A bill to prohibit the targeted marketing to minors of adult-rated media as an unfair or deceptive practice, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Media Marketing Accountability Act 
of 2001''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Children have easy access to a variety of media and 
        entertainment options without leaving their own homes. The vast 
        majority of homes with children have a VCR, a CD player, and 
        either a video game console or a personal computer.
            (2) Children, and especially teenagers, spend a large 
        amount of time listening to music, seeing movies, and playing 
        video games. Specifically:
                    (A) Children ages 8 through 13 spend approximately 
                3 hours per week in a movie theater, on average. In 
                addition, 62 percent of children ages 9 through 17 
                spent an average of 52 minutes per day watching video 
                tapes.
                    (B) 82 percent of children play video games, and do 
                so for 33 minutes per day, on average.
                    (C) Children ages 14 through 18 listen to music 
                approximately 2\1/2\ hours per day on average.
            (3) Teenagers spend tens of millions of dollars annually on 
        movies, music, and video games, making them a highly valuable 
        demographic group to the producers and distributors of 
        entertainment products.
            (4) Media violence can be harmful to children. Most 
        scholarly studies on the impact of media violence find a high 
        correlation between exposure to violent content and aggressive 
        or violent behavior. Additional studies find a high correlation 
        between exposure to violent content and a desensitization to 
        and acceptance of violence in society.
            (5) On September 11, 2000, the Federal Trade Commission 
        reported that companies in the music, movie, and video game 
        industries routinely target children under age 17 in the 
        advertisement of adult-rated products. Specifically:
                    (A) The Commission found that 80 percent of the R-
                rated movies studied had been targeted to children. In 
                addition, marketing plans for 64 percent of the R-rated 
                movies studied explicitly mentioned children under age 
                17 as part of the target audience.
                    (B) The Commission found that all marketing plans 
                for music recordings with explicit content labels 
                either explicitly mentioned children under age 17 as 
                part of the target audience or called for ad placement 
                in media that would reach a majority or substantial 
                percentage of children under age 17.
                    (C) The Commission found that 70 percent of Mature-
                rated video games studied were targeted to children 
                under age 17, and 51 percent explicitly mentioned 
                children under age 17 as part of the target audience. 
                Additionally, the Commission found that 91 percent of 
                the video game manufacturers studied had at one time 
                expressly identified children under age 17 as the core, 
                primary, or secondary audience of an M-rated game.
            (6) To correct this problem, the Commission called on these 
        industries to adopt voluntary, uniform policies expressly 
        prohibiting these practices and to enforce these policies with 
        real sanctions for violations.
            (7) To date, as the Commission noted in a follow-up report 
        released on April 24, 2001, only the video game industry has 
        agreed to adopt such a marketing code. The Commission also 
        noted that, despite some encouraging changes in behavior since 
        the release of the Commission's original report in 2000, a 
        number of companies in all three industries have nevertheless 
        continued to market adult-rated products in venues popular with 
        children.
            (8) Because the entertainment industry continues to target 
        its advertising of adult-rated products to children, there is 
        need for narrowly targeted legislation to prohibit, as a false 
        and deceptive trade practice, the targeting of children in the 
        advertisement and other marketing of products rated for adults, 
        and to authorize the Federal Trade Commission to stop these 
        practices.

      TITLE I--TARGETED MARKETING OF ADULT-RATED MEDIA TO CHILDREN

SEC. 101. PROHIBITION ON TARGETED MARKETING TO MINORS OF ADULT-RATED 
              MEDIA AS UNFAIR OR DECEPTIVE PRACTICE.

    (a) In General.--The targeted advertising or other marketing to 
minors of an adult-rated motion picture, music recording, or electronic 
game, in or affecting commerce, shall be treated as a deceptive act or 
practice within the meaning of section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45), and is hereby declared unlawful.
    (b) Treatment as Targeted Advertising or Marketing to Minors.--For 
purposes of this section, the advertising or other marketing of an 
adult-rated motion picture, music recording, or electronic game shall 
be treated as targeted advertising or other marketing of such product 
to minors if--
            (1) the advertising or marketing--
                    (A) is intentionally directed to minors; or
                    (B) is presented to an audience of which a 
                substantial proportion is minors; or
            (2) the Commission determines that the advertising or 
        marketing is otherwise directed or targeted to minors.

SEC. 102. SAFE HARBOR.

