Finding of the Editorial Standards Committee of the BBC Trust BBC Worldwide proposal for a Top Gear branded TomTom satellite navigation device ...
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Finding of the Editorial Standards Committee of the BBC Trust BBC Worldwide proposal for a Top Gear branded TomTom satellite navigation device February 2012 Getting the best out of the BBC for licence fee payers
Finding of the Editorial Standards Committee of the BBC Trust
Contents
Summary 1
Background 1
Summary of the Executive Investigation regarding Top Gear branded satellite navigation
system 1
The Committee’s finding 4
Executive Review of Top Gear TomTom 6
Background 6
Context 6
The Sequence of Events 6
The Issues 7
What went wrong? 7
Recommendations 8
February 2012Summary
Background
BBC Worldwide is the commercial arm and a wholly owned subsidiary of the BBC. It exists
to maximise the value of the BBC’s assets for the benefit of the licence fee payer in a
variety of ways, including the exploitation of brands around the world, whilst maintaining
their original integrity and values. BBC Worldwide operates under the BBC Charter and
Agreement and it must not jeopardise the good reputation of the BBC or the value of the
BBC brand.
Top Gear is one of BBC Worldwide’s most successful global brands. It has sold in 198
territories worldwide and its brand has been expanded into different areas of
entertainment – such as live events, books and licensed consumer products.
The first significant commercial activity was the launch of the Top Gear magazine in 1993.
A very wide range of commercial activities have been created since and there were over
70 Top Gear branded product lines in stores for Christmas 2011. They included books;
DVDs and CDs; clothing; toys; games and gifts like mugs, toothbrushes, umbrellas, and
duvet sets.
On 4 September 2011 an article in a newspaper by Top Gear presenter Jeremy Clarkson
alerted senior BBC Public Service executives to a new BBC Worldwide proposal for a Top
Gear branded TomTom satellite navigation device and download. The product utilised
Jeremy Clarkson’s voice and a novelty feature with the Stig. It was due to launch for the
2011 Christmas market.
On 29 September 2011 the BBC’s Director-General intervened so that the deal did not
progress as proposed.
An investigation was begun by the Executive to consider what went wrong in the editorial
compliance process and identify lessons learned in relation to the proposal to create the
Top Gear branded satellite navigation device.
The Executive reported its findings and recommendations to the Editorial Standards
Committee (ESC) in January 2012.
Summary of the Executive Investigation regarding
Top Gear branded satellite navigation system
Context
Top Gear is one of the BBC’s most successful global brands in commercial terms. In 2007
a joint venture was formed with the key Top Gear creatives through the company Bedder
6 to build commercial business around the brand.
In order to manage any conflicts of interest around the commercial exploitation of the Top
Gear brand, a protocol was put in place in November 2007 to ensure proper coordination
and information flow between BBC Public Service and the BBC Worldwide team charged
with developing the commercial activity. It is estimated that 75% of ideas for licensed
products are not progressed as they are not appropriate for the brand. During the five
year period of the current agreement there have been no significant policy issues.
The sequence of events
February 2012 11. BBC Worldwide and TomTom discussed the product and the marketing plan with
the involvement of BBC Worldwide Commercial Policy but without referral to the
Public Service line management or BBC Editorial Policy.
2. The voiceover for the satellite navigation device was recorded on 25 August 2011.
3. Senior executives in BBC Public Service became aware of the deal on 4 September
2011 and BBC Editorial Policy advised on the conflicts of interest inherent in the
proposal.
4. The conflicts of interest issues and options for their mitigation were identified and
escalated to Chief Executive BBC Worldwide and BBC Director Vision.
5. The matter was referred to the Director-General. On 29 September 2011 he took
the decision that the deal could not progress as proposed.
The Issues
There were potential conflicts of interest in the presenter of Top Gear being seen to
endorse an individual car-related product in which the BBC had a commercial interest
along with the editorial constraints this would place on the Top Gear programme.
What went wrong?
Product categorisation
BBC Worldwide did not recognise that the category of the commercial product caused any
potential editorial issues. This meant that although BBC Worldwide Commercial Policy was
consulted about the deal there was no referral to BBC Public Service editorial figures or
BBC Editorial Policy until BBC Public Service senior executives became aware of the deal.
Referrals and escalation
BBC Worldwide failed to recognise the conflict of interest issues arising from using the
presenter to voice and promote this product – a recognition that should have led to an
immediate referral to BBC Editorial Policy based on existing conflicts of interest guidance.
Editorial Policy identified and communicated the editorial guideline conflicts of interest
issues posed by the deal when they became aware of them in early September. The
team’s involvement should have led to quicker, more senior escalation of the issues.
