Radio-TV News Directors Association Calls on FCC to Rescind Fines Against Comcast for Airing VNRs;
70 Major Broadcasters Join RTNDA in Rejecting FCC Media Bureau’s Legal Findings on First Amendment Grounds
Read the RTNDA's October 31, 2007 Filing Here
Read The NABC’s November 2 Comments on the Proposed Comcast Fines
NABC MISSION STATEMENT
Members of the National Association of Broadcast Communicators are actively engaged in the production and/or distribution of Video News Releases and related content. As a condition of membership in NABC, all members voluntarily submit to compliance with this Membership Code.
The mission
of the National Association of Broadcast Communicators is to set standards
and guidelines for the professional activities of its member companies and
to represent the profession to groups within the broadcast industry, the
regulatory community, and the public relations industry.

FOR IMMEDIATE RELEASE
CONTACT: MIKE HILL, NABC
(212) 684-8910
NABC Refutes Latest Claim by Group
Alleging Improper TV Station Disclosures
NABC Rejects Group’s Application of FCC Sponsorship Identification Rules
Washington, November 14, 2006 -- The National Association of Broadcast Communicators (NABC), an association of public relations video producers and distributors, has reviewed the latest claims made by the Center for Media and Democracy (CMD) alleging improper sponsorship disclosures on the part of local television stations. NABC has found -- once again -- that there appear to be no violations of any rules or regulations of the Federal Communications Commission (FCC).
The FCC is currently
reviewing whether a group of television stations disclosed sources as required
by the Commission’s rules and regulations when airing video news releases
(VNRs), the video version of printed press releases. VNRs are made available
to broadcasters without charge or obligation by public relations professionals
and broadcast public relations companies acting on behalf of third parties.
The FCC inquiry was initiated after a report was submitted to the FCC last
April by CMD. The report alleges that some television stations aired VNRs
without disclosing their sources to viewers, charging that this violated
the FCC’s sponsorship identification requirements.
The original report was thoroughly refuted by the NABC and the Radio-Television
News Directors Association (RTNDA) in filings presented to the FCC in October.
“The new report
appears to contain the same unsupported allegations
and baseless charges made in the first one,” said Kevin Foley, president
of the NABC. “We reviewed the applicable rules and we presented a
compelling legal case to the FCC showing that none of the CMD cases appeared
to violate any FCC’s rules. The CMD has not contradicted our legal
arguments. At this late date, after all of their allegations, they still
can point to no FCC rule that appears to have been violated.”
The RTNDA said the original report was “rife with unsubstantiated accusations and misleading half-truths”, and called for a halt to the inquiry, which it called “an unprecedented regulatory intrusion into newsroom operations”.
While the NABC supports the Commission’s efforts to ensure compliance with its sponsorship identification requirements, the rules and a long line of precedent interpreting those rules show that sponsorship identification is required only when a VNR relates to (1) controversial issues of public importance, (2) political matters or (3) matters for which stations receive payment or other consideration for broadcasting pre-packaged materials. The NABC told the Commission on October 16 that none of the cases cited in the CMD’s first report appeared to meet any of these tests. CMD’s latest report appears to contain the same type of unsupported allegations.
The FCC’s rules and regulations do not require identification by broadcasters of the sources or sponsorship of information they air, except under the limited circumstances described above. In recognition of their First Amendment rights, broadcasters generally are free to exercise their editorial discretion and to use VNRs that reference commercially available products or services without violating FCC requirements.
The NABC is confident that the FCC will consider this issue within the framework of its existing rules and precedent, with due respect for the First Amendment rights of newscasters to make editorial decisions, and that the result of this investigation will be confirmation of a high degree of compliance with applicable FCC requirements.
The NABC establishes standards and guidelines for the professional activities of its member companies and to represent the profession before the broadcast industry, the regulatory community and the public relations industry.
More information
is available at www.broadcastcommunicators.org.