    (a) In General.--The advertising or other marketing to minors of an 
adult-rated motion picture, music recording, or electronic game shall 
not be treated as targeted advertising or other marketing to minors, 
for purposes of section 101, if the producer or distributor responsible 
for the advertising or marketing adheres to a voluntary self-regulatory 
system with respect to such product that satisfies the criteria under 
subsection (b) and is subject to the sanctions referred to in 
subsection (b)(3).
    (b) Criteria.--The Federal Trade Commission shall, by rule, 
establish the criteria referred to in subsection (a). Under such 
criteria, a voluntary self-regulatory system shall include the 
following elements:
            (1) An age-based rating or labeling system for the product 
        in question.
            (2) For all products that are rated or labeled as adult-
        rated under such system--
                    (A) prohibitions on the targeted advertising or 
                other marketing to minors of such products; and
                    (B) other policies to restrict, to the extent 
                feasible, the sale, rental, or viewing to or by minors 
                of such products.
            (3) Procedures, including sanctions for non-complying 
        producers and distributors, meeting such requirements as the 
        Commission includes in such criteria in order to assure 
        compliance with the prohibitions and other policies referred to 
        in paragraph (2).

SEC. 103. REGULATIONS.

    (a) In General.--The Federal Trade Commission shall prescribe rules 
that define with specificity the acts or practices that are deceptive 
acts or practices under section 101.
    (b) In Particular.--The rules under subsection (a)--
            (1) shall specify criteria for determining whether or not 
        an audience is comprised of a substantial proportion of minors 
        for purposes of section 101(b)(1)(B); and
            (2) may include requirements for the purpose of preventing 
        acts or practices that are deceptive acts or practices under 
        section 101.

SEC. 104. MATTERS RELATING TO REGULATIONS.

    (a) In General.--The Federal Trade Commission shall prescribe rules 
under sections 102 and 103 in accordance with the provisions of section 
553 of title 5, United States Code.
    (b) Time Limit.--The Commission shall prescribe the regulations 
required under sections 102 and 103(b)(1) not later than 12 months 
after the date of the enactment of this Act.

SEC. 105. ENFORCEMENT.

    (a) In General.--This title shall be enforced by the Federal Trade 
Commission under the provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.).
    (b) Actions by Commission.--
            (1) In general.--The Commission shall prevent any person 
        from violating section 101, or a rule of the Commission under 
        section 103, in the same manner, by the same means, and with 
        the same jurisdiction, powers, and duties as though all 
        applicable terms and provisions of the Federal Trade Commission 
        Act were incorporated into and made a part of this title.
            (2) Particular rules.--A rule prescribed under section 
        103(b)(1) shall be treated as a rule prescribed under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
        57a(a)(1)(B)), and any violation of a rule prescribed under 
        such section 103 shall be treated as a violation of a rule 
        respecting unfair or deceptive acts or practices under section 
        5 of the Federal Trade Commission Act (15 U.S.C. 45).
            (3) Rights and liabilities of parties.--Any person or 
        entity that violates section 101, or a rule of the Commission 
        under section 103, shall be subject to the penalties, and 
        entitled to the privileges and immunities, provided in the 
        Federal Trade Commission Act in the same manner, by the same 
        means, and with the same jurisdiction, powers, and duties as 
        though all applicable terms and provisions of that Act were 
        incorporated into and made a part of this title.
    (c) Effect on Other Laws.--Nothing in this title shall be construed 
to limit the authority of the Commission under any other provision of 
law.

SEC. 106. DEFINITIONS.

    In this title:
            (1) Adult-rated.--The term ``adult-rated'', in the case of 
        a motion picture, music recording, or electronic game, means a 
        rating or label voluntarily assigned by the producer or 
        distributor of such product, including a rating or label 
        assigned pursuant to an industry-wide rating or labeling 
        system, which rating or label--
                    (A) indicates or signifies that--
                            (i) such product is or may be appropriate 
                        or suitable only for adults; or
                            (ii) access to such product by minors 
                        should be restricted; or
                    (B) in the case of a music recording, advises or 
                signifies that such product may contain explicit 
                content, including strong language or expressions of 
                violence, sex, or substance abuse.
            (2) Minor.--The term ``minor'' means an individual below 
        the age established under the rating or labeling system in 
        question to be an appropriate audience for adult-oriented 
        material, but in no event includes an individual 17 years of 
        age or older. If no specific age is so established under the 
        rating or labeling system in question, the term means an 
        individual less than 17 years of age.
            (3) Adult.--The term ``adult'' means an individual who is 
        no longer a minor.
            (4) Electronic game.--The term ``electronic game'' means 
        any interactive entertainment software, including any computer 
        game, video game, or on-line game, sold or rented on any 
        tangible medium or by any electronic or on-line medium by which 
the right to play a specified interactive-entertainment-software 
product is purchased.
            (5) Motion picture.--The term ``motion picture'' means any 
        theatrical motion picture shown in a commercial theater or sold 
        or rented by videotape, digital recording, or other tangible 
        medium or by any electronic or on-line medium by which the 
        right to play an individual theatrical motion picture is 
        purchased, except that such term shall not include anything 
        shown on broadcast television or cable television.
            (6) Music recording.--The term ``music recording'' means 
        any recording of music sold or rented on compact disk, tape 
        cassette, vinyl record, music video, or other tangible medium 
        or by any electronic or on-line medium by which the right to 
        hear a specified work of music is purchased, except that such 
        term shall not include anything shown on broadcast television 
        or cable television.

