In a report issued in September 2000, the Federal Trade Commission reported that the motion picture, music recording, and electronic game segments of the entertainment industry intentionally promoted products to children that warranted parent cautions. This report responds to the request of the Senate Commerce Committee by focusing on advertising placement in popular teen media and disclosure of rating and labeling information in advertising. The report details commission findings indicating that the movie and electronic game industries have taken steps to better communicate rating information to parents, and that the game industry and a number of movie studios have placed some specific limits on ad placements to avoid targeting youth. The music industry is beginning to include the parental advisory in advertising, but has not taken steps to limit advertising to children. The report contends that all three industries continue to advertise violent R-rated movies, M-rated games, and explicit-content labeled recordings in media popular with teens. Although R-rated movies and M-rated games are less likely to be advertised in media with a large percentage of teens in the audience, they continue to be advertised in programs with a large number of teens in the audience. There is nearly universal disclosure of product ratings in ads for movies and games, and increasing disclosure of the parental advisory label in advertisements for explicit content music recordings. Disclosures of the reasons for movie and game ratings are now widespread, although not clear and prominent. The report provides suggestions for improving both areas, related to adoption of industry-wide standards and to imposition of meaningful sanctions for noncompliance with code provisions. It is noted that there has been almost no progress made by any of the three industries in improving their self-regulatory efforts to increase retail level compliance. The report's three appendices provide information on self-regulatory rating systems, the mystery shopper survey, the data collection methods, and demographics. (Contains 171 endnotes.) (KB)