ethics

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.

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."

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.

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.

Eight thousand pages of documents related to the Pentagon's illegal propaganda campaign, known as the Pentagon military analyst program, are now online for the world to see, although in a format that makes it impossible to easily search them and therefore difficult to read and dissect. This trove includes the documents pried out of the Pentagon by David Barstow and used as the basis for his stunning investigation that appeared in the New York Times on April 20, 2008.

The Pentagon program, which clearly violated US law against covert government propaganda, embedded more than 75 retired military officers -- most of them with financial ties to war contractors -- into the TV networks as "message surrogates" for the Bush Administration. To date, every major commercial TV network has failed to report this story, covering up their complicity and keeping the existence of this scandal from their audiences.

Buried in junk mail...what to do?A recent blog about the pro-junk mail lobby and its front group, Mail Moves America, drew many comments. Mail Moves America is a coalition of businesses that oppose efforts to create a legislated "Do Not Mail" list to protect citizens from being showered with unwanted junk mail,Junk mail is clearly a hot topic that arouses strong emotions on all sides. As electronic mail moves closer to overtaking paper mail as the medium of choice for written communication, it is clear that the Post Office remains an essential way to communicate and transfer goods. Still, many people are overwhelmed with junk mail and have little idea how to stop it.

The Pentagon launched its covert media analyst program in 2002, to sell the Iraq war. Later, it was used to sell an image of progress in Afghanistan, whitewash the U.S. detention center at Guantanamo Bay, and defend the Bush administration's warrantless wiretapping, as David Barstow reported in his New York Times expose.

But the pundits weren't just selling government talking points. As Robert Bevelacqua, William Cowan and Carlton Sherwood enjoyed high-level Pentagon access through the analyst program, their WVC3 Group sought "contracts worth tens of millions to supply body armor and counterintelligence services in Iraq," reported Barstow. Cowan admitted to "push[ing] hard" on a WVC3 contract, during a Pentagon-funded trip to Iraq.

Then there's Pentagon pundit Robert H. Scales Jr. The military firm he co-founded in 2003, Colgen, has an interesting range of clients, from the Central Intelligence Agency and U.S. Special Operations Command, to Pfizer and Syracuse University, to Fox News and National Public Radio.

Of the 27 Pentagon pundits named publicly to date, six are registered as federal lobbyists. That's in addition to the less formal -- and less transparent -- boardroom to war-room influence peddling described above. (There are "more than 75 retired officers" who took part in the Pentagon program overall, according to Barstow.)

The Pentagon pundits' lobbying disclosure forms help chart what can only be called a military-industrial-media complex. They also make clear that war is very good for at least some kinds of business.

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."

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.

The Pentagon military analyst program unveiled in last week's exposé by David Barstow in the New York Times was not just unethical but illegal. It violates, for starters, specific restrictions that Congress has been placing in its annual appropriation bills every year since 1951. According to those restrictions, "No part of any appropriation contained in this or any other Act shall be used for publicity or propaganda purposes within the United States not heretofore authorized by the Congress."

As explained in a March 21, 2005 report by the Congressional Research Service, "publicity or propaganda" is defined by the U.S. Government Accountability Office (GAO) to mean either (1) self-aggrandizement by public officials, (2) purely partisan activity, or (3) "covert propaganda." By covert propaganda, GAO means information which originates from the government but is unattributed and made to appear as though it came from a third party.