A reform proposal from the European Union wants online video creators to more clearly highlight sponsored content and product placement in their videos.
The proposed reform aims to protect children online and proposes to ban product placement for tobacco, electronic cigarettes, and alcohol on online video platforms, such as YouTube.
In the press release, Sabine Verheyen, who is leading the proposal said that “we proposed adapting some of the rules applying to programmes on television to internet services, such as rules on advertising, product placement and sponsorship. Certain advertising in programmes aimed at a children’s audience will be restricted, allowed only to a very limited extent or will be prohibited in general.”
The proposal, which was presented on Tuesday, also calls for on-demand video platforms such as Netflix or Amazon Prime Video to have catalogs which have at least 30% European productions. EU member states could ask video services like Netflix to contribute by investing directly in content or by contributing to national funds.
Should the reform be passed as proposed, linear TV broadcasters would also faces rules limiting advertising to a maximum of 20% air time.
The ideas of the proposal still need to be endorsed by the EU parliament, which will decide on May 15 whether to open deliberations on the approval of the proposed reform.