Nader wants FCC to probe GM's radio ties
In a letter to the FCC, Ralph Nader, the world's most visible consumer advocate, has requested an investigation into the advertising practices of General Motors with regard to several radio personalities.The letter from Nader was prompted by an Automotive News article entitled, "Puff Piece. Rush Limbaugh is one of the radio personalities GM is working with to talk up its vehicles" (sub. req.). The article goes on to detail how the General has supplied DJs, broadcasters and Limbaugh with test vehicles, private meetings and VIP tours of GM facilities.
Nader contests that this type of promotion may be against FCC laws requiring disclosure of payments for endorsements. Some choice quotes from Limbaugh include, "GM has a ton of momentum," and, "GM cars and trucks have never been better."
Whether or not an investigation will take place is up to the FCC, but General Motors made it clear in a statement that everything they've done with broadcasters is above board and meets with the FCC's regulations.
You can read Ralph Nader's letter in full by following the jump.
[Source: Automotive News – Sub. Req., Nader.org]
PRESS RELEASE
Nader letter to FCC
The following is a letter from Ralph Nader to the FCC (appendices to the letter are available at Nader.Org):
Dear Ms. Monteith:
I am writing to ask that Federal Communications Commission (FCC) conduct an investigation of the activities of certain hosts of radio shows. (See Appendix One -- a list of radio hosts participating in the General Motors promotion effort).
On August 6, 2007, Automotive News, the leading trade journal for the automotive industry, reported that GM is wooing radio stars. Its article led with a headline: "Puff Piece. Rush Limbaugh is one of the radio personalities GM is working with to talk up its vehicles." (See Appendix Two -- Automotive News article: General Motors Payola GM woos the radio stars Rush, Whoopi and others plug vehicles on the air, by Mary Connelly.)
Automotive News Reporter Mary Connelly writes that "GM says it doesn't pay the stars directly for their endorsements, although it advertises on their shows. It gives them new GM cars and trucks to drive for two weeks each month. The company also invites the celebrities to Detroit for private meetings with top executives and VIP tours of GM facilities. The attention is paying off."
The article notes that Rush Limbaugh said, "GM has a ton of momentum," he exhaled, "GM cars and trucks have never been better."
But Rush Limbaugh doesn't stop there. He waxes further: "They [GM] are working hard and they are thinking smart. Believe in General Motors, folks." (See Appendix Three -- list of stations carrying the Rush Limbaugh Show.)
Dallas disc jockey Chris Ryan, might as well have been crossing over to his advertising buddies and doing the ad. But this was not ad time. This was program time when he declared: "Have you seen all the cool things that's going on at GM? I have. If you are thinking about a new car, you got to look at GM."
Section 47 U.S.C. section 317, requires broadcasters to disclose to their listeners or viewers if matter has been aired in exchange for money, services or other valuable consideration.
Section 47 U.S.C. section 508, requires that, when anyone provides or promises to provide money, services or other consideration to someone to include program matter in a broadcast, that fact must be disclosed in advance of the broadcast, ultimately to the station over which the matter is to be aired.
Based on this article, it appears that content of the broadcasts may violate the sponsorship identification rules.
In any event, the FCC needs to investigate. Secretary of Commerce, Herbert Hoover, later to become President in the nineteen twenties, called radio "a public trust." He believed the public airwaves, being owned by the people, should convey no advertisements whatsoever.
I look forward to your response.
Sincerely,
Ralph Nader
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Reader Comments (Page 1 of 3)
Phillip 4:44PM (8/18/2007)
Toyota basically does the same here to our radio station. They lease/give/sell/borrow them a Tundra or what ever to drive around and talk about.
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Stéphane Dumas 6:08PM (8/18/2007)
Interesting point Phillip. WHAT IF Toyota did a similar thing? I'm sure Nader will probably said nothing and like Michael Moore and others, he's one guy of "Do as I said, not as I do" (there a book about Nader and the others I saw at http://en.wikipedia.org/wiki/Do_as_I_Say_%28Not_as_I_Do%29:_Profiles_in_Liberal_Hypocrisy )
Now if South Park can make fun of Ralph Nader ;-)
Phillip 6:19PM (8/18/2007)
I guess Nader is still sour about the whole Corvair thing.
Dinger 4:50PM (8/18/2007)
GM is paying people to push their product?!? Say it ain't so Ralph! Say it ain't so.
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Castle 10:22AM (8/19/2007)
The issue is that payments have to be disclosed and the audience must be told in advance.
FTA:
"Section 47 U.S.C. section 317, requires broadcasters to disclose to their listeners or viewers if matter has been aired in exchange for money"
..."that fact must be disclosed in advance of the broadcast"
paul34 4:54PM (8/18/2007)
Yup, nice to see someone finally say it. This is one of the main reasons I don't listen to the radio.
Some people wonder why there's so much crappy music on the radio these days... its because its not "user choice" or "demand" as they like to try to convince schmucks that it is - it's just the recording companies paying to put their crappier songs to play over and over again on certain stations catering to the crowd of low-class music.
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Justin 4:59PM (8/18/2007)
Good job Nader, you caught GM advertising lol
"GM has a ton of momentum," he exhaled, "GM cars and trucks have never been better."
Nothing wrong with stating the truth. The general is on the upswing.
