The previous consultation in 2008 resulted in the Government deciding against product placement, to the anger of commercial TV producers and broadcasters. But, with a new Secretary of State, Ben Bradshaw, they have reconsidered.
The Government is currently minded to permit product placement on UK television, subject to safeguards. But the arguments remain finely balanced. We remain concerned in particular about the potential health issues associated with the promotion of particular types of goods by means of product placement.Product placement would not be permitted in children's programmes.
(from page 4 of the consultation paper - pdf)
In The Guardian, Jackie Schneider puts the case against.
Product placement is an underhand way for companies to advertise to the public by stealth. The Guardian's very own Simon Hoggart describes it as is "a form of corruption, by which elements of our favourite shows are covertly sold off to the highest bidder without our being told".