Product placement is to be permitted on UK television programmes, the government has confirmed after a three-month consultation.

Culture secretary Ben Bradshaw said the government would adopt existing EU legislation to allow broadcasters to tap into the "meaningful commercial benefits" it could provide.

In a written ministerial statement Mr Bradshaw said the UK and Denmark were currently the only EU states to not allow product placement and the government could no longer justify banning the practice amid faltering conventional advertising revenues for broadcasters.

"Adherence to our current position in which UK TV programme-making cannot benefit at all from the income potentially to be generated by product placement would lead to continuing damage to its finances at a time when this crucial part of our creative industries needs all the support we can give it," he wrote.

Although UK audiences have already been exposed to product placement via films and imported programmes from the US, Mr Bradshaw accepted the legislation would be an "important departure".

"It is right for us to proceed with caution and in particular to be very careful about the types of product for which it is permitted," he continued.

The new legislation, which will see the EU audiovisual media services directive on TV product placement adopted into section two of the European Communities Act 1972, will not apply to licence fee-funded BBC output or children's TV programmes.

In addition, a number of products will be banned from being advertised through embedded marketing, including alcoholic drinks, foods and drinks high in fat, salt or sugar, gambling, smoking accessories and over-the-counter medicines.

After the new legislation comes into effect broadcast watchdog Ofcom must still hold a public consultation on the issue.
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