My (Freedom of Expression’s) very first entry, “Blogs self-regulate to stay credible,” pointed out that bloggers have a vested interest in being honest if they want to build and maintain an audience.
But when money is involved, it seems bloggers might need something more than mere self-policing.
Someone identified as “Johntw” posted a bogus story October 3 saying Apple CEO and founder Steve Jobs had suffered a heart attack, sending the company’s shares plunging more than 10 percent before Apple could quash the rumors.
The story appeared on CNN’s iReport, which some, such as TechNewsWorld’s Renay San Miguel, believe helped add to its credibility. Yet CNN only requires a valid e-mail address in order to post, and the only other information it can now provide to investigators at the Securities and Exchange Commission is the sender’s IP address.
If “Johntw” was doing some day trading on Wall Street, it is estimated he/she could have netted as much as $21 million by buying up Apple’s temporarily devalued shares with the knowledge that they would go right back up once the truth was exposed.
San Miguel, as a former CNN anchor, predicts that because of the Apple fiasco, the staff at iReport will now be vetting all submissions from the public.
“It may be a hassle and colossal time-suck to do it, and the company certainly won’t make a big deal about it, but it will do it. Because in the end, the people in charge of the network really do care about credibility,” he says.
Where do you think the line should be drawn? Can the blogosphere be a self-regulated news source or should measures be put in place to prevent people from exploiting its free-wheeling nature?