Depends on the country. In Canada, it is illegal for news organizations to report on anything less than the truth. However, this is why these same organizations are lobbying for this law to be repealed. In the US, no such law exists, ala FOX may get away with any lie they choose as long as they fall short of libel (unless the individual is a public official).
In Japan, there is evidence of collusion between news organizations and both political parties/figures and corporate sponsors. This leads to actual censorship in the news. So while blatant lies such as those found in Vanity, may not be a prevalent, it is clear that in some countries stories important news would never even have the ring of full disclosure.
When quoting it is permissible to use ... to indicate that you omitted part of the sentence. Standard grammar guides also say that when you end your sentence on a quote, the punctuation mark should move inside of the quotes. Even if it wasn't originally the end of the sentence.
That is exactly what the journalist in question did. The omitted section of sentence was the word not, and it appeared at the end of a sentence.
The Chicago Manual of Style says that "other punctuation [besides the ellipsis, that is] may be used on either side of the three ellipsis dots if it helps the sense or better shows what has been omitted." Then, later, it says "When the last part of a quoted sentence is omitted and what remains is still grammatically complete, four dots — a period [or exclamation/question mark] followed by three ellipsis dots — are used to indicate the omission." And finally, "Three dots — no period — are used at the end of a quoted sentence that is deliberately and grammatically incomplete."http://grammar.ccc.commnet.edu/grammar/grammarlogs2/grammarl...
Wikipedia implies strongly that The Chicago Manual of Style, as well as the MLA and the Bluebook, have different syntactic rules for using ellipsis within a sentence versus at the end of the sentence. That makes no sense if Retric is correct in his/her claim about ellipsis only being licit at the end of a sentence.
These sources appear to confirm my uneducated belief, which agrees with btilly, that ellipses may be used to mark any omission, of any size, including within a sentence or spanning sentences (wp's comment on CMOS implies omitting entire paragraphs is legal).
In Canada, it is illegal for news organizations to report on anything less than the truth.
Not exactly -- it's against the law to publish facts that the publisher knows to be false. So the standard isn't truth, it's honesty.
It's very hard to prove a journalist is being deliberately misleading. So it's only been used in the case of Holocaust deniers and even then the Supreme Court ruled that the law was not compatible with the Charter of Rights and Freedoms. The government has shifted the false news law to being a regulatory requirement for broadcasters, but it's unclear whether this isn't still unconstitutional.
FOX News, in my estimation, does seem to cross the line when it comes to repeating statements they know (or should know) to be false, often over the course of several days. So I can see why they want even the regulation withdrawn.