FCC Fines

Subscribe to FCC Fines via RSS

Noncommercial broadcasters get no breaks when dealing with proposed FCC fines, said the Commission’s Media Bureau in two cases released this week.  While many noncommercial broadcasters may yearn for a day when they were treated leniently if violations were discovered – getting off with perhaps an admonishment letter – those days are over, as they have been for some time. In one case released this week, the FCC specifically states that noncommercial broadcasters are no different than commercial ones when dealing with fines (or "forfeitures" as they are called by the FCC).  If the noncommercial broadcaster violates a rule, they will be treated just like a commercial broadcaster, and have to pay the same fine as would the commercial broadcaster.  

Noncommercial broadcasters have often argued that they cannot afford to pay big fines, as their budgets are limited.  Even when noncommercial stations are owned by colleges or local governments, they have limited budgets, and fines don’t figure into them.  But, in two recent cases, the FCC has rejected arguments for the reduction of proposed fines based on financial hardship, in both cases finding that the budget of the station was not important – it is the total budget of the licensee that is important in assessing if a fine is too much (see our post about how the FCC determines if a fine should be reduced because its payment would create a financial hardship on a station).  In the case cited above, the FCC said that it was the local government agency (a metropolitan school district) that was the licensee, and its financial resources should have been assessed in determining whether the proposed fine was too great.  In a second case, it was a state university that owned the station, and the FCC said that it would look to the overall finances of the university in determining if the fine was too high – not the amount budgeted for the station.  In neither case had the licensee put forward a financial showing for the full licensee organization, so the FCC rejected the requests for reductions of the fines based on financial hardship.Continue Reading FCC Makes Clear Noncommercial Broadcasters Get No Breaks on FCC Fines, Nor on Financial Hardship Showings

The failure to follow FCC filing rules when a station finished construction of new facilities under a construction permit will apparently cost a radio station $7000 according to a recent Notice of Apparent Liability released by the Commission’s Media Bureau.  Before a broadcast station can make most changes to its technical facilities, it must apply to the FCC for approval, which the FCC grants by way of a construction permit.  In most cases, the broadcaster has 3 years to construct the proposed facilities.  Once construction is complete, the broadcaster must notify the FCC of that fact by filing an application for a license on FCC Form 302.  That form gives details of the construction, so that the FCC can tell that the station was built in the manner authorized by the construction permit, and in accordance with any conditions placed on construction in the permit.  In this case, the broadcaster built the new facilities that it proposed within the 3 year period, but forgot to file the Form 302 – and only did so 3 years after the end of the construction period.  Under this Notice, the late filing, and the failure to ask for special temporary authority ("STA") to operate the station after the failure to file was discovered, may cost the station $7000.

In the past, the FCC had allowed some stations to file their license application late, if construction had occurred in a timely fashion, and where the licensee provided proof of the timely construction.  In this decision, the FCC found that these cases were situations where the late filing was for an insignificant period of time – a few days or weeks at the most, not for the years that went by in the case here.  The late filing, and the fact that, as the construction permit had expired and no license had been granted, the station was deemed to have been operating without authority at the new site, warranted the $7000 fine in the FCC’s opinion.  The case not only serves as a reminder to those with construction permits to file their license applications on time after they complete construction, but also shows that while the FCC may show some flexibility in enforcing its procedural rules, it will not allow licensees to ignore them for long periods.  So be careful to meet the requirements of the rules, or look for big fines from the Commission. Continue Reading $7000 Fine for Radio Operator Who Builds Construction Permit But Forgets to File a License Application

A consent decree entered into by a radio broadcaster, which included a $12,000 "voluntary contribution" to the US Treasury, demonstrates once again the FCC’s concerns about sponsorship identification issues.  The week before last, we wrote about the FCC fine levied on a television broadcaster for not including sufficient sponsorship information when a "video news release" was broadcast on a local television station without disclosing that the video footage had been produced by the automobile company whose products were featured.  The recent FCC Report on the Information Needs of Local Communities (formerly known as the Future of Media report) also focused on the need for more disclosure in connection with sponsored material carried on broadcast stations and other media (see our summary here).  With a long outstanding Rulemaking proceeding on these issues that remains unresolved (see our summary here), the Commission almost appears as if it is setting its policies in these areas through case law rather than through the rulemaking process.

