A court ruled that the media can legally lie in 2003.
"During their appeal, FOX asserted that there are no written rules against distorting news in the media. They argued that, under the First Amendment, broadcasters have the right to lie or deliberately distort news reports on public airwaves. FOX attorneys did not dispute Akre’s claim that they pressured her to broadcast a false story, they simply maintained that it was their right to do so."
Media Can Legally Lie