Progress In Action: Children’s Food & Beverage Advertising Self Regulation A Report From the BBB FTC/HHS Forum July 18, 2007 Elaine D. Kolish, Director Children’s Food & Beverage Advertising Initiative Council of Better Business Bureaus

2 The BBB Nearly a century of service dedicated to advancing trust in the marketplace Nearly a century of service dedicated to advancing trust in the marketplace 128 Bureaus throughout the United States and Canada 128 Bureaus throughout the United States and Canada Both consumers and businesses served Both consumers and businesses served Millions of consumers served annually Millions of consumers served annually 400,000 small & medium size business members 400,000 small & medium size business members Hundreds of multi-national corporate members based in North America Hundreds of multi-national corporate members based in North America

3 Self Regulation In Action Background on the Children’s Food and Beverage Advertising Initiative Background on the Children’s Food and Beverage Advertising Initiative Overview on Initiative Progress Overview on Initiative Progress Highlights On Company Pledges Highlights On Company Pledges Report on the Children’s Advertising Review Unit (CARU) Program Updates Report on the Children’s Advertising Review Unit (CARU) Program Updates Next Steps Next Steps

4 The Initiative’s Origin Joint FTC/HHS workshop July 2005 Joint FTC/HHS workshop July 2005 Joint FTC/HHS Report April 2006 Joint FTC/HHS Report April 2006 Recommendations for self-regulation Recommendations for self-regulation Improve CARU process Improve CARU process Modify self regulation to assist in combating childhood obesity Modify self regulation to assist in combating childhood obesity BBB/National Advertising Review Council undertake comprehensive CARU Guidelines review BBB/National Advertising Review Council undertake comprehensive CARU Guidelines review

5 The Initiative’s Goals All goals relate to advertising primarily directed to children under 12 (“child-directed” advertising) All goals relate to advertising primarily directed to children under 12 (“child-directed” advertising) Change mix of ads on TV, print, radio & Internet Change mix of ads on TV, print, radio & Internet Promote better-for-you foods or healthy lifestyles Promote better-for-you foods or healthy lifestyles Reduce use of Third Party Licensed Characters in ads Reduce use of Third Party Licensed Characters in ads Address advertising in Address advertising in Editorial/Programming Content (product placement) Editorial/Programming Content (product placement) Elementary schools Elementary schools Company-owned websites Company-owned websites Interactive games Interactive games

6 Highlights on Initiative’s Progress Pledges from all 11 companies approved Pledges from all 11 companies approved Pledges will have significant effect on ads Pledges will have significant effect on ads Type of products advertised Type of products advertised Number of ads shown by participants Number of ads shown by participants Pledges’ implementation ongoing Pledges’ implementation ongoing Full implementation by end of 2008 Full implementation by end of 2008

7 Changes in Child-Directed Ads Virtually all child-directed advertising will be tied to nutrition standards Virtually all child-directed advertising will be tied to nutrition standards 8 companies: 100% of advertising will be for better-for-you foods 8 companies: 100% of advertising will be for better-for-you foods 3 companies: No advertising of traditional candy & snacks, or beverages 3 companies: No advertising of traditional candy & snacks, or beverages 1 company: no ads or ≥ 50% for better- for-you product 1 company: no ads or ≥ 50% for better- for-you product

8 Basis for Better-For-You Products Product selection based on nutritionist- developed criteria Product selection based on nutritionist- developed criteria Criteria primarily based on government standards and recommendations Criteria primarily based on government standards and recommendations FDA standards for “healthy,” “low,” “reduced” FDA standards for “healthy,” “low,” “reduced” DHHS/USDA 2005 Dietary Guidelines DHHS/USDA 2005 Dietary Guidelines Overall limits on fats, sodium, sugar Overall limits on fats, sodium, sugar Foods recommended for increased intake Foods recommended for increased intake Nutrient shortfalls for children Nutrient shortfalls for children

9 Better-For-You Products Qualify in one or more ways Qualify in one or more ways Provide needed foods & nutrients Provide needed foods & nutrients Whole grains, vitamins/minerals, fruits and vegetables Whole grains, vitamins/minerals, fruits and vegetables Meet certain nutrient specifications Meet certain nutrient specifications Contain less calories, fat, sugar or sodium Contain less calories, fat, sugar or sodium Provide functional benefit Provide functional benefit

10 Other Pledge Highlights Third Party Licensed Characters Third Party Licensed Characters Limited to better-for-you products or healthy lifestyle messages in advertising primarily directed to children under 12 Limited to better-for-you products or healthy lifestyle messages in advertising primarily directed to children under 12 Product Placement Product Placement Will not be sought out or paid for in child-directed media Will not be sought out or paid for in child-directed media Elementary Schools Elementary Schools Stopping advertising of food & beverages to children Stopping advertising of food & beverages to children Company-Owned Sites Directed to Children Under 12 Company-Owned Sites Directed to Children Under 12 Limited to for better-for-you products/healthy lifestyle messages Limited to for better-for-you products/healthy lifestyle messages Interactive Games Directed to Children Under 12 Interactive Games Directed to Children Under 12 Limited to better-for-you products/healthy lifestyle messages Limited to better-for-you products/healthy lifestyle messages

