Spin of the Day

May 12, 2008

Green Marketing, Greenwashing and Bitter Eco Villains - What's A Corporation to Do?

Adweek has an interesting article examining environmental corporate social responsibility in light of the latest consumer survey data designed to help companies profit from green marketing. They caution corporations to "realize they're swimming against a turbid current of anti-corporate sentiment. ... This is the backdrop against which greenwashing has become a household word among eco-activists. And it threatens to become part of ordinary consumers' vocabulary as well. ... When you learn that a brand you use" is greenwashing, "it's like getting a holiday card that says a donation has been made in your name to a cause you dislike." On the other hand, a new TNS survey finds what some might call a 'bitter' market segment who do "not respond well to green messaging." These so-called Eco Villians are "predominantly Midwestern, middle-income family-men in small to mid-sized metro areas. Eco Villains do not believe in global warming, disdain eco-conscious products and suspect that environmental media coverage is propaganda."


DCI Group's Work for Burma's Dictators Embarrasses John McCain

Doug Goodyear, the CEO of the Washington D.C. PR and lobbyshop, DCI Group, was selected to manage the forthcoming Republican National Convention (RNC), in St. Paul, Minnesota because of his "management experience and expertise", a spokeswoman for John McCain said. Michael Isikoff reported in Newsweek that in 2002 DCI was paid $348,000 to represent Burma's military junta. "It also led a PR campaign to burnish the junta's image, drafting releases praising Burma's efforts to curb the drug trade and denouncing 'falsehoods' by the Bush administration that the regime engaged in rape and other abuses," Isikoff reported. Goodyear defended the company's work: "It was our only foreign representation, it was for a short tenure, and it was six years ago," he said. Shortly after the story broke, the RNC issued a media release quoting Goodyear stating he had resigned "so as not to become a distraction in this campaign." DCI's clients have included Exxon, Google and AT&T.


May 10, 2008

Like Taking Candy from a Baby

Consumer Reports Webwatch and the Mediatech Foundation have published a study of how young children interact with the internet, warning that "Publishers of many major children’s Web sites should do a better job disclosing sales and advertising information to parents, especially as more kids at younger ages go online to play and meet friends." The study asked families to keep journals and use video cameras to track the way their children used sites such as Club Penguin, Webkinz, Nick Jr. and Barbie.com. (They've posted some of the footage on YouTube, where you can watch it yourself.) It found that children as young as two years old are surfing the web and observed "repeated examples of attempts to manipulate children for the sake of commerce. ... We believe publishers of children's Internet content need to be reminded they are dealing with an audience that thinks differently than adults. Considering how easily millions of adults are regularly fooled by offers of 'free credit reports,' deceptive advertising, and 'order before midnight' commercials, we think it is unreasonable and irresponsible to subject children to the same hard-sell tactics."


Contractors Gone Wild, Media Gone Missing

Bruce Falconer is calling out the mainstream media for ignoring the disturbing testimony that dominated recent U.S. Senate hearings into corruption by private contractors in Iraq. The testimony came from whistleblowers Frank Cassaday, Linda Warren (both former employees of Kellogg Brown and Root) and Barry Halley (who worked in Iraq for Worldwide Network Services, the Sandi Group and CAPE Environmental Management. They told stories of widespread theft of materials and supplies needed by soldiers, looting Iraqi treasures (in one case melting down Iraqi gold to make cowboy spurs), and a prostitution ring run by the manager of a "major defense contractor," which led to the death of a colleague whose armored car was diverted "to transport prostitutes from Kuwait to Baghdad." Cassaday, Warren and Halley say they were punished and harassed when they tried to alert their companies to these abuses. Aside from Mother Jones, the only news outlet to file a report on their testimony was David Ivanovich of the Houston Chronicle, although a transcript of the hearings is available on the Senate's website.


