OTTAWA – Shaw Cable is selling commercial advertising on its community channels during Western Hockey League games, says the Canadian Association of Broadcasters, which contravenes CRTC regulations.
While Canadian cable companies are allowed to offer sponsorships to local companies for some of its programming, like Joe’s Garage sponsoring a car repair program, for example, they are prohibited by regulation [27 (1)(h)] from selling commercial advertisements promoting products on their community channels.
During a WHL game last May, says the CAB’s complaint, Shaw aired 14 commercial messages, at least 11 of which contravened the regs by actively promoting certain products. “Some are identical to the commercial spot messages run on conventional and specialty television as part of national campaigns and bear no relation to the program which they are supposedly ‘sponsoring’,” says the CAB complaint.
The CAB even produced a rate card for the CRTC, co-sold by Shaw and Regina-based cable co-op Access Communications, outlining the costs for commercials for several programs. Four 30-second commercials cost $1,000 per game, says the sheet about the WHL games. CRTC regs say sponsorship messages can be only 15 seconds of full motion video. It’s unclear whether or not the messages can be longer if there’s no full-motion video for the rest of the time.
“The CAB submits that the existence of this rate card is further evidence of either Shaw’s misunderstanding or its willingness to ignore the Commission’s regulatory restrictions on commercial activity on the community channel,” says the CAB complaint, filed November 24, 2005.
In its December 21st response, Shaw, naturally, “strongly rejects the CAB’s allegations,” it reads. “We believe we are stepping up to the plate to help increase the level of local programming in the community,” and the language in the ads are merely descriptive and not promotional in nature.
Shaw says that since no local broadcaster has chosen to air the WHL games and that Shaw and other local cable companies are having success showing the junior hockey games, that CAB and its members are a little defensive
“In our view, the CAB’s complaint may stem more from a CAB concern that Shaw TV has indeed taken up the challenge of producing and broadcasting local programming that is high quality, relevant and responsive to our local community,” adds Shaw.
Shaw insists the sponsors’ messages shown fall within CRTC regulations. “[Section 27(1)(h)] does not prohibit sponsorship advertisements that are from mainstream businesses… Nor does it prohibit a sponsor from using an advertisement that is part of a national or North American advertising campaign, provided that it respects the requirements for sponsorship messages,” reads Shaw’s reply.
Shaw also acknowledged, however, that four of the ads specified by the CAB do not comply with its own internal sponsorship guidelines but even so, still don’t contravene the regs anyway. And in response to Shaw’s 30-second offer on its rate card? “Only 15-second sponsorship advertisements are being offered on Shaw TV,” it said.
That said, Shaw split a few regulatory hairs a few lines down from that in its letter, saying: “Section 27(1)(h) only limits each message to a “moving visual presentation of no more than 15 seconds per message”. Provided the moving visual presentation contained within a message does not exceed 15 seconds, there does not appear to be any explicit prohibition in the Regulations on broadcasting sponsorship messages that would exceed that 15 second limit. As such, it is our view that a 30 second sponsorship message that contains a moving visual presentation of no more than 15 seconds would be permitted under section 27(1)(h) of the Regulations.”
The CAB responded to Shaw’s letter on January 16th rejecting Shaw’s assertion that it’s complaining because Shaw and the other MSOs are successfully airing local hockey.
It also disagreed with Shaw’s assertions that certain promotional language (not permitted by regulation) is merely descriptive and that commercial slogans or jingles are not permitted by the CRTC. For example, “try the personal service of Saskatoon Credit Union. Saskatoon Credit Union: investing in a better way, right here in Saskatchewan,” was one of the quips the CAB objected to, especially since there’s no evidence the slogans are trademarked (which the CRTC would allow).
The CAB also repeated its objection to the inclusion of national advertising (there were spots from Boston Pizza and Peak Freans, for example), because the CRTC originally allowed minimal advertising on community channels so that local merchants could get exposure.
“In this context, it is difficult to understand the rationale for broadcasting sponsorship messages in a local community program on behalf of an international corporation such as Kraft Foods (owners of Peak Freans),” says the CAB reply letter.
The CAB wants Shaw to comply with the regs and submit regular compliance reports.
No word yet on when a decision may be rendered.
