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HIDDEN ADVERTISING: R.T.I (MEDIASET) AND RAI FINED


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HIDDEN ADVERTISING: ANTITRUST AUTHORITY FINES R.T.I (MEDIASET) AND RAI


Manufacturers of advertised products and the supplier of the ‘L’Isola dei Famosi 6’ format also held to be responsible for non-transparent promotional activities. Fines levied totalling Euro 440,000

The Italian Competition Authority, in two separate rulings, has fined Mediaset R.T.I and RAI for having broadcast hidden advertising during the course of the programs “Questa Domenica” and “Pomeriggio 5”, as well as the program “L’Isola dei famosi 6”.
The Authority held that the same violation of the Consumer Code was committed also by the manufacturers of the products advertised in a non-transparent manner: Gielle, producer of the Monella Vagabonda brand, on the R.T.I. programs, and Asteria (MyMara jewellery collection) and Europ Assistance in ‘L’Isola dei Famosi 6’. In this second case, the Antitrust Authority also fined Magnolia which produces the format.
The rules of the Consumer Code were instead found not to be applicable to the persons endorsing the products in the absence of proof of the existence of a joint interest with the manufacturers.
Overall, the fines total Euro 440,000.

The hidden advertising broadcast during the episodes of “L’Isola dei Famosi 6” had to do with the MyMara and EuropAssistance brands. Specifically:
  1. Hidden sponsorship by the MyMara line of jewellery took place in various episodes during which the person endorsing the products and a number of guests wore the jewellery, which was featured in repeated close-up shots. Documents gathered during the course of inspections revealed that the advertising campaign material of Asteria, a producer of jewellery, included the 13 episodes of the “L’isola dei famosi” program with Mara Venier. This fact, even in the absence of proof of a formalized contract between RAI, Magnolia and Asteria, confirms that the display of the commercial logo in the course of the show was exclusively for advertising purposes, that RAI and Magnolia consented to this by way of omissive conduct and lack of vigilance, and that Asteria benefited from it.

2) Hidden sponsorship by the Europ Assistance brand took place in a sequence relating to the repatriation of a contestant in which the host of the program explicitly thanked the company. Documents gathered during the course of an inspection at Magnolia headquarters unequivocally show that the thanks were the result of an exchange of a commercial nature: Europ Assistance would not charge for the additional service of providing medical assistance to the contestant for his return to Italy in exchange for an expression of thanks and a mention of the company; reference was also made to the cost of advertising on the program. The Antitrust Authority consequently held liable not only RAI which consented by way of omissive conduct and lack of vigilance to the adoption of this improper commercial practice, but also Magnolia and Europ Assistance which actually put the improper practice into effect.

The hidden advertising relating to the Monella Vagabonda brand was broadcast in the Questa Domenica TV program on 23 November 2008 and in the Pomeriggio Cinque program on 2 February 2009.
In the Authority's view, even in the absence of a contract between R.T.I. and Gielle, the facts that emerged during the course of the investigation concur in demonstrating the promotional objective of the images broadcast. Both R.T.I. and Gielle, given their role, their professional competence and the characteristics of their business, could and should have taken all the necessary steps and measures to prevent any occurrence of hidden advertising.
 
The following are the fines decided upon:

Hidden advertising of the MyMara line

- RAI - Euro 40,000
- Magnolia - Euro 60,000
- Asteria -  Euro 40,000

Hidden advertising of the Europe Assistance brand

- RAI - Euro 80,000
- Magnolia - Euro 80,000
- Europ Assistance - Euro 50,000

Hidden advertising of the Monella Vagabonda brand

- R.T.I. - Euro 60,000
- Gielle S.r.l. - Euro 30,000


Rome, 6 July 2009