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Showing posts with label Rules. Show all posts
Showing posts with label Rules. Show all posts

Wednesday, April 8, 2015

WBBM-AM Rules Chicago

4-6-15

The Chicagoland Radio and Media blog has posted the top ten billing radio stations in the City of Chicago and CBS owns four of those stations with WBBM-AM raking in $39.2 million. WBBM-FM (CHR) was 4th on the list with $22.7 million, followed by Sports talker WSCR-AM at $22 million and Country outlet WUSN which billed $21.2 million. iHeartMedia had three of the top ten stations. The other three companies to crack the top ten in the Windy City were Hubbard at #2 (WTMX-FM), Tribune (WGN-AM) at #3 and Univision (WOJO-FM) at #9. Here's a look at the full list...

1. WBBM-AM/WCFS-FM (News/Sports) $39,200,000 (2013: $42,000,000) -- CBS Radio
2. WTMX-FM (Adult CHR/Hot AC) $30,900,000 (2013: $37,500,000) -- Hubbard Broadcasting
3. WGN-AM (News/Talk/Sports) $27,300,000 (2013: $29,200,000) -- Tribune Broadcasting
4. WBBM-FM (CHR) $22,700,000 (2013: $25,300,000) -- CBS Radio
5. WSCR-AM (Sports/Sports Talk) $22,000,000 (2013: $24,800,000) -- CBS Radio
6. WUSN-FM (Country) $21,200,000 -- CBS Radio
7. WKSC-FM (CHR) $20,200,000 -- iHeartMedia
8. WVAZ-FM (Urban AC) $19,500,000 -- iHeartMedia
9. WOJO-FM (Regional Mexican) $18,500,000 -- Univision
10. WGCI-FM (Urban) $18,200,000 -- iHeartMedia

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Sunday, September 28, 2014

Jury Rules Against Entercom Station In 'Porn Star' Lawsuit

9-26-2014

A woman who sued Entercom's KRBZ (96.5 The Buzz)/Kansas City over being falsely identified as a "porn star" in a 2012 broadcast has been awarded $250,000 in actual damages and another $750,000 in punitive damages by a jury, the Kansas City Star reports. The station reportedly confused the woman's name with that of another individual; all sides agree she has never been involved in the pornography industry.

Entercom spokesman Kevin Geary said in a company statement, "While we are very disappointed in the outcome, we will abide by the jury's verdict."

The paper reports that the Afentra's Big Fat Morning Buzz program, hosted by Afentra Bandokoudis and Daniel "Danni Boi" Terreros, on April 20, 2012 asked listeners if they knew any porn stars. They received a text message with Ashley Patton's name and city, and searched Google -- finding there pornographic images of a woman named Ashley Payton. The show members didn't catch the mistake, and Ashley Patton's name was later posted on the station's website, with a link to a podcast of the show. Patton made several calls to the station, and the information was taken down.

The station's defense was that it was an "unknowing mistake" on Terreros' part; punitive damages would require that the company authorized or OK'd the station's actions.

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Saturday, June 7, 2014

"Your Rules Mean Nothing" Nets Couple $15K Fine

6-3-14

Walter Olenick and M. Rae Nadler-Olenick of Austin are slapped with the $15K fine from the Commission for operating an unlicensed radio station at 90.1. The Commission says the Olenicks do not deny they are unlicensed and say, "They are not subject to the jurisdiction of the Commission. Mr. and Mrs. Olenick asserted that they had no ?commercial nexus? with the Commission and were not subject to the Commission?s rules and regulations." Not surprisingly in this Forfeiture Order, the Commission disagreed.

(6/4/2014 5:54:29 AM)
Obviously Jack has not been in broadcasting 30+ years like myself. You play by the rules or you don't pay. For once the FCC got it right. Now the FTC needs to look into Alex Jones in Austin.
(6/3/2014 10:48:41 PM)
I'm with the Olenicks on this one. The truth is that the airwaves belong to the people and they were stolen by profiteers. Technically, this is an illegal fine.

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Tuesday, November 12, 2013

Nielsen Confirms Radio Rules for Music Discovery

11-7-13

Nielsen says the study will be released on Monday, however it was leaked to Amanda Stevens at USA Today late last night. Stevens writes, "Radio, the 19th-century marvel, remains the chief avenue of music discovery, according to Nielsen's new Music 360 report. The data reveal that 63% of listeners say they discover new music through terrestrial radio, which leads all sources of music discovery in terms of being "trusted" (43%) and "current" (49%). Read the full story HERE

(11/8/2013 5:27:56 PM)
"19th century marvel" ??

