The film, which is being promoted by liberal group MoveOn, is giving Fox News a similar rapping to the one received by Bush in Moore's cinematic rant 'Fahrenheit 9/11', which has attracted waves of publicity.
The film takes interviews with former Fox employees and uses memos written by Fox executives to portray a pro-Bush and pro-Republican news channel.
One example, in a memo written by John Moody, senior vice-president at Fox News in April, at the height of the insurgency in Fallujah, said: "Do not fall into the easy trap of mourning the loss of US lives and asking out loud why we are there?"
Robert Greenwald, the LA director behind 'Outfoxed', said: "Fox is not a conservative network, it's a Republican network and its 'fair and balanced' slogan is ridiculous."
Greenwald did not ask Fox News for interviews and by using the footage without permission he admits he is taking a lot of risks.
Unlike 'Fahrenheit 9/11', 'Outfoxed', which is released in New York on Tuesday, will not show at cinemas. Instead, it will be shown at 2,000 house parties around the country and will be available to buy online for $9.95.
The release of 'Outfoxed' follows the Murdoch-owned news channel coming under fire from Ofcom in June after one of its news anchors, John Gibson, described the BBC as "obsessive, irrational and dishonest".
The comments were made during the Fox News programme 'The Big Story' on January 28, the day that the Hutton Report was published.
The public made 24 complaints and the media and communications watchdog subsequently ruled Fox News in breach of three sections of its Programme Code: respect for truth, opportunity to take part, and personal view programmes -- opinions expressed must not rest upon false evidence.
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