AP, others mistakenly publish fake item about GE
By The Associated Press
This article was originally published April 13, 2011 at 9:02 a.m. Updated April 13, 2011 at 3:58 p.m.
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The Associated Press mistakenly published a story Wednesday about General Electric Co. that was based on a fake press release.
The fake release said that General Electric, responding to criticism over the amount of taxes it pays, would repay a $3.2 billion tax refund for 2010 to the Treasury Department.
The fake release, which was emailed to the AP, included a GE logo and a link to a website designed to look like GE’s website. The AP published a 90-word story based on the release. Thirty-five minutes later, AP withdrew the story and advised its customers that the story was a hoax.
“The AP did not follow its own standards in this case for verifying the authenticity of a news release,” said AP Business Editor Hal Ritter.
Two activist groups, US Uncut and The Yes Men, took responsibility for the hoax, according to Igor Vamos, who identified himself as a member of the Yes Men. The groups sought to raise awareness of corporate tax policies that they consider unfair, especially at a time when the government is having difficulty funding social services.
In October 2009, members of the Yes Men staged a news conference to falsely announce that the U.S. Chamber of Commerce had reversed its stance on climate change legislation.
This is what The Associated Press wrote based on the fake press release:
Facing criticism over the amount of taxes it pays, General Electric announced it will repay its entire $3.2 billion tax refund to the US Treasury on April 18.
GE uses a series of foreign tax havens that the company says are legal and that led to an enormous refund for the 2010 tax year.
The company earned $11 billion in 2010 on revenue of $150 billion.
The company, based in Fairfield, Conn., plans to phase out tax havens over 5 years and said it will create one job in the US for each new job it creates overseas.
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ralphiel says... April 13, 2011 at 1:14 p.m.
GE target of hoax saying it will return tax refund
(Reuters) - General Electric Co, embroiled in controversy over its low 2010 U.S. tax bill, was the target of a bogus press release claiming that it would donate billions of dollars to the federal government.
The official-looking release, complete with the GE logo and slogan "imagination at work", said that GE would send its $3.2 billion tax refund from 2010 back to Washington.
The Yes Men, an activist group known for issuing hoax statements claiming major attitude changes in corporate America, said it sent the release in an e-mail to media outlets on Wednesday.
"It's a hoax and GE did not receive a refund," said Deirdre Latour, a spokeswoman for the largest U.S. conglomerate.
The spoof came amid an ongoing battle in Washington between President Barack Obama's Democratic party and the Republican-controlled House of Representatives over how to cut the nation's budget deficit.
GE shares slipped after at least two news organizations, the Associated Press and Dow Jones, reported the hoax as fact.
AP later pulled its story, which AP spokesman Paul Colford said was "clearly a case of editorial error."
Dow Jones followed up its headline, which cited the AP, with GE's rebuttal.
"We moved to clarify the original headline as soon as we became aware of the situation," said spokeswoman Ashley Huston.
GE shares were down 4 cents at $19.97 in early afternoon trading.
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Aimee says... April 14, 2011 at 3:33 a.m.
GE should become the "poster child" for reforming corporate taxes... Get rid of anything that allowed them to "evade" being taxed...
Such greed when so many are suffering is unconscionable...!!!
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