Glenn
Beck's gold-gate problem Tue Dec 8, 3:47 pm ET
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