FOX to Be Fined by FCC for Fake News; CMD's Complaint on "Video News Releases" 
Nets New Proposed Fines

Submitted by Lisa Graves on March 24, 2011 - 10:41pm

http://www.prwatch.org/spin/2011/03/10471/fox-be-fined-fcc-fake-news-cmds-complaint-video-news-releases-nets-new-fines

A FOX News station has been sent a notice of a proposed fine for airing fake 
news in the form of "Video News Releases" (VNR) without disclosing that the 
"news" segment promoting General Motors that was produced to promote GM's cars. 
As Jonathan Make reports in today's Communications Daily, the Federal 
Communications Commission has issued a notice of a proposed fine to FOX's 
Minneapolis affiliate for what amounted to a commercial for GM's convertibles 
masquerading as news. The VNR had been provided to the station by "FOX News 
Edge," which is described as "a news service for broadcast stations affiliated 
with the FOX Network." In response to the FCC's investigation, which was 
initiated as a result of a complaint by the Center for Media and Democracy and 
Free Press, FOX claimed it should not be subject to any fine because regulating 
this activity would "encroach" on its "editorial discretion." By editorial 
discretion, FOX seems to be indicating that it has a right to use its new
 scasts to promote products via "news" segments without any disclosure to 
viewers. FOX also tried to defend its actions by arguing that its  affiliate 
did not receive any payment for airing the VNR and that the VNR was not of any 
public importance. It also argued that using the VNR was no different than 
relying on a "press release" without further disclosure. The FCC defended its 
sponsorship identification rules, which it determined were violated by FOX, as 
"grounded in the principle that listeners and viewers are entitled to know who 
seeks to persuade them." The FCC also noted that the VNR itself is a thing of 
value when given to a news station because of its production costs and savings. 
Accordingly, the FCC today announced an intent to fine the FOX affiliate that 
aired the VNR $4000. The FCC also issued a similar notice to Access 1, a 
licensee of WMGM-TV in New Jersey, for airing a VNR promoting the use of the 
cold medicine Zicam, which had been produced for the product's 
 maker, Matrixx Initiatives. The FCC noted that this VNR was specifically named 
in the joint complaint filed by CMD and Free Press. The stations have 15 days 
to pay the fines or respond to the notices issued by the FCC. This is the first 
action on the complaint since 2007, when Comcast was fined $20,000 for airing 
VNRs. CMD told Communications Daily it is pleased the FCC is continuing to look 
into these matters, since the practice of using VNRs had not gone away.
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