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United States Senate
Government Affairs Committee
Hearing on
Rating Entertainment Ratings:
How Well are They Working for Parents, and What can be
Done to Improve Them”
Testimony of Doug McMillon, Senior Vice President and
General Merchandise Manager, for Wal-Mart Stores, Inc.
July 25, 2001
Introduction
Mr. Chairman,
members of the Subcommittee, I am Doug McMillon, Senior Vice
President and General Merchandise Manager, for Wal-Mart Stores.
At Wal-Mart, we have
worked hard to create and protect our relationship with our
customers. They are
and always have been the guiding force behind our decisions.
We have created stores that offer every day low prices,
quality merchandise, and fast and friendly service.
Our associates are involved with the individuals and
families in our communities.
Last year alone, we supported our communities with $190
million in charitable giving. Ninety-seven percent of that money was donated at the local
level through our stores. We
aspire to be an important part of our customers’ communities
and to provide products and services that raise the standard of
living for the working families of America.
Consistent with that
aspiration, Wal-Mart attempts to sell entertainment products in
a way that allows our customers to make informed decisions and
to exclude from our shelves, merchandise that our customers find
objectionable due to its sexually explicit or extremely violent
nature. The
challenge we face is in our ability to 1) help the customers
understand what they are buying and 2) determine which products
they find objectionable either before, and in some cases after,
we have made it available for purchase.
At times, this is harder than it sounds due to the
subjective nature of some of these decisions.
Any success we
achieve in these efforts is accomplished, in large part, by
following rating systems established by the entertainment
industries.
Movies
In the case of
movies, we use the MPAA, Motion Picture Association of America,
voluntary ratings (G, PG, PG-13, R, and NC-17) as we make
decisions about which movies to carry.
For example, we do not carry NC-17 rated content.
We do carry G, PG, PG-13 and some R rated content.
Our buyers for movies determine which R rated movies to
carry based on their best judgment.
They use their knowledge of our customers and the
customer response to the movie in theaters to make a decision on
a specific title. We
then utilize a register prompt at our cash registers to verify
the age of the customer buying the R rated movie.
In accordance with our policy only those customers who
are age 17 and above are permitted to purchase R rated movies.
We believe that
because MPAA ratings have been in consistent use since 1968,
there now exists a widespread customer understanding of the
ratings. As a
result, we have few customer questions about the ratings
themselves. Our
customers seem to clearly understand what they are purchasing.
Video Games and Computer Software
In the case of video
games (for example, Sony Playstation or Nintendo games) and
computer software, we use the ESRB, Entertainment Software
Rating Board, ratings (EC, E, T, M, and AO) as we make decisions
about which products to carry.
We do not carry software rated adults only (as rated by
the ESRB). As a
rule, we do not carry Parental Advisory stickered products.
We do carry EC, E, T, and select M titles.
Our buyers for video games and computer software
determine which M rated products to carry based on his or her
best judgment. They
use their knowledge of our customers to make decisions on
specific titles. We
then utilize a register prompt at our cash registers to verify
the age of the customer buying the M rated product.
In accordance with our policy only customers who are age
17 and above are permitted to purchase M rated titles.
Since the ESRB has
only been in existence since 1994, we sense that a large number
of our customers do not clearly understand the ratings system.
In addition to register prompting, we have taken several
steps to educate our customers on how to interpret the ratings
including in store signing; print advertising; and associate
training. As a
specific example, Wal-Mart stores display in store signing which
explains the ESRB ratings.
For video games and software, in store signing is placed
in either the glass case or section where the item is stocked
and explains the ESRB ratings to customers.
Music
In the case of
music, we do not have a ratings system to follow.
The music labels determine on a title-by-title basis
whether to attach a parental advisory sticker or not.
We refer to this as stickered music. Today, we do not
carry parental advisory stickered music.
The music labels
make edited versions of some stickered music available.
We do carry edited versions of music on selected
products. This
product is labeled “edited version.” Our buyers for music
determine which non-stickered and edited music to carry based on
their best judgment. From
our perspective, an unbiased,
standardized ratings system would help our customers determine
whether specific music is appropriate for their needs and
tastes.
We do not restrict
the sale of any music products.
If we were to make the decision to carry parental
advisory music, we would most likely restrict the sale through a
register prompt as we do with R rated movies and M rated video
games.
Proposed Modifications and Improvements to
Rating Systems
We are aware that the National Institute on Media and the Family has
proposed that media ratings be more accurate, even to the point
of establishing an independent ratings oversight committee and a
universal media ratings system.
We share their concern that ratings systems accurately
and consistently identify sensitive material.
We want our customers to be able to make informed
decisions regarding the entertainment products they purchase.
While we obviously would be supportive of continued improvements in media
ratings systems, Wal-Mart and other members of the retail
community have voluntarily made substantial investments of time
and resources to ensure that both our associates and our
customers are fully informed of existing ratings standards.
For example, the ratings system for movies was first
initiated in 1968 and generally has been effective in
establishing sufficient levels of consumer familiarity with
movie content. Accordingly,
any proposals to make media ratings more accurate should build
upon this current level of familiarity.
With respect to the notion of an independent ratings oversight committee,
there are serious concerns over whether such a body would
interfere unduly with consumer choice and discretion in the
purchase of constitutionally protected free speech.
These concerns would be compounded by the fact that
Wal-Mart and other retailers have already demonstrated a
commitment to enforce and comply fully with voluntary, industry
standards. Accordingly,
we feel that the formation of an independent regulatory body
would at this point be premature and should be considered only
after the related constitutional issues are fully examined.
Finally, it has been proposed that a universal ratings system be
established for purposes of simplification.
Prior to making a recommendation regarding such a system,
we would want input from our customers.
Conclusion
While we
use our best judgment at Wal-Mart on which items we carry, and
while we work hard to restrict the sale of certain products to
those under the age of 17, it is simply not possible to
eliminate every image, word or topic that an individual might
find objectionable. In
addition, we’re the first to admit our systems and our
associates, good as they are, are not infallible.
However,
it is our sincere hope that our policies make it possible for
our customers to make informed decisions and for them to feel we
are handling entertainment products in an appropriate manner.
At this
time I am pleased to answer any of your questions.
Appendix
MPAA
(Motion Picture Association) Ratings
G (General
Audience) - All ages admitted.
PG
(Parental Guidance Suggested) - Some material may not be
suitable for children.
PG-13
(Parents Strongly Cautioned) - Some material may be
inappropriate for children under 13.
R
(Restricted) - Under 17 requires accompanying parent or adult
guardian
NC-17
- No One 17 and Under Admitted.
ESRB
(Entertainment Standards Ratings Board) Ratings
EC (Early
Childhood) – content suitable for persons ages 3 and older
E
(Everyone) – Content suitable for persons ages 6 and older
T (Teen)
– Content suitable for persons ages 13 and older
M (Mature)
– Content suitable for persons ages 17 and older
AO (Adults
Only) – Content suitable only for adults
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