Ofcom has published its decision relating to a breach of the product placement rules of the Broadcasting Code by Channel 4 in an episode of Hollyoaks shown in February this year.

The episode included references to the programme’s sponsor, ClearScore, a financial technology company, as a result of a commercial agreement between ClearScore and Channel 4 (separate to their sponsorship arrangement).

Channel 4 argued that the one oral and two visual references covered by the commercial arrangement were editorially justified in the context of the relevant storyline, with ClearScore itself having had no editorial input. The placement was clearly signalled in accordance with the Broadcasting Code.

Ofcom disagreed, stating that the placement distorted the editorial narrative. Although a “passing reference” may have supported the storyline, the fact that the characters went on to demonstrate the functionality of the app is likely to have diverted the audience’s attention away from the main storyline, therefore making the placed references unduly prominent (in breach of Rule 9.10).

Ofcom also held that, by making references in such a manner as to give undue prominence to the brand, these references could only serve to promote the brand, putting Channel 4 in breach of Rule 9.9. This was compounded by the discussion between the characters regarding the attractiveness of personalised credit card offers, and an inference that the app could help solve the character’s money problems.

The decision is helpful in that Ofcom explained the point at which it viewed the references as straying from being compliant to in breach, and so should serve as a useful yardstick for broadcasters to refer to in the future.

The full decision can be found on Ofcom’s website.