By Francisco R. Montero
As we enter into the political season, radio stations are being bombarded with reminders about the FCC?s political broadcasting rules and the lowest unit rate(?LUR?) requirements for spots sold to qualified political candidates. As many of you already know LUR means that stations must provide all political candidates (federal, state and local) with the LUR for the advertising that such candidates purchase within a statutorily specified pre-election window. We wanted to make sure you also knew the online rules in case you are streaming your station.
The LUR windows are: (a) 45 days before a primary election, and (b) 60 days before a general election. In general terms, the LUR is the lowest rate of the station for a particular class and amount of time during a particular period. Thus, the LUR allows candidates the benefit of the lowest rates, including all discounts, offered to the station?s most favored commercial advertisers for the same class and amount of time for the same period as that purchased by the candidate. Only candidate ads are entitled to receive LUR, and federal candidates must provide the ?stand by your ad? certification in order to be entitled to receive the LUR.
A spot class is one that has particular rights and characteristics, such as morning drive versus afternoon drive. But the treatment of package rates under the LUR requirements can be very complicated. For Federal candidates, who cannot be turned down by a station (unlike state and local candidates) stations must break up packages to determine if the spots in that package affect the LUR.
However, increasingly, as radio stations are streaming content on the internet, there has been some confusion as to how the LUR requirements apply to spots streamed over the internet. First, you should know that the LUR requirement does not apply to internet-only advertising time. However, broadcasters operating websites should be careful to distinguish sales of internet-only advertising time from sales of over-the-air advertising time, especially if an advertising package includes broadcast spots as well as internet-only advertising, such as providing banner ads to over-the-air advertisers who purchase a certain advertising package.
Such packages may impose obligations on a station with respect to political advertising sales and the value of the internet component may impact the station's LUR. If a station offers a combined package of broadcast and internet advertising, LUR rules will apply. Also, remember that the equal time requirements apply so if the station sells a package with broadcast spot time and internet spots to one candidate, then the same should be made available to competing candidates for the same office. In short, be careful when selling combined broadcast and internet advertising packages and be aware of how such bundling may impact the LUR and your bottom-line.
Francisco R. Montero is a an attorney with Fletcher, Heald & Hildreth, P.L.C. in Arlington, VA and can be reached by e-mail montero@fhhlaw.com
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