The 2007 protocol was not robust enough. It should have led to a better understanding
and swifter engagement between BBC Worldwide and BBC Public Service.
Summary of Actions
The BBC Executive concluded that an assessment of the sequence of events did not
suggest fundamental structural problems within BBC Worldwide and its relations with BBC
Public Service. However, it recognised the need to increase understanding of Conflicts of
Interest issues and to tighten up on the existing protocols. It considered a separate
review of the matter undertaken by BBC Worldwide and recommendations from Editorial
Policy and then made the following key recommendations:
a. To clarify the boundaries for commercial products to be associated with the Top
Gear brand.
b. To ensure BBC Worldwide is kept across talent issues and conflicts of interest
guidance.
February 2012 2c. To endorse a recommendation of the BBC Worldwide review and ensure a
workshop is held for BBC Worldwide with input from BBC Editorial Policy and the
Talent Rights Group.
d. To ensure there is no direct contracting of presenters of UK public service brands
by BBC Worldwide without the appropriate referral to the relevant senior figure on
the public service side.
e. To ensure the existing BBC Worldwide/Public Service protocol is fully implemented
and key roles and escalation procedures documented and updated.
f. To endorse BBC Worldwide’s review recommendation for a formal brand board for
Top Gear.
February 2012 3The Committee’s finding
The Committee was concerned that public trust in the BBC could potentially have been
undermined by the commercial deal agreed with TomTom for the production of a Top Gear
branded satellite navigation device particularly as the TomTom was in fact released in time
for the Christmas 2011 market albeit with proceeds directed to charity.
The Committee was also concerned about the apparent lack of sensitivity to the potential
of the deal to undermine the integrity and values of the Top Gear brand.
The Committee noted that the process of securing the deal with TomTom had begun and
progressed to an advanced stage without BBC Worldwide following a protocol put in place
in November 2007 to ensure proper coordination and information flow between BBC
Public Service and the BBC Worldwide team charged with developing the commercial
activity and without BBC Worldwide making the appropriate referrals to BBC Public Service
line management. It also noted that the issue was only raised and discussed with BBC
Public Service and Editorial Policy when they were alerted to the deal at the beginning of
September.
The Committee also noted that when the conflicts of interest issues were identified and
communicated by Editorial Policy the deal was already at an advanced stage.
The Committee noted that there had been some confusion in BBC Worldwide about the
nature of the commercial boundaries for Top Gear branded products. In this case the
product was seen as more of a novelty digital item than something in any way central to
the Top Gear editorial remit. A distinction was also made between this portable device and
fixed in-car navigation systems.
The Committee also noted that BBC Worldwide had not considered whether a Top Gear
branded satellite navigation system would place any editorial limitations or restrictions on
the Top Gear programme or magazine when it came to reviewing this category of product.
The Committee noted that the deal as originally conceived was halted by the Director-
General in his role as Editor-in-Chief on 29 September 2011. The Committee noted the
steps taken to mitigate an editorial breach. This involved releasing the devices already
made but ensuring that BBC Worldwide did not profit from the deal by directing the
profits from its sale to charity – specifically Children in Need.
The Committee noted that the device was available for the 2011 Christmas market
exclusively through the retailer Halfords. The Committee also noted that once the existing
devices have been sold no more will be produced.
Practice 15.4.7 of the BBC Editorial Guidelines says:
“…it is essential that programme makers, other content producers and on-air
talent do not undermine their own integrity, and that of their content, by off-air
involvement in inappropriate activities or commercial interests. Their off-air
activities must not bring the BBC into disrepute.”
The Committee concluded that BBC Worldwide had not followed the BBC Editorial Policy
Conflicts of Interest Guidance. It noted the most relevant guidance and mandatory
referrals to this case were those outlined under the heading On Air Talent – Commercial
Advertising, Promotions and Endorsement:
February 2012 4“An assessment of whether advertising or promoting third parties is acceptable will
be made by the relevant Head of Department responsible for the output, in
consultation with Editorial Policy and the relevant member of the Talent Rights and
Negotiation group.”
The key principles applying in this matter are:
Promotional activity must not undermine the values of the BBC brand
There must be no conflict of interest between the presenter’s on-air activities and
the promotion or endorsement of a particular product or service
Advertisements or promotions undertaken by presenters must not in any way
suggest BBC endorsement, undermine the BBC’s values, bring the BBC into
disrepute, or give the public reason to doubt the objectivity of BBC presenters or
their programmes.
