Govt receives 340 complaints about product placement last three years, only 6pc substantiated

Since the relaxation of the regulation of indirect advertising within TV programs in July 2018, the Communications Authority has received a total of 340 complaints about 178 cases about indirect advertising, of which five cases involving 21 complaints were substantiated, said Hong Kong’s commerce chief.

In a written reply to lawmaker Chan Chun-ying, Secretary for Commerce and Economic Development Edward Yau Teng-wah, said the CA will take into account a number of factors in considering whether a product placement is natural and unobtrusive.

“Those include whether the product placement is relevant to the context and genre of the program, whether the integrity and natural flow of the program is impacted, whether the product placement is naturally integrated into the program, and whether there is excessive exposure or highlighting of the products or services.” 

“The CA will consider all relevant facts and context on a case by case basis,” Yau wrote.

He also said a set of frequently asked questions on the regulation of indirect advertising has been uploaded to the CA's website for reference of the licensees and the public. 

Meanwhile, Yau said the CA does not require the licensees to provide a breakdown of their advertising revenue. 

“As free TV services have been facing fierce competition from other media in recent years, the CA considers that the relaxation of the restrictions would help TV stations diversify sources of advertising revenue. The measure can also remove some of the outdated regulatory requirements for the licensees, improve their long-term sustainability and facilitate their continuous production of high-quality programs for TV viewers,” said Yau.