant Clinch with Regulators

Listing as 'Repeated Offender'

Facing thighter fines (inclusive temporary suspension from business and

'corrective advertising')

Page 66: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

A Glimpse around in Europe

- Message from CJEU: judgment 6/09/2012

'health claim' = any indication of nutritional, pschycological or

other health advantage; extends also to claims of “being less

unhealthy than...”

- Germany: Ads with 'Before-After' pics critical for curative

treatments

Page 67: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

A Glimpse around in Europe (2)

- Sweden: “Kuma Shape, Miraculous Effects” from cellulite and

fat reducing treatment (endorsed by well-known journalist,

“surprised by results”). In Spring 2013 Marketing Court found the ad as misleading to consumers (advertiser failed to

provide appropriate claim

substantiation)

Page 68: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

A Glimpse around in Europe (3):

UK: «Mom Makes Botox Doctors Furious» «A Mom outsmarts

Botox Doctors with her Trick to a wrinkle free face» «Erase those

Wrinkles» «Reverse the Clock» «Surprising 14 Days Result Revealed»

(but the ads upset the ASA). Found: Lack of claim substantiation

& of scientific evidence,

Contradiction with dis-

claimer, Exageration on

effects, Misleading

capacity.

Page 69: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

A Glimpse around in Europe (4):

UK: Weight-loss drink benefits «Promotes fat loss, Reduces

appetite and cravings, Improves cholesterol levels, Balances

blood sugar, Reduces fat levels in the blood, Regulates bowel

function & You don’t have to change your eating habits …»

ASA:

- Study abstracts fail to result in sufficient claim subst’tiation,

advertising therefore misleading.

- Medicinal claims NOT allowed for food & drinks,

- Two absolute claims, incompatible with good medical and

- nutritional practice.

Page 70: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

In My Backyard: Italy (May 2013)

Privacy Commissioner:

- Ascertains incorrect data use in tele-marketing practices and

for promoting unsollicited offers by 2 Data Brokers and a TC

company (lack of consent, incompliance with previous

prescriptions),

- Serves fines for a total of Euro 800.000,

- Announces further interventions towards other infringing

tele-maketers to be expected.

Page 71: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

In My Backyard: Italy (May 2013)

Market and Fair Competition Commissioner:

- Questions Internet ad of cell phone manufacturer (claim:

«Watersafe, no need for handling with care, for outdoor use and in critical environmental conditions»),

- Manufacturer failed to offer proper claim substantiation,

- Indicated technical standards not met,

- UCP found and fine of euro 150.000 awarded.

Page 72: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

ERA EUROPE: Home Shopping Conference – Rome 2013

Thank you for your attention.

Page 73: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 74: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Formation of ASEAN

1961

• Thailand • Malaysia • Philippines

1967

• Indonesia • Singapore

1984

• Brunei

1992

• AFTA

1999

• Vietnam • Laos • Myanmar • Cambodia

10 Member Countries

Page 75: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Association of South East Asia Nations

Founding Members

• Thailand • Indonesia • Singapore • Malaysia • Philippine • Brunei

New Members

• Cambodia • Myanmar • Lao • Vietnam

+3

• China • South Korea • Japan

+6

• China • South Korea • Japan • Australia • India • New Zealand

•  1997 •  2013

•  2015

Page 76: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

By this year (2013)

Countries Will Combine Into an Agreement of Free Trade

Page 77: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

In 2 Years (2015)

ASEAN Economic Community 10 Countries under 1 Economy and 1 stock market

Page 78: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

THE POTENTIAL Indochina Region

Page 79: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 80: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 81: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 82: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 83: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

FAST FACTS Indochina Region

Page 84: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Summarize Description SG MY VN KH LA TH

Population (2013 est.) (Million) 5.46 29.6 92.5 15.2 6.7 67.5 GDP (EST.) Billion $ 331.9 $506.7 $ 325.9 $ 37.25 $ 19.52 $ 662.6

GDP per Capita (2012 est.) $ 61,400 $ 17,200 $ 3,600 $ 2,400 $ 3,100 $ 10,300

GDP Real Growth Rate (2012 est.) 1.3% 5.6% 5% 6.5% 8.3% 6.4%

Currency SGD RM Dong (VND) Riel (KHR) Kips Baht (THB)