May 9, 2008

Where There's PR Smoke, There's Grassfire.org, Dude

Columnist Dimitri Vassilaros received a news release about a grassroots "petition to stop climate alarmism" and attacking Al Gore's work. He checked it out and found that "for an organization that claims 'we are grassroots to the core,' Grassfire.org acts as if it is hiding a lot of Astroturf. The politically conservative nonprofit is happy to talk about its worthy online petition campaigns," but is "very tight-lipped about talking about itself. ... The Maxwell, Iowa, address for donations to the grassroots organization is clearly displayed on its Web site. But its 2006 IRS 990 form states its address is Bethesda, Md., near Washington, D.C." The SourceWatch article on Grassfire revealed its relationship to Craig Shirley and his "slick Washington-area PR firm, Shirley & Banister Public Affairs. ... When asked a few times about the organization's finances, [Grassfire's] Mr. De Jong first said he didn't know the size of the organization that he speaks for. He also said he 'could ask around' about that 990 form. When I offered to ask the bookkeeper for him, De Jong said, 'She will call, dude. Relax. I'll take care of it for you. I am a man of my word.' As of Thursday noon, no one had called this dude."


Colombia Seeks UK PR Help

The Colombian government -- which is dogged by controversy over its human rights record -- is seeking help from British PR firms to help promote a "modern" image amongst journalists and politicians. Colombia's deputy head of mission in the UK, Andelfo Garcia, told PR Week that "the stereotype of Colombia is not right. We are a growing country with a good story to tell. We need someone to help us reach out to the UK media, its politicians and its businesses." The UK-based Colombia Solidarity Campaign and other groups have shone the spotlight on Colombia's poor human rights record. In the U.S., Colombia has hired Johnson, Madigan, Peck, Boland & Stewart and Andrew Samet from Sorini, Samet & Associates to help lobby the U.S. Congress to pass the U.S. - Colombia Free Trade Agreement. In early April, Colombia terminated its contract with the PR firm Burson-Marsteller, after taking exception to comments by its CEO, senior Hillary Clinton campaign adviser Mark Penn.


May 8, 2008

Ohio Governor Snuffs out Ohio Anti-Smoking Foundation

The Ohio state legislature has seized $230 million from to the state's Tobacco Prevention Foundation and diverted it other uses. In the late 1990s, Ohio and other states sued the major tobacco companies to recover billions of dollars spent treating sick smokers. Tobacco companies settled the suit by signing the historical 1998 Master Settlement Agreement (MSA), and agreeing to pay billions out to the states. The tobacco companies and the National Association of Attorneys General originally claimed that the purpose of the MSA and its payments was to reduce smoking, but on May 7, Ohio Governor Ted Strickland signed a bill to abolish the state's Tobacco Prevention Foundation and confiscate most of its money. Legislators claimed the money was going to an economic stimulus package, but shutting down the Foundation caused the layoff of 27 advertising employees who handled the Foundation's anti-smoking ad campaigns.


The True Story of a Bogus Blog

Writing for AdWeek, Andrew Adam Newman reports that a deceptive PR campaign on behalf of the Coach bag company has become "the latest illustration of how a buzz-seeking stunt may backfire." Led by Paul Werth Associates, an Ohio PR firm, the "International AntiCounterfeiting Campaign" (IACC) sought to discourage people from buying knockoff handbags. As part of the campaign, Coach persuaded Hunter College in New York to offer a public relations class which invented a fictional student named "Heidi Cee." They created blog postings, a YouTube video and MySpace pages in which Heidi Cee complained that she had been ripped off when she bought a fake Coach handbag. The campaign also claimed that counterfeit products are linked to criminal activity, child labor and terrorism. The revelation that Heidi Cee was a counterfeit herself has drawn criticism, and college officials and Coach are now trying to distance themselves from the fakery. These denials drew scoffs from Sarah El-Edlibi, one of the students who participated in the class. According to El-Edlibi, "the entire PR team from Coach was in the class" egging the students on. "We were supposed to be working for Coach, who was the client, and they really liked the idea of making someone fake. If they had some ethical issues with it, they should have said so. If there was anybody who could have stopped it, it would have been Coach."