![]() |
![]() |
Joint Statement
The National Association
of Broadcast Communicators
and
The Public Relations Society of America
FOR IMMEDIATE
RELEASE
CONTACT:
Mike Hill, NABC
(212) 684-8910
Cedric Bess, PRSA
(212) 460-1495
NABC and PRSA Join Forces to Support Current FCC Rules on VNRs
Washington, October 16, 2006 – The National Association of Broadcast Communicators (NABC) and the Public Relations Society of America (PRSA) have joined together to express their support of the Federal Communications Commission’s efforts to ensure compliance with its sponsorship identification requirements.
The NABC is a professional association of leading broadcast public relations companies that are actively engaged in the production and/or distribution of video news releases, satellite media tours and other electronic public relations content. PRSA is the world's largest organization for public relations professionals, with more than 21,000 members who represent business and industry, technology, counseling firms, government, associations, hospitals, schools, professional services firms and nonprofit organizations.
The FCC is currently reviewing whether a group of television stations disclosed sources when they aired video news releases, the video version of a printed press release that is made available to broadcasters by public relations professionals and broadcast public relations companies on behalf of third parties. The FCC inquiry was initiated as a result of a report submitted to the FCC last April by the Center for Media and Democracy (CMD), an activist group. The report alleges that 77 television stations aired VNRs or SMTs in 98 separate instances without properly disclosing their sources to viewers in compliance with the FCC’s sponsorship identification requirements.
However, the NABC and PRSA also believe the CMD report seriously distorts the Commission’s rules concerning VNRs and creates the false impression that numerous broadcast stations across the country are violating FCC rules. The Radio-Television News Directors Association (RTNDA) also challenged the CMD report in a filing made with FCC on October 5, calling it “…rife with unsubstantiated accusations and misleading half-truths”.
VNRs are the television equivalent of a press release. Public relations professionals retain the services of specialized companies to produce and distribute VNRs with full source attribution to television newscasters. VNRs cover a wide variety of useful and informative topics such as new products or services, health and medical news, and special events.
VNRs are provided to broadcast stations without charge. The stations are under no obligation to air VNRs, completely or in part, nor are they subject to quid pro quo conditions for their production. Stations are free to edit and revise the VNRs as they see fit in their discretion to ensure that they meet the broadcasters’ individual editorial standards. If a newsroom does air a VNR, it has full freedom to alter the story in whatever way it deems appropriate, even if it negates the VNR’s original message.
Currently, the FCC
does not require any identification by broadcasters of the sources or sponsorship
of any information they air, except under certain circumstances. In general,
broadcasters are free to use VNRs that reference commercially available
products or services, without violating FCC requirements.
The Commission has long recognized that attempting to apply identification requirements each and every time any film, record, transcription, talent, script or other material, including VNRs, is used by a broadcaster would so intrude into the newsroom as to inhibit television and radio news programs and destroy a good part of their usefulness to the public. Under the FCC’s rules and a long line of precedent interpreting the rules, sponsorship identification is required only when a VNR relates to (1) controversial issues of public importance, (2) political matters or (3) matters for which stations receive payment or other consideration for broadcasting pre-packaged materials.
Many of the “abuses”
cited in the CMD report do not fall into any of these categories but rather
touch on such subjects as:
• The use of candy flavored lip gloss;
• Holiday gift ideas;
• The making of a Super Bowl advertisement;
• A shortage of qualified auto technicians;
• An Internet game;
• Super Bowl party tips;
• Holiday travel tips;
• Floral care tips; and
• The versatility of pancakes.
Although on the surface these instances of VNR usage do not appear to violate
FCC rules or precedent, the CMD identified these as examples of seriously
improper conduct on the part of broadcasters.
The NABC and the PRSA have independently addressed the issue of disclosure
with their respective members and with the individuals involved in the professions
they represent. All have stated clearly and emphatically that the public
has a right to know the sources of all information coming over the public
airwaves – even that which is outside the parameters of paid, political
or controversial content. Those who provide the materials to broadcasters
have a professional responsibility to faithfully inform broadcasters of
the true origins of the materials. Finally, broadcasters have the obligation
to disclose the sources of those materials to the public in the best way
they see fit. These groups are best equipped to reinforce those principles
on a peer-to-peer basis.
