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Journal to Pay $115,000 for Airing Ads Disguised as News Reports

Journal Broadcast will pay $115,000 for airing commercials paid for by local car dealerships as “Special Reports," said the FCC Enforcement Bureau in a news release Friday. KTNV-TV Las Vegas didn’t disclose that the segments were paid commercials, violating the…

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FCC sponsorship identification rule, the release said. "Broadcasters are not allowed to deceive the public by presenting commercial announcements or other paid programming in the guise of news or editorial content," said Enforcement Bureau Chief Travis LeBlanc. An advertising agency paid KTNV in 2009 to produce and air "Special Reports" about “liquidation sales” at car dealerships in Las Vegas, the release said. “KTNV formatted the commercials in the style of news reports, which featured a KTNV staff person on location at the dealerships posing as a journalist.” The staff person “identified herself as reporting on behalf of channel 13," the release said. The announcements aired “adjacent to the local weekend news,” the release said. Under the settlement, Journal admitted the violation and will begin a three-year compliance plan, the release said.