Proposed FCC Rules Will Put Glenn Beck on the Gold Standard

Glenn Beck's gold problem may soon be moot. The Federal Communications Commission is considering rule amendments that will set a higher standard for disclosure of paid endorsements on broadcast and cable television. Beck is a poster child for the proposed amendments. The Fox News commentator bullishly endorses gold while collecting payola from Goldline International, a precious metals vendor that specializes in gold coins. Not only does he hawk gold coins on his website (in breach of Fox's standards), he paints a doomsday scenario on his television show, predicting the collapse of the U.S. dollar. What better way to drive fans to stockpile gold? In fact, he claims the price of gold rose $50 during one of his segments. Advertising within a news or current events program is a conflict of interest that erodes objective reporting and principled commentary. Short of legislating a ban, the remedy is full disclosure. Once informed, it is up to the viewer to determine the credibility of the message and the messenger. Because his show airs on cable television, Beck doesn't have to disclose his ties to Goldline. Even if he were on a broadcast network where disclosure is required, the notice would likely be buried in the credits where it would go unnoticed -- which is why the FCC, in response to petitions from consumer groups, initiated a rulemaking proceeding in June, 2008.