The FCC relies on broadcasters to exercise discretion in determining which
issues are “controversial” or “political”. We believe,
therefore, that the Commission should preserve that same latitude for broadcasters
to exercise their own creativity and judgment in how they identify the source
and sponsorship of all third party materials they air. Government must not
substitute its judgment for that of the newscaster, but should only determine
whether a broadcaster has acted reasonably and in good faith in making its
decisions.
We are confident that the FCC will consider this issue within the framework
of its existing rules and precedent, with due respect for the First Amendment
rights of newscasters to make editorial decisions, and that the result of
this investigation will be confirmation of a high degree of compliance with
applicable FCC requirements.

FOR IMMEDIATE
RELEASE
CONTACT:
Mike Hill, NBN
(212) 684-8910
Broadcast
Public Relations Companies Form
National Association of Broadcast Communicators
Washington, October 16, 2006 -- The leading broadcast public relations companies have formed a professional association, the National Association of Broadcast Communicators (NABC), for the purpose of establishing standards and guidelines for the professional activities of its member companies and to represent the profession before the broadcast industry, the regulatory community and the public relations industry.
All members of the NABC are actively engaged in the production and/or distribution of video news releases, satellite media tours and other electronic public relations content. Any company so engaged is welcome to join the NABC. As a condition of membership in NABC, all members voluntarily submit to compliance with its Membership Code (attached).
Founding members of the NABC include Auritt Communications, DS Simon Productions, DWJ Television, Gordon Productions, Gourvitz Communications, Home Front Communications, KEF Media Associates, Medialink, MultiVu, News Broadcast Network, On the Scene Productions, PLUS Media, VNR 1, and WestGlen Communications.
The association has elected to its first executive committee Kevin Foley of KEF Media Associates as president, and Mike Hill of News Broadcast Network and Larry Thomas of Medialink as vice presidents.
The association has retained the law firm of Keller and Heckman of Washington, D.C., and Bryan Cave Strategies, a Washington-based lobbying firm, in its efforts to address Federal Communications Commission concerns over disclosure to the public of the sources of video news releases and satellite media tours by television stations identified in a report prepared by the Center for Media and Democracy and presented to the FCC last April.
The NABC supports the FCC’s efforts to ensure compliance with its sponsorship identification requirements. The CMD report, however, seriously distorts the Commission’s requirements as applicable to VNRs and creates the false impression that numerous broadcast stations across the country are currently violating the Commission’s rules.

Membership
Code Of the
National Association of Broadcast Communicators
Members of the National Association of Broadcast Communicators (“NABC”) are actively engaged in the production and/or distribution of Video News Releases (“VNRs”). NABC has been created for the purpose of establishing standards and guidelines for the professional activities of its member companies and to represent the profession before the broadcast industry, the regulatory community and the public relations industry. As a condition of membership in NABC, all members voluntarily submit to compliance with this Membership Code.
In today’s video media environment, VNRs are an important and integral part of the dissemination of information to the public. VNRs, in essence, are the video equivalent of printed news releases, with footage that illustrates visually what news releases describe on paper. VNRs are made available at no cost to news services, networks, affiliates, independent stations and other outlets for their free and unrestricted use and are formatted to facilitate editing by broadcasters in their discretion. They are provided in edited and scripted form with the voice narration on a separate “track,” again to facilitate rewriting and editing. When not edited, some broadcasters exercise their editorial judgment to present all or large parts of VNRs in their entirety. Some VNRs are rewritten by broadcasters, and some are re-narrated using some or all of the original script. In each case, broadcasters make individual determinations as to whether, and if so how best, to incorporate VNRs into their broadcasts just as they make all other editorial decisions regarding the content of their broadcasts.
Some VNRs consist of fully produced materials, while others are comprised of only “bites” or “b-rolls” that provide background or limited highlights to support broader communications activities. Through the appropriate use of VNRs, broadcasters are able to illustrate more fully news stories and other programming, which enables the public to receive information of interest that is not necessarily available from other sources.
