era europe transatlantic regulatory update...transregulatory update rome 2013 agenda (1)the era...
TRANSCRIPT
ERA Europe
Transatlantic Regulatory Update
Rome 2013
Self Regulation Officer – Klaus Parchent
Transregulatory Update Rome 2013
AGENDA
(1)The ERA Europe Self Regulation Program
(2)General Pitfalls within advertising
(3)Requirements in advertising nutrition or cosmetics
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
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.
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
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
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.
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
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.
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
1
© 2012 Venable LLP
Transatlantic Regulatory Panel
Claudia LewisPartner, Venable LLP
June 25, 2013
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
19
© 2012 Venable LLP
Contact Information
Claudia Lewis, [email protected] 202.344.4359f 202.344.8300
www.Venable.com
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.
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
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.
Long-Standing U.S. Government Support
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
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
Self-Regulation Components
Online Interest-Based Accountability Program
Regulates online behavioral advertising (OBA) across the
Internet
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.
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.
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.”
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
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!”
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%
ERSPTelemarketing Review
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
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.
ERSP Case ReportsERSP decisions are available by subscription on the ASRC Online Archives.
Press Releases can also be found online atwww.asrcreviews.org
2013 ERA EUROPE: Home Shopping Conference
Avv. Felix HoferStudio Legale Hofer Lösch TorricelliVia Giambologna, 2 rosso I - 50132 Firenze
www.hltlaw.it
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
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
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.
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
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
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
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
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!
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).
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.
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.
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).
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.
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.
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).
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
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')
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
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)
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.
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.
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.
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.
ERA EUROPE: Home Shopping Conference – Rome 2013
Thank you for your attention.
Formation of ASEAN
1961
• Thailand • Malaysia • Philippines
1967
• Indonesia • Singapore
1984
• Brunei
1992
• AFTA
1999
• Vietnam • Laos • Myanmar • Cambodia
10 Member Countries
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
By this year (2013)
Countries Will Combine Into an Agreement of Free Trade
In 2 Years (2015)
ASEAN Economic Community 10 Countries under 1 Economy and 1 stock market
THE POTENTIAL Indochina Region
FAST FACTS Indochina Region
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%)
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
MCM Works..! Whether or not… Consumers are already MCM
KEY TAKEAWAYS
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
Thank you For more information and question at [email protected]
Appendix
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
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
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