11 Advertising Tied to Nutrition Standards 100% commitment to better-for-you food advertising to children under % commitment to better-for-you food advertising to children under 12 Campbell Soup Company Campbell Soup Company General Mills General Mills Kellogg Company Kellogg Company Kraft Foods Kraft Foods Mars Mars McDonald’s USA McDonald’s USA PepsiCo PepsiCo Unilever United States Unilever United States

12 Campbell Soup Company 100% commitment to advertise better-for-you foods to children under % commitment to advertise better-for-you foods to children under 12 Soups with less sodium and/or include a full serving of vegetables Soups with less sodium and/or include a full serving of vegetables Crackers with <35% calories from fat, 10% sat fat, modest sugar (<1g) Crackers with <35% calories from fat, 10% sat fat, modest sugar (<1g) Canned Pasta with less sodium, <35% calories from fat & include serving of vegetables, other positive nutrients Canned Pasta with less sodium, <35% calories from fat & include serving of vegetables, other positive nutrients Implementation—FY Implementation—FY No advertising to children under 6; policy formalized in 2006 No advertising to children under 6; policy formalized in 2006

13 General Mills Inc. 100% commitment to advertise better-for-you foods to children under % commitment to advertise better-for-you foods to children under 12 Revised Healthy Dietary Choice nutrition criteria Revised Healthy Dietary Choice nutrition criteria 175 calories per serving, and either 175 calories per serving, and either Meets FDA definition of healthy, or Meets FDA definition of healthy, or Includes 1/2 serving of foods targeted for increased consumption and meets sat fat, trans fat & sodium limits Includes 1/2 serving of foods targeted for increased consumption and meets sat fat, trans fat & sodium limits New 12 gram per serving sugar guideline (exclusive of sugars from fruit and dairy) New 12 gram per serving sugar guideline (exclusive of sugars from fruit and dairy) Implementation—No later than Dec. 31, 2008 Implementation—No later than Dec. 31, 2008 Most advertising will comply during entire period (6/07-12/08) Most advertising will comply during entire period (6/07-12/08) Foods will meet criteria or will not be advertised Foods will meet criteria or will not be advertised No advertising to children under 6 since 2005 No advertising to children under 6 since 2005

14 Kellogg Company 100% commitment to advertise better-for-you foods to children under % commitment to advertise better-for-you foods to children under 12 Newly adopted nutrition criteria must be met Newly adopted nutrition criteria must be met ≤ 200 calories per serving ≤ 200 calories per serving ≤ 2g sat fat, 0 Trans fat ≤ 2g sat fat, 0 Trans fat ≤ 230mg sodium (460 for waffles) ≤ 230mg sodium (460 for waffles) ≤ 12g sugars (excluding sugars from fruit and dairy) ≤ 12g sugars (excluding sugars from fruit and dairy) Implementation—no later than Dec. 31, 2008 Implementation—no later than Dec. 31, 2008 Foods will meet criteria or will not be advertised Foods will meet criteria or will not be advertised No advertising to children under 6 since 2005 No advertising to children under 6 since 2005

15 Kraft Foods 100% commitment to advertise better-for-you products to children under % commitment to advertise better-for-you products to children under 12 Detailed criteria by product category Detailed criteria by product category Based on Sensible Solution nutrition criteria Based on Sensible Solution nutrition criteria Implementation—Completed (2006) Implementation—Completed (2006) Participating in Initiative to provide greater public transparency and BBB oversight Participating in Initiative to provide greater public transparency and BBB oversight No advertising to children under 6 under longstanding policy No advertising to children under 6 under longstanding policy

16 McDonald’s USA, LLC 100% commitment to advertise better-for you meals to children under % commitment to advertise better-for you meals to children under 12 Based on newly established nutrition criteria Based on newly established nutrition criteria ≤ 600 calories, ≤35% of calories from fat, 10% from sat fat, and 35% sugar by weight ≤ 600 calories, ≤35% of calories from fat, 10% from sat fat, and 35% sugar by weight Advertising will feature the following Happy Meal Advertising will feature the following Happy Meal 375 calorie 4 piece Chicken McNuggets Happy Meal with Apple Dippers, Low-fat Caramel Dip, & 1% low-fat white milk 375 calorie 4 piece Chicken McNuggets Happy Meal with Apple Dippers, Low-fat Caramel Dip, & 1% low-fat white milk Implementation—January 2008 Implementation—January 2008