NABC members recognize that the use of VNRs by broadcasters should not be unfettered. Broadcasters must operate in accordance with specific rules of the Federal Communications Commission (“FCC”), including rules that require source identification of sponsored materials in certain cases.
This NABC Membership
Code represents the VNR industry’s commitment to appropriate attribution
and source identification of its product, consistent with the First Amendment
rights of VNR customers to utilize VNRs as well as the First Amendment rights
of broadcasters to exercise editorial discretion and control regarding news
and other programming. Most broadcasters act reasonably and in good faith
in their use of VNRs, and NABC urges regulatory bodies to exercise caution
in taking any action that could interfere with broadcasters’ journalistic
judgment or otherwise unfairly impinge on the ability of third parties to
create and make available to the public information in video format.
The membership of any member failing to comply with this Membership Code
shall be subject to termination at the sole discretion of NABC, after due
process, for a period deemed appropriate by NABC in light of the nature
and scope of the violation. Upon application for reinstatement of membership,
such former member shall be required to demonstrate to NABC’s reasonable
satisfaction that procedures have been established to prevent a recurrence
of the violation.
NABC believes that its members’ commitment to the proper attribution and source identification of VNRs will assist broadcasters by making available to them much needed video source materials while facilitating the distribution of news and other programming to the public in accordance with applicable FCC regulations.
Accordingly, consistent with the above, NABC members endorse and agree to act in accordance with the following principles:
• First, NABC members recognize that in today’s video media environment, the appropriate use of VNRs is an important and integral part of the dissemination of information to the public;
• Second, NABC members believe that broadcasters are able to illustrate more fully news stories and other programming through the appropriate use of VNRs, thereby enabling the public to receive news and other information of interest that is not available from other sources;
• Third, NABC members respect the First Amendment rights of their customers to use VNRs, as well as the First Amendment rights of individual broadcasters to exercise appropriate editorial control and discretion concerning their use of VNRs;
• Fourth, NABC members support the full and fair disclosure of news and programming sources by broadcasters in accordance with existing FCC rules and policies, which NABC members endorse as sufficient to ensure proper attribution and identification concerning the source and use of VNRs;
• Fifth, while the great majority of broadcasters act reasonably and
in good faith in their use of VNRs, NABC members are committed to assisting
all broadcasters in fully complying with the FCC’s news and program
sponsorship requirements by including attribution and source identification
information as required by FCC rules and policies;
• Sixth, NABC members support the Code of Ethics and Professional Conduct of the Radio-Television News Directors Association (“RTNDA”) and RTNDA’s Guidelines for Use of Non-Editorial Video and Audio, which, among other things, state that professional electronic journalists should clearly disclose the origin of information and label materials provided by outsiders;
• Seventh, NABC members condemn the payment of money or other valuable consideration to broadcasters in return for the broadcasting of VNRs, without disclosure as required by FCC regulations, and shall report to NABC and/or the FCC any attempts by any broadcasters to solicit such payments;
• Eighth, NABC members are committed to educating the public regarding the appropriate use of VNRs, consistent with FCC requirements and the First Amendment rights of broadcasters and NABC members’ customers; and
• Ninth, the membership of any NABC member failing to comply with this Membership Code shall be subject to termination in the sole discretion of NABC, after appropriate due process, for a period deemed appropriate by NABC in light of the nature and scope of the violation.
AGREED.
___________________________
Member
By:
____________________________
Name
____________________________
Title
____________________________
Date
www.broadcastcommunicators.org
Members of the National Association of Broadcast Communicators (“NABC”) are actively engaged in the production and/or distribution of Video News Releases (“VNRs”). NABC has been created for the purpose of establishing standards and guidelines for the professional activities of its member companies and to represent the profession before the broadcast industry, the regulatory community and the public relations industry. As a condition of membership in NABC, all members voluntarily submit to compliance with this Membership Code.
