Day 003 - 30 Jun 94 - Page 38


     
     1   Q.   I mean, stabilization?
              A.  Stabilization.
     2
         Q.   Now then perhaps we can pass to advertising.  I have dealt
     3        with almost everything under that topic I want to ask you
              about.  I do ask this, in this country is the advertising
     4        which is produced for children governed by any kind of
              independent or other regulation ----
     5        A.  Oh, yes.  Nothing finds its way on to television
              without it going through, I believe it is called, the
     6        Independent Broadcast Authority, the IBA.  If they are not
              happy with what is on the film and going to be broadcast
     7        through the television, it just does not happen.  It is as
              simple as that.
     8
         Q.   Is press or other kinds of visual advertising, aside from
     9        television, governed by another body?
              A.  There is a body which governs press as well.
    10
         Q.   Does McDonald's have a concern to keep to the standards
    11        which are set by those authorities or not?
              A.  Not only do we keep to their standards, but we have
    12        our own code of practice which I think is even more strict
              than their own.
    13
         Q.   Which is called?
    14        A.  McDonald's Advertising Code of Practice.  There maybe
              in advertising language some specialised name.
    15
         Q.   It is called "Golden Arches"?
    16        A.  Golden Arches Code.
 
    17   Q.   My Lord, the relevant reference is pink volume 7, section
              B, tabs 6 to 10 inclusive.  My Lord, they are from
    18        different dates; some European, some American.  My Lord,
              the guidelines are at section A, tabs 1 to 5, both British
    19        and American, so far as broadcasting is concerned.
 
    20        (To the witness):  Does it happen, Mr. Preston, or has it
              happened from time to time that this, that or the other
    21        advertisement -- I will ask you if you know how
              frequently, depending on your answer -- as it were, falls
    22        foul of one of the regulatory authorities.
              A.  I cannot name one off the top of my head, but I would
    23        be surprised if we did not present things on occasion they
              sent back and said:  "You have to change this" or "You
    24        have to change that".  We will make the change and go
              forward.
    25
         Q.   The advertisements, presumably, will be written or 
    26        composed by an agency? 
              A.  Yes.  We use Leo Burnett here in London. 
    27
         Q.   Is that both print and television?
    28        A.  Primarily, yes.  There maybe something an individual
              franchisee does very locally, but for the most part they
    29        do everything for us.
 
    30   Q.   In America, Mr. Preston, the position is different, is it
              not?  There is a much heavier burden in advertising cast

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