Trade Law Daily is a service of Warren Communications News.

Adelstein Restates Need for Video News Release Reform

FCC Comr. Adelstein restated the need for reform of govt. video news releases (VNRs) and “covert” commercial pitches. Speaking at a Media Institute lunch, Adelstein also attacked undisclosed product placements that look like ads. “My preferred outcome is that this scrutiny results in compliance with the rules, not in us catching violations. That is why I am here today to sound the alarm to you, as well,” Adelstein said.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

VNRs have stirred much debate, even spurring a conference report before the Senate, which in April unanimously approved a measure to bar federal VNRs unless they contain disclaimers (CD April 18 p2).

Adelstein said deception or evasion by failing to disclose the source of sponsored programming violates the law and FCC rules. As a unanimous FCC reaffirmed in an April public notice, “listeners and viewers are entitled to know who seeks to persuade them with the programming over broadcast stations and cable systems,” Adelstein said.

The Commissioner lumped the VNR issue with the old bugaboo of payola, noting that Section 317 of the Communications Act requires broadcasters to make an announcement when airing material for which they received payment or other consideration. The exception is when consideration involves a product or service the station receives free or at nominal charge, such as a recording, so long as the product or service isn’t provided for identification of broadcast, Adelstein said.

Video news releases have been a long-time concern of Adelstein’s. At an FCC meeting in April, Adelstein again raised the topic after a N.Y. Times report of broadcasters editing VNRs to resemble independent reporting. “I have looked further into the issue, and I have discovered a bottomless pit of commercialism in today’s media, into which even icons we hold sacred are sinking and becoming sullied,” Adelstein said.

Adelstein is “just trying to raise public awareness” on the issue, said Stanford Washington Research Group analyst Paul Gallant.