Suggestion: For those of you who really believe that I am somehow disparaging Beck and Goldline, go read the first sentence in the "Bottom Line." This blog post is about full disclosure and the blurring of the lines between journalist/commentator/host/presenter/shill and a paid endorser. And the failure of the media to distinguish between vetted editorial material and advertisements. And all about the need for full disclosure.
Original Blog Post ...
OMG: Hell must be close to freezing over because I am agreeing with normally-crazy MSNBC host Keith Olbermann and his uber-liberal democrat guest New York Representative Anthony Weiner.
Both are complaining that the subject material of Glenn Beck’s program, and that of other noted conservative talk show and/or television hosts are spreading financial doom and gloom and that their sponsor, Goldline, profits from this paid exposure to allegedly rip off the audience with exorbitant gold pricing premiums.
See for yourself what is being said …
My position ...
I have long been an advocate of full disclosure in all financial transactions and openly admire the Federal Trade Commission’s approach to enforcing consumer protection laws. I do not believe the financial guru selling books, tapes and investments and I certainly do not rely on talk show hosts for financial advice.
I clearly remember a television financial guru touting Paul Allen’s Charter Communications as a cheap comeback play. The idea came from another billionaire – and at that time Paul Allen was (and still is) one of the richest men in the world. However, Paul Allen, as a majority stockholder of Charter, did and does what’s best for Paul Allen and not the small shareholder; so it is not surprising that the investment tanked. Of course with these public gurus, on balance having more winners than losers statistically produces a profit; at least for those with the capital to diversify into so many investments and trade with the rapidity of a professional. Not so good for the average viewer who is likely to suffer loses. Even with the caveat of “no guarantees” and “do your own homework,” people continue to blindly follow charismatic characters. Which is often detrimental to your physical and financial health.
I have also noted that many so-called conservative publications accept advertising from what seems to be the slimiest direct marketers whose ads appear to be blatantly deceptive; especially those dealing with health and money issues. Perhaps this is because these programs feature demographics skew to an older population with more disposable income, more medical maladies and those senior citizens living on fixed incomes that want to boost their investment returns or can’t afford proper medical care.
The Advertorial …
In the print advertising media, one can find the advertorial – an advertisement formatted in the same style as editorial content. Only the small word “advertisement” at the top and bottom of the ad note that this is not editorial copy. Words which are frequently overlooked by the reader. Additionally, many media outlets will also offer additional editorial support, often in the form of new product announcements, to advertisers as part of an overall advertising package.
So why should we be shocked to see that the same thing exists in the broadcast world. Where select hosts work the advertising copy into the body of their shows with clever and interesting segues? In fact, Rush Limbaugh boasts about the premium he earns for in-program mentions. And he makes no bones about the fact that he is in business to make money.
Appearances can be deceiving …
One of my favorite illustrations of the difference between perception and reality comes from the financial world. Witness the smiling happy faces who welcome you into a financial institution as a “family member;” with all manner of happy talk and promises of “prudent” money management practices. Not only are you regarded as a number, but your real value is calculated on the basis of your incremental profitability to the institution. For those who fall behind on their obligations, the smiling faces disappear and much uglier call center employees, who are incentivized to part you from your remaining money, take over. Your bank, and especially the credit card issuers, are relatively reluctant to help solve your problems if it is not in the best interests of the institution. Perhaps why so many mortgage modifications are not being made because the institutions needs those loans on the books in order to avoid booking an actual loss.
One merely needs to look at the ongoing train wreck that is this financial crisis to know that promises of soundness and prudence gave way to executive bonuses and self-serving financial shenanigans.
And if you think that the major government regulatory agencies are there to protect you, you are sadly mistaken. First, most regulatory agencies have gotten to close to the very people they are sworn to regulate. And second, much of the current financial crisis can be laid at the feet of those regulatory agencies who played politics and failed to enforce the existing safety and soundness rules and regulations.
A pure pitch from Beck on behalf of Goldline …
Beck fires back …
Beck introduces www.WeinerFacts.com …
Glenn Beck sees this as a White House ploy to boycott his program and sponsors in order to impair his free speech rights. Nice spin, but the facts appear to be much different. That one of Beck’s sponsors(and a major sponsor of other conservative media pundits) allegedly sold goods and services that may not have been beneficial for his audience.
The reason why I am not joining the “White House plot” bandwagon is because I strongly believe that this is a financial issue and not a political issue.
One, it involves the issue of media offering space and time to all commercial ventures that are not openly illegal or fraudulent – without endorsement and/or vetting.
Two, it involves the issue of “trusted” writers and hosts who personally shill for the advertised produces and services.
Three, it involves the issue of blending editorial and advertising content in such a manner as to be misleading to the consumer.
Four, it involves the announced or unannounced compensation of the pundit touting the product or service.
And five, it has absolutely nothing to do with the White House and a plot to get Beck. If there is any political component at all, it is media-whore Anthony Weiner’s penchant for finding newsworthy hooks in order to increase his media face time.
Bottom line …
Olbermann, Weiner and Goldline are actually irrelevant to this discussion as you need to use your common sense to vet any investment opportunity and to pick advisors which have a legal fiduciary duty to safeguard your interests.
I do not blame Beck for attempting to protect one of his sponsors’ but as Beck is fond of saying, “Follow the Money.”
I would think twice, and probably many more times, before placing any trust in any performer and/or their sponsors. Pitchmen and women are hired for their believability and seeming trustworthiness. And as we can plainly observe, many of these “actors” say or advocate one thing publicly and do something quite differently in the private lives.
I strongly suggest that you read my blog entries:
‘“Warning: Reputable publishers sell space to all comers, even scam artists and
But the best advice I can provide comes courtesy of the Better Business Bureau --
“Investigate BEFORE you invest.”
-- steve
By the way … the qualifications to receive a great BBB (Better Business Bureau Rating) also involve the time in responding to customers and not necessarily satisfaction in favor of the customer. It is not a customer satisfaction survey or endorsement. The components of this secret, weighted algorithm to determine this rating can be found here. And it should be noted that the BBB earns the bulk of its money selling memberships to businesses.
Reference Links …
Weiner Calls for An End to Shady Practices Of Popular Gold Dealer | U.S. House of Representatives
“Rep. Anthony Weiner (D- Queens and Brooklyn), a member of the House Subcommittee on Commerce, Trade and Consumer Protection, issued a warning about Goldline, Inc., a precious metals dealer that uses aggressive sales tactics, conservative spokespeople and rhetoric to sell over-priced gold coins to unsuspecting consumers.”
“An investigation by Weiner’s office found that the average Goldline markup was 90% above the melt value of the coin. The largest markup on any coin was 208% above the melt value. Furthermore, the average Goldline markup is 47% higher than better-priced competitors, with some of the company’s markups going as high as 102% compared to competitors on one of the coins they offered.”
As Seen on TV: An Investigation of Goldline International|U.S. House of Representatives
Warning: Reputable publishers sell space to all comers, even scam artists |One Citizen Speaking
Comments