Administration Is Warned About Its 'News' Videos

By ANNE E. KORNBLUT

It is illegal for the government to produce or distribute such publicity material domestically without disclosing its own role.

“The comptroller general has issued a blanket warning that reminds federal agencies they may not produce newscasts promoting administration policies without clearly stating that the government itself is the source.

Twice in the last two years, agencies of the federal government have been caught distributing prepackaged television programs that used paid spokesmen acting as newscasters and, in violation of federal law, failed to disclose the administration's role in developing and financing them.

And those were not isolated incidents, David M. Walker, the comptroller general, said in a letter dated Thursday that put all agency heads on notice about the practice.

In fact, it has become increasingly common for federal agencies to adopt the public relations tactic of producing "video news releases" that look indistinguishable from authentic newscasts and, as ready-made and cost-free reports, are sometimes picked up by local news programs. It is illegal for the government to produce or distribute such publicity material domestically without disclosing its own role.

"While agencies generally have the right to disseminate information about their policies and activities, agencies may not use appropriated funds to produce or distribute prepackaged news stories intended to be viewed by television audiences that conceal or do not clearly identify for the television viewing audience that the agency was the source of those materials."

‘It is not enough,’ he added, ‘that the contents of an agency's communication may be unobjectionable.’”

The two best-known cases of such video news releases - one concerning the new Medicare law, the other an antidrug campaign by the Bush administration - drew sharp rebukes from the G.A.O. after separate investigations last year found that the agencies involved had violated the law.

Those cases were followed by disclosures that the government had paid at least one conservative commentator, Armstrong Williams, to promote the administration's No Child Left Behind education measure and had put two other conservative writers on the federal payroll to help develop programs. These episodes have prompted calls from Democrats for stricter oversight of the administration's publicity practices, which have cost millions of dollars of federal revenue.

In the Medicare case, a video made in the style of a newscast featured a spokeswoman named Karen Ryan who claimed to be reporting from Washington on Medicare law changes strongly backed by the administration but opposed by many Democrats, who consider them a windfall for the pharmaceutical and insurance industries. In part of one script, she said that "all people with Medicare will be able to get coverage that will lower their prescription drug spending."

Often there is an intermediary in the process: a public relations firm hired by a government agency to produce a polished video and direct other aspects of a publicity drive.

One centrally involved firm is Ketchum, a giant in the public relations industry whose representatives arranged for both the Medicare video and the contract with Mr. Williams, a pact that is now under investigation by three government agencies. Ketchum has received $97 million in government public relations contracts since 2001.

The G.A.O. letter did not caution agencies to curtail their publicity practices, telling them simply to adhere to disclosure requirements.

"Prepackaged news stories," Mr. Walker wrote, "can be utilized without violating the law, so long as there is clear disclosure to the television viewing audience that this material was prepared by or in cooperation with the government department or agency."

http://www.nytimes.com/2005/02/19/politics/19gao.html