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The FCC yesterday agreed to modernize its contest rules, allowing broadcasters to publicize the material terms of a contest that is conducted by a station through posting those rules on an Internet website, rather than requiring that the material rules be read on the air often enough so that a listener is likely to have heard them. The FCC’s order does impose obligations that the website location be announced on the air and that the site be accessible to everyone, but the changes, once they go into effect, will be a relief to many broadcasters who have had so much trouble in recent years with the current rules requiring on-air disclosure of a contest’s material terms (see, for instance, the many fines that have been issued to broadcasters for violations of these rules, about which we wrote here, here and here).

When these new rules go into effect (after approval by the Office and Management and Budget after a Paperwork Reduction Act review – an exercise that the FCC must go through for all new rules with any paperwork requirements even though it would seem to be a formality here where the rules clearly work to reduce the burden on broadcasters), a broadcaster will be able to satisfy the requirement to disclose the material rules of a contest either by continuing the old practice of reading the material rules on the air, or by posting those rules to an accessible website, and publicizing the Internet location of those rules on the air. The website hosting the rules can either be the station website or some other site, but the rules state that the site must be available to everyone who visits it without having to register to use the site or to pay any sort of fee to access the site. The on-air announcement about the website does not need to give the exact URL of the page on which the rules can be found, as long as the announcement is specific enough so that a listener will be able to find the rules (e.g. by saying something like “go to the K-100 website, k100.com, and click on the ‘contest’ tab”). The FCC also makes clear that, if a station is sending its audience to the station’s homepage to find the contest rules, that there should be a tab, link or other clearly identified location on the homepage to make clear where listeners should go to find the contest rules.
Continue Reading FCC Revises Broadcast Contest Rules – Allows Disclosure of Material Rules on the Internet

How to deal with a noncommercial radio station’s public inspection file when the station is licensed to a college and has a main studio in a restricted-access student residence hall is a question that I have received repeatedly when I have conducted sessions on FCC rules at noncommercial broadcasters’ conventions and meetings.  In a consent decree reached with a college and announced by the FCC on Friday, the FCC’s Media Bureau has suggested how this issue should be dealt with – by asking for a waiver of the Commission’s rules to allow the file to be maintained at another campus building which has access for the public during normal business hours.

In that case, the Bucknell University station had its main studio in a residence hall not open to the public, and it kept its public file at the student center, another campus building to which the public had access.  While the station posted a sign at the entrance to the residence hall where the main studio was housed that the public file was at the student center, and instructed campus security that this was where anyone who asked for the file should be directed, the college had not asked the FCC for a waiver of Section 73.3527(b)(1),  which requires that the public file of a noncommercial station be kept at the main studio of the station.  In the Consent Decree, the FCC agreed to waive the FCC rules to allow the public file to remain at the student center location, balancing the needs of the public for access to the file with the security needs of the college.  Nevertheless, the licensee made a $2200 “contribution” to the US treasury for not having previously asked for a waiver of the rules to locate the files at a location other than its main studio, and for also failing to include in its files Quarterly Issues Programs lists for several years during the license renewal term in which these issues arose.
Continue Reading The Location of the Public Inspection File of a College Radio Station When the Station’s Main Studio is in a Building Not Open to the General Public Addressed in FCC Consent Decree

The FCC recently issued a Declaratory Ruling and Order on the Telephone Consumer Protection Act (TCPA) – and that order highlights many issues with broadcasters who use texts or outbound automated calls to the mobile devices of viewers and listeners. In fact, today the FCC released a Notice of Apparent Liability proposing to fine a travel marketing company $2,960,000 for robocalls to households on the Do-Not-Call list, without having any consent from the recipients of the calls. Certain practices of broadcasters could arguably come under TCPA prohibitions. Thus, Josh Bercu, an attorney in my firm, has prepared the following warning for broadcasters about their potential liability under the TCPA.

Last month, the FCC released a Declaratory Ruling and Order addressing 21 separate requests for clarification and other action regarding the TCPA, a law that restricts businesses and organizations from making calls and texts to consumers’ residential and wireless phones without having first received very specific permission from the recipient. Sending texts to broadcast station viewers or listeners who are contained in a station’s loyal listener or loyal viewer clubs can lead to liability if the proper releases are not obtained, and collecting text addresses from contest participants and adding them to station databases can similarly be problematic.   Because violations of the TCPA can result in civil liability of $500 to $1500 per call or text plus FCC fines, and as there have been a number of law firms around the country that have been active in filing class action suits against businesses to collect those potentially very high per-call damages, broadcasters need to ensure that their practices comply with the TCPA and the FCC’s rules which implement the Act.   While the recent Order provided some specific relief in limited circumstances to businesses, it leaves many well-intentioned companies, including broadcasters, at risk as they try to contact their viewers and listeners. Below we address some commonly asked questions about how the TCPA may apply to broadcasters.
Continue Reading How Broadcasters Could Have Big Liability For Texts And Calls under The FCC’s Recent Order on The Telephone Consumer Protection Act (TCPA)

On Friday, the FCC announced a consent decree for violations of the requirements that TV stations provide at least three weekly hours of CORE programming addressing the educational and informational needs of children. The operator of eight TV and Class A TV stations in the southeast US agreed to make a $90,000 “voluntary contribution” to the Federal government and to adopt new practices to insure future compliance with the CORE programming requirements. The FCC had held up the license renewals of many of its stations as the licensee had claimed reruns of one-time programs as fulfilling the CORE requirements. As explained in the FCC’s Order, the FCC does not consider such programming to meet the requirements of the children’s television rules.

