FTC Report from page 1

appealing to young people than to adults 21 and older. Each code also spells out restrictions on the use of certain individuals: actors under 25 (beer); children (spirits); Santa Claus (beer and spirits); and sports celebrities and "heroes of the youn g" (wine).

The report notes that companies seem to be making "significant efforts" to comply with ad content provisions, but cautions that ad campaigns targeted at 21-year olds could have "overflow" appeal to younger age groups.

Two of the three codes -- beer and spirits -- address online advertising. The FTC notes that more than 100 Web sites have been created to promote alcohol products, and that most companies follow the online provisions of the codes.

Given the Web's easy access, however, companies "need to give special attention not only to restricting access, but to ensuring that Web site content is not attractive to underage consumers," the report states.

The FTC calls college marketing "a source of concern given the presence of a significant underage audience on most campuses and the high incidence of abusive college drinking." Most companies have stopped sponsoring spring-break promotional events, but the report urges further restraint in campus advertising and marketing.

The report also addresses product placement, noting that in 1997-98 the eight companies providing data had placed alcohol products in 233 movies and in at least one episode of 181 different television series.

"Alcohol placement has occurred in 'PG' and 'PG-13' films with significant appeal to teens and children; in films where the advertiser knew that the primary target market included a sizeable underage market; and on eight of the 15 television shows most popular with teens," the report states.

The FTC concludes that industry compliance with existing codes is "not universal," but notes that most companies are trying to meet the voluntary guidelines. The report urges the industry to create independent external review boards to field complaint s as a means of upholding "reasonably consistent standards."

The report appears to affirm the FTC's belief in voluntary advertising standards for the alcohol industry. "Self-regulation can deal quickly and flexibly with a wide range of advertising issues and brings the accumulated experience and judgment of an i ndustry to bear," said FTC Chairman Robert Pitofsky.

"We agree that self-regulation is not just the best way but the only way to go, given the commercial speech doctrine of the Supreme Court," said Hal Shoup, Executive Vice President of the American Association of Advertising Agencies. "For the FTC to su ggest legislative or regulatory solutions to these perceived problems would've been very much off the mark," he added.

The report does not contain recommendations for legislation or regulation because Congress did not ask for any, said Lee Peeler, FTC associate director for advertising practices. Nonetheless, the FTC is not planning any further proceedings or regulator y action based on the data compiled for the report.

In August 1998 the FTC directed eight companies to file "special reports" about their advertising and marketing practices: Anheuser-Busch, Inc; Bacardi-Martini USA, Inc.; Brown-Forman Corporation; Coors Brewing Company, Inc.; Diageo plc; Miller Brewing Company Inc.; Stroh Brewery Company, Inc.; and Joseph E. Seagram & Sons, Inc.