In today’s video media environment, VNRs are an important and integral part of the dissemination of information to the public. VNRs, in essence, are the video equivalent of printed news releases, with footage that illustrates visually what news releases describe on paper. VNRs are made available at no cost to news services, networks, affiliates, independent stations and other outlets for their free and unrestricted use and are formatted to facilitate editing by broadcasters in their discretion. They are provided in edited and scripted form with the voice narration on a separate “track,” again to facilitate rewriting and editing. When not edited, some broadcasters exercise their editorial judgment to present all or large parts of VNRs in their entirety. Some VNRs are rewritten by broadcasters, and some are re-narrated using some or all of the original script. In each case, broadcasters make individual determinations as to whether, and if so how best, to incorporate VNRs into their broadcasts just as they make all other editorial decisions regarding the content of their broadcasts.
Some VNRs consist of fully produced materials, while others are comprised of only “bites” or “b-rolls” that provide background or limited highlights to support broader communications activities. Through the appropriate use of VNRs, broadcasters are able to illustrate more fully news stories and other programming, which enables the public to receive information of interest that is not necessarily available from other sources.
NABC members recognize that the use of VNRs by broadcasters should not be unfettered. Broadcasters must operate in accordance with specific rules of the Federal Communications Commission (“FCC”), including rules that require source identification of sponsored materials in certain cases.
This NABC Membership Code represents the VNR industry’s commitment to appropriate attribution and source identification of its product, consistent with the First Amendment rights of VNR customers to utilize VNRs as well as the First Amendment rights of broadcasters to exercise editorial discretion and control regarding news and other programming. Most broadcasters act reasonably and in good faith in their use of VNRs, and NABC urges regulatory bodies to exercise caution in taking any action that could interfere with broadcasters’ journalistic judgment or otherwise unfairly impinge on the ability of third parties to create and make available to the public information in video format.
The membership of any member failing to comply with this Membership Code shall be subject to termination at the sole discretion of NABC, after due process, for a period deemed appropriate by NABC in light of the nature and scope of the violation. Upon application for reinstatement of membership, such former member shall be required to demonstrate to NABC’s reasonable satisfaction that procedures have been established to prevent a recurrence of the violation.
NABC believes that its members’ commitment to the proper attribution and source identification of VNRs will assist broadcasters by making available to them much needed video source materials while facilitating the distribution of news and other programming to the public in accordance with applicable FCC regulations.
Accordingly, consistent with the above, NABC members endorse and agree to act in accordance with the following principles:
• First, NABC members recognize that in today’s video media environment, the appropriate use of VNRs is an important and integral part of the dissemination of information to the public;
• Second, NABC members believe that broadcasters are able to illustrate more fully news stories and other programming through the appropriate use of VNRs, thereby enabling the public to receive news and other information of interest that is not available from other sources;
• Third, NABC members respect the First Amendment rights of their customers to use VNRs, as well as the First Amendment rights of individual broadcasters to exercise appropriate editorial control and discretion concerning their use of VNRs;
• Fourth, NABC members support the full and fair disclosure of news and programming sources by broadcasters in accordance with existing FCC rules and policies, which NABC members endorse as sufficient to ensure proper attribution and identification concerning the source and use of VNRs;
• Fifth, while the great majority of broadcasters act reasonably and in good faith in their use of VNRs, NABC members are committed to assisting all broadcasters in fully complying with the FCC’s news and program sponsorship requirements by including attribution and source identification information as required by FCC rules and policies;
• Sixth, NABC members support the Code of Ethics and Professional Conduct of the Radio-Television News Directors Association (“RTNDA”) and RTNDA’s Guidelines for Use of Non-Editorial Video and Audio, which, among other things, state that professional electronic journalists should clearly disclose the origin of information and label materials provided by outsiders;
• Seventh, NABC members condemn the payment of money or other valuable consideration to broadcasters in return for the broadcasting of VNRs, without disclosure as required by FCC regulations, and shall report to NABC and/or the FCC any attempts by any broadcasters to solicit such payments;
• Eighth, NABC members are committed to educating the public regarding the appropriate use of VNRs, consistent with FCC requirements and the First Amendment rights of broadcasters and NABC members’ customers; and
• Ninth, the membership of any NABC member failing to comply with this Membership Code shall be subject to termination in the sole discretion of NABC, after appropriate due process, for a period deemed appropriate by NABC in light of the nature and scope of the violation.
