Are these Facebook ads fair use?

If you’ve been running around the book of Faces lately, you’ll see these little advertisements for some sort of government check scam – pay $1.99 or something for a CD that tells you how to get nonexistent government grants. But my question is this: I’ve seen this guy, Jeff Donahue (www. jeffgetsgrants. com) use two little screen captures from Fox News (like this one with a handsome, young Bill O’Reilly, with fake hands pasted over top holding fake checks). Is this fair use? Since I can’t contact Jeff directly – no feedback link on his site, maybe you armchair lawyers can chew on this in comments.

From what I can tell this would probably break Facebook’s advertising terms of service as well. It’s not quite art and it’s not quite commerce. It’s a strange, strange mix of the two.