FCC's Martin Orders Probe of TV Stations That Air Ads as News

FCC'S MARTIN ORDERS PROBE OF TV STATIONS THAT AIR ADS AS NEWS
[SOURCE: Bloomberg, AUTHOR: Neil Roland]
Federal Communications Commission Chairman Kevin Martin ordered a probe of dozens of television stations after a report found they aired advertisements as if they were news reports, people familiar with the inquiry said. The April report by the non-profit Center for Media and Democracy found at least 77 stations, including 23 affiliates of Walt Disney Co.'s ABC network and seven Sinclair Broadcast Group stations, ignored an FCC warning to disclose sponsors. The maximum fine for each violation is $32,500, rising to $325,000 for multiple infractions, said FCC spokesman Clyde Ensslin. "If the investigation leads to significant fines, the FCC could cause stations to put disclosures in place that make clearer the corporate role in local news,'' said analyst Blair Levin of Stifel Nicolaus & Co. in Washington. "It depends how hard Martin wants to push it."
http://www.bloomberg.com/apps/news?pid=10000103&sid=aIeR2Prf88nE&refer=us

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