AGREED.
___________________________
Member
By:
____________________________
Name
____________________________
Title
____________________________
Date

VNR FAQs
What is a Video News Release?
A Video News Release (VNR) is
the electronic version of a printed press release. Publicists pay specialized
companies to produce and distribute VNRs to television newscasters. VNRs
cover a wide variety of useful and informative topics such as new products
or services, health and medical news, special events, and so on. VNRs generally
take two forms: unnarrated footage and interview clips (called “B-roll”
in the industry), and fully narrated, “packaged” news stories.
What is a Satellite Media Tour?
A Satellite Media Tour (SMT)
features an organization’s spokesperson who is linked by satellite
to television newscasts to facilitate live interviews with a TV station’s
news anchor or reporter.
Are VNRs and SMTs new?
No. VNRs and SMTs are well-established
electronic newsgathering techniques. VNRs have been produced and distributed
for at least 30 years, and SMTs have been conducted for at least 20 years.
Do newscasters receive payment for airing VNRs or SMTs?
No. VNRs are provided to television newscasters at no charge and without obligation for their free and unrestricted use. Broadcasters review VNRs and decide for themselves if they are newsworthy and if they meet the station’s editorial standards. Newscasters frequently edit VNRs and are free to change their basic thrust and message. Newscasters are never under any obligation to air a VNR in whole or in part. Likewise, SMTs are offered to stations at no charge, for use in the stations’ editorial discretion.
Why do newscasters air VNRs and SMTs?
VNRs and SMTs are aired because they contain useful information that is often not readily available from other sources, and newscasters consider them to be newsworthy, informative and of interest to the public.. Specific reasons why any particular VNR or SMT is used in a newscast is solely the result of an editorial decision on the behalf of the individual newscaster.
Where can I find the FCC’s sponsorship identification rules applicable to VNRs and SMTs?
The FCC’s sponsorship identification
rules applicable to broadcasters can be found at 47 C.F.R. § 73.1212,
and the rules applicable to cable providers are located at 47 C.F.R. §
76.1615. A copy of the Rules is available online from the U.S. Government
Printing Office at http://www.gpoaccess.gov/cfr/index.html.
What do the FCC’s rules require regarding the identification
of sponsors of VNRs?
In general, the FCC's sponsorship identification rules require disclosure only when a VNR or SMT involves (1) a controversial issue of public importance, (2) a political matter, or (3) a matter for which money or other consideration has been provided to the broadcaster.
Specifically, the rules require disclosure in the case of any matter involving the discussion of a controversial issue of public importance or any political matter for which any film, record, transcription, talent, script, or other material or service of any kind is furnished, either directly or indirectly, to a station as an inducement for broadcasting such matter.
The FCC’s rules also require that any broadcast station or cable provider that transmits any material for which money, service, or other valuable consideration is either directly or indirectly paid or promised to such station identify the sponsorship at the time of broadcast.
What is the purpose behind the FCC's rules?
The FCC’s rules seek to ensure that broadcasters’ decisions regarding news and programming are not tainted by undisclosed payments from outside parties, and that the source of VNRs and SMTs dealing with controversial or political issues are fairly disclosed since these particular matters represent critical issues of public importance within the viewing community. Some of the FCC’s rules are a holdover from past Commission policies encouraging fair debate of important issues. Many of these types of FCC rules, including the “Fairness Doctrine,” have been rescinded over the past 20 years due to First Amendment concerns, but the sponsorship identification requirements for controversial and political matters -- as well as payment of money and other valuable consideration -- remain.
Must a station identify a sponsor every time a VNR is used?
No. The FCC’s rules require sponsorship identification only for controversial or political VNRs and SMTs and where money or other consideration has been paid to the station as an inducement for the broadcast.
Must the sponsors of “commercial” VNRs and SMTs that are not controversial or political and do not involve the payment of money or other consideration be identified under the FCC’s rules?