Pill Shills and Marketing Ills

"Prozac Nation: Revisited," a show that aired on U.S. National Public Radio member stations, "featured four prestigious medical experts discussing the controversial link between antidepressants and suicide. ... All four said that worries ... have been overblown." But the show did not disclose that all four "have financial ties to the makers of antidepressants," or that the series that produced the show, "The Infinite Mind," has received "unrestricted grants" from drug companies including Eli Lilly, the makers of Prozac. One guest, Peter Pitts, heads the industry-funded Center for Medicine in the Public Interest and is "senior vice president for global health affairs at the PR firm Manning Selvage & Lee," which counts among its clients Eli Lilly, GlaxoSmithKline, Pfizer and "more than a dozen other pharmaceutical companies." In other drug news, Congressman Bart Stupak held a hearing titled "Direct to Consumer Advertising: Marketing, Education or Deception?" Stupak said "he wants to lay the groundwork for future legislation to tighten controls on drug marketing," reports the Wall Street Journal. The hearing addressed such "recent controversies" as ads for Pfizer's Lipitor, where artificial heart inventor Robert Jarvik "appears to be giving medical advice," and ads for Johnson & Johnson's anemia treatment Procrit that promote off-label uses for the drug.


MoveOn and Fenton PR Launch Liberal Advertising Consortium

AdAge reports that Fenton Communications and its client MoveOn.org have announced a politically liberal advertising consortium using corporate advertising executives and firms to "help change the playing field this year. ... At the moment it will go after presumptive Republican nominee Senator John McCain. ... [David Fenton] said the team would work for a variety of causes, not just MoveOn.org. Fenton also handles public relations for Global Green; Friends of the Earth; Bono's One Campaign; Refugees International; and Human Rights Watch, among others. 'Right now, the idea is to help win the election and talk about issues on global warming and women's rights,' he said." MoveOn's political strategist Tom Matzzie and its founder Wes Boyd also founded Campaign to Defend America, currently running advocacy TV ads against John McCain.


May 7, 2008

Preying on Smokers Who Want to Quit

The U.S. Federal Trade Commission is suing NextClick Media, Inc., an Internet advertising company, over Web sites they operate that offered "free 10-day trials" of an herbal stop-smoking patch called "Nicocure," "Stop Smoking 180" and "Zero Nicotine." The sites claimed the product worked better than nicotine patches and had a "97% success rate." People who signed up for the "free trial" got a 30-day supply instead of a 10-day supply, then were told they had to pay for all 30 days if they chose to keep it. If they returned the product, they were assessed a $7.95 restocking fee. People who agreed to the "free trial" also found themselves enrolled in a "continuity program" that automatically billed their credit or debit card a monthly charge of up to $99.95 until they canceled. Customers found contacting the company to get out of the arrangement nearly impossible. None of the costly terms of the "free trial" were disclosed on the company's Web sites. After the FTC sued the company, NextClick agreed to halt its deceptive practices.


Mad Cows Coming Home to Roost

The global increase in grain prices may make the meat supply less safe. The European Union is considering a relaxation of feed bans that prohibit animal by-products being used as feed for other animals in the human food chain. The proposal would "allow pig remains to be used to feed poultry" and would be the EU's first exception made to strict regulations enacted to respond to the BSE, or mad cow disease, crisis of a decade ago. Feeding pigs to pigs, cows and chickens is widespread and legal in the United States, which has had mad cow disease since the 1990s and is covering up its extent. But the European plan is facing opposition from a wide range of parties, including consumer groups, animal rights activists, and Muslim organizations. With nutritionists predicting that "there will be such a backlash from consumers that the idea would have to be dropped," some grocery outlets are already going on record as not being willing to carry the pork-fed poultry. The EU's Department for the Environment, Food and Rural Affairs said that it could "only support it if we were fully satisfied that appropriate and effective testing had taken place to control the use of such proteins in poultry feed." Meanwhile, the Korean government's decision to sell US beef in that country has led to massive street protests in the capital. CMD staffers John Stauber and Sheldon Rampton wrote about the issue of feeding animals to other animals in their 1997 book "Mad Cow USA."


The New Whopper: Burger with a Side of Spies

Author Eric Schlosser editorializes about "the growing threat to civil liberties posed by corporate spying," citing Burger King Corporation's spying on the Student/Farmworker Alliance and the Coalition of Immokalee Workers, through Cara Schaffer and her private security firm, Diplomatic Tactical Services. "The Bill of Rights was adopted to protect Americans from the abusive power of their government. I’ve come to believe that we now need a similar set of restrictions to defend against irresponsible corporate power. Today companies like Wal-Mart and ExxonMobil have annual revenues larger than the entire budgets of some states, and they employ former agents from the F.B.I., the C.I.A. and the Secret Service to do security work," Schlosser writes. "John Chidsey, the chief executive of Burger King, knew about the use of Diplomatic Tactical Services. Mr. Chidsey should get a chance to raise his right hand and tell members of Congress why he thinks this sort of behavior is acceptable." Meanwhile, Burger King says it is "investigating online postings made by one of its vice presidents vilifying the Coalition of Immokalee Workers," reports the Fort Myers News-Press.


