Prior to the Congressional recess, Rep. Roger Williams (R-TX) questioned witnesses during a House Small Business Committee hearing.
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NewsTranscript
00:00We will now move to the Member questions under the 5-minute rule. I want to thank all of
00:04you for bearing with us as we voted.
00:06I now recognize myself for 5 minutes. We heard in the Ranking Member's opening statement
00:11that there is no evidence of government censorship affecting small businesses. However, three
00:15of our witnesses' testimonies seem to negate that assertion. Additionally, we heard from
00:20Dr. Franks that this hearing is meant to harass research groups and universities. This is
00:25simply not true. We are asking for transparency to ensure that taxpayer dollars are not spent
00:29being weaponized to silence political opponents. Also, our committee has only sent letters
00:34to federal agencies, no universities or other private actors. This is a textbook congressional
00:39oversight.
00:40Now, though, through our investigation, we have seen hundreds of awards that have been
00:45given through the SBIR programs to companies who claim to be disinformation experts, to
00:50police the Internet, and interfere with Americans' right to free speech. One of these examples
00:54is NewsGuard. NewsGuard has multiple products, one of which uses politicized metrics to rate
00:59the media outlets based on their supposed credibility. And if NewsGuard claims an organization
01:04is not credible, their advertising revenue is severely affected. NewsGuard is reportedly
01:08rated around 10,000 media outlets, many of them small and medium businesses.
01:13So, Ms. Yunus, can you tell us more about how NewsGuard operates and how they impact
01:21the ability of businesses to earn revenue? And it is why it is a problem that the Federal
01:25Government is giving these kinds of companies money.
01:27Ms. Yunus. So, NewsGuard rates media companies based on their ostensible reliability, and
01:34that has the effect of driving advertiser revenue away from them if they are ranked
01:38unreliable. Now, I believe that GDI is even worse than NewsGuard, and their secret blacklist
01:45was actually revealed sometime before we started this litigation and was part of the reason
01:49we actually did. And their secret blacklist showed that all of the sites that they ranked
01:54reliable were liberal, including, you know, websites such as the Huffington Post, which
01:58I would argue are not, you know, don't really engage in the most journalistic practices
02:04of the highest integrity, and all of the ones that they deemed unreliable were conservative.
02:08So that really shows that this is viewpoint discrimination, not to mention the fact that
02:12the GEC shouldn't be funding any of this at all, because their mandate is to deal with
02:16foreign so-called disinformation, and this is these are domestic news sites that they
02:21are ranking.
02:22Thank you. NewsGuard and companies like them don't just impact the businesses they rate.
02:26Small businesses that are not large enough to have an internal advertising department
02:30often partner with advertising companies to help get their products or services out to
02:34the public. Many of these advertising companies look at the ratings that NewsGuard gives media
02:38companies when deciding where to place a small business ad. So, Ms. Sheffield, if I am a
02:44small business owner, which I actually am in Texas, and looking to place advertisements
02:48to online to a conservative audience, but the advertising partner I am working with
02:52is partnered with a company like NewsGuard, am I going to have issues reaching out to
02:56the audiences I need to reach out to?
02:57Well, so in the industry there is a term called brand safe, and a lot of times, especially
03:04for a small startup or a medium-sized business, a lot of these big brands, like, say, a Nike
03:09or some of the bigger marquee brands, they aren't going to be familiar with smaller startups,
03:14and so they rely on some third parties to determine whether or not this organization
03:19or this media outlet is, quote, unquote, brand safe. And that brand safe designation can
03:25really make or break the future of a business. As I said earlier in my testimony, that 40
03:31percent of small and medium business publishers say that digital ad sales drive over half
03:38of their overall revenue. So this could be the death knell if they are not considered
03:42brand safe.
03:43Okay. Mr. Weingarten, in the limited time that we have, over the course of our investigation,
03:47we found that so-called fact-checking organizations are being used to bolster traditional media
03:51outlets by labeling others, often small and medium-sized outlets, as untrustworthy if
03:57the question they accepted narrated. So this creates a conflict of interest for many news
04:02organizations to either get in line and stop asking tough questions or lose out on advertising
04:06revenue and potentially get out of the business. So based on the output of NewsGuard and similar
04:13companies' ratings, which narratives do you see being silenced? And do you think this
04:17is creating an environment where those in power are not being held accountable?
04:23I think there's substantial evidence to suggest that views, for example, with respect to virtually
04:28every aspect of COVID-19, from origins to mitigation measures, would lead a site to
04:35get downgraded to the extent they took positions that were antithetical to those of public
04:39health authorities. We've also seen this as well with respect to the war in Ukraine.
04:45And I think what is so chilling about this, ultimately, is if this entire disinformation,
04:50counter disinformation, so-called ecosystem existed in and of itself without any sort
04:55of government backing, I think we'd probably still find it objectionable, but we'd say
04:58there's a First Amendment right to it. It's protected. The problem here is that government
05:02is conferring its blessing on this entire ecosystem, which clearly exists to chill speech
05:08officials don't like.
05:10Thank you. And I now recognize the Ranking Member for five minutes of questions.