No. The FCC’s sponsorship rules apply only when the VNR or SMT involves controversial or political materials or when consideration has been paid or promised to induce a broadcast. The vast majority of VNRs and SMTs do not fall into those categories.
Whether a VNR or SMT is “commercial” plays no part in the determination of whether an announcement is required under the FCC’s sponsorship identification rules. As long as a VNR or SMT does not involve a controversial or political issue, and no money or other consideration has been paid or promised to the station, no sponsorship identification is required under the FCC’s rules.
In short, sponsorship identification of “plain old VNRs and SMTs” is not required under the FCC’s rules.
Could all VNRs somehow be considered “controversial”?
No. For decades, the FCC has made it clear that there are only very limited instances in which material may be considered “controversial” and subject to sponsor identification. Whether material is controversial, according to the FCC, depends on the degree of attention paid to a particular issue by government officials, community leaders and the media; whether the issue is the subject of vigorous debate with substantial elements of the community in opposition to one another; and the impact that the issue is likely to have on the community at large. The Commission has stated that “newsworthiness” alone is not sufficient, and that application of the doctrine to every newsworthy dispute would so inhibit television and radio as to destroy a good part of their public usefulness.
Could the VNR itself constitute “consideration” that would trigger sponsorship identification under the FCC’s rules?
No. VNRs and SMTs are provided free of charge to broadcasters and NABC’s members do not require or accept payment from broadcasters for the use of VNRs or SMTs. The FCC’s rules specifically state that “service or other valuable consideration” does not include any service or property furnished either without or at a nominal charge for use on, or in connection with, a broadcast.
What about payments made by a company to produce a VNR? Could they serve as “consideration” that triggers the FCC’s sponsorship identification requirements?
No. Payments made to a VNR or SMT production company do not constitute consideration under the sponsorship identification rules. For the FCC’s sponsorship rules to apply, consideration must be paid for the purpose of influencing the broadcaster’s decision to include the material in a broadcast program. The production of VNRs and SMTs, in and of itself, does not fall under these requirements.
A similar scenario occurs in the music recording industry. Artists, record companies and others may pay money to various entities such as recording studios and producers in order to create an album. Such payments do not create an obligation on the part of radio DJs to identify the identity of each individual that contributes financially to the production of a recording. The sponsorship identification rules are triggered, however, if those same artists and record companies were to pay money (“payola”) to a broadcaster or some other entity (such as a DJ) for the purpose of inducing the broadcast of the recording.
Are VNRs that contain political or controversial material banned by the FCC?
No. Stations are free to broadcast
VNRs and SMTs that contain political or controversial material, so long
as the stations comply with the FCC’s requirements regarding sponsorship
identification.
How much discretion does a broadcaster have in airing a VNR?
Broadcasters are free to use or not use VNRs. They may use all, part of or none of a VNR. They may edit or not edit a VNRs. They are, in sum, completely free to use VNRs as they see fit in the exercise of their editorial discretion.
As the First Amendment’s guarantees of Freedom of Speech and Freedom of the Press are obviously impacted by the FCC’s sponsorship identification rules, the FCC historically has provided broadcasters with significant leeway in determining what constitutes a “controversial” or “political” matter subject to the sponsorship identification requirements. The FCC has stated repeatedly that it is not appropriate for the Commission to make the initial determination whether material is “controversial” or “political,” and that it will review only whether the broadcaster has acted reasonably and in good faith.
If
VNRs and SMTs have been part of the television news industry for so long,
why has their use become an issue now?
On April 6, 2006, The Center for Media Democracy (“CMD”) released
a Report entitled “Fake TV News, Widespread and Undisclosed.”
At the same time, CMD filed a complaint with the FCC alleging violations
of the sponsorship identification requirements. In essence, CMD claims that
all VNRs must be identified all of the time. In response, the FCC has decided
to look into the allegations contained in the complaint.
The NABC believes that the CMD Report seriously distorts the Commission’s
requirements applicable to VNRs and SMTs and creates the false impression
that numerous broadcast stations across the country are currently violating
the Commission’s rules.
What is the Center for Media and Democracy alleging in its “Fake
News” Report?
