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Use of Video News Releases Without a Sponsorship ID May Risk FCC-Imposed Monetary
Forfeitures
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The FCC’s Enforcement
Bureau (“Bureau”) has proposed $4,000 forfeitures against two television
stations for the broadcast of material from video news releases (“VNR”)
without appropriate sponsorship identification announcements. Even
though each licensee claimed it received no payment or other consideration in
connection with the broadcast of the VNR, the Bureau concluded that the mere
provision of the VNRs to the stations constituted “valuable consideration”
sufficient to trigger the required sponsorship ID. The Bureau’s actions
serve as an important reminder to broadcasters using VNRs – or other material
provided by a third party – to include adequate disclosure of the nature,
source and sponsorship of the material at the time of broadcast. In one case, a Fox
affiliate used a VNR produced by General Motors and distributed by Fox News
Edge, a news service for Fox stations. The material, used in a report
about sales of convertibles, featured video and discussion of GM cars
exclusively; no other manufacturers’ convertibles were shown or
mentioned. In the other case, a VNR produced by the maker of Zicam cold remedy was used in a report describing how to
fight colds and the flu; again, the video showed only Zicam
products and included a physician recommending the use of Zicam
by name, with no other brand of cold remedy shown or mentioned. Each station defended
its broadcast by stating that neither the station nor its employees had
received any money or other consideration for the inclusion of the VNR material
in the newscast, and that use of the material therefore did not violate the
sponsorship identification laws despite the depiction of the product.
The Fox affiliate explained that the station received the VNR through a news
service for network affiliates, and argued that the content was broadcast
within a news report and was “no different from the use of a press release”
in a news report. The other station, which used the Zicam-related
material in a regular health segment that was announced as being sponsored by
a local hospital, also responded that neither the hospital nor any of its
employees were involved in the production or delivery of the VNR material to
the station, and that the station’s use of the VNR was “consistent with
guidance in the FCC’s 2005 Policy Statement concerning the use of
VNRs.” The Bureau observed
that the VNR produced by GM included “12 different shots, some of them
close-up and some of them extended, of three General Motors convertibles
identified by name.” Similarly, the Zicam
material showed “four different shots of the product mentioned in the script
as well as a shot of the cover of the Zicam Travel
Well Survey.” In each instance, the Bureau rejected the station’s
arguments and concluded that “the identification of [the promoted] products
exceeded an identification that was reasonably related to the subject matter
of the programming at issue.” In other words, the respective news
reports contained too much material focusing exclusively on the promoted
products; in fact, competing brands or products were not mentioned at
all. As a result, the Bureau concluded that the VNR required a
sponsorship ID announcement “to alert viewers to the identity of … the source
of the VNR material seeking to persuade them.” When using VNRs,
broadcasters must exercise care and be alert when the material features
particular products, services, or brands. Stations should be wary of
using images and discussions that focus exclusively or even
disproportionately on a single company’s products, services, or brands, or
which feature extended or close-up images of such products, services, or
brands. If a station chooses to air a VNR containing such material, a
sponsorship identification announcement advising viewers of the source of that
material may be required. If you are unsure
whether an image or reference to the products of a company furnishing a VNR
warrants a sponsorship ID announcement, we strongly encourage you to consult
with any attorney in our office in this regard. March 29, 2011 |
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This memorandum is intended only as a general discussion of these issues and should not be regarded as legal advice. We would be pleased to provide additional details or advice about specific situations if desired. Copyright © 2011, Lerman Senter PLLC 2000 K Street NW,
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