I believe KDKA began in the early 1920s and Marconi wasn't much ahead of that.
When these snot-nosed kids who attempt journalism for USA Today are astounded by new music's real friend-radio-they could ask someone over 30 years old for some background.


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Thursday, October 10, 2013

SALES)Duck Dynasty Rules!

10-7-2013

I?m probably the only person in America who hasn?t seen a full episode of "Duck Dynasty."

Little did I know I would be right smack in the middle of a full day of Duck Dynasty-style team-building in the Ozarks last week. Before last week, I thought that only Texas, California, and Mississippi women could shoot. You need to add Missouri and Arkansas women to that mix. The guys are pretty good shots too. And the women are no slouches with their duck calls! It?s an unusual combination for this city boy, out in the woods with duck calling going on.

We have many properties that do team-building events over the course of the year. I think it?s vital to bring everybody together outside of the office. It helps build your culture and loyalty from your employees, and it gives everyone something to look forward to each year.

In this case, I was in the Ozarks for the annual clash between the Ozark Horse Trader-region's best print shopper, and the Ozark Radio Network-region's best radio station cluster. They are operated separately though under one ownership. This year?s theme was Ricky Duck Dynasty Games II. I somehow think this could only have been done in the Ozarks. By the end of the day I was left speechless.

It was 7 on 7, and I was a spectator and sometime judge. Here are some of the highlights from this team-building event.

The first part of the day involved the application of the training that the sales reps go through. They had five stops to make in the morning session.

1st: They had to go do a "Return on Investment" worksheet at a client. Once they were done, they had to text their results in and confirm with the word ?quack.?

2nd: They had an envelope they picked up after their first stop and it lead them to another business where they had a clue to lead them. Once there, they had questions on their market competition. They again had to text in their answers. The next envelope clue lead them to the next stop which was their respective offices.

3rd: Around the conference room table, each one had to rattle off one of the "7 Steps" on an opening call-CMP. They were scored on their effectiveness to do this important call. Next envelope and new clue to next destination.

4th: This stop involved questions on their own media company and product knowledge. Once completed, they had to text in their answers and the final destination was uncovered.

5th: Once at the business, they picked up materials and items to make a duck call. They were instructed to go to Ozark Sporting Clays for lunch and then had to put the duck call together as a team; one person would present their best duck call or calls.

?There are two kinds of people in this world?the educated and the unducated.? -- Si Robertson. (I was unducated for sure.)

Let the games begin!

The afternoon session involved some physical skill sets along with mental skill. Once we arrived at lunch, both teams put together their duck calls and were judged by duck-call experts. One team put together two duck calls and won. Great job Mykayla! I?d never seen a duck call made before. Come to think of it, I?d never heard one before. Sheltered life I live.

There were three separate events in the afternoon:

1st: Ken-Ducky Derby! Hard to describe this one. A relay event where each team member had to do various things at the next hay bale. Carry an egg on a plastic spoon. Put a book on their head and ride a duck pole (lack of a better description -- duck head with a pole and ride it like a horse.) Take a balloon on a plate. Hit a golf ball with a stick. Tag next team member. Not easy, I can attest to this.

2nd: The Great Duck Hunt: This was a team scavenger hunt with clues at five different stations and you had to bag (find) the duck to get your next clue to the next station. The first team back got 350 points. Timed event. If you were second, you got points de-duck-ted for each second you finished behind the first place team. Ugh.
And then, something I?ve never seen before in team-building events.

3rd: Hit Me with Your Best Shot!: These people in the Ozarks are very creative! They put a picture of me on half of the sporting clays and a picture of the owner on the other sporting clays. Live ammo! Rick Hamby, the owner of Ozark Sporting Clays did a great job on safety. Safety came first. Everyone was instructed not to aim at either Tom Marhefka or myself. This was their one chance to get us back for those long days of training! They took back souvenirs of their shots with us on the sporting clays. Theyre posted in their cubicles now to remind them of the great shots (sales reps) they are.

