The Federal Communications Commission announced today that it has sent out letters to 77 TV stations asking them whether they broadcast "fake news"—ad company Video News Releases (VNR) made to look like real features.

"The public is misled by individuals who present themselves to be independent, unbiased experts or reporters, but are actually shills promoting a prepackaged corporate agenda." FCC Commissioner Jonathan Adelstein said in praise of the move.

The law states that broadcasters can air such pieces, usually produced and distributed by public relations firms, but they have to disclose the origin of the program to their viewers.

In April, the Center for Media and Democracy issued a study indicating that 77 television stations, reaching more than half the U.S. population, have aired such VNRs.

The report cited stations owned by the Sinclair Broadcast Group, Fox Television, and Clear Channel Communications as among the biggest users of VNRs.

The Center's report on the practice described an October 2005 two minute segment aired by KTVI-2 in St.Louis, Missouri, on keeping children safe during Halloween. The feature included product placement shots of Snickers, M&Ms and Halloween bouquets produced by 1-800-FLOWERS.

According to the CMD report, what KTVI-2 did not tell viewers was that Masterfoods, the makers of Snickers, and 1-800-FLOWERS paid a media company to produce the story.

On Sunday the FCC unanimously issued a Public Notice, warning stations not to broadcast undisclosed VRNs.

"Whenever broadcast stations and cable operators air VNRs," the notice said, "licensees and operators generally must clearly disclose to members of their audience the nature, source and sponsorship of the material that they are viewing."

If the FCC determines that a broadcaster has violated sponsor identification rules, they can fine the firm up to $32,500 per offense and begin a license revocation proceeding.

More stories:

• April 8, 2006, Adelstein denounces "fake news"