The Poster Child for Compliance: CARU Updates Its Advertising Guidelines for Children’s Advertising | Manatt, Phelps & Phillips, LLP

In its first main replace since 2014, the BBB National Programs’ Children’s Advertising Review Unit (CARU) introduced on July 29, 2021, the issuance of its revised CARU Advertising Guidelines (the Revised Guidelines), widely known business requirements to guarantee that promoting directed to kids shouldn’t be misleading, unfair or inappropriate for its meant viewers. The Revised Guidelines will go into impact on January 1, 2022, and can apply to kids below the age of 13 throughout all child-directed content material regardless of the platform. The earlier CARU tips utilized primarily to kids below the age of 12.

CARU, which is the nation’s first Safe Harbor Program below the Children’s Online Privacy Protection Act (COPPA), helps firms adjust to legal guidelines and tips that defend kids from misleading or inappropriate promoting and be sure that, in an internet atmosphere, kids’s information is collected and dealt with responsibly. When promoting or information assortment practices are deceptive, inappropriate, or inconsistent with legal guidelines and tips, CARU seeks change by way of the voluntary cooperation of firms and, the place related, enforcement motion. CARU displays child-directed media to make sure that promoting is compliant with CARU’s self-regulatory tips.

The Revised Guidelines acknowledge the expansion over the previous decade in on-line platforms and new immersive types of child-directed interactive media and have been up to date to extra particularly handle digital media, video, influencer advertising, apps, in-game promoting and buy choices in video games, social media, and different interactive media within the kids’s area. In addition, recognizing the significance of range and inclusion in advert artistic, the Revised Guidelines maintain advertisers accountable for adverse social stereotyping, prejudice or discrimination.

While the core rules of the CARU tips haven’t modified, the Revised Guidelines transfer past television-centric necessities to deal with and mirror right now’s digital promoting atmosphere. The Revised Guidelines now (i) include a brand new part devoted to in-app and in-game promoting and purchases; (ii) include a brand new guideline requiring that promoting not painting or encourage adverse social stereotyping, prejudice or discrimination; (iii) incorporate up to date Federal Trade Commission (FTC) steerage on endorsements and influencer advertising; and (iv) transfer the privateness provisions right into a separate, freestanding tips doc made out there by the BBB National Programs’ Self-Regulatory Guidelines for Children’s Online Privacy Protection, which shall be up to date when the FTC publishes its revised COPPA rules. Other key updates within the Revised Guidelines embody the next:

The part on “Blurring of Advertising and Content,” which addresses the observe of native promoting within the kids’s advert context, states: “Some Advertising would require disclosures or contextual cues to assist Children acknowledge it as Advertising. Attention to the wording utilized in Ads and commonsense design strategies, together with textual content measurement and coloration, positioning, and different visible or contextual cues, such because the borders round or background shadings of Ads, can considerably enhance the chance that Children will acknowledge an Ad as an Ad and scale back the potential for Children to be misled. Some Advertising, as a result of its wording, design, and context, could also be so clearly industrial in nature that it’s prone to be recognizable as Advertising even with out a particular disclosure, e.g., conventional linear tv commercials or, in lots of cases, an Advertiser’s personal branded web sites, social media channels, or apps.”
CARU clarifies within the Revised Guidelines that placement or integration of a product, service, character or model in editorial, academic, leisure or different noncommercial content material shouldn’t be throughout the scope of the Revised Guidelines except such placement or integration constitutes an endorsement. An “Endorsement” has been outlined within the Revised Guidelines to imply “any Advertising message (together with verbal statements, demonstrations, or depictions of the identify, signature, likeness, or different figuring out private traits of any particular person or the identify or seal of a company) that Children are prone to consider displays the opinions, beliefs, findings, or experiences of a celebration aside from the sponsoring Advertiser, even when the views expressed by that celebration are an identical to these of the sponsoring Advertiser. The celebration whose opinions, beliefs, findings, or expertise the message seems to mirror shall be referred to as the Endorser and could also be a person, group, or establishment.”
Changes within the “Material Disclosures” part of the Revised Guidelines make clear that disclosures in kids’s promoting ought to be repeated in any long-form commercial, not simply in streaming movies or different choices the place a toddler can tune in at any level within the piece. This is according to the FTC’s place that disclosures ought to be repeated in media corresponding to prolonged YouTube movies, and due to this fact is particularly necessary within the kids’s promoting context.
A brand new part of the Revised Guidelines clarifies applicable practices for in-app/in-game promoting and purchases focused to kids. It states: “Advertisements, apps, or video games shouldn’t use unfair, misleading, or different manipulative ways, together with, however not restricted to, misleading door openers or social strain or validation, to encourage advert viewing or in-app or in-game purchases, or to trigger kids to inadvertently or unknowingly interact with an advert. Any strategies supplied to dismiss or exit an Advertisement should be clear and conspicuous to kids. Advertisements, apps, or video games that enable kids to make purchases should make it clear that the acquisition includes actual foreign money.”

Why It Matters

CARU displays child-directed media to make sure compliance with the CARU tips, searching for voluntary cooperation of firms and, the place crucial, referral for enforcement motion to an applicable federal regulatory physique, often the FTC or state attorneys normal, when firms fail to reply to CARU’s inquiries. CARU additionally introduced that interpretations of the Revised Guidelines will now be up to date on an ongoing foundation by way of FAQs as new challenges and questions on utility of the Revised Guidelines come up. Beginning in January 2022, CARU will start actively investigating instances of noncompliance with its Revised Guidelines. As the Revised Guidelines extra clearly spell out the elements that decide when an advert is primarily directed to kids below age 13, firms trying to decide whether or not their promoting to kids is compliant with the Revised Guidelines ought to attain out to a Manatt promoting, advertising and media staff member, who’s standing prepared, prepared and in a position to help with the overview.

In addition to working with authorized counsel to make sure COPPA and CARU compliance, advertisers also can make the most of CARU’s Supporters’ Council, which offers sure advantages to assist members with their compliance. CARU, which in 2001 turned the primary COPPA Safe Harbor Program, helps supporters defend the privateness of kids on-line and meet the necessities of COPPA and the CARU tips. Members who adhere to CARU’s tips are deemed in compliance with COPPA. CARU additionally affords prescreening companies and can overview members’ scripts, storyboards, tv commercials and micro web sites for compliance. 

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