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Dave 9:09PM (8/18/2007)
They might be on the upswing, but saying, "GM cars and trucks have never been better." That's really not saying much, considering how bad they have been.
Justin 11:20PM (8/18/2007)
Well technically you could say that all cars get better as they get newer, but the point that was trying to be made is that GM is on the upswing.
Brad 5:05PM (8/18/2007)
Nader needs to mind his own business. All automakers provide radio and television personalities with vehicles. That's been happening for many, many years.
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Dausman 5:11PM (8/18/2007)
Gee....Buick has Tiger...Ford trucks have Toby Keith...Lexus has Elvis Costello(believe that's right), so what's the big difference ???? If you listen to Neil Boortz( from Atlanta but sydicated all over), he has promoted the vehicle he drives.....don't know if he bought it or it was given to him...but in the long run the commercials certainly paid for it.....you can believe Neil won't do anything illegal..he knows law very well.
Local TV and radio personalities are always doing commercials for companies that have provided services/work at their own residences; again , I have no idea if $$ wer eexchanged, free services were provided or how compensation or payments were made but it happens everyday...maybe I'm just not understanding the enormity of this situation.
Ralph, why don't you go probe illegal immigration or terrorism???
What's the probe for Ralph???? what is illegal???
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Stephen 6:40PM (8/18/2007)
Um.. because he is a consumer advocate. This, by definition, is exactly what a consumer advocate does. He makes sure that people buying products (consumers) aren't being cheated or misled by the companies that compete to cater to their needs.
Zippy Maboonogian 5:29PM (8/18/2007)
Dear Ralph: do you really think that GM would advertise to the tree-hugging corporation haters who listen to Air America???
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John Levy 8:56AM (8/19/2007)
Actually, you're partly wrong. Ed Shultz also promotes GM Vehicles and had Ralph Nader on the other day because Ralph included him on his list. Ed Shultz is not technically an Air America employee, but on the XM radio broadcast of Air America, he is on 5 days a week in the middle of the day and would certainly be considered a progressive like the rest of Air America.
That being said, however, I still think Ralph Nader, for all his good works, is a turd for enabling George W. Bush to be president.
Barney 5:37PM (8/18/2007)
Section 47 U.S.C. section 317, requires broadcasters to disclose to their listeners or viewers if matter has been aired in exchange for money, services or other valuable consideration.
Section 47 U.S.C. section 508, requires that, when anyone provides or promises to provide money, services or other consideration to someone to include program matter in a broadcast, that fact must be disclosed in advance of the broadcast, ultimately to the station over which the matter is to be aired.
The point is that GM is not advertising as an advertisement. The noted celebrities are using their influence but not making mention of the fact that they are getting paid to endorse the product. In plain language, Rush is promoting a GM product, not because he likes it, but because he is being paid to. Fans may not know this and think he likes the vehicle(s) personally.
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david 6:18PM (8/18/2007)
Limbaugh drives an Escalade, Suburban, and an Xlr. He has had these cars long before the General started the advertising campaign now being aired.
WLS's Roe Cohn does exactly the same thing on his program with Lexus and the dealer he bought from but maybe in trouble with Lexus for giving huge Kudo's to GMC's Tahoe.
As for this waste of human dna Nader, he's been a thorn in almost every large corporation ever since he gained fame and fortune for destroying the Corvair. He is nothing more than an opportunist looking to line his pockets and hear someone else mention his name. He is a dirtbag and should be deported to Antarctica.
Stephen 6:32PM (8/18/2007)
Those ads by the dealers aren't the ads in question. They come in during commercial breaks and are formatted as standard radio commercials done by the host. It's been the same for decades all over the country, if not the world.
The ads in question are done in the same format as the rest of the show and never say to buy the product. They just quietly pump GM as if it was a topic on the show or a lead in to a story.
This isn't me bagging on GM. It's wrong no matter who does it, and it's just as unethical for the hosts to be doing it, if not more so.
Barney 7:11PM (8/18/2007)
"Limbaugh drives an Escalade, Suburban.."
He is getting paid by GM to flaunt their product. He is not doing it out of good will. It don't matter if someone was given a free Lexus or packet of Camel cigarettes, as long as they don't push the product without claiming why. "Paid" advertising must indicate that it is a "paid for" ad.
Nader is the reason why vehicles must now pass safety requirements. He was hated by GM enough to have been subject to their hit list at one time. Literally!
david 8:25PM (8/18/2007)
Barney, if this post could change the name from GM to Lexus or Toyoda you'd be defending Limbaugh's right to free speech. GM's hit list? Prove it.
By the way, thanks to Nader we got Bush. For that reason alone we should deport him.
Barney 12:30AM (8/19/2007)
David, I couldn't care less who's taking money under the table. It's wrong regardless of whom is taking it or who is paying it. Graft is graft and the consumer should be protected. There are several books on Nader and you can do your research yourself. You might learn from it. As far as American politics go, I'm sure graft is a normal routine of things. Weather Nader endorsed Bush or not, makes no difference to me. Canadians have to deal with a Bush-wanta-be.
I own one(1) Toyota, two Fords and two GMs. The difference between you and I is that I don't belittle a product just because it's not made in your country. I certainly don't go out of my way to bring up a non relationship because I have a hard on for a particular product. You do it ceaselessly.