An alliance of Video News Release [VNR] groups has fired off a second rebuttal to the Center for Media and Democracy's [CMD] campaign against undisclosed "fake news" sponsorship. A public filing from the National Association of Broadcast Communicators [NABC] objects to efforts by CMD to "manipulate and distort the [Federal Communications] Commission's sponsorship identification requirements," as the lobby puts it.

NABC claims that FCC rules do not state that all VNRs must disclose their sponsor. They also argue that producers have no connection to the way in which a VNR is broadcast, therefore they are exempt from disclosing information about their revenue.

In April, CMD released a study that pointed to 77 television stations that aired undisclosed VNRs. Such features appear to be news items, but are paid for by companies that seek to promote their product. Critics charge that the clips are essentially advertisements slipped into the news hour.

In October, NABC filed a statement with the FCC identifying itself as a "newly formed organization that represents the interests of Video News Release production companies." The group criticized both the CMD report and the subsequent FCC investigation, claiming that broadcasters may use VNRs that promote anything that is not politically controversial, or monetarily compensational to the broadcaster.

CMD's filed response to NABC stood by its report, defending arguments and data attacked by NABC's ally, the Radio-Television News Directors Association [RTNDA]. In mid-November, CMD released another study reporting that neither the controversy or the FCC's investigation has convinced many TV stations to disclose VNR sponsors (See "Still Not the News: Stations Overwhelmingly Fail to Disclose VNRs").

Now, once again, NABC is condemning CMD's charges. Though NABC says that it "appreciates the Commission's need to ensure compliance with its sponsorship identification requirements," in its latest statement filed with the FCC on November 27th the group insists that FCC rules do not specifically require all VNRs to be disclosed:

"Sponsorship identification is required only when a VNR: (1) raises controversial issues of public importance, (2) discusses political matters, or (3) involves the payment of money or other consideration to the broadcaster as an inducement to include that material in a broadcast," NABC says.

NABC reasons that VNRs are provided to broadcasters without charge or payment, thus they do not violate payola statutes. Additionally, the allegedly non-controversial topics that CMD lists - cosmetics, light bulbs, cereal, dog food, cold remedies - do not require sponsorship IDs.

NABC claims that CMD does not cite a single FCC rule that has been violated by a broadcaster. FCC Commissioner Jonathan Adelstein, on the other hand, argues that under "payola" statute ("Disclosure of Payments to Individuals Connected with Broadcasts"), payments "up and down the chain of [VNR] production" must be made public.

NABC insists that this is wrong. "Payments to Individuals Connected with Broadcasts", NABC claims, do not apply to the producer of the VNR. The producer, they argue, has no influence over how and when the VNR is broadcast. Therefore, compensation to a VNR producer for the VNR creation, as it has no connection to the actual broadcast, need not be disclosed.

The NABC filing also blasts Adelstein for what it calls generalizing FCC rules and supporting CMD during a pending investigation, accusing him of engaging "in the moral equivalent of regulatory slander by mischaracterizing the current rules."

In CMD's defense, Adelstein stated in a teleconference with fellow FCC Commissioner Michael Copps, Free Press and CMD, following the release of "Still Not the News," that "stations that fail to disclose who is behind these stories show a lack of respect for their viewers, as well as the FCC and the broadcast industry's ethics guidlines."

Adelstein also says that many broadcasters are "incapable of self regulation [and] it's up to the FCC to enforce [its] disclosure rules."

CMD and Free Press say they will continue the fight against fake news. As Free Press campaign director, Timothy Karr stated, "Corporate PR firms offer local stations VNR's knowing there's a built-in incentive to use them. By dressing up fake news as local reporting, stations cut costs. But viewers have no way to know that they are being duped."