The CMD contends that 77 television
stations aired VNRs or SMTs in 98 separate instances without properly disclosing
their sources to viewers in compliance with the FCC’s sponsorship
identification requirements.
CMD does not allege, however, that any payment or other valuable consideration
was provided to broadcasters as inducements to air the VNRs or SMTs; and
the National Association of Broadcast Communicators believes that none of
the content cited by the CMD is controversial or political in nature. As
a result, NABC questions whether any of the instances cited by CMD in its
Report violate applicable FCC disclosure requirements.
For instance, the CMD Report makes no effort to determine whether any of
its reported cases raise controversial issues of public importance or political
matters. CMD, in fact, cites a number of examples of VNR materials that
have nothing to do with controversial or political matters, including VNRs
involving:
• candy flavored lip gloss;
• the making of a Super Bowl Ad;
• a shortage of qualified auto technicians;
• throwing a party;
• a financial Internet game;
• floral care tips, and
• the versatility of pancakes.
On their face, these instances of VNR usage do not appear to violate FCC rules nor longstanding FCC precedent -- yet CMD has publicly accused the stations at issue of serious and improper conduct. Contrary to the FCC’s rules, CMD wants all of these and other types of third party material to be identified in text and voiceovers, regardless of whether the issues are controversial or political, as required by the FCC.
The CMD Report actually confirms that VNR producers clearly and accurately identified the client and funding information in the hundreds of instances studied by the CMD.
The CMD Report also confirms that if a newsroom does air a VNR, producers have full freedom to alter the story in whatever way they see fit, even if it negates the VNR’s original promotional message. CMD recognizes, as does the VNR industry, that VNRs have always been “a gambling proposition,” since stations are not obligated to use the material in the manner presented.
The CMD Report contains several examples of broadcasters exercising their editorial discretion in blending VNRs into their broadcasts. CMD even cites, with some concern on its part, an instance in which a broadcaster removed the promotional tail-end of a VNR, removed product shots from the VNR, modified the VNR script and added independently gathered facts to the material before broadcasting the piece.
What is the FCC doing
in response to the CMD Report?
The FCC recently sent “letters of inquiry” to the stations named
in the CMD Report, asking them to respond within 60 days. NABC understands
that none of the stations has been accused of violating the FCC’s
rules, but that the Commission seeks to better ascertain the actual facts
and circumstances of each case before reaching a decision.
NABC is confident that the FCC will consider CMD’s allegations within
the framework of its existing rules and precedent, with due respect for
the First Amendment rights of newscasters to make editorial decisions, and
that the result of this investigation will be confirmation of a high degree
of compliance with applicable FCC requirements.
What is the National
Association of Broadcast Communicators?
Members of NABC are actively engaged in the production and/or distribution
of VNRs and SMTs. NABC was created for the purpose of establishing standards
and guidelines for the professional activities of its member companies and
to represent the profession before the broadcast industry, the regulatory
community and the public relations industry. As a condition of membership
in NABC, all members voluntarily submit to compliance with the NABC Membership
Code, which recognizes the importance of sponsorship identification pursuant
to the FCC’s rules.
www.broadcastcommunicators.org
[These FAQs
are informative only and are not intended to constitute legal advice applicable
to particular factual situations.]
Founding members of the NABC include:
Media, Membership or
Partnership Inquiries:
Michael Hill
Vice President, NABC
(212) 684-8910
MikeH@NewsBroadcastNetwork.com
Public
Relations Society of America
WWW.PRSA.ORG
Radio-Television
News Directors Association and Foundation
WWW.RTNDA.ORG
National Association
of Broadcasters
WWW.NAB.ORG
PLEASE CLICK ON IMAGE ABOVE TO SEE THE FULL LETTER
You will need Adobe
Acrobat Reader to view the letter
PLEASE CLICK ON IMAGE ABOVE TO SEE THE FULL LETTER
You will need Adobe
Acrobat Reader to view the letter
Membership or Partnership
Inquiries:
Michael Hill
Vice President, NABC
(212) 684-8910
MikeH@NewsBroadcastNetwork.com