Last week, we wrote about the impact of the FCC’s decision to standardize certifications from program buyers verifying that they are not representatives of foreign governments – and the accompanying decision to expand that requirement to political issue advertising and paid PSAs. In that article, we noted the August 15 effective date for most of these rule changes, and stated that the expansion of the verification requirement to issue ads and paid PSAs would be effective on that date. We have now learned this expansion may not be effective on August 15. From many informal communications, we have been told that the Commission considers the expansion of this rule to issue ads and paid PSAs to be a new paperwork requirement that, before it can become effective, will be subject to review by the Office of Management and Budget under the Paperwork Reduction Act, a review that has not yet been initiated. This OMB approval process will take at least several months, so it appears that stations need not be worried about implementing the verification obligation just as we are entering into the heart of election season.
We note that this information is the result of informal communications and has not yet appeared in any FCC documentation, as the FCC’s transmittal to the OMB of the recent order for review, where it would be noted, has not yet occurred. NAB today reported this interpretation in one of its publications – but we urge all readers to confirm this interpretation with their own counsel, as these questions of what is and what is not subject to OMB review can be very subjective and confusing. But, from what we have been told, the August 15 effective date does not appear to apply to the verification requirement for issue ads and paid PSAs, making paperwork for the upcoming election somewhat easier.
We also note that the FCC released its Notice of Proposed Rulemaking on the use of AI in political ads yesterday, with comment dates that will run through at least September, making it unlikely that any requirement for labeling or new public file obligations that may arise from any action in that proceeding will be effective before the election. We will provide more details on that Notice in an article early next week. Broadcasters thus can concentrate on their existing political broadcasting obligations during the upcoming election, and hopefully will not need to implement anything new as the ads flow in.