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When in January I offered my predictions as to the issues that the new FCC would be considering this year, payola and musical artists complaining of being coerced to play for free at radio station concerts or other events was not on the bingo card.  That changed early this past week when Tennessee Senator Marsha Blackburn sent a letter to FCC Chair Brendan Carr stating that she had received many complaints from musical artists complaining that they were being coerced to play for free at radio station events with threats that, if they did not participate, on-air play of their music would be reduced. 

The Senator’s letter suggested that this was a violation of the FCC’s payola rules that prohibit broadcasters from making programming decisions based on the receipt of anything of value for airplay without disclosing that consideration on the air.  The letter’s implication is that receipt of the artist’s concert appearance for free would constitute the consideration and, if that consideration was not disclosed when increased airplay occurred, the station would be in violation of the payola policies.  The letter suggested that the FCC take action to ensure that such coercive tactics were not used to secure  free appearances by musicians at radio station events.  In what seems like record time, the FCC’s Enforcement Bureau responded to the Senator’s letter by issuing an Enforcement Advisory about the issue.  What does that Advisory provide and what are the FCC’s policies payola and sponsorship identification?

Continue Reading FCC Enforcement Advisory Warns of Payola Concerns in Coercing Bands to Play at Broadcast Station Events with Threats of Decreased Airplay – and Reminds All Broadcasters, Radio and TV, of Sponsorship Identification Requirements
  • Payola on broadcast stations suddenly was in the news this past week.  Early in the week, Senator Marsha Blackburn (R-TN)
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  • FCC Chairman Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to
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Yesterday, the new FCC Chairman Brendan Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to launch an investigation into their advertising practices – suggesting without specifics that these entities had gone beyond the permitted underwriting announcements by airing prohibited advertisements for commercial products and services (Commissioner Starks and Gomez issued statements questioning the basis for this investigation).  While the Chairman’s letter was vague on specifics, and unclear as to whether there were specific listener or viewer complaints that triggered the investigation (which is how the FCC typically initiates an investigation into a broadcaster’s regulatory compliance ), the letter does suggest that all noncommercial broadcast stations, including all LPFM stations and other full-power stations not affiliated with NPR or PBS, should examine their practices to ensure that they comply with the FCC’s underwriting policies. 

What do these rules require?  Noncommercial stations can air acknowledgments of those making financial contributions to stations, but the identification of such sponsors must be limited – you can give their name, a general description of what their business is and where they are located, but such information must be provided in an objective, non-promotional manner. FCC standards prohibit calls to action (e.g., “visit this store,” “come on down”), inducements to buy (e.g., “we have a two for one special,” “mention the station and you’ll get a discount on all that you buy”), price information (e.g., “tickets only $29.99” or “this week, we have our end-of-year sale” or “10% senior discounts”) or qualitative claims (“the best pizza in town,” “quality merchandise and a friendly staff”).  We have written many articles on these issues (see, for instance, articles here, here and here) and the fines that have arisen when the rules were not followed.  

Continue Reading As FCC Chairman Announces an Investigation into Alleged PBS and NPR Advertising, a Look at the Underwriting Requirements for All Noncommercial Broadcast Stations

Mitchell Stabbe, our resident trademark law specialist, today takes his annual look at the legal issues in Super Bowl advertising and promotions (see some of his past articles here, here, and here).  Take it away, Mitch:  

As a life-long fan of the Baltimore Ravens (the life of the Ravens, not my life), my interest in the Super Bowl XVII has waned a bit.  The opposite is true for those who seek to profit from the playing of the game.  Accordingly, following are updated guidelines about engaging in or accepting advertising or promotions that directly or indirectly reference the Super Bowl without a license from the NFL.  But, first, a trivia question.  Who won Super Bowl I.  (Answer at end)

The Super Bowl means big bucks.

There are currently four primary television networks that broadcast and stream NFL games in the United States (CBS/Paramount+, Fox, ABC/ESPN/ESPN+ and NBC/Peacock).  It is estimated that, with the new contract which took effect last year, each will pay the NFL an average of over $2 billion per year for those rights through 2032, including the right to broadcast the Super Bowl on a rotating basis.