Heartland Takes their Skepticism North of the Border

Who could blame them if they sent the Mounties to the border? Who could blame them if they sent the Mounties to the border? CMD reported previously on the Heartland Institute's climate change skepticism, and its efforts to cast doubt on the overwhelming evidence of global warming. The Chicago-based, ExxonMobil-funded think tank has taken its case north of the border, sending out "more than 11,000 brochures and DVDs to Canadian schools urging them to teach their students that scientists are exaggerating how human activity is the driving force behind global warming." While Heartland says that the outreach effort is an attempt to introduce "balance" into the discussion, the Sierra Club of Canada disagrees. Spokesperson Emilie Moorhouse said, "It's alarming that an American think tank is distributing misinformation on the most important issue of our time in Canadian schools, to actually create an illusion that there is a scientific debate." Ignoring the consensus reached by the Intergovernmental Panel on Climate Change that climate change is "unequivocal" and caused by human activities, "the brochure and DVD said that scientists were 'deeply divided' about 'the notion that climate change is mostly the result of human activities.'" Heartland also sent the information packets to 200 Canadian policymakers.


May 2, 2008

More Pentagon Propaganda, Online

As part of its plan to expand online "information operations," the Pentagon is launching "a global network of foreign-language news websites ... and hiring local journalists to write current events stories and other content that promote U.S. interests," reports Peter Eisler. The Pentagon launched Matawani.com last year, an Arabic-language site with Iraq news; other sites are being developed for Asian and Latin American audiences. Like the Pentagon's older "news" sites, aimed at North Africa and Southeast Europe, the new sites only disclose U.S. Defense Department involvement on a single page reached via a small "about" link at the bottom of the site. The goal of the Pentagon's "Trans Regional Web Initiative" is to launch "a minimum of six" websites run by regional U.S. military commands. Assistant Secretary of Defense Michael Vickers said, "Our adversaries use the Internet to great advantage," so the Pentagon must counter their messages with "truthful information, and these websites are a good vehicle." Harvard University's Marvin Kalb called the websites "deliberate deception" that "weakens the image of journalism as an objective bystander."


Industry Encourages More Regulation, USDA Declines

The U.S. Department of Agriculture has been criticized for not totally banning "downer" cows -- animals "too sick or hurt to stand for slaughter" -- from the food supply. So "when a coalition of major industry groups reversed their position and joined animal advocates and several lawmakers in calling for an absolute ban," why wouldn't the USDA agree? Agriculture Secretary Ed Schafer hasn't responded to the new stance of the American Meat Institute and other industry groups. So, industry leaders are encouraging meat producers to institute their own voluntary ban. But the Humane Society of the United States says a total ban is needed and "the USDA should take immediate action." The limited regulation of downer cows was instituted after mad cow disease was found in the U.S. and Canada. CMD staffers John Stauber and Sheldon Rampton wrote about the issue in their 1997 book "Mad Cow USA."


The Great Stonewall of China

China's Great Wall - easier than FOI?The Chinese government has unveiled a new regulation that China View, an English language website of the government-owned Xinhua News Agency, reports "includes a 'freedom of information' provision that gives the public, whether individuals or organizations, the right to request government information by making a written application (paper or electronic)." However, Rowan Callick reports in The Australian that a pilot program in three of China's biggest cities in 2004 "indicates the chances of Chinese journalists making use of this embryonic freedom of information regulation are very slim." The only request by a journalist in the trial was from Ma Sheng, a legal affairs reporter for Communist Party-owned Liberation Daily in Shanghai. Ma sought a copy of a map "from a district-level planning bureau where, he believed, a corrupt deal had been made with a developer that involved the removal of many residents to clear the way for luxury apartments." His request was denied and, after several twists in the saga, Ma lost his job. The development went ahead.


Scandal, What Scandal?

