Rule Against Broadcast of Telephone Conversation Without Prior Permission is Constitutional, Says FCC

The FCC today upheld a $4000 fine issued to a broadcaster for broadcasting a telephone conversation without first getting the permission of the people on the other end of the line, denying reconsideration that the broadcaster had sought - arguing that the fine violated its First Amendment rights.  The telephone conversation that led to the fine was between a station employee and two airport officials, about a controversy concerning the local airport.  As summarized in our original article about that decision, the alleged violation arose from a call by the station employee to the airport officials to talk about the local controversy.  The employee allegedly identified himself as a station employee, and started to ask questions - without specifically stating that the call was being broadcast.  Even though the airport officials kept talking once they knew that the call was being recorded, the FCC still fined the station $4000, finding that the violation occurred once the officials said "hello" on the phone without having been told beforehand that the call was being broadcast.  The decision denying reconsideration is most notable for its long discussion of the First Amendment, which the station argued should override the FCC's rules against broadcasting a telephone conversation without prior permission.

The broadcaster argued that, as in any case restricting speech rights, the FCC needed to show a compelling interest to restrict a broadcaster's free speech rights.  Here, the broadcaster argued, no such compelling interest justifying the FCC's blanket rule against broadcasting a conversation without getting prior approval had been shown.  The broadcaster made the point that this was not some case of a wake up call to a visiting celebrity, or a spoof call to a prominent person where the caller was not identified, but was instead a case of a reporter calling a news source for comment on a news controversy.  The subjects knew that they were talking to the station, and thus should have assumed that the substance of their statements might end up being broadcast.  The mere fact that their actual statements were being broadcast live should not, contended the broadcaster, be a sanctionable offense. 

The FCC rejected the broadcaster's arguments, finding that there was no specific speech being restricted here.  There was no decision being made based on the content of any speech, which would demand the higher showing of justification.  Instead, the FCC found that the blanket rule was akin to laws governing the taping of telephone conversations without permission - they don't restrict speech itself, just the retransmission of conversations in which one party has some expectation of some degree of privacy.  The FCC also found that no undue burden was put on the broadcaster in its newsgathering efforts, as the reporter could have merely said that the conversation was being broadcast up front, and no issue would have arisen.  Thus, the FCC found that their rule against the broadcast of any telephone conversation without prior permission is justified, and that the application of the rule in this case was not excusable. 

Expect this case, or one like it, to one end up in the Courts.  The question of whether the FCC's rule, which even bans the taping of a conversation for broadcast before prior permission is received (meaning that a tape made of a conversation technically cannot be broadcast from the beginning, even if the subject of the call consents to the use of the tape for broadcast mid-way through the call), is reasonably justified, much less justified under the First Amendment's heightened scrutiny that is applied to restrictions on speech, is one that has been raised before, and will no doubt be raised again.  But until it is finally resolved in Court, this case, like the many others that we have written about before (see, for example cases here [consent that comes after "hello" is too late], here [broadcast of voicemail message without permission is prohibited] and here [unauthorized action by a former employee no excuse]) makes clear that the FCC takes this rule very seriously, and will impose penalties on those who violate its terms. 

"Citizens United": The Supreme Court Decision One Year Later

The Supreme Court issued its landmark opinion in Citizens United v. FEC one year ago today.  That case allowed corporations and labor unions to make independent expenditures for or against political candidates.  An editorial in today's Washington Post by the President of Citizens United and its lead counsel argues that the hysteria following that decision was unfounded because the amount spent by citizen groups in the last election paled in comparison to the amount spent by the Democratic and Republican parties and by the candidates themselves.  Rather, the authors argue, the primary political speech to come out of the Supreme Court's decision has been that of independents, and politicians are upset by this because they cannot control the speech of independents.

 As a reminder, the Supreme Court case arose as a result of a film directed against then Presidential candidate, Hillary Clinton.  Citizens United was a nonprofit corporation that produced the film, and there was debate whether this was a "documentary" or an "electioneering communication," as well as whether distribution via video on demand constituted "public distribution" of the film.  The Supreme Court found that the film was indeed an "electioneering communication" and that VOD was likewise a public distribution of the film.  Thus, Citizens United ran smack up against the FEC prohibition on independent corporate political expenditures.

As we blogged last year, the Supreme Court found that the prohibition on such corporate expenditures violated the First Amendment right of speech belonging to corporations and unions.  This decision was followed by a firestorm of critical comments, including those of President Obama in last year's State of the Union address.  The fear among many was that the money of big corporations would overwhelm the political messages of others who are less able to afford advertising time and that those corporations would therefore have a disproportional voice in future elections.

The editorial in today's Washington Post argues that those fears have not been realized, and that permitted corporate political expenditures are still vastly outspent by the major parties and candidates themselves.  While the editorial's authors are not unbiased, their point is well taken as to the first election since Citizens United was decided.

What we do not know, of course, is what effect Citizens United will have on a Presidential election, although we will find that out within the next two years for sure.  We also do not know whether corporate political expenditures will increase over time as those new First Amendment rights become realized.   However, most big corporations have directors and shareholders holding all sorts of political viewpoints.  It is unlikely that many publicly traded companies will want to risk offending investors by siding with a Democrat or Republican candidate. 

So, perhaps the fears that followed the Supreme Court's decision were indeed misplaced, and Citizens United was a true victory for the First Amendment, as today's editorial argues.  The future will ultimately reveal any yet unrealized impact of this decision.  Just as the Supreme Court made its decision a year ago in view of all the circumstances then existing, it can just as easily revise its holding in the future should different circumstances warrant correction.

Violence in Broadcasting - Under the Gun

As we've discussed before, here, the FCC has been reviewing their power to regulate violent programming on broadcast stations.  Despite the apparent constitutional and practical issues involved in such restrictions (e.g. are Roadrunner cartoons covered?), published reports indicate that a majority of the FCC Commissioners will issue a report asking Congress to give the FCC authority to regulate violent programming.  The Washington Post today published a story stating that the FCC will this week release its report and ask Congress for the authority to regulate not only broadcast stations, but also basic cable programming.  In the indecency area, the Courts have stepped in to prevent the FCC from regulating cable, given its subscription nature and its ability to block specific channels of programming upon request of a subscriber.  If the FCC does in fact ask for the ability to regulate basic cable, this will break new ground, and will surely end up in court.

 At a legal panel in Las Vegas, held in connection with the National Association of Broadcasters Convention, panelists speculated that the Chairman of the Commission and Commissioner Copps favor the report - while Commissioners Adelstein and McDowell are more concerned about the constitutional implications of this action - making for coalitions on this issue different from those that usually are in place on most FCC decisions relating to broadcasting.

This report, which many had expected to be released prior to the NAB Convention, will no doubt provoke heated arguments in Congress, the Courts and at the FCC.  It's one more programming issue in a year where proposing new programming restrictions seems to have become the rage.