Cash for comment affair
Encyclopedia
The cash for comment affair was an Australia
n scandal that broke in 1999, concerning paid advertising in radio that is presented to the audience in such a way as to sound like editorial commentary. John Laws
, a shock jock
radio presenter for Sydney talk back
, was accused of misusing his authority as an announcer. This was widely considered a breach of journalistic integrity. While the initial publicity had died down by the end of the year, it sparked major changes in the way the radio industry
is conducted in Australia. This resulted in a second scandal in 2004, leading to the resignation of Australian Broadcasting Authority
head David Flint
, after he had been found to have been less than impartial in his role in "cash for comment" investigations.
Some have pointed to the Broadcasting Services Act (1992), which has treated the media more as a business than a cultural institution, for a decline in the relevance of ethical standards in the media industry.
, Deborah Richards
and Ann Connelly revealed that 2UE
talk radio hosts John Laws
and Alan Jones
had been paid to give favourable comment
to companies including Qantas
, Optus
, Foxtel
, Mirvac and major Australian banks, without disclosing this arrangement to listeners. Prior to giving favourable commentary to a group of banks, Laws had repeatedly criticised them for imposing unjustified fees on customers while cutting back on services.
Though both initially vehemently denied any wrongdoing, when the controversy gained sufficient momentum, they defended the practice by claiming that they were not employed as journalist
s, but as "entertainers" and thus had no duty of disclosure or of journalistic integrity.
estimated the value of these arrangements at $18 million and found Laws, Jones, and 2UE to have committed 90 breaches of the industry code and five breaches of 2UE's license conditions. The inquiry heard that Laws received cash and VIP hospitality at Sydney's Star City Casino
for not discussing negative aspects of gambling.
The Australian Broadcasting Authority made it clear that Laws was not a journalist, but a radio personality and so journalists' ethical standards didn't apply to him. The inquiry focused on the extent to which deliberate commercial endorsement had led to distortions in which the public was misled about important matters. Regulations were subsequently tightened to prevent such behaviour; however, the ABA has been accused of weakness and inconsistency in enforcing these regulations. Included in the changes were new sponsor disclosure requirements. Laws used a cow bell
to announce sponsor deals following more stringent disclosure requirements.
In 2004, Laws and Jones were again accused of cash for comment in relation to deals both had made with Telstra
. Laws was found to have breached the rules but Jones was cleared; the revelation of flattering letters written by ABA head David Flint
to Jones, at the same time that Jones was under investigation, led to accusations of impropriety that ultimately forced Flint's resignation.
A$10,000 for each of the 13 breaches involving a sponsor disclosure requirement. The Communications Law Centre intervened, arguing that a harsher penalty was appropriate. This led to the Federal Court imposing a larger fine.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n scandal that broke in 1999, concerning paid advertising in radio that is presented to the audience in such a way as to sound like editorial commentary. John Laws
John Laws
Richard John Sinclair "John" Laws, CBE , an Australian radio presenter, sometimes known as Lawsie, was from the 1970s until his retirement in 2007, the host of a hugely successful morning radio program, which mixed music with interviews, opinion, live advertising readings and listener talkback...
, a shock jock
Shock jock
Shock jock is a slang term used to describe a type of any radio broadcaster who attracts attention using humor that a significant portion of the listening audience may find offensive. The term is usually used pejoratively to describe provocative or irreverent broadcasters whose mannerisms,...
radio presenter for Sydney talk back
Talk radio
Talk radio is a radio format containing discussion about topical issues. Most shows are regularly hosted by a single individual, and often feature interviews with a number of different guests. Talk radio typically includes an element of listener participation, usually by broadcasting live...
, was accused of misusing his authority as an announcer. This was widely considered a breach of journalistic integrity. While the initial publicity had died down by the end of the year, it sparked major changes in the way the radio industry
Radio industry
The "radio industry" is a generic term for any companies or public service providers who are involved with the broadcast of radio stations or ancillary services.Radio broadcasters can be broken into at least two different groups:...
is conducted in Australia. This resulted in a second scandal in 2004, leading to the resignation of Australian Broadcasting Authority
Australian Broadcasting Authority
The Australian Broadcasting Authority was an Australian government agency whose main roles were to regulate broadcasting, radiocommunications and telecommunications....
head David Flint
David Flint
Professor David Flint, AM, LLM , BSc , DSU is an Australian legal academic, known for his leadership of Australians for Constitutional Monarchy and for his tenure as head of the Australian Broadcasting Authority.-Background:...
, after he had been found to have been less than impartial in his role in "cash for comment" investigations.
Some have pointed to the Broadcasting Services Act (1992), which has treated the media more as a business than a cultural institution, for a decline in the relevance of ethical standards in the media industry.
Reporting
In 1999, Media Watch reporters Richard AcklandRichard Ackland
Richard Ackland is an Australian journalist, publisher and lawyer, who has won many awards for his reporting.Ackland graduated with degrees in Economics and Law in the early 1970s and was admitted as a solicitor of the Supreme Court of New South Wales before going on to pursue a career in...
