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Nader Demands Feds Probe GM for Payola

Favors, freebies to talk show hosts in dispute

By Joe Benton
ConsumerAffairs.com

August 18, 2007
Consumer advocate Ralph Nader has asked for a federal investigation of a General Motors program designed to win over celebrities and radio personalities such as Rush Limbaugh.

Nader is charging that GM’s deals with the personalities may violate Federal Communications Commission rules requiring disclosure of payments for endorsements.

Nader’s request for an FCC investigation ia prompted by a GM programs that includes loaning new cars and trucks to the personalities and inviting them to Detroit for VIP visits.

General Motors responded with a brief statement that the automaker “is confident that the media companies with whom we do business are complying with the appropriate FCC regulations regarding public disclosure of relationships with sponsors of their programming.”

Nader's letter to the Federal Communications Commission cited a report in the August 6 edition of Automotive News that said GM was buying ads, loaning cars and offering other incentives to national and local radio hosts in exchange for the promotions.

FCC rules require broadcasters to say if content has been aired in exchange for money or other considerations.

GM has provided free use of vehicles and bought advertising time hoping for on-air endorsements from program hosts, according to a GM spokesman.

"We think this is a good way to build relationships with some of the talent and to get the word out about our great vehicles," the spokesman said.

Nader, a former presidential candidate and longtime consumer crusader, wasn't immediately available for comment. David Fiske, a spokesman for the FCC in Washington, said the agency doesn't comment on complaints.

Limbaugh is the most-listened-to talk show host in the country, and his show is distributed by Clear Channel Communications Inc.

The FCC has cracked down on payola in the U.S. radio industry in recent years.

The agency announced in April that four of the largest U.S. radio companies agreed to pay $12.5 million to settle claims their stations took money and gifts to play certain songs.

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