Total Households 1.56 Million HH

7.78 Million HH

22.4 Million HH

3.62 Million HH

1.56 Million HH

17.22 Million HH

Household Size (head/HH 3.5 3.8 4.1 4.2 4.3 3.92

TV Households 1.54 MHH 99%

7.69 MHH 98.9%

21.88 MHH 97.68%

3.466 MHH 95.75 %

1.487 MHH 95.34%

17 MHH 98.7%

Internet Users 3.235 Million

(59.25%)

15.355 Million

(51.9%)

23.382 million

(25.28%)

78,500 (< 1%)

300,000 ( 4%)

17.483 Million

(25.9%)

Mobile Subscribers (Million)

7.794 (142.7%)

36.661 (123.85%)

127.318 (137.6%)

13.757 (90.45%)

5.48 (81.8%)

77.605 (114.9%)

Page 85: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Singapore Population (2013 est.) 5.46 Million

GDP (2012 est.) $ 331.9 Billion

GDP per Capita (2012 est.) $ 61,400

GDP Real Growth Rate (2012 est.) 1.3%

Currency Singapore Dollar (SGD)

Total Households 1.56 Million HH

Household Size 3.5 Head/House

TV Households 1.54 Million HH (99% Penetration)

Internet Users 3.235 Million (59.25%)

Mobile Subscribers 7.794 Million ((142.7%)

Source: CIA Factbook, World Development Indicator

Page 86: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Singapore: Population

Total Population 5,460,302 Gender Male 49% Female 51%

Distribution

Range % Total Male Female

0-14 years: 13.6% 742,601 51.18% 48.82%

15-24 years: 18.2% 993,775 49.24% 50.76%

25-54 years: 50.1% 2,735,611 48.82% 51.18%

55-64 years: 9.9% 540,570 50.03% 49.97%

65 years and over: 8.2% 447,745 45.24% 54.76% (2013 est.)

0-14 years: 15-24 years: 25-54 years: 55-64 years: 65 years and over:

Source: CIA Factbook, World Development Indicator

Page 87: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Singapore: Active Players in TV Home Shopping Industry

DRTV Retail Kiosk Website

APEC Direct

Screen to Screen Retail location Website Social Media

JML

TV Shopping

Lejel

Page 88: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Malaysia Population (2013 est.) 29.6 Million

GDP (2012 est.) $506.7 Billion

GDP per Capita (2012 est.) $ 17,200

GDP Real Growth Rate (2012 est.) 5.6%

Currency Ringgits (RM)

Total Households 7.78 Million HH

Household Size 3.8 Head/House

TV Households 7.69 Million HH (98.9% Penetration)

Internet Users 15.355 Million (51.9%)

Mobile Subscribers 36.661 Million (123.85%)

Source: CIA Factbook, World Development Indicator

Page 89: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Malaysia: Population Total Population 29,628,392

Gender Male 49% Female 51%

Distribution

Range % Total Male Female

0-14 years: 29.1% 8,592,234 51.43% 48.57% 15-24 years: 17% 5,036,827 50.65% 49.35% 25-54 years: 41.3% 12,236,526 50.69% 49.31% 55-64 years: 7.4% 2,192,501 51.00% 49.00% 65 years and over: 5.3% 1,570,305 47.32% 52.68%

(2013 est.)

0-14 years: 15-24 years: 25-54 years: 55-64 years: 65 years and over:

Source: CIA Factbook, World Development Indicator

Page 90: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Malaysia: Active Players in TV Home Shopping Industry

DRTV Retail Outlet Website Social Media Wholesale

TV Direct

Screen to Screen Retail location Website Social Media

JML

Page 91: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Vietnam Population (2013 est.) 92.5 Million

GDP (2012 est.) $ 325.9 billion

GDP per Capita (2012 est.) $ 3,600

GDP Real Growth Rate (2012 est.) 5%

Currency Dong (VND)

Total Households 22.4 Million

Household Size 4.1

TV Households 21.88 Million HH (97.68% Penetration)

Internet Users 23.382 million (25.28%)

Mobile Subscribers 127.318 million (137.6%)

Source: CIA Factbook, World Development Indicator

Page 92: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Vietnam: Population Total Population 92,477,857

Gender Male 49% Female 51%

Distribution

Range % Total Male Female

0-14 years: 24.6% 22,749,553 52.47% 47.53%

15-24 years: 18.4% 17,015,926 51.71% 48.29%

25-54 years: 44.4% 41,060,169 50.00% 50.00%

55-64 years: 7% 6,473,450 45.50% 54.50%

65 years and over: 5.6% 5,178,760 38.45% 61.55%

(2013 est.)