They had two separate ?five stations? to go shoot the sporting clays. Still and moving targets. Two hours of shooting. Some people had never shot before and they stepped up and did great. I was impressed.
Ozark Radio Network took top score for the day. Money and medals were given out. Ozark Horse Trader took second, though not far behind. Duck hunt did in OHT. MVP for the day was awarded also.

If you?re looking for women in the Ozarks, be careful. They can all shoot!

Sean Luce is the Head National Instructor for the Luce Performance Group International and can be reached at sean@luceperformancegroup.com or www.luceperformancegroup.com.

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Monday, April 29, 2013

Rock Radio Rules The Automobile

4-25-13

Arbitron and Edison Research released more data from their 2013 Infinite Dial study of over 2,000 consumers. Part of that data showed that 84% of the respondents use AM/FM radio in the car while only 12% choose online radio. The CD player was second at 63% followed by an iPod or MP3 player at 29% and Satellite Radio at 15%. Of those AM/FM users, 94% of the P1's in the Rock and Classic Rock formats listen in the car. Public Radio came in at 93% followed by News/Talk at 92% and Country at 91%.

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Sunday, April 28, 2013

(SALES) 5 Rules Of Making A Presentation

4-26-2013

There are a few easy, but important rules to follow when making a presentation to a prospective client. Here they are:

1. ONE PAGE AT A TIME: You control the pages. Always take two copies of your presentation. If you?re presenting a printed version as opposed to sharing an electronic version. You?ll want to take two master, color printouts of your presentation. One bound and one unbound. The unbound copy is what you?re presenting so you can control the pages. The bound copy is your client?s copy, bound so that it stays in proper order. If you?re presenting on an iPad or a laptop, then you?ll only take one bound master printout as your leave-behind.

2. YOU CONTROL THE PAGES: Obviously you?re presenting one page at a time and you must control the process.

3. TRACK: Nothing is more frustrating than to get towards the end of a presentation and then realize you lost the client?s attention. You don?t know if you lost them on page 2 or page 5, but you lost them. So, you must learn to track. This means you ask a question on each page or two. For example, let?s say you?re on one of your introductory pages outlining some of things the client told you in your initial interview from your previous appointment, and they mentioned that business early week was painfully slow. When covering this bullet-point, you may ask, ?One of your challenges is how slow business is early week. Do you remember saying that?? You?re actually confirming here that you have their full attention. You must TRACK numerous times throughout your presentation.

4. ?WE, US, LET?S, and OUR?: This is simply learning to talk in same-team-language. ?That?s important to US, isn?t it? This is what WE want to accomplish. Do you agree this is OUR best solution?? Remember, if you both aren?t on the same team, odds are you won?t have a new client, so use same-team-language.

5. SOMETIMES COST FIRST: It still amazes me how sellers wish they didn?t have to talk cost; holding out to the last minute, the last page, and the last thing on the page. It?s often difficult to keep a client?s attention during a presentation when all they?re wondering is "What is this going to cost?" Don't allow the price to make you afraid to do what?s right! No one said doing business with you should be cheap. Hiring the best, finding the best plan, employing the best solution, are rarely synonymous with lowest cost. What?s costly is not fixing the problem or, worse, buying the proposal because it?s the cheapest. More often than not, getting the cost out of the way first is smart. Example: ?Today, I?m going to ask you to spend $60,000 over the next 12 months. Now, let me show you how I JUSTIFY that.? Business owners devote more attention to the details of your proposal when they know the cost up front and hear how this dollar amount will get the job done.

One page at a time, you control the pages, track, team language, and sometimes cost first. Now, go present boldly and with confidence. You?re worth the money!

Rob Adair is the President of Pinnacle Solving. His company provides revenue growth solutions, branding and differentiation strategies to radio and other industries. Adair is a former radio industry COO and Sr. VP overseeing 25+ stations and multiple major markets. He can be reached at 405-641-0458 or by e-mail rob@pinnaclesolving.com

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Wednesday, April 3, 2013

FCC Looks to Clarify Indecency Rules

4-2-13

Perhaps the FCC's indecency policy will not stay vague forever. The Commission is seeking public comment on whether its indecency rules are consistent with the 1st Amendment. The definition of indecency is defined so many different ways by so many different people, groups and politically motivated organizations. The request for public comment seems to at least indicate that outgoing FCC chairman Julius Genachowski has pushed the commission to consider whether changes should be made to the FCC's current broadcast indecency policies. Since September 2012, the commission has dismissed about one million indecency complaints.

