Statement of FCC Chairman William E. Kennard
                              
      American Advertising Federation News Conference
                     Washington, D.C. 
                       April 21, 1999
                              
                              
       I would like to commend the advertising industry   including major advertisers as
  well as the ad agency community   for listening to reports about advertising placement
  bias against minority-owned media outlets and minority audiences   and then doing
  something about it.
  
       Today, we see evidence of the wisdom of the adage that the best way to deal with
  a business problem is to develop a business solution.
  
       I salute True North Communications, one of the largest advertising agency in the
  world, for adopting as part of its own business plan the principles that many of us have
  been talking about as guidelines for fair advertising practices: ensuring fair access to
  information; promoting fair competition; and expanding opportunity for all Americans.
  
       True North is putting these principles into action by forming a new venture with its
  three minority-owned advertising agencies to provide ethnic media planning and buying
  services to advertisers. 
  
       In addition to True North, large advertisers are also responding with business
  solutions. For instance, Pepsi-Cola recently announced a 10%-15% increase in their
  advertising on black radio stations and BellSouth announced a 1999 advertising campaign
  to celebrate the historic contributions of minorities to our nation.
  
       Also today, the American Advertising Federation is moving forward on its
  commitment to create a blue ribbon panel on values and principles, called the Business
  Practices Review Committee, that will study and recommend specific business plan models
  for advertisers and agencies alike to implement to insure that they do not discriminate in
  making advertising decisions.
       
       AAF played a critical role in convening a conference in New York February 22 this
  winter where industry leaders discussed the FCC study, released in January on the subject.
  These AAF discussions have become a springboard for industry action.  I especially thank
  Wally Snyder and Heide Gardner for their leadership on this issue.
  
  
  
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       The Fairness in Communications principles being adopted by True North today
  reflect the very principles that our overall democracy is built on:
  
       Fair access to information - information about marketplace demographic and
  buying decisions:
  
       Fair competition   enhancing all consumers' access to goods, services and
  information; and
  
       Opportunity   enhancement of employment and entrepreneurial opportunities for
  all Americans.
  
       It is in no company's business interest to make advertising decisions based on
  outdated demographic information or stereotyped assumptions about minorities'
  purchasing power. 
  
  I commend these companies, AAF, AAAA and the advertising industry.  I applaud
  David Bell of True North Communications, Micheal Drexler of TN Media and Al
  Schreiber of the New America Strategies Group for putting business muscle behind these
  Fairness in Communications principles and showing business and community leadership. 
  They are setting an example that can be a model for the industry. 
  
       Thank you.