0-14 years: 15-24 years: 25-54 years: 55-64 years: 65 years and over:

Source: CIA Factbook, World Development Indicator

Page 93: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Vietnam: Active Players in TV Home Shopping Industry

DRTV Mail Order Retail Outlet Wholesale

Best Buy

Home Shopping

COOP Home Shopping

Home Shopping

HSV

Home Shopping

SCJ

Home Shopping

VGS

Retail Outlet Website Wholesale

TV Direct

Page 94: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Cambodia Population (2013 est.) 15.2 Million

GDP (2012 est.) $ 37.25 Billion

GDP per Capita (2012 est.) $ 2,400

GDP Real Growth Rate (2012 est.) 6.5%

Currency Riel (KHR)

Total Households 3.62 Million

Household Size 4.2

TV Households 3.466 Million HH (95.75 % Penetration)

Internet Users 78,500 (< 1%)

Mobile Subscribers 13.757 Million (90.45%)

Source: CIA Factbook, World Development Indicator

Page 95: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Cambodia: Population Total Population 15,205,539

Gender Male 50% Female 50%

Distribution

Range % Total Male Female

0-14 years: 31.7% 4,820,156 50.32% 49.68%

15-24 years: 21.2% 3,223,574 49.55% 50.45%

25-54 years: 38.2% 5,823,721 48.65% 51.35%

55-64 years: 4.9% 745,071 38.17% 61.83%

65 years and over: 3.9% 593,016 37.61% 62.39% (2013 est.)

0-14 years: 15-24 years: 25-54 years: 55-64 years: 65 years and over:

Source: CIA Factbook, World Development Indicator

Page 96: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Cambodia: Active Players in TV Home Shopping Industry

Home Shopping Channel Showroom

HIS Home Innovation

Shopping

DRTV Retail Outlet Website Social Media Wholesale

TV Direct

TV Shopping

Vanthy Group

Home Shopping Channel Showroom

HSC Home Shopping Cambodia

Home Shopping Channel Showroom

KHS Korean Home Shopping

Channel

TV Shopping Showroom

Quality TV Shopping

Page 97: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Laos PDR (LA) Population (2013 est.) 6.7 Million

GDP (2012 est.) $ 19.52 billion

GDP per Capita (2012 est.) $ 3,100

GDP Real Growth Rate (2012 est.) 8.3%

Currency Kips

Total Households 1.56 Million HH

Household Size 4.3 Head/House

TV Households 1.487 Million HH (95.34% Penetration)

Internet Users 300,000 ( 4%)

Mobile Subscribers 5.48 Million (81.8%)

Source: CIA Factbook, World Development Indicator

Page 98: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Laos PDR: People Total Population 6,695,166

Gender Male 50% Female 50%

Distribution

Range % Total Male Female

0-14 years: 35.5% 2,376,784 50.42% 49.58%

15-24 years: 21.3% 1,426,070 49.66% 50.34%

25-54 years: 34.6% 2,316,527 49.33% 50.67%

55-64 years: 4.9% 328,063 49.09% 50.91%

65 years and over:

3.7% 247,721 45.13% 54.87%

(2013 est.)

0-14 years: 15-24 years:

25-54 years: 55-64 years:

65 years and over:

Source: CIA Factbook, World Development Indicator

Page 99: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Laos PDR: Active Players in TV Home Shopping Industry

DRTV Retail Outlet Website Social Media Wholesale

TV Direct

TV Shopping Retail Outlet Website Social Media Wholesale

Sukaserm

TV Shopping

TV 360

Page 100: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Fast Facts: Thailand Population (2013 est.) 67.5 Million

GDP (2012 est.) $ 662.6 Billion

GDP per Capita (2012 est.) $ 10,300

GDP Real Growth Rate (2012 ets.) 6.4%

Currency Baht (THB)

Total Households 17.22 Million HH

Household Size 3.92 Head/House

TV Households 17 Million HH (98.7% Penetration)

Internet Users 17.483 Million (25.9%)

Mobile Subscribers 77.605 Million (114.9%)

Source: CIA Factbook, World Development Indicator

Page 101: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Thailand: Population Total Population 67,448,120

Gender Male 49% Female 51%

Distribution

Range % Total Male Female

0-14 years: 19.2% 12,950,039 51.19% 48.81%

15-24 years: 15.1% 10,184,666 51.02% 48.98%

25-54 years: 45.6% 30,688,895 49.39% 50.61%

55-64 years: 10.4% 7,014,604 47.74% 52.26%

65 years and over: 9.8% 6,609,916 45.10% 54.90% (2013 est.)