Broadcast attorney John Garziglia tells Radio Ink the broadcasting community had hoped the Supreme Court would answer the question of what constitutes indecency last year. "The Supreme Court decision, however, only held that neither Fox nor ABC had sufficient notice that the fleeting use of profanity during an awards show, or the seven seconds of nude buttocks during a drama, would be deemed indecent under the FCC?s indecency restrictions. That was the easy way out." 

The Supreme Court decision specifically did not find the FCC?s indecency regulations unconstitutional nor unable to be enforced by the FCC. Garziglia says, "The Supreme Court basically punted. "That issue was the constitutionality of the entire scheme of the FCC?s regulation of broadcast indecency.  Now the issue as to what constitutes broadcast indecency is back at the FCC. The essential indecency question which the FCC will now presumably seek to answer is why the repeated broadcast of expletives in the fictional movie Saving Private Ryan is not indecent, while the same word uttered by real-life blues musicians on a public television documentary is. The good news is that the FCC is seeking the opinion of broadcasters and the public as to whether the FCC should make changes to its current broadcast indecency policies, whatever those are.  It may be time that the same content standards that apply to newspapers, cable, and the Internet, apply equally to broadcasting."

Read the FCC's Public Notice HERE

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Saturday, February 9, 2013

Judge Rules For Cumulus in Birmingham

2-8-2013

A judge has ruled that former Cumulus PD (WJOX-FM) PD Ryan Haney cannot work for Cox (ESPN The Zone) until more evidence is heard in a breach-of-contract lawsuit filed by Cumulus. The Judge set another court date for March 4th. Cumulus claims Haney had a non-compete that prevents him from working for another Birmingham station for one year if he left WJOX, a station he has been with since 1998. In addition to Haney, Cox has been trying to hire popular sports talker Paul Finebaum. Finebaum is sitting out a non-compete after his contract with Cumulus expired.

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Thursday, November 1, 2012

Judge Rules Against Cumulus in Syracuse

10-31-2012

Scott and Hunter had been doing mornings in Syracuse for Cumulus' 95X for two years. They resigned on October 16th and were hired by Ed Levine's Galaxy Communications two days later. New York State Supreme Court Justice Deborah Karalunas decided not to issue a temporary restraining order that would have taken them off the air. Cumulus requested the temporary restraining order.

According to Syracuse.com the judge listened to arguments in chambers from attorneys representing both sides and issued a decision 15 minutes later. Karalunas said the two radio hosts cannot use three phrases she said they coined on the air at 95X: Beer Friday, The Show and Chalk Dust. She also said they cannot solicit other employees of Cumulus.

Syracuse.com says a copy of the lawsuit says the morning team violated their former employers' contractual right of first refusal as well as non-solicitation and "other post-employment obligations." The morning hosts have said, in local media, that their contract expired and no offer was made to them. Another court date was set for November 21st.

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Monday, October 8, 2012

Judge Rules Pandora Did Not Violate Michigan Privacy Act

lawsuit.jpg

Ruling Goes Pandora's Way


A federal judge in OAKLAND, CA has handed PANDORA a legal victory. U.S. District Court Judge SAUNDRA BROWN ARMSTRONG has dismissed a lawsuit that claimed PANDORA violated a Michigan privacy law by sharing information about FACEBOOK users' music choices. In the ruling, BROWN ARMSTRONG found that a 20 year old MICHIGAN's law only applies if companies lend, rent or sell music, and in PANDORA's case, that the law doesn't apply to companies that stream music online.


The lawsuit came out of FACEBOOK's "instant personalization" program that PANDORA participated in during 2010,


MEDIAPOST.COM notes, "MICHIGAN resident PETER DEACON, was irked enough to file suit. He argued that PANDORA's integration with FACEBOOK violated MICHIGAN's Video Rental Privacy Act. That law prohibits companies that rent, lend or sell music (as well as books and videos) from disclosing customers' identities without their consent. MICHIGAN lawmakers enacted the law more than 20 years ago, at around the same time that Congress passed the federal Video Privacy Protection Act -- which prohibits video providers from disclosing information about consumers' movie-viewing history without their written permission."


