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The U.S. Federal Communications Commission (FCC) announced on September 21 that it was fining Comcast Corp. $4,000, for its cable channel CN8's broadcast of fake TV news, a video news release (VNR) without disclosure.
The Comcast fine is the first-ever sanction for airing a VNR, sponsored PR video that mimics the structure and style of television news reports. The fine is a direct result of Center for Media and Democracy (CMD) investigations, and of a joint complaint filed with the FCC by CMD and Free Press.
The FCC's action against Comcast is precedent setting. It firmly rejects the public relations industry's argument that no disclosure is needed if television stations are not paid to air VNRs. Hopefully, the FCC will soon address the nearly 140 other undisclosed VNR broadcasts that were documented in CMD's two reports, "Fake TV News" and "Still Not the News."
However, one aspect of the FCC's action is troubling. The VNR that CN8 aired and Comcast was fined for was remarkable -- but not unique -- in its extent of product promotion. The sleep aid "Nelson's Rescue Sleep" was shown and mentioned by name repeatedly.
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Hopefully, in levying this fine, the FCC does not mean to imply that there is no need to disclose VNRs that show a product label only two or three times. To meet the FCC's own benchmark -- that "viewers are entitled to know who seeks to persuade them," as it stated in its April 2005 Public Notice on VNRs -- all VNRs should be disclosed, whether they promote policies or products, and regardless of the level of overt promotion.
CMD and Free Press jointly released the following statement today, in response to the FCC action.
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