No product, service or organisation promoted by a presenter may be shown,
featured, reviewed or discussed in the BBC programmes they present.
The Committee agreed that it was satisfied that the deal agreed with TomTom to produce
a Top Gear branded commercial product was not a deliberate breach of the BBC’s Editorial
Guidelines. It also agreed, however, that the mitigation agreed between BBC Worldwide
and TomTom, that the devices already created should be released for sale with profits
directed to charity, did not alter the fact that there had been a breach of the BBC’s
Editorial Guidelines Section 15 - Conflicts of Interest, but that the mitigation had
nevertheless reduced the seriousness of that breach. The Committee also agreed that the
mitigation employed in relation to this commercial product means there is no restriction
on the editorial remit of Top Gear in relation to its coverage of satellite navigation systems
in the next series of the programme (series 18) starting on Sunday 29 January at 20.00
on BBC Two.
The Committee noted the recommendations of the BBC Executive’s review.
The Committee concluded that the BBC Executive must be satisfied that the
recommendations of its review will be fully implemented and that they are appropriately
robust to ensure that BBC Worldwide complies with the BBC Editorial Guidelines when
securing future commercial deals.
Finally, the Committee expects the BBC Executive to report on progress made with the
implementation of the recommendations of its review in the next bi-annual complaints
and compliance report to the Trust in 2012.
February 2012 5Executive Review of Top Gear
TomTom
Background
In the summer of 2011 the portable satellite navigation company TomTom approached
BBC Worldwide with a proposal to create a Top Gear branded sat nav device and
download, using Jeremy Clarkson’s voice and a novelty feature with the Stig. The
proposal, intended for the Christmas market, was developed over the following months.
During this period a number of editorial issues were identified with the proposition which
ultimately led to the DG taking a final decision to cancel the project at the end of
September just before the product was due to launch. BBC Worldwide then agreed a deal
with TomTom to mitigate the commitments and the costs already incurred, including
releasing the products already created, but directing the profits to charity.
The project had clearly reached a very advanced stage before a final call was made that
there were unacceptable potential editorial breaches with the proposal. This report was
commissioned to analyse what went wrong in the editorial compliance process in this case
and to identify lessons for the future.
Context
Top Gear is one of the BBC’s most successful global brands in commercial terms. The first
significant commercial activity was the launch of the Top Gear magazine in 1993. The
programme was relaunched in its current format in 2002 and in 2007 a joint venture was
formed with the key creatives through the company Bedder 6 to build commercial
business around the brand. A very wide range of commercial activities have been created
and for Christmas 2011 there will be over 70 product lines in stores.
In order to manage any conflicts of interest around the commercial exploitation of such
an important BBC public service brand, a protocol was put in place in November 2007 to
ensure proper coordination and information flow between the public service line in the
BBC and the BBC Worldwide team charged with developing the commercial activity. It is
estimated that 75% of ideas for licensed products are not progressed as they are not
appropriate for the brand and during the five year period of the current agreement there
have been no significant policy issues.
The Sequence of Events
The sequence of events had three main phases as follows:
I. Detailed discussions between TomTom and BBC Worldwide on the practicalities of
the product and the marketing plan with the involvement of BBC Worldwide
Commercial Policy, but no referral to BBC Editorial Policy or the Public Service line
management. This led to the recording of the voiceover required on 25th August
2011.
February 2012 6II. BBC Chief Operating Officer, Director BBC Editorial Policy and Director BBC Vision
became aware of the project leading to the involvement of Editorial Policy in
advising on the conflicts of interest inherent in the proposal and seeking to advise
on how to mitigate these problems on the basis that the deal was already done.
This took some time to work through in detail during much of September.
Meanwhile the launch deadline was looming.
III. Final full escalation of the problems and options to Chief Executive BBC Worldwide
and Director BBC Vision leading to further referral to the DG given the nature of
the potential editorial compromises and the difficulties inherent in pulling out of a
deal at such a late stage. The DG took the decision on 29 September that the deal
could not progress as proposed.
The Issues
Essentially the issues revolved around the potential conflict of interest in the presenter of
Top Gear being seen to endorse an individual car-related product in which the BBC had a
commercial interest and the editorial constraint this would then place on the Top Gear
programme to not be able to review car navigation systems of this kind for the duration of
the deal. The issues were summarised by Editorial Policy as:
Use of Talent. The original proposal would have put the presenter in potential breach of
his contract in relation to conflict of interest.
Consistency – the deal as originally planned would have caused considerable issues of
consistency and fair dealing with other non-Top Gear talent.
