In its latest declaration , the U.S Department of Labor has refrained from promising the journalists the right to release the market sensitive information at exactly at the same time ,in a review of the policy that has come almost after a decade .
Various media organizations who had their software and hardware devices installed within the department along with communication lines to transmit economic releases like the employment data and consumer prices , will have to curb them down. They will now have to rely on the information provided by the government and use the department’s equipment and connections.
Presently , certain journalist in the dummy lockups are given the reports and data before its released to the public which gives them the time to do their analysis and prepare their reports. Their communication lines are cut for around thirty minutes after which they are allowed to transmit their reports through their own communication channels.
A lot of media organizations have objected to the changes. The changes if they come in effect , might restrict the ability of the press to completely and accurately present the data to the general public and given the impact some of the reports have on the markets the press is obviously troubled by the government’s decision .
Now the journalist who are in the lockups will be dependent on the internet access the government provides them and the department has given no guarantee whether or not they will be allowed access at the same time . The changes are set to take effect from the 6th of July.
The possibility that some of the investors get information before the others , shall create a discrepancy in the markets and the SEC , which is incharge of protecting interests of the investors, is likely to address this issue.
The department of labor , if it provides access to the press before the actual release will also have to safeguard the security procedures around the information releasing to everyone at the same time , according to a directive issued by the office of management and budgets. Therefore they are looking to do away with reliance on the distribution mechanism of the press agencies even though the move could possibly create some volatility around the release.
In response to the opposition by the media calling it as the seizure of the means of communication , the department has gone ahead to say that they are not entitled to provide the pre-access and the lockups , and that it was a courtesy that was being provided and they , as a means to create a leveled playfield , have every right to impose the restrictions.