The National Consumer Council has written to media regulator Ofcom objecting to any relaxation of laws governing product placement in UK television programmes, as the European Commission proposes liberalising the rules.
Ofcom asked for submissions on the issue last year. At the time it said it believed a "cautious approach" to the issue had some merit.
Broadcasters welcome the EC move because they see it is a way of shoring up revenues in an age where the 30-second television commercial is on the decline.
Advertisers are also in favour, because it is seen as a new way to make products stand out amid all the advertising clutter.
But the NCC says there is little evidence that it will pay dividends for broadcasters or advertisers, and is urging Ofcom not to proceed even with limited product placement.
Sue Dibb, author of NCC's submission to Ofcom, said it was stealth advertising taken too far.
"Prominent product placement has scant support from the public and, on US experience, will boost traditional advertising spend by less than 1% -- hardly a viable alternative source of television funding," she said.
In the US, product placement is commonplace, and can be seen in shows such as 'Will & Grace' and 'American Idol', where the three judges are never seen without a Coca-Cola branded cup in front of them.
In the UK, brands are presently allowed to be used in television programmes where they help add realism, but brand owners are not allowed to negotiate with broadcasters over the way in which they are shown or referred to.
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