Endorsement by Top Gear the brand. Top Gear the brand, as an overall magazine
and online brand, as well as a programme does give consumer advice and reviews of cars
and related systems. We could therefore have advised that it would be difficult for the
brand to endorse one model of in car satellite system, particularly with the use of a
presenter
What went wrong?
Of course on one level the compliance process worked i.e. the Editor-in-Chief, as the
ultimate arbiter, intervened so that the deal did not progress as proposed, but this could
have been resolved much earlier if various referrals or different judgements had been
made. The sequence of events was compounded by the time pressures involved and by
the absence of key individuals at various points. The issues which arise are:
Agreeing the commercial boundaries – it is clear that initially the staff in BBC
Worldwide did not consider this product to be a potential conflict. It was seen as more of
a novelty digital item than something in any way central to the Top Gear editorial remit. A
distinction was also being made between this kind of portable device and fixed in-car
navigation systems. This meant that although BBC Worldwide Commercial Policy was
consulted, no referral happened to BBC Editorial Policy or to the BBC Public Service.
A key question, which was not originally considered, was whether a Top Gear branded sat
nav would place any editorial limitations or restrictions on the Top Gear programme or
magazine, preventing it from reviewing this category of product. This is a useful test to
keep in mind when dealing with the question of which products Top Gear can be
February 2012 7associated with, but it is clear there needs to be more discussion and clarity on where the
boundaries lie for product development related to Top Gear
Conflict of Interest for presenters - there was also no early awareness within BBC
Worldwide (either in the brand management or the commercial policy teams) of the
conflict of interest issues arising from using the presenter to voice and promote this
product. This should have led to an immediate referral to BBC Editorial Policy based on
existing guidance.
Referrals and escalation – there was a referral within BBC Worldwide to the
Commercial Policy team in BBC Worldwide within the first few weeks, but again that was
not then flagged to Editorial Policy because those involved in BBC Worldwide did not
believe that there was a potential problem with this category of product.
At subsequent steps people became absorbed with finding solutions which took time and
again meant that the more senior referrals, particularly on the Public Service side, did not
happen until late in the timeline.
The role of Editorial Policy – this is a good example of the difficult role Editorial Policy
often play where they can advise, but ultimately the right people in the line management
need to make decisions based on that advice. Editorial Policy, once informed, did some
good work in flagging the scale of the problems clearly, suggesting solutions where
possible and requesting full escalation which led to the end of the deal.
BBC Public Service/Worldwide interface – on the face of it the Bedder 6 structure
did not really play a role in the problems encountered here. The protocol agreed between
BBC Public Service and BBC Worldwide to manage commercial exploitation of the Top
Gear brand was not as robust as it should have been. It should have led to a better
understanding and swifter engagement between BBC Worldwide and the BBC Public
Service team. Also the role of public service brand manager for Top Gear, at a more
operational level, was in transition from August until October and this may have had an
impact.
Recommendations
Many Top Gear commercial products have been launched without any problem and this is
the first time a potential editorial breach has happened. BBC Worldwide have already
conducted a thorough review of lessons learned and identified actions all of which match
the findings of this review. BBC Editorial Policy have also made a number of
recommendations based on their assessment of the problems and have ensured that
regular meetings are now in place between BBC Worldwide and the Public Service. The
elements of the Top Gear protocol have been looked at again and the key elements
reinforced. The assessment of the sequence of events does not suggest fundamental
structural problems, but a need to increase understanding of these issues and to tighten
up on the protocols which were already agreed. The main recommendations are as
follows:
There needs to be further clarification on the boundaries for commercial products
which can be associated with the Top Gear brand. Codifying what has been or
could be reviewed by the show using a brand map structure which has been used
for other brands and developing a hypothetical products list would be advisable.
This will strengthen the most crucial safety net – spotting problems and ensuring
February 2012 8referrals at product development stage
BBC Worldwide need to be kept across talent issues and conflict of interest
guidance. The BBC Worldwide review has recommended a workshop on this
involving BBC Editorial Policy and the Talent Rights Group. Also there should be no
direct contracting of the presenters of UK public service brands without referral to
the relevant senior figure on the Public Service side. The existing Editorial Policy
guidance also sets out clearly the circumstances for mandatory referral in this area
The existing BBC Worldwide/Public Service protocol needs to be implemented fully
including regular strategic meetings at a more senior level and the regular
involvement of the public service brand manager as an operational level liaison
and review point. It is also important to document and update the key roles and
escalation procedures on the public service and commercial sides
BBC Worldwide have recommended a more formal Brand Board to cover Top Gear
and this should be considered
February 2012 9You can also read
