Glenn Beck's gold-gate problem

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Glenn Beck's gold-gate problem
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March 12, 2003 file photo, syndicated radio host Glenn Beck, whose Philadelphia-based …

 1 hr 21 mins ago
Yet another controversy appears to be brewing around Fox News host Glenn Beck. Some are accusing him of a blatant conflict of interest concerning his frequent on-air promotion of an investment sold by one of his main advertisers: Gold.

For some time Beck critics have cried foul over his relationship with Goldline International, a precious metals vendor that features the TV and radio host's endorsement prominently on their website. Critics charge that Beck is guilty of misleading his audience by often advising them to purchase gold in advance of the potential collapse of the value of the dollar on the world currency market, without disclosing that he is in fact a "paid spokesman" for Goldline. Beck's on-air promotion of gold, which includes advising viewers to construct "fruit cellars" and to rely on a "three G system" of "God, Gold, and Guns" in the event of America's collapse, dates back to his time as a host for CNN Headline News.

Glenn Beck also regularly talks up gold on his nationally syndicated radio show, where he often endorses Goldline during live commercial segments. Additionally, Beck has had the company's CEO on as a guest. Advertisements for Goldline are also featured prominently on Beck's own website, where he recently promoted gold in an audio clip warning of an apocalyptic future:

When the system eventually collapses, and the government comes with guns and confiscates, you know, everything in your home and all your possessions, and then you fight off the raving mad cannibalistic crowds that Ted Turner talked about, don't come crying to me. I told you: get gold.
 

Beck's promotion of gold presents a potential problem for Fox News, which strictly prohibits on-air personalities from making paid product endorsements. When contacted by Daily Finance for a comment on the matter, Fox News senior vice-president for development Joel Cheatwood said the network "makes an exception for its commentators who are also radio hosts," adding that they knew upfront that hiring Beck came with the understanding that he was also a radio host and that they "had to be accepting of certain elements of that." Nevertheless, a Fox spokeswoman said that the company is addressing the matter with Beck's agent, George Hiltzik.

However, Beck, who responded to the conflict of interest allegations on his show last Thursday by saying "So I shouldn't make money?", isn't devoid of defenders on the matter. Business Insider called the controversy "nonsense," adding "there's nothing wrong with a commentator advising viewers, listeners, or readers to take positions that he is taking himself. In fact, you might wonder about the motivations of someone giving financial advice he wouldn't take himself."

In Beck's defense, some have also noted that the price of gold has spiked since he started at Fox News. Nevertheless, you can probably bet that any and all future Jon Stewart impressions of Beck will include numerous references to the virtues of gold.

-- Brett Michael Dykes is a contributor to the Yahoo! News Blog

[Texas_Bryan]

So outside of his commercials, does he promote gold, or the actual company that pays for his endorsement?  And if he promotes the company itself, is he being payed for those words during Fox's broadcast?  If either one of those answers are no then its a STFU situation for the folks upset at this.  This isn't like selling stocks in a company, like this jackass is making out to be, you can buy gold from various people and groups.  No one owns GOLD as a whole, unlike a company stock that has folks that run the whole thing.

And even if he does directly promote the company, so what?  I don't understand how its a conflict of interest.  Perhaps its against Fox's internal regulations.  But isn't that what endorsing a product or service is?  Is there any thing unethical happening here?  Maybe some of you folks with more life experience can enlighten me.

[ericire12]

I have to agree with the critics on this one..... It is a conflict of interest. There is no reason why he cant preach about the dollar collapsing if we keep up the same economic practices, but he should lose the Gold sponsor. But its really all just nit-picking because they dont like Glenn Beck. Any reasonable person can watch his show and then make up their own mind.

[JC5123]

I have to agree with the critics on this one..... It is a conflict of interest. There is no reason why he cant preach about the dollar collapsing if we keep up the same economic practices, but he should lose the Gold sponsor. But its really all just nit-picking because they dont like Glenn Beck. Any reasonable person can watch his show and then make up their own mind.

Why, when even financial guru's that he has on his show (both radio, and tv) are all telling everyone to shore up your portfolios with gold. Across the board anyone with a brain NOT controlled by the white house is saying that congress and BHO are on track to collapse the dollar. As far as I can see, preaching the doctrine is fine, as long as you don't mention the company. (outside of your ads of course)

[Dakotaranger]

I don't have a problem it.  I would be looking at investing at gold if I had money.  As it is the only precious metals I invest in is brass, lead, and copper

[Sponsor]

[TacticalTennessean]

Sounds like a liberal led head hunt to me.  

By the way this is the writer who wrote a fact check article on a SNL skit about Obama.

http://news.yahoo.com/s/ynews/ynews_pl942

[TacticalTennessean]

I have to agree with the critics on this one..... It is a conflict of interest.

A conflict of interest would mean Beck is purposely misleading the public to think the dollar is going to collapse in order to profit from his investment in gold or from Goldline. I think he really believes this is a smart investment and is trying to warn the public to be prepared.
Conflict of interest no, breaking Fox news endorsement rules probably.

"Like other news organizations, Fox News prohibits its on-air personalities from making paid product endorsements. But it makes an exception for its commentators who are also radio hosts, who are allowed to perform live reads, says Joel Cheatwood, senior vice president for development…

But the exemption is meant only to apply to live reads, not to the kind of broader spokesmanship Beck, to all appearances, provides Goldline. In particular, Beck's ubiquity on the Goldline website is not in keeping with Fox's rules."

http://www.businessinsider.com/glenn-becks-gold-endorsement-goes-too-far-for-fox-2009-12

[WatchManUSA]

How can a guy who makes no secret of the fact he is concerned by a company that sells gold have a conflict of interest?

I'm more concerned about politicians who don't disclose their interests and vote on legislation that lines their pockets!

[garand4life]

Beck has pushed people to buy gold since before he began endorsing Gold Line. This has been a major sponsor for several years and Beck has never said he wasn't a paid spokesperson. He made it very clear from the get go that Gold Line was a SPONSOR of his show. And it was back in 2002-2003 that Beck began heavily supporting the purchase of gold and not til about 2006 the Gold Line became an official sponsor of his radio show. No conspiracy here. No cover up here. He practices what he preaches so where is the confict if its in the open?

[r_w]

No different than "mad money" or the 794 different analysts interviewed on all the financial channels.