underwriting spots on noncommercial stations

Subscribe to underwriting spots on noncommercial stations via RSS

It’s the start of another year, so it is time to dust off the crystal ball and look at what we expect to be the big regulatory and legislative issues facing broadcasters in the new year.  Looking back on our forecast for 2025 that came out just over a year ago, I was surprised to see that we had predicted that the new Commission would be interested in defining the public interest standard, reviewing network-affiliate relations, and looking at the political biases that broadcasters allegedly exhibited.  All of these were in fact issues that came up this year but, as no conclusions were reached on any of these matters, these same issues will no doubt continue to be on the FCC’s agenda in 2026.

Public Interest Standard

Throughout 2025, FCC Chairman Carr has been talking about the public interest standard in most of his many public discussions of media regulation, and those comments have prompted much legal analysis from all corners.  We expect that, in the coming year, there will continue to be discussions about what the public interest standard really means– and just how far that standard goes in authorizing the FCC to act to regulate broadcast operations.

Network-Affiliate Relations

The FCC has also received preliminary comments on the relationship between television networks and their affiliates.  As we noted last week, reply comments were due December 29, so the pleading cycle has now closed.  In the Public Notice asking for these comments, there was a statement that the comments would be used to inform the Commission as to whether a formal rulemaking proceeding was necessary to further review the issues.  With the comments in, we will be watching to see if the FCC moves forward with any additional proceedings. Continue Reading Crystal Ball Time – What Are the Regulatory and Policy Issues Broadcasters Should Be Expecting to Deal With in 2026?

  • FCC Commissioners Simington and Starks both announced that they were leaving the FCC as of June 6.  Starks stated at
…

At Thursday’s FCC monthly open meeting, FCC Commissioner Geoffrey Starks announced that it would be his last meeting.  In March, he said that he would be departing soon, so the announcement that he would be gone before the FCC’s next scheduled open meeting on June 26 was not a surprise.  But as one of two remaining Democratic FCC Commissioners, even though the nomination of Olivia Trusty as the third Republican Commissioner has not yet been approved by the Senate, this announcement guarantees that Chairman Carr will have a Republican majority in time for next month’s open meeting.  With that majority, what issues affecting broadcasters might be affected?

Probably highest on the list is the broadcast ownership rules.  We noted in our recent article on the ownership rules that the FCC had not yet released a Notice of Proposed Rulemaking teeing up the issues that it expected to address in its 2022 Quadrennial Review – even though that review needs to be completed this year so that the 2026 review can begin on time.  As both Chairman Carr and Republican Commissioner Simington have recently been quoted as acknowledging that the current ownership rules are antiquated and in need of change to allow local broadcasters to compete with the plethora of new digital competition, a Republican majority may well make it possible for a proposal for aggressive relaxation of the rules to be advanced soon – something that might not have been possible had the Commission been locked in its partisan deadlock.Continue Reading A Republican FCC Majority Coming Soon as Commissioner Starks Announces Imminent Departure – What Broadcast Issues May be Affected? 

  • The US Court of Appeals for the Eighth Circuit has scheduled for March 19 the oral argument on the appeals
…
  • FCC Chairman Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to
…

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

  • Perhaps the biggest regulatory news of the past week came not from the FCC, but instead from the Federal Trade
…
…

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC opened the window for Fiscal Year 2021 regulatory fees which must be paid no later than 11:59 pm,

…

Last week, the FCC reached a consent decree with a noncommercial broadcaster, where the broadcaster paid an $8000 penalty for, among other things, running underwriting spots that were too promotional. While the consent decree and its implementing order provide no details on the underwriting violations by the broadcaster, we can assume that the broadcaster ran spots that somehow crossed the line – giving price information about a sponsor’s products, or including a call to action suggesting that listeners somehow patronize the sponsor, or making qualitative claims about the sponsor or its products or services. We have written about similar violations many times (see, for instance, our articles here, here, here, here and here) and I have conducted seminars for numerous noncommercial broadcasting organizations talking about specifics as to what is permitted in underwriting acknowledgements and what will get a noncommercial station into trouble (see for instance, the presentations mentioned here and here). Obviously, it is important that noncommercial stations pay attention to these restrictions. But, last week, I received a question that indicated that not all noncommercial stations realize that, while their ability to promote a commercial enterprise is limited, these same restrictions do not apply to on-air spots for other nonprofit organizations.

About 35 years ago, Congress changed the provisions of the Communications Act to redefine what a noncommercial station can and cannot do. Noncommercial stations obviously cannot run commercials. But the language of the statute makes clear that commercials are promotional announcements for profit businesses. In looking at that statutory change, after much discussion, the FCC concluded that the restrictions on underwriting announcements that apply to these noncommercial businesses do not apply to promotional announcements for nonprofit entities.
Continue Reading Remember FCC Rules on Underwriting Limitations – And that They Don’t Apply to Spots Bought By Nonprofit Entities