The Radio and Television Broadcasting Council awarded the first penalty for the so-called “product placement“ after two years since Act No. 132/2010 Coll. came into force. On-demand audiovisual media services, which permits “product placement” (i.e. a product is featured within a programme unit in return for payment/consideration) under certain conditions was the subject of the penalty.
The Act declares that in cases in which the “product placement” meets statutory requirements, it cannot be deemed to be a hidden advertisement, or more precisely the so-called hidden audiovisual commercial communication.
The first penalty amounted of CZK 250,000. It was awarded for a food supplement which was unduly emphasised both verbally and visually. According to the Council’s opinion, the presentation resembled an advertisement and the intensity of communication thus exceeded the statutory level. The Act prohibits referring to, or the display of a product in a manner which would directly encourage the purchase or rental of such product. Making special promotional references to a placed product is also prohibited.