In this most recent "payola" case, a complaint was lodged against a Texas radio station owned by Emmis Broadcasting alleging that the host of one music program was receiving compensation from a local music club, a local record store, and a manager of local bands in exchange for featuring music on the show.  The allegation contended that other local bands could not get their music played on this show without sponsoring Station events hosted by this particular personality.  The Consent Decree does not resolve the question of whether these allegations were true, but instead requires that the licensee make the voluntary contribution, adopt procedures to make sure that Station employees are aware of the requirements of the sponsorship identification rules, and report  to the Commission on a regular basis on the actions taken by the licensee to ensure compliance with the FCC rules.  In addition to general requirements that the Station educate its employees about the sponsorship identification rules, the Consent Decree also contained conditions setting forth rules governing the relationship that station employees could have with record labels, even though the decree makes no mention of any allegations of improper consideration having come from record companies.  These conditions were ones that appear to have come from consent decrees entered into with a number of broadcasters 4 years ago in the last major FCC payola investigation (which we wrote about here).Continue Reading $12,000 Consent Decree Payment Demonstrates FCC Concerns About Sponsorship Identification Policies

If a broadcaster is looking to maximize the fine that they receive for FCC violations, one would be hard pressed to pick three violations more likely to draw the ire of the FCC than those that were found after a field inspection of a North Carolina AM station, leading to a Notice of Apparent Liability proposing to fine the station $25,000.  The inspection found a tower site with an unlocked fence (a fence which was also observed to be in disrepair) around areas of high RF radiation, and no evidence of either an EAS receiver or a public file at the station’s main studio.  In the FCC’s estimation, that public file violation was the most serious, warranting a $10,000 fine.  Those pesky violations that could lead to actual harm to real people if someone wandered onto the tower site or if an emergency message did not reach its intended audience – drew fines of $7000 (for the unlocked fence) and $8000 (for the missing EAS receiver). 

A number of excuses were provided by the licensee, and rejected by the Commission.  The fact that subsequent remedial actions were taken did not reduce the severity of the violations found during the inspection.  An excuse offered after the inspection, that the studio was in the process of being moved to another location at the time of the inspection, meaning that the public file and EAS system were in transit, was also rejected – as the move was not mentioned to the FCC inspectors as a reason for the violation at the time of the inspection, and as the fact was that the station was in violation at the time of the inspection – during normal business hours, no public file or EAS equipment was at what was then the main studio.  The fact that no EAS outage were noted on any station log was also taken into account by the FCC.Continue Reading $25,000 Fine for Unlocked Tower Fence and Missing EAS Receiver and Public File

As an FCC Forfeiture Order issued today proves, even noncommercial educational college radio stations need to comply with FCC rules to avoid big fines.  The Commission confirmed a $10,000 forfeiture against Colby-Sawyer College in New Hampshire originally proposed in 2007.  The college argued that the forfeiture should be reduced based on the station’s noncommercial educational status, but…

The FCC has continued this week on its recent tear of fining broadcast stations and other regulated entities for violations of FCC rules – in the last week proposing fines or reaching consent decrees relating to issues including incomplete public files, EAS violations, unauthorized transfers of FM translators, and tower lighting issues, among others.  But a fine issued to a station a few weeks ago merits further review as it provides some more clarity as to what the FCC requires from a broadcast station’s "main studio."  In this recent case, the FCC proposed a $21,000 fine to this broadcaster who allegedly did not have an adequate main studio or public file, and for operating its AM station after sunset with its daytime facilities.

What do the FCC main studio rules require?  Currently, all full-power broadcasters (including Class A TV stations, with the limited exception of satellite television stations and some noncommercial radio satellite stations who may operate with main studio waivers) must maintain a studio either within its city of license, or at another site either within 25 miles of its city of license or within the city-grade contour of any station licensed to the same city of license as the station.  As set out in Section 73.1125 of the FCC rules, no matter where the studio is located, local residents must be able to reach the station by a toll-free telephone call.  The rule, however, does not specifically state what must be at the main studio – those rules are either found elsewhere in the FCC rules or have been developed by caselaw.Continue Reading What Do The FCC Main Studio Rules Require? – Recent $21,000 Fine Offers Some Clarification

In several recent cases, the FCC issued big fines to stations that had significant gaps in their public inspection files – fines of between $10,000 and $14,000.  Unlike many other recent public inspection file fines, these fines did not arise from self-reporting of violations in a license renewal application, nor were they discovered as a result of a complaint from a disgruntled listener or competitor.  These fines also did not arise in connection with the discovery of other violations at the stations.  Instead, these fines were the result of FCC inspections – inspections that seemingly did not turn up other significant violations.  Thus, these cases serve as a warning that broadcasters need to ensure that their file is complete and up-to-date at all times.  Curiously, these large fines come at the same time that the FCC is about to consider comments on whether the public file paperwork burden is justifiable.

These fines were large – demonstrating a seeming trend to ever-higher fines for public file violations.  The $14,000 fine issued today went to a Class A TV station that had no quarterly programs issues lists in its public file for the entire license renewal term – 34 reports were missing at the time of the inspection.  Based on this egregious violation, the FCC decided that an increase over the base $10,000 fine was in order.  Two AM stations, which had pretty much the same violation as the Class A station – no QPIs for the same period of time – received $10,000 fines (see decisions here and here).  A third AM station received a $10,000 fine for having no new information in its public file since 2006.Continue Reading FCC Fines Of $10,000 to $14,000 for Broadcast Public File Violations – Discovered By FCC Inspections

The FCC has issued a flurry of fines against broadcast stations in the past week or two.  While a number of these fines were for the operation of unlicensed pirate radio stations, several of the fines were for public inspection file violations, stations broadcasting with excessive power or failing to reduce power at nighttime, or…