Why the Probe of Glenn Beck Sponsor Goldline Might Interest the FTC
The most interesting aspect of California authorities' investigation of Goldline -- sponsor of Fox News Channel's Glenn Beck -- is what information it might uncover about the relationship between Beck, his advertisers, and his bosses at Fox. That information might also be of interest to the FTC, which just issued new rules about celebrities who hook up with misleading advertisers.
The allegations that Goldline rips off its customers by selling gold coins at prices far higher than they're worth have been around since December. Goldline is one of very few advertisers that has stuck by Beck since there was an exodus of sponsors after the right-wing talk show host called President Obama "a racist" who has a "hatred for white people." As I noted back in December 2009, the Beck-Goldline relationship appears to be in contravention of Fox's own rules for its on-air talent. And there appears to be no dividing line between Beck's editorial views (you should buy gold because the economy's on the verge of collapse) and the views of Goldline (gold is a safe haven for investors who believe the economy's on the verge of collapse). Here's what we know about Beck, Goldine and News Corp. (NWS)'s Fox unit as it relates to the advertising/editorial divide:
- Beck has said on his radio show he is getting paid by Goldline and Goldline has called him its "paid spokesman."
- Beck continues to routinely endorse the buying of gold on shows where Goldline is a sponsor.
- Beck has filmed a commercial for Goldline.
- Beck has told his bosses at Fox he is not a paid spokesman for Goldline.
- Fox prohibits any on-air talent from endorsing products or serving as an ad spokesman.
- (And Beck apparently communicates with his bosses at Fox through his lawyers.)
Penalties for getting this disclosure thingy wrong are start at $11,000.
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