Under the rules, the FCC has the following requirements for CORE programming meeting the educational and informational (“E/I” in the language used by the FCC) needs of children:

(1) serving the E/I needs of children ages 16 and under is a significant purpose of the programming;

(2) the program is to be aired between the hours of 7:00 a.m. and 10:00 p.m.;

(3) the program is a regularly-scheduled weekly program;

(4) the program must be at least 30 minutes in length;

(5) the program is identified as being specifically designed to educate and inform children through the on-screen display of the E/I symbol throughout the program;

(6) the educational objective and the target child audience are specified in writing in the licensee’s Children’s Television Programming Report; and

(7) the licensee must provide instructions for listing the program as E/I, including an indication of the age group for which the program is intended, to publishers of TV program guides.

In this case, the licensee was deemed to have violated criteria number 3 above – as its programming was not “regularly scheduled.”
Continue Reading $90,000 Payment to FCC by TV Owner for Claiming Reruns of One-Time Programs as Meeting “CORE” Children’s Educational and Informational Programming Requirement

One million dollars is still a big fine, even though the FCC has been handing out fines for that amount, or more, many times in recent months. But fines rarely hit these levels for broadcasters. But, yesterday, the FCC issued such a fine – hitting iHeart Media with a $1 Million fine as part of a Consent Decree imposed for the inappropriate use of EAS tones in the Bobby Bones syndicated radio program. The program was being run on 82 stations across the country. According to the FCC’s order approving the Consent Decree and imposing the associated fine and compliance plan, the broadcast of those tones triggered EAS alerts across several states – principally at stations and cable systems that had not activated the ability of the EAS system to recognize the date of an alert (the program rebroadcast the FCC’s first national EAS test, a test that was conducted almost 3 years before the Bones broadcast).

As with many other recent cases where the FCC has imposed heavy fines on broadcasters and cable programmers for use of EAS tones in entertainment broadcasts (see our articles here, here, here, and here tracing the history of the FCC’s escalating penalties for this kind of violation over the last few years), the FCC sees these matters as threats to public health and safety, as the public could react adversely to these EAS alerts that were not tied to real emergencies (or be desensitized by repeated false alerts to the importance of real alerts). The FCC’s News Release announcing the adoption of the Consent Decree makes exactly this point – the misuse of EAS alerts are threats to the public safety.
Continue Reading FCC Fines iHeart Media $1,000,000 for Broadcasting EAS Alert Tones When there was No Emergency – What the Big Fine Says to Broadcasters

Last month, I did a seminar at the College Media Association about the FCC legal issues that college broadcasters need to think about – talking about required FCC filings, pubic file obligations, underwriting issues, and programming that can get the broadcaster into trouble. Slides from that presentation, which present only an outline of the more detailed discussion that we had during the session, are available here.

I mentioned during the session that the FCC decided two years ago that they would be somewhat lenient with student-run radio stations who are first-time violators of certain FCC rules. In a case that we wrote about here, the FCC said that the fines that are imposed on commercial broadcasters for rule violations like the failure to include quarterly issues programs lists in the public inspection file (fines which can exceed $10,000 when numerous such lists are missing from the public file), would be greatly reduced – to something on the order of $1000 – for student-run stations that are facing their first violation, and provided that the fine dealt principally with paperwork matters and was not one that affected public health or safety. In a decision released by the FCC last week, the limits of that leniency were made clear.
Continue Reading A Seminar on FCC Rules for College Broadcasters – And an FCC Case on the Limits on Leniency on Fines For Rule Violations By Noncommercial Broadcasters

In a decision just released by the FCC, a TV station was admonished for including, in the credits of a TV program, the URL for a website that contained commercial material. As this was deemed by the FCC to be an isolated occurrence, the station was only admonished, not fined for the violation. But the decision is a good reminder for TV stations of the advertising and marketing restrictions that apply to children’s television programs and to links to websites contained in such programs.