17 PepsiCo, Inc. 100% commitment to advertise better-for-you products to children under % commitment to advertise better-for-you products to children under 12 Based on Smart Spot nutrition criteria Based on Smart Spot nutrition criteria Specified fat, cholesterol, sodium & sugar limits, and requirements for certain nutrients, or Specified fat, cholesterol, sodium & sugar limits, and requirements for certain nutrients, or Functional health or wellness benefit, or Functional health or wellness benefit, or 25% reduction in calories, fats, sugar or sodium 25% reduction in calories, fats, sugar or sodium Implementation—January 2008 Implementation—January 2008 No advertising directed to children under 8 since 2006 No advertising directed to children under 8 since 2006

18 Unilever United States 100% commitment to advertise better-for- you products to children under % commitment to advertise better-for- you products to children under 12 Products must qualify for new “Eat Smart- Drink Smart” logo program Products must qualify for new “Eat Smart- Drink Smart” logo program Based on US Dietary and International Guidelines Based on US Dietary and International Guidelines Benchmarks for 5 key nutrients Benchmarks for 5 key nutrients Trans fat, sat fat, sodium, sugar and cholesterol Trans fat, sat fat, sodium, sugar and cholesterol Implementation—Sept Implementation—Sept No advertising to children under 6 since 2006 No advertising to children under 6 since 2006

19 No Advertising Group Cadbury Adams will either Cadbury Adams will either No longer advertise Bubblicious gum, or No longer advertise Bubblicious gum, or ≥ 50% advertising of product that meets Initiative healthier food criteria ≥ 50% advertising of product that meets Initiative healthier food criteria Coca-Cola Coca-Cola Hershey Hershey Mars (traditional candy & snacks) Mars (traditional candy & snacks)

20 Cadbury Adams USA, LLC Company will either Company will either Not advertise Bubblicious gum, or Not advertise Bubblicious gum, or ≥ 50% media impressions for version meeting Initiative’s healthier food criteria ≥ 50% media impressions for version meeting Initiative’s healthier food criteria Currently, Bubblicious is only product advertised to children under 12 Currently, Bubblicious is only product advertised to children under 12 Implementation—March 2008 Implementation—March 2008 No advertising to children under 8 since 2004 No advertising to children under 8 since 2004

21 The Coca-Cola Company No advertising targeted primarily to children under 12 No advertising targeted primarily to children under 12 Implementation—Completed Implementation—Completed Publicly committing now to adhere to its longstanding practice in the U.S. to not target ads to children under 12 Publicly committing now to adhere to its longstanding practice in the U.S. to not target ads to children under 12

22 The Hershey Company No advertising of candy on programs and media primarily directed to children under 12 No advertising of candy on programs and media primarily directed to children under 12 Implementation—Completed January 2007 Implementation—Completed January million media impressions were directed at children under million media impressions were directed at children under 12

23 Mars No advertising primarily directed to children under 12 of traditional candy and snack products No advertising primarily directed to children under 12 of traditional candy and snack products Implementation—Completed June 2007 Implementation—Completed June 2007 Better-for-you snacks would be advertised-if at all-to children 9 & older Better-for-you snacks would be advertised-if at all-to children 9 & older Products meet specified nutrition criteria Products meet specified nutrition criteria

24 The CARU Program Adopted Guidelines for marketing to children under 12 in 1975 Adopted Guidelines for marketing to children under 12 in 1975 Monitors child-directed advertising for all products in all mediums Monitors child-directed advertising for all products in all mediums Assesses how products are presented Assesses how products are presented Truthful, fair, and appropriate Truthful, fair, and appropriate

25 CARU Program Enhancements CARU Advisory Board expanded CARU Advisory Board expanded Includes more children’s health and nutrition experts Includes more children’s health and nutrition experts Online complaint form added Online complaint form added Facilitates filing of complaints from the public Facilitates filing of complaints from the public CARU resources increased CARU resources increased Initiative resources are additional (2 staff) Initiative resources are additional (2 staff) Food ad prescreening increased Food ad prescreening increased Based on additional support from GMA Based on additional support from GMA

26 CARU Guideline Updates Revised Guidelines to make scope clearer Revised Guidelines to make scope clearer Expansive definition of “national advertising” added Expansive definition of “national advertising” added Advergaming provision added Advergaming provision added Updated guidance on food advertising Updated guidance on food advertising Food quantities shown being consumed tied to labeled serving size Food quantities shown being consumed tied to labeled serving size No disparagement of healthy foods/lifestyles No disparagement of healthy foods/lifestyles Mealtime depictions of foods in framework of a nutritionally balanced meal Mealtime depictions of foods in framework of a nutritionally balanced meal

27 Next Steps Monitoring Monitoring Companies will submit compliance reports Companies will submit compliance reports BBB will independently monitor BBB will independently monitor Public comments welcomed Public comments welcomed Reporting publicly on results & compliance Reporting publicly on results & compliance Conducting program evaluation in 3 years Conducting program evaluation in 3 years Recruiting additional participants Recruiting additional participants

28 More Information Pledges available online Pledges available online Visit Visit Comments and inquiries welcomed Comments and inquiries welcomed Send to Send to