The Culture Media and Sport select committee will look at trying to define modern propaganda, its impact, and also asks whether "changes in the selling and placing of advertising encouraged the growth of fake news, for example by making it profitable to use fake news to attract more hits to websites, and thus more income from advertisers?"
He called on major tech companies to do more to prevent the spread of fake news on their platforms.
"The fear that this might lead the public being fed propaganda and untruths has been increased by the suggestions that electors in the 2016 United States presidential election were subjected to possibly unprecedented amounts of "fake news", and concerns that this may have had a significant impact on democratic processes", the panel said.
Dave Benson Phillips, star of Get Your Own Back, said that fake news reports saying he had died in a vehicle crash had had a major impact on his life. "Has the technology facilitated the spread of fake news?"
The British government announced an investigation Monday of Internet distribution of "fake news" and social media companies' responsibility to control it.
Also suggested on the government's website on the topic of the inquiry is that last fake news was responsible for the result of last year's USA presidential election, in which the victory of Donald J. Trump has been widely portrayed as the rejection of a global elite by the people.
But as an all goal conspiracy theory, "fake news" is hard to beat.
He said MPs will also examine the idea that new "tools" could help weigh the truthiness of an article - a proposal rife with potential for abuse.
However, Collins' comments suggest it is Facebook that will be the focus of attention thanks to its unparalleled scale and success.
Among other things, the politicians will consider whether the "perceived trend for the public to distrust traditional sources of news, such as newspapers and broadcasters" is prompting people to turn to social media for news "despite the fact that the source of the stories is often unclear and it is not known whether the reports are factually accurate".
Where does biased but legitimate commentary shade into propaganda and lies?