The investment seems to pay off for the networks.  Reportedly, it will cost more than $8 Million for some of the 30-second spots during this year’s Super Bowl broadcast, up from last year.  It has also been reported that last year’s game brought in advertising revenue totaling more than the $600 M from the prior year (with as much as an additional $60 million from ads run when last year’s game went into overtime).  These figures do not include income from ads during any pre-game or post-game programming.  (In addition to the sums paid to have their commercials aired, some advertisers spend millions of dollars to produce an ad.)  In addition, the NFL receives hundreds of millions of dollars from licensing the use of the SUPER BOWL trademark and logo.

Given the value of the Super Bowl franchise, it is not surprising that the NFL is extremely aggressive in protecting its golden goose from anything it views as unauthorized efforts to trade off the goodwill associated with the mark or the game.  Accordingly, with the coin toss almost upon us, advertisers should take special care before publishing or engaging in advertising or other promotional activities that refer to the Super Bowl.  Broadcasters and news publishers have greater latitude than other businesses, but still need to be wary of engaging in activities that the NFL may view as trademark or copyright infringement.  (These risks also apply to other named sporting events, for example, making use of the phrases “Final Four” or “March Madness” in connection with the annual NCAA Basketball Tournament.)

Continue Reading 2025 Update on Super Bowl Advertising and Promotions

While the new Republican-led FCC will no doubt tackle many policy issues in the upcoming months (see our article looking at some of the issues that we expect the FCC will address this year), there are also standard dates and deadlines in February to which broadcasters still need to pay attention. Here are some of those dates:

February 3 (as February 1 is a Saturday) is the deadline for radio and television station employment units in Arkansas, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, New York, and Oklahoma with five or more full-time employees to upload their Annual EEO Public File Report to their stations’ online public inspection files (OPIFs).  A station employment unit is a station or cluster of commonly controlled stations serving the same general geographic area having at least one common employee.  For employment units with five or more full-time employees, the annual report covers hiring and employment outreach activities for the prior year.  A link to the uploaded report must also be included on the home page of each station’s website, if the station has a website.  At this time, these reports appear unaffected by any actions by the new FCC.  While Chairman Carr last week issued a statement suspending all DEI efforts by the FCC, that statement did not specifically mention routine broadcast EEO filings so, until they hear otherwise, broadcasters should continue to observe these deadlines. 

The filing of the Annual EEO Public File Reports by radio station employment units with eleven or more full-time employees or TV stations with five or more employees triggers a Mid-Term EEO Review that analyzes the last two Annual Reports for compliance with the FCC’s EEO requirements.  The Mid-Term EEO Review begins February 3 for these larger radio station employment units in Kansas, Nebraska, and Oklahoma.  Television station employment units in Arkansas, Louisiana, and Mississippi are also subject to this review.  Radio stations located in Kansas, Nebraska, and Oklahoma that are part of station employment units with five or more full-time employees must also indicate in their OPIFs whether their employment unit has eleven or more full-time employees, using a checkbox now included in the OPIF’s EEO folder.  This allows the FCC to determine which station groups need a Mid-Term EEO Review.  See our articles here and here for more on the Mid-Term EEO Review.

Continue Reading February 2025 Regulatory Dates for Broadcasters – EEO, Comment Deadlines, FM Duplication Rule, Political Windows, and More
  • President Trump issued several Executive Orders that could affect FCC decision-making, including an Executive Order suspending government diversity, equity, and
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  • The FCC’s Enforcement and Media Bureaus, under a new Docket opened by the Commission called “Preserving the First Amendment,” dismissed
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  • The FCC released an Order increasing by an average of more than 17% its application fees, including those for broadcast
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The FCC released an Order this week announcing an upcoming increase in application fees to be paid on any “feeable” application.  For commercial broadcasters, that includes applications for technical changes in facilities, applications for assignments or transfers of control of broadcast companies and stations, license renewal applications, requests for Special Temporary Authority when a station…