Almost two weeks after the New York Times reported on the Penatgon's military analyst program to sell controversial policies such as the invasion of Iraq, the broadcast television news outlets implicated in the program are hoping to tough out the scandal by refusing to report it. Media Matters of America (MMA) reports that, according to a search of the Nexis database, "the three major broadcast networks -- ABC, CBS, and NBC -- have still not mentioned the report at all." In contrast, they note, on April 28 all three reported on the controversy over a photo of scantily-clad Miley Cyrus, the star of Disney Channel's Hannah Montana program. "ABC devoted about two and a half minutes to that story, while CBS and NBC each devoted about two minutes to it," MMA reported. The Pew Excellence in Journalism project has a chart showing that " there was virtually no mainstream media follow up to The Times’ expose" with the only national TV coverage being the introduction segment and live debate featuring CMD's John Stauber on the PBS NewsHour. Meanwhile, Congresswoman Rosa L. DeLauro and three dozen colleagues sent a letter to the Department of Defense Inspector General calling for an investigation of this "propaganda campaign aimed at deliberately misleading the American public."


May 1, 2008

Brits on the Lookout for Greenwashing

The ad that got Shell in troubleThe ad that got Shell in troubleBritish consumers are mad, and they aren't going to take it anymore. In its annual report, the advertising watchdog organization Advertising Standards Agency (ASA) recorded more than four times as many complaints against corporations for greenwashing in 2007 as in the previous year. "The ASA has already censured several high-profile companies including Suzuki, Shell, Ryanair and Toyota for the practice of 'greenwash' -- where companies are found to have misled consumers on their environmental practices as a business or of the particular benefits of a product or service." The Shell ad that caused concern featured a graphic of a refinery that spewed flowers from its smokestacks. The communications firm Futerra also released a report, using in part the ASA findings, that found that the auto and energy industries were those most likely to receive complaints. The Futerra agency also published a greenwash guide, with tips on how to spot the tactic in action. The list includes fluffy language, a green product vs. a dirty company, suggestive pictures, and what they call "best in a bad class" as warning signs.


Lobbying: A Recession-Proof Industry

From the Center for Responsive PoliticsFrom the Center for Responsive PoliticsWhile the U.S. economy has been slowing, lobbyists have been making more than ever. According to the Center for Responsive Politics, "businesses, labor unions, governments and other interests spent a record $2.79 billion to lobby Washington in 2007, up 7.7 percent or $200 million in spending the year before." The automotive industry spent a new high of $70.3 million lobbying Congress in 2007; a 19.6% increase over 2006. The change was due in large part to efforts to oppose the enactment of higher fuel efficiency standards. General Motors was responsible for over $14 million in lobbying expenditures, while Ford spent $7.2 million, followed by Toyota with $5.9 million. But the auto industry was not the biggest spender. Trade groups like AARP and the Pharmaceutical Research and Manufacturers of America, or PhRMA, topped it. And GM came in fifth in spending by corporations, trailing General Electric, ExxonMobil, AT&T and Amgen. Center for Responsive Politics executive director Sheila Krumholz said, "At a time when our economy is contracting, Washington's lobbying industry has been expanding. Lobbying seems to be a recession-proof industry. In some respects, interests seek even more from our government when the economy slows."


NPR Acknowledges Pentagon Propaganda Controversy

One of the over 75 pundits revealed by the New York Times as being part of the Pentagon military analyst program was Robert H. Scales Jr. In 2003, Scales founded a defense consulting firm, Colgen, which lists both National Public Radio (NPR) and and Fox News as clients. NPR's Ombudsman, Alicia C. Shepard, wrote on her blog that since February 2003 Scales "has been on NPR 67 times, most often (28 appearances) on All Things Considered (ATC). The latest was March 28, when he gave ATC listeners an assessment of the fifth anniversary of the war. ... Only once in December 2006 was Scales' relationship to Colgen mentioned." While 40 NPR listeners protested against any further use of Scales, Shepard disagreed. "Rather than toss Scales off the air and lose his practical and scholarly knowledge of the Army, in the future NPR should always be transparent and identify him as a defense consultant with Colgen," she wrote. NPR also developed new guidelines for "vetting guests" which state, "Ask the guest if he/she has any conflicts of interest." Meanwhile, Editor & Publisher notes "the news chiefs and on-air hosts at CNN, FOX, ABC, NBC, and CBS, have had little reaction," apparently hoping it all blows over.