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Monday, September 17, 2012

Conclave Webinar Focuses on Rules of Radio

9-14-2012

While terrestrial radio, podcasts, or internet streams are not regulated in the same manner, there are common ?best practices? that can protect you from legal exposure and litigation. Gregg Skall (pictured) of the law firm of Womble Carlyle Sandridge & Rice is an expert in broadcasting rules/regulations, and is the featured presenter for the Conclave?s next webinar, ?The Rules of Radio, Part 4? Thursday September 27th.

During this 90 minute webinar, that begins at 3PM Eastern, Skall will cover the concepts of sponsorship issues including sponsor ID rules, the practice of product placement, what is payola/plugola, and in this politically charged year candidate/issue advertising liability. Focusing on programming, Mr. Skall will discuss the basic and updated rules regarding obscenity and indecency, the transmission of hoaxes, usage of telephone calls in programs and shows, and will review the rules regarding endorsements and testimonials.

Conclave webinars are always free of charge, however preregistration is required via the Conclave?s website at www.theconclave.com.

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Thursday, September 13, 2012

(SOCIAL) Is Radio Above Facebook's Rules?

9-12-2012

In May of 2011, Facebook released (quietly, of course) new guidelines for brands using the platform. Here at The Randy Lane Company, we notified our clients of the new rules, and tried to help you understand them.

Fast forward 15 months, and you?re still asking about it. Not only are you asking about it, but you?re still violating the rules. Often.

Before I keep talking, know two things:

1. I don?t make the rules. I just tell you about them.
2. Personally, I?m a rule breaker. So when I tell you to follow the rules, it?s because the ramifications are serious and I want to protect you. (Wow, I sound like such a Mom right there. Let the record show I don?t wear ?Mom jeans.")

Now that you understand where I?m coming from, and what kind of jeans I?m not wearing right now, let?s take a look at some of the rules and how radio stations and shows are violating them.

Rule 1: Promotions on Facebook must be administered within apps on Facebook.com, either on a Canvas Page or a Page App.

How We?re Breaking It: We?re running quick contests on our Timeline as often as we change underwear, without hiring a third-party app to build it legally.

For an example of a legal contest using an App, click here to check out the 102.9 K-Lite Match Game. https://www.facebook.com/1029klite/app_326853300699610

Rule 2: You must not condition registration or entry upon the user taking any action using any Facebook features or functionality other than liking a Page, checking in to a Place, or connecting to your app. For example, you must not condition registration or entry upon the user liking a Wall post, or commenting or uploading a photo on a Wall.

How We?re Breaking It: We break it with our fun ?caption this picture to win? contests. We break it with our ?comment on this post? contests. We break it with our ?The first five people who like this post win? contests

Rule 3: You must not use Facebook features or functionality as a promotion?s registration or entry mechanism. For example, the act of liking a Page or checking in to a Place cannot automatically register or enter a promotion participant.

How We?re Breaking It: We run on-air contests that tell listeners we?ll draw one Facebook fan as a winner. The only requirement for entry is that they like us on Facebook.

Rule 4: You must not notify winners through Facebook, such as through Facebook messages, chat, or posts on profiles (timelines) or Pages.

How We?re Breaking It: We post status updates to notify listeners that they?ve been chosen (probably for a promotion run illegally in the first place!) as the winner.

The rules can be found here in their entirety, under section ?E?. But remember, don?t shoot the messenger! I just want to make sure you?re aware of what the rules entail.
https://www.facebook.com/page_guidelines.php

Notice the simple threat below the rules: We reserve the right to reject or remove Pages for any reason. These terms are subject to change at any time.

That threat is the reason you should be wary of these rules. Should Facebook take notice, they have the right to shut your page down without warning. That would mean that you lose everything you?ve worked so hard to gain -- your fans.

Is it worth the risk?

Stephanie Winans is Social Media Specialist and Content Curator for the Randy Lane
Company and Stephanie Winans Digital. E-mail: stephaniewinans@gmail.com

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Tuesday, September 4, 2012

(LEGAL) Phone Rules? Is There Any Flexibility?

8-30-2012

The FCC has been laying down hammer quite a bit lately when it comes to violating the telephone broadcast rule. We wanted to test the waters a bit with broadcast attorney John Garziglia to see if there was any flexibility with the rule. So we asked, "What if a caller is recorded (without their knowing), then, after the call, they are told it was recorded?" The caller says, "Okay fine, air it," which is also on tape. Then, the person files an FCC complaint.