The FCC’s rules prohibit a station from including a website’s address in programming directed to children 12 and under unless it meets a 4 part test. The four parts of that test are as follows:

  1. the website offers a substantial amount of bona fide program related or other noncommercial content;
  2. the website is not primarily intended for commercial purposes, including either e-commerce or advertising;
  3. the website’s home page and other menu pages are clearly labeled to distinguish the noncommercial from the commercial sections; and
  4. the page of the website to which viewers are directed by the website address is not used for e-commerce, advertising, or other commercial purposes (e.g., contains no links labeled “store” and no links to another page with commercial material)

In this case, the website had commercial content, leading to the admonition to the station. The URL was apparently visible for less than a second, in the credits, and ran only once. As this was an isolated instance, the station was not monetarily penalized, but the FCC did make clear that this was a rule violation.
Continue Reading FCC Admonishes TV Station for Including Commercial Website Address in Children’s Program – A Good Reminder on Children’s Television Program Restrictions

The FCC set a new record for a fine for a single violation of its indecency rules – $325,000 for a 3 second visual image of a penis run in a corner of a TV screen a single time on a TV station during its 6 PM news (a full description of the image is in the FCC’s Notice of Apparent Liability but, so as to not trigger too many spam filters, I will omit any more details in this article). The image in the newscast was a visual of a website, the website having several different frames, each with video images, and one of those frames had the image that led to the fine. This is the first time that the FCC has imposed a fine of $325,000, an amount authorized by Congress during the FCC’s last crackdown on indecency but never before used by the FCC. And not only did the FCC issue the Notice of Apparent Liability describing its legal reasoning for imposing the fine, but they also put out a press release publicizing the Notice, highlighting other recent indecency actions taken by the FCC, and warning broadcasters to pay attention to the decision. What happened here?

According to the FCC’s order, a TV station did a story on a former adult movie star who had retired from her former profession and begun to work with the local rescue squad. In providing background to what might otherwise be an off-beat human interest story about a person with a colorful past adapting to a new life as part of a local community, to provide context, the station showed the website of the adult movie company for which she had formerly worked. In editing the brief clip of the website into the story, neither the independent producer who put the story together nor anyone at the station noted the visual in one corner of the webpage with the image that got the station into trouble. According to the station, the image was not viewable on the editing machines used by those producing the story. But, apparently viewers at home, perhaps watching on bigger screens, were able to see the image, prompting the FCC complaint and other complaints to the station. While the image appeared on screen for only about 3 seconds, and only once, the FCC nevertheless selected this case to be its first in which to levy this new level of indecency fine – ten times higher than previous fines for a single broadcast of indecent material on a single station. Why?
Continue Reading FCC Proposes Fine of $325,000 in TV Indecency Case – What Prompted this Largest Fine Ever for a Single Incident?

In a post on the FCC’s blog, Commissioner Michael O’Rielly proposed allowing broadcasters to meet their EEO wide dissemination obligations solely through Internet sources. As we recently wrote, broadcasters need to widely disseminate information about job openings at their stations, using sources that are designed to reach all of the major groups that may exist within a station’s recruitment area. These sources could include school groups, minority organizations, social or community organizations, or other population groups that may exist in a station’s community. The current EEO rules, adopted a dozen years ago, suggested that a significant newspaper of general circulation may be one way to reach most of the groups within a community. But, as the Internet was not seen as universally available at that point, the FCC ruled that online sources alone would not be sufficient to meet these wide dissemination requirements. The FCC has continued to enforce that decision, even penalizing stations that relied solely on online sources for wide dissemination purposes (see, for instance, our summary of one such decision fining a number of stations that relied primarily on online sources, here). Commissioner O’Rielly suggests that this does not make sense in today’s world, as the Internet is much more available than the newspaper and other more “traditional” recruitment sources.

The Commissioner cites many statistics about the current availability of the Internet to diverse populations, and points to the fact that virtually all public libraries now have public Internet access, and one of the principal reasons for such Internet access if often to provide employment opportunities. He points to all of the online job sites that now exist, and the relative paucity of job listings in today’s newspaper. Will his proposal go anywhere?
Continue Reading Commissioner O’Rielly Proposes to Bring Mandatory FCC EEO Recruiting Into the Modern Era by Allowing Reliance on Internet Resources

A flurry of fines against broadcasters have come out of the FCC in the last week.  These fines highlight the scrutiny under which owners of broadcast stations can find themselves should an FCC Field Office inspector knock on their door.  If the FCC pays a visit and finds a violation, a station is often looking at a fine even if it quickly takes corrective action.  Let’s look at some of these fines and the issues raised by each.

First, a Regional Director of the FCC’s Enforcement Bureau yesterday released a $17,000 Forfeiture Order (a notice of a fine) to a Michigan AM broadcaster for having a fence around its tower that had “separated” allowing unfettered access to the site and for missing quarterly issues programs lists in the public file.  The FCC refused to lower the fine, despite the licensee’s arguments that the quarterly issues programs lists were in fact at the station but there was “confusion” as to where they were at the time of the inspection, and its argument that it should not be responsible for the fencing issue as it did not itself own the real estate or the towers.
Continue Reading FCC Fines: $17,000 for Unsecure AM Tower Fence (Not Owning the Tower Site is No Excuse); $25,000 for Missing Quarterly Issues Programs Lists; $22,000 for Nonfunctioning EAS and Wrong Tower Coordinates