Volume V No. 2

A publication of the National Association of Theatre Owners

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Morality,
Deception,
and the
Rating System

Trevin Skeens of Brownsville, Md., recently sued Wal-Mart Stores for allegedly deceiving customers by stocking compact discs of the rock band Evanescence that contain the “f-word.”

Mr. Skeens permitted his daughter to buy the music for her 13th birthday because the CD didn’t contain a parental advisory label alerting potential buyers to the lyrics. Wal-Mart, you see, promotes itself as a seller of clean music (and clean movies too). The company represents to consumers that it will not sell albums with parental advisory labels under the music industry’s labeling system. The record company for this particular music, however, decided not to apply an advisory label to the Evanescence CD. So Mr. Skeens seeks damages of up to $74,500 for each of the thousands of people in Maryland who bought the music at Wal-Mart, and his lawyer wants to file similar cases in other states. All because the young Ms. Skeens was exposed to the f-word.

Morality continues to play an important role in U.S. politics and law. The polling data from the recent presidential election make that point abundantly clear. Motivated by issues ranging from gay marriage to abortion, “red state” voters concerned about the moral fabric of society had plenty of incentive to participate in the election.

Mr. Skeens has gone to court to protect the morality of his teen daughter, and thousands of similarly situated Marylanders. But the legal theory articulated by the complaint causes me heartburn. Specifically, Mr. Skeens believes that Wal-Mart’s actions violate the Maryland Consumer Protection Act’s prohibitions against false, deceptive or misleading statements to consumers. Simply put, if a labeling system exists, and Wal-Mart professes to use the system, any non-compliance can constitute illegal consumer deception.

The implications for our own movie rating system are self-evident. Studios and theatre owners, acting through their respective trade associations, created a voluntary movie rating system. The collective industry holds out this system to patrons nationwide. Studio advertising targets appropriate audiences. Cinemas do age-checks. But even with the best of intentions, strong policies and employee training, we will never get it right all of the time.

This is not the first time that we have encountered this legal argument. The Federal Trade Commission Act prohibits misleading and deceptive statements to consumers as a matter of federal law. The commission has now investigated our industry’s rating system activities for five straight years, releasing several comprehensive reports. The laws on deception give the FTC that power to act.

Nor should we forget legislation previously introduced by senators Joe Lieberman (D-Conn.), Herb Kohl (D-Wis.) and Hillary Clinton (D-N.Y.) that would have defined the marketing of R-rated movies (and musical recordings with parental advisory labels) to children as a deceptive act under FTC regulations. And a few years before that, of course, several bills where considered in Congress that would fine theatre owners each time they failed to enforce the ratings at the box office.

If any of these lawsuits or legislative proposals ever succeeded, all of the voluntary entertainment labeling and rating systems would come crashing down. With the potential exposure for mistakes calculated at tens of thousands of dollars per consumer, why would anyone use a rating system in the first place? In the end, were Trevin Skeens to be successful in his lawsuit, Wal-Mart would abandon its policies, the music labeling system would be abolished, and Mr. Skeens would have a much more difficult time protecting the morality of his daughter.

 

 

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