John Garziglia says:  Fines issued by the FCC recently in the range of $16,000 to $25,000 for violating the FCC?s telephone broadcast rule certainly suggest that a refresher course in the rule may be in order. 

In a nutshell, the FCC?s telephone broadcast rule, Section 73.1206, requires an explicit  notification to the other party to the call, before either broadcasting, or recording a telephone conversation for later broadcast use. There is one exception to explicit notification, that being when the other party to the call may be aware or presumed to be aware from the circumstances of the telephone conversation that the call is, or is likely to be, broadcast. 

Let?s take up the exception first. Clearly, if the telephone call is to or from a station employee such as a newsperson phoning in a news story, prior notification to the newsperson is not required. But, if the newsperson is standing next to a news source and hands the cell phone to that source, and the source is put on the air without notification, it is possible that a violation of the FCC?s rule has occurred. Likewise, if a newsperson is calling local officials for actualities for later broadcast, a newsperson must inform the called party prior to initiating the recording of the call. 

Another exception is present for radio talk shows and request lines where the stated purpose of the telephone number is clearly for the broadcast of received telephone calls. A reasonable-person standard is used by the FCC.  Would a reasonable person expect that a telephone call to the telephone number may result in the telephone call being broadcast or recorded for later broadcast? A telephone call placed from a talk show or request line is not covered by the exception. 

So, what is not covered by the exception and what can subject a radio station to tens of thousands of dollars in FCC fines? Clearly, a contest run by many stations some years ago in which the public is advised to answer their phones ?I listen to WXXX? is not covered if the station expects to be able to broadcast the calls as they are placed. Nor are cold calls placed to contest winners, hoping to get the excited screams and gasps recorded and subsequently broadcast on the air. Even if the contest entry form advises entrants such a call might be made, there is no telling who will answer a winner?s telephone number. 

But, such benign calls are not usually the types that garner FCC complaints. Rather, most FCC telephone broadcast rule complaints involve telephone conversations that have the effect on the called or calling person of embarrassment, anger, or making the person appear to be an idiot. 

Thus, in a recent FCC rule violation, a call was broadcast by the station misrepresenting itself as a local hospital to a woman telling her that her husband had died in a motorcycle accident. Later in the call, the station informed the woman that the call was a "joke." Another fine was issued for a station call in which the morning personality broadcast a call pretended to be an intruder hiding under a called person?s bed, and a second call in which the personality pretended to be a loan shark collecting on a debt. Other FCC fines have been issued for radio stations calling competing radio stations and putting personnel from the competition on the air without their knowledge. The FCC did not see the humor in any of these calls.

It is also worth mentioning that state law may also cover the recording of telephone conversations. In a dozen or so states, if a telephone conversation is recorded even without an intention to broadcast it, all parties are required to consent, not just be notified. Each station should apprise itself of its own state law, as well as the FCC?s telephone broadcast rule, in formulating its internal policies on rolling tape (or whatever taping a call is now called in our digital age). 

With any FCC complaint proceeding, the process of responding to the FCC?s inquiry is often more expensive than the potential FCC fine levied. If the FCC receives what it deems to be a valid complaint, it will send a multi-page letter to the radio station asking for a stack of affidavits and documentary information. Failing to fully respond to the FCC?s letter is grounds for additional substantial fines, so an FCC licensee has no choice but to respond. 

Finally, in answer to Radio Ink?s question above, notification after recording is not compliance with the FCC?s rule, even if the other party to the conversation consents after-the-fact to the recording and broadcast. Also, recording the notification is also presumably not in accord with the FCC?s telephone broadcast rule as the rule prohibits recording until such notification is given, although a case might be made that a recording of the notification was not the ?recording of a telephone conversation for broadcast? as there was no intention of broadcasting the notification. For smaller station operations, it is false economy to share talk show, shopping show, or request line telephone numbers with general station business telephone numbers, as it is far too easy for a caller to be unintentionally put on the air in such circumstances. 

It is helpful to keep in mind that complaints filed with the FCC are often spurred by a member of the public who is embarrassed or insulted by the broadcast of a call. Thus, if your newsperson is going to call an official and get something other than a pabulum press release actuality, be certain your news person informs the called party in advance of the recording being made for possible broadcast. If you really want to risk allowing your personalities to do outgoing ?joke? phone calls, have a witness to each call who can swear under penalty of perjury that the called party was clearly informed that the call would be broadcast or recorded for later broadcast. Full compliance with the FCC?s telephone broadcast rule is usually the best way to avoid potential issues.