0-14 years: 15-24 years:

25-54 years: 55-64 years:

65 years and over:

Source: CIA Factbook, World Development Indicator

Page 102: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Thailand: Active Players in TV Home Shopping Industry

CJ-Grammy Home Shopping Website Social Media

O Shopping

Local Thai TV Shopping Website

Tiger Shopping

GS-True Vision-711 Home Shopping Website Social Media

True Select

Screen to Screen Retail location Website

JML

DRTV Website

Shop Japan

Sumitomo-Central-ICC Home Shopping Channel

Shop Channel

TV Direct-CTH Home Shopping Channel

Shop Thailand

DRTV Retail Outlet Website Social Media Wholesale

TV Direct

Page 103: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

TV Media & Airtime Platform

ANALOG TERRITORIAL TV

DIGITAL TERRITORIAL TV

FREE TO AIR SATELLITE TV

INTERNET PROTOCAL/BROADBAND TV

CABLE TV (DTH, FIBER, MMDS, COXIAL)

ENCODE SUBSCRIPTION SATELLITE TV

Platform Owners

Regulation and Reinforcement

Number of Audience

Page 104: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

TVD’s MCM We are all around you

Call Center

TV Marketing

Direct Mail

Conventional Marketing

Direct Selling

CRM

Fulfillment

Digital Marketing

Database Below the

Line

Reaching customers in multiple channels! Enable sales anytime and anywhere!

My Time Concept

Page 105: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

MCM in Action !

Message Broadcasting Media

Call

Call Center

Click

Website & Portal

Come

Retail

Customer Database

Prospects

Outbound Direct Mail Catalog

Marketing Campaign

Reactive Media

Proactive Media

Page 106: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

MCM Works..! Whether or not… Consumers are already MCM

Page 107: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

KEY TAKEAWAYS

Page 108: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Size DOES Matter!

Total AEC Area 2.8 Million sq mi

Population 602.7 Million

GDP (PPP) $3.57 Trillion

GDP per capita $5,930 / Capita

+ 6 5.3 Million sq m

2.77 Billion People

24.67 Trillion

$8,906 / Capita

+ 3 3.9 Million sq m

1.53 Billion People

$18.87 Trillion

$12,333 / Capita

Total AEC +6 6.1 Million sq m

3.37 Billion People

$28.24 Trillion

$8,379 / Capita

Page 109: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Thank you For more information and question at [email protected]

Page 110: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Appendix

Page 111: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

GDP Comparison

GDP (2012 est.) in Billions

506.7

325.9

37.3 19.5

662.6

331.9

Malaysia Vietam Cambodia Laos Thailand Singapore

GDP Real Growth Rate (2012 est.)

5.6% 5.0%

6.5%

8.3%

6.4%

1.3%

Malaysia Vietam Cambodia Laos Thailand Singapore

GDP per Capita (2012 est.)

17,200

3,600 2,400 3,100 10,300

61,400

Malaysia Vietam Cambodia Laos Thailand Singapore

Page 112: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Market Comparison

Population (2013 est.) in Millions

29.6

92.5

15.2 6.7

67.5

5.5

Malaysia Vietam Cambodia Laos Thailand Singapore

Internet Users in Millions

15.35

23.38

0.08 0.30

17.48

3.24

Malaysia Vietam Cambodia Laos Thailand Singapore

Mobile Subscribers in Millions

36.6

127.3

13.7 5.5

77.6

7.8

Malaysia Vietam Cambodia Laos Thailand Singapore

Households with TV in Millions

7.69

21.88

3.5 1.5

17

1.54

Malaysia Vietam Cambodia Laos Thailand Singapore

Page 113: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements

Communication Penetration Rate Comparison

Internet Penetration %

52%

25%

1% 4%

26%

59%

Malaysia Vietam Cambodia Laos Thailand Singapore

TV Penetration %

99% 98% 97%

94%

99% 99%

Malaysia Vietam Cambodia Laos Thailand Singapore

Mobile Suscriber Penetration %

124% 138%

90% 82%

115%

143%

Malaysia Vietam Cambodia Laos Thailand Singapore

Page 114: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 115: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 116: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 117: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 118: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 119: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 120: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 121: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 122: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 123: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 124: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 125: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 126: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 127: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 128: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 129: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 130: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 131: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 132: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements
Page 133: ERA Europe Transatlantic Regulatory Update...Transregulatory Update Rome 2013 AGENDA (1)The ERA Europe Self Regulation Program (2)General Pitfalls within advertising (3)Requirements