, Deborah Richards
Deborah Richards
Deborah Richards is an award winning Australian journalist, of English descent from the Edwards family. Richards has worked for the Australian Broadcasting Corporation, Essential Viewing Group, and Special Broadcasting Service.-Life:...
and Ann Connelly revealed that 2UE
2UE
2UE is a commercial radio station in Sydney, Australia owned by Fairfax Media. It is Sydney's and Australia's oldest commercial radio station, first broadcasting on 26 January 1925 on 1025 kHz AM before moving to 950 kHz in 1935 when virtually all Australian radio stations were assigned new...
talk radio hosts John Laws
John Laws
Richard John Sinclair "John" Laws, CBE , an Australian radio presenter, sometimes known as Lawsie, was from the 1970s until his retirement in 2007, the host of a hugely successful morning radio program, which mixed music with interviews, opinion, live advertising readings and listener talkback...
and Alan Jones
Alan Jones (radio broadcaster)
Alan Belford Jones AO is an Australian radio broadcaster, former rugby union and rugby league coach and administrator.Jones hosts Sydney's most popular breakfast radio program, on radio station 2GB...
had been paid to give favourable comment
Advertorial
An advertorial is an advertisement in the form of an editorial. The term "advertorial" is a portmanteau of "advertisement" and "editorial." Merriam-Webster dates the origin of the word to 1946....
to companies including Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
, Optus
Optus
SingTel Optus Pty Limited is the second largest telecommunications company in Australia, and is a wholly owned subsidiary of Singapore Telecommunications...
, Foxtel
Foxtel
Foxtel is an Australian pay television company, operating cable, direct broadcast satellite television and IPTV services. It was formed in 1995 through a joint venture established between Telstra and News Corporation....
, Mirvac and major Australian banks, without disclosing this arrangement to listeners. Prior to giving favourable commentary to a group of banks, Laws had repeatedly criticised them for imposing unjustified fees on customers while cutting back on services.
Though both initially vehemently denied any wrongdoing, when the controversy gained sufficient momentum, they defended the practice by claiming that they were not employed as journalist
Journalist
A journalist collects and distributes news and other information. A journalist's work is referred to as journalism.A reporter is a type of journalist who researchs, writes, and reports on information to be presented in mass media, including print media , electronic media , and digital media A...
s, but as "entertainers" and thus had no duty of disclosure or of journalistic integrity.
Inquiry
The Australian Broadcasting AuthorityAustralian Broadcasting Authority
The Australian Broadcasting Authority was an Australian government agency whose main roles were to regulate broadcasting, radiocommunications and telecommunications....
estimated the value of these arrangements at $18 million and found Laws, Jones, and 2UE to have committed 90 breaches of the industry code and five breaches of 2UE's license conditions. The inquiry heard that Laws received cash and VIP hospitality at Sydney's Star City Casino
Star City Casino
The Star Sydney Casino & Hotel in Pyrmont, Sydney, is the second largest casino in Australia after rival Melbourne's Crown Casino. Overlooking Darling Harbour, The Star Sydney Casino features two gaming floors, eight bars, seven restaurants, 351 hotel rooms and 130 serviced and privately owned...
for not discussing negative aspects of gambling.
The Australian Broadcasting Authority made it clear that Laws was not a journalist, but a radio personality and so journalists' ethical standards didn't apply to him. The inquiry focused on the extent to which deliberate commercial endorsement had led to distortions in which the public was misled about important matters. Regulations were subsequently tightened to prevent such behaviour; however, the ABA has been accused of weakness and inconsistency in enforcing these regulations. Included in the changes were new sponsor disclosure requirements. Laws used a cow bell
Cow bell
A cowbell or cow bell is a bell worn by freely roaming livestock, so that they do not run away or wander off without being heard. While bells were used on various types of animals, they are typically referred to as "cowbells" due to their extensive use with cattle.A trychel is a large cow bell...
to announce sponsor deals following more stringent disclosure requirements.
In 2004, Laws and Jones were again accused of cash for comment in relation to deals both had made with Telstra
Telstra
Telstra Corporation Limited is an Australian telecommunications and media company, building and operating telecommunications networks and marketing voice, mobile, internet access and pay television products and services....
. Laws was found to have breached the rules but Jones was cleared; the revelation of flattering letters written by ABA head David Flint
David Flint
Professor David Flint, AM, LLM , BSc , DSU is an Australian legal academic, known for his leadership of Australians for Constitutional Monarchy and for his tenure as head of the Australian Broadcasting Authority.-Background:...
to Jones, at the same time that Jones was under investigation, led to accusations of impropriety that ultimately forced Flint's resignation.
Fines
2UE was fined $360,000 for John Laws's improper conduct. Initially the radio station was to pay the Australian Communications and Media AuthorityAustralian Communications and Media Authority
The Australian Communications and Media Authority is an Australian government statutory authority within the Department of Broadband, Communications and the Digital Economy portfolio...
A$10,000 for each of the 13 breaches involving a sponsor disclosure requirement. The Communications Law Centre intervened, arguing that a harsher penalty was appropriate. This led to the Federal Court imposing a larger fine.
See also
- Journalism in AustraliaJournalism in AustraliaJournalism in Australia varies from international practices in areas as diverse as legal freedoms and editorial practices.- History :Most of the published material in the first twenty years of the New South Wales colony was to inform residents of the rules and laws of the time. These were printed...
- List of Australian political controversies
External links
- Stories in 1999 - Media Watch