Failure to Disclose

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By Josh Rogers on Thursday, April 27, 2006.
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By most estimates, GOP Gubernatorial candidates Jim Coburn is facing an uphill battle. He's a one-term state rep. trying to unset a Governor with high poll numbers and plenty of resources. That said, Jim Coburn is not working alone. Since late March, the former high-tech entrepreneur's campaign has been run by Meridian Communications, the PR firm that helped Frank Guinta claim an upset win in the Manchester Mayoral race. Meridian is also assisting New York Governor George Pataki as he explores a Presidential bid. But Meridian's co-founder, former TV-news reporter Jack Heath, does more than just advise candidates and companies on how to get good press. He also gives them press on his daily radio talk show.

When Jim Coburn opened his Concord Campaign headquarters earlier this month, the Windham lawmaker laid out a basic plan for upping his public profile. Coburn said voters could expect tv-ads, and plenty of personal appearances. He also said voters should look forward to reading about him in newspapers and hearing about him on the airwaves.

"Is it called earned media? I'm still learning the vernacular here. We'll make maximum advantage of that."

Coburn's first stab at generating that merit-based publicity came on Tuesday. That's when he issued a statement calling for a possible 3-month moratorium of the state's gasoline tax…..Coburn said the move would at once bring tax relief, draw summer tourists, and maybe even make the state some money…….His proposal generated stories in state newspapers and coverage by broadcasters…….On Wednesday, Coburn's plan also got some attention on a certain morning talk show…..

"Now Jack Heath and NH Today….on the new FM 107.7 WTPL. The pulse."

That's the same Jack Heath Jim Coburn pays to advise his campaign …….Here's how Heath introduced the Coburn Gas tax proposal into a broader discussion of high fuel prices..

"Did you know by the way we have an 18 cents a gallon state tax on gasoline? 18 cents a gallon. And this fellow Jim Coburn, who's running for Governor, a state rep. talked yesterday about over the summer reducing part of that, and giving people a break at the pump."

"That sounds to me basically like a political ad."

John Stauber is executive director of the Wisconsin-based Center for Media and Democracy, a public affairs and public relations watchdog group. He says given the nature of their relationship, the way Heath identified Coburn, is flatly deceptive.

"First of all, this fellow James Coburn is a distancing rhetorical trick. I mean, this fellow James Coburn who just happens to be, a paying part of my salary."

In all, the explicit discussion of Coburn's tax plan was relatively brief. It took up less than five minutes of the hour long show……But Jack Heath was far from shy when it came to promoting Coburn's position. Here's Heath's response to a caller who questioned the logic of doing anything that might put at risk the revenue that pays for state road projects.

"What's the downside of temporarily cutting back on a even the state's gas tax? That's something that can be done now for three months, and to see if overall....."

"But only problem is what do they do with that money? I, I....".

"But to see if overall the increased revenue that would come in from more people being out and going to restaurants and lodging, you know, room and meals. Would the overall money coming in actually be a net gain? I don't know."

The Center for Media and Democracy's John Stauber says such conduct raises basic questions about the content of all of Heath's broadcasts.

"I would love to see this talk show host list and reveal every one of his paying corporate and political clients. Because he is taking money from a Gubernatorial candidate and promoting that candidate in this hidden sort of way, and that, I think, is very dishonest and less than ethical."

It is however, perfectly legal, and in no way in violation of any Federal Communication Commission requirements. That was the unanimous opinion of the three broadcast law experts contacted for this story….Washington DC Attorney Aaron Shainis has specialized in telecommunication law for 30 years and represents radio stations nationwide.

"You are under no duty to disclose it. Probably, the better course of action is to disclose it, but it's not technically a violation of the payola or plugola rules if you don't reveal it, absent some specific understanding that you are getting paid to have him on you show."

And Jim Coburn says he and Jack Heath have no such specific understanding.

"We've never discussed being on his show. Our strategy is to be on other shows, like yours."

Coburn added that since he did not hear Jack Heath's on-air discussion of his gas tax proposal, he couldn't really comment…….

"I'd have to hear it in context."

"He didn't mention he worked for you is the point."

"Yeah, I understand that."

"You don't see any problem with that?"

"I just don't know, Josh. You're asking me about something I have no knowledge of."

Jack Heath, for his part did not return calls requesting an interview for this story……Nor did WTPL station owner Jeffery Shapiro…….But Heath did, in a fashion, broach the topic during his next show, which aired Thursday, the day after he learned this story was in the works. It was during a further discussion of high gas prices. Here's what Jack Heath had to say.

"The other thing is the Union Leader did an editorial about state representative Jim Coburn's plan for lowering the gas tax - NH has an 18, almost 18 and a half cent gas tax. And yes, I must, I should say I'm friendly and supportive of Jim Coburn, but I thought that it was interesting that the Union Leader is now talking about it."

That was as far as Jack Heath ever went towards informing his listenders that his PR firm is actually paid to advise and promote Jim Coburn's candidacy.…..How Heath chooses to disclose his ties to Coburn and others on future radio show remains to be seen…….But as Heath noted on-air earlier this week, getting to the bottom of things is what his show's all about.

"Were honest on talk radio, right? We have nothing to gain or lose, right? Other than the truth."

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As someone who measures

As someone who measures earned media for a living, this is a hard situation to explain. Josh Rogers did an admirable job. Jack Heath's lack of "truthiness" and full disclosure of his ties to Jim Coburn may not be illegal but it is certainly unethical and despicable. Congratulations to Josh and NHPR for shining the light on the deceptive practice.

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