SEC. 107. EFFECTIVE DATE.

    This title shall take effect 90 days after the date of the 
enactment of this Act.

                        TITLE II--OTHER MATTERS

SEC. 201. STUDY OF MARKETING PRACTICES OF ENTERTAINMENT INDUSTRIES 
              REGARDING ADULT-RATED MATERIALS.

    (a) In General.--The Federal Trade Commission shall conduct a study 
of the advertising and other marketing practices of the motion picture 
industry, music recording industry, and electronic game industry 
regarding adult-rated motion pictures, music recordings, and electronic 
games.
    (b) Matters To Be Studied.--In conducting the study under 
subsection (a), the Commission may examine--
            (1) whether and to what extent the industries referred to 
        in that subsection direct to minors the advertising and 
        marketing of adult-rated materials, including--
                    (A) whether such materials are advertised or 
                promoted in media outlets in which minors are present 
                in substantial numbers or comprise a substantial 
                percentage of the audience; and
                    (B) whether such industries use other marketing 
                practices designed to attract minors to such materials;
            (2) whether and to what extent retail merchants, movie 
        theaters, or others who engage in the sale or rental for a fee 
        of products of such industries--
                    (A) have policies to restrict the sale, rental, or 
                viewing to or by minors of adult-rated materials; and
                    (B) have procedures to ensure compliance with such 
                policies;
            (3) whether and to what extent such industries require, 
        monitor, or encourage the enforcement of their voluntary rating 
        or labeling systems by industry members, retail merchants, 
        movie theaters, or others who engage in the sale or rental for 
        a fee of the products of such industries;
            (4) whether and to what extent such industries engage in 
        activities to educate the public in the existence, use, or 
        efficacy of their voluntary rating or labeling systems; and
            (5) whether and to what extent the policies and procedures 
        referred to in paragraph (2), any activities referred to in 
        paragraphs (3) and (4), and any other activities of such 
        industries are effective in restricting the access of minors to 
        adult-rated materials.
    (c) Factors in Determination.--In determining whether the products 
of an industry are adult-rated for purposes of subsection (b), the 
Commission shall use the voluntary industry rating or labeling system 
of the industry, both as in effect on the date of the enactment of this 
Act and as modified after that date.
    (d) Authorities.--In conducting the study under subsection (a), the 
Commission may use its authority under section 6(b) of the Federal 
Trade Commission Act (15 U.S.C. 46(b)) to require the filing of reports 
or answers in writing to specific questions, as well as to obtain 
information, oral testimony, documentary material, or tangible things.
    (e) Reports.--
            (1) Requirement.--The Commission shall submit to Congress 
        and the public two reports on the study under subsection (a), 
        as follows:
                    (A) An initial report, not later than two years 
                after the date of the enactment of this Act.
                    (B) A final report, not later than six years after 
                that date.
            (2) Elements.--Each report under paragraph (1) shall 
        include--
                    (A) a description of the study conducted under 
                subsection (a) during the period covered by the report;
                    (B) any findings and recommendations of the 
                Commission arising out of the study as of the end of 
                that period; and
                    (C) the identification of the particular producers 
                and distributors, if any, engaged in advertising or 
                other marketing practices relevant to such findings and 
                recommendations.
    (f) Definitions.--In this section, the terms ``adult-rated'', 
``electronic game'', ``motion picture'', ``music recording'', and 
``minor'' have the meanings given those terms in section 106.

SEC. 202. SEPARABILITY.

    If any provision of this Act, or the application of such provision 
to any person, partnership, corporation, or circumstance, is held 
invalid, the remainder of this Act, and the application of such 
provision to any other person, partnership, corporation, or 
circumstance, shall not be affected thereby.

Summary: Media Marketing Accountability Act of 2001 - Declares that targeted marketing to minors of an adult-rated motion picture, music recording, or electronic game shall be treated as a deceptive act or practice within the meaning of the Federal Trade Commission Act, and considered unlawful unless the producer or distributor responsible for advertising or marketing adheres to a voluntary self-regulatory system that comports with criteria established by the Federal Trade Commission (FTC). Grants the FTC enforcement powers. Directs the FTC to study and report to Congress on marketing practices of the motion picture, music recording and electronic game industries with respect to adult-rated products, including the identification of particular producers and distributors engaged in such practices.