Via a comment at theweaselking's, it transpires that The Media Can Legally Lie:

In a stunningly narrow interpretation of FCC rules, the Florida Appeals court claimed that the FCC policy against falsification of the news does not rise to the level of a "law, rule, or regulation," it was simply a "policy." Therefore, it is up to the station whether or not it wants to report honestly.

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.

That's Rupert Murdoch's Fox network there, the equivalent of the Times, Sun, News of the World and Sky. Honesty is not a requirement in reporting, merely ratings.

Having picked up a copy of the Evening Standard for the first time today, it looks like Associated share the same policy in their reporting as well.