Pay-to-play allegations aren't just a problem for PR. In fact, compared to some of the other cases flying around the media lately, a $4K VNR fine[sub req'd] is nothing.
Medtronic is under scrutiny for its "consulting" payments to doctors and the legendary class-action firm Millberg Weiss is being raked over the coals for allegedly making payments to witnesses.
Sen. Chuck Grassley is looking at the payments by Medtronic, which previously paid $40M to settle similar allegations. The New York Times reported that Medtronic made $6M in payments to doctors in 2006.
Robert Clark, a senior PR exec for Medtronic, says the "innovation in medical devices does, in fact, depend on the input of the physician." The company "welcomes" Grassley's probe.
As for Millberg Weiss, there's a lot of schadenfreude from corporate America, especially from lawyers who have tussled with the firm. As a lawyer recently put it to us: "If your client had to shell out $40M to Millberg because of a court judgment a few years ago, how would you feel?"
Of course, no one is really suggesting that money changed hangs in the recent VNR flap. But as the FCC noted, "even though [the] CN8 [cable network] received [the VNR] at no charge, it falls within the exception" that requires disclosure.
So by that logic, the absence of money changing hands doesn't matter.