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com. Have a question for our "Ask The Attorney" feature? Send to edryan@radioink.com.

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Sunday, May 27, 2012

(LEGAL) What Are The Rules on Spirits Advertising?

There was a time that beer was the only alcoholic beverage being advertised anywhere. Now, you see alcohol of all kinds being advertised everywhere. That prompted a GM to send us a question about the rules to advertise spirits. Are there any anymore? Do you have to watch what you say in an ad? Here's broadcast attorney John Garziglia with the answer.

John Garziglia:
Surprisingly, there are no federal regulations on beer, wine and liquor radio advertising.  The broadcasting industry and the sellers of alcoholic beverages themselves largely self-regulate such advertising.  

The Federal Communications Commission has no alcoholic beverage advertising rules or regulations other than the rules that apply to all advertising such that there must be accurate sponsorship identification.  For instance, when it is the local beer distributor running spots rather than the brewery itself, a sponsorship ID tag is often required at the end of the produced spot for an accurate sponsorship identification.

Until the early 1980s when it was eliminated as a potential restraint on trade, the broadcasting industry through the NAB code had in its standard of good practices a prohibition on the advertising of hard liquor for member stations.  On the advertiser side, in 2003 the Beer Institute imposed self-regulation with a commitment not to broadcast advertising in any radio program in which 30% or more of the audience is under the age of 21.

The Beer Institute self-regulation is the responsibility of advertiser and not radio stations.  There would be no direct FCC regulatory ramifications from a radio station taking alcoholic beverage advertising even if its audience was predominately under 21. 

As with any advertising, radio stations must remain aware of state and local laws.  In the area of alcoholic beverage sales and consumption, the United States continues with a patchwork of state and local laws mostly directed at the advertiser.  Some of these restrictions, such as bans on happy hour ads, may impact how beer, wine and liquor may be advertised in a particular locality.

It is worth noting that alcohol consumption and tragedies often go hand-in-hand.  As with any advertising, if a horrible event was to occur and somehow a claim could be made that pervasive or reckless radio advertising of an intoxicating product, particularly to underage or vulnerable persons, was done by a deep-pockets broadcaster without regard for consequences, a radio station could find itself defending a lawsuit no matter how meritless such a lawsuit might ultimately be determined to be. 

Finally, it must be mentioned that any kind of significant advertising of products generally viewed as harmful by a portion of the population might form the basis for an FCC objection at license renewal time.  While it is doubtful that such an objection would do anything more than delay the grant of a radio station license renewal application, having the objection filed and answering it is likely something radio stations would rather avoid.

Therefore, to the extent that advertising is run that the public thinks should be limited, a radio station does take a risk that, at license renewal time, members of the public or public interest groups, will voice their opinions to the FCC.  While it is unlikely that beer or wine advertising on a professional team sports show would inspire such objections, running beer commercials in a high school sports broadcast or commercials for alcohol beverages that are marketed to a younger demographic, could provoke such license renewal objections.  Thus, just because there are no specific FCC restrictions, that does not mean that some restraint by radio stations in the running of alcoholic beverage advertising is imprudent.

Fore more articles from John Garziglia go HERE
You may also like David Oxenford's BLOG

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com. Have a question for our "Ask The Attorney" feature? Send to edryan@radioink.com.

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Tuesday, March 27, 2012

LEGAL)FCC Clarifies Rules for LPFM

3-26-2012

The status of LPFM stations has been up in the air almost since they were first created over a decade ago, as the FCC has been slow to open a window for filing applications for new stations while controversies about interference with full-power FM stations and FM translators, and other issues, were being hashed out. This past week, the FCC issued two orders interpreting the Local Community Radio Act ("LCRA") passed by Congress in late 2010 and clarifying other issues affecting the service. 

This article will discuss the first of the two orders ? attempting to resolve the priorities between LPFM stations and the thousands of applications for new FM translators still remaining to be processed from the FCC?s 2003 FM translator window. Subsequent articles will discuss the second order (which also contains a Notice of Proposed Rulemaking asking for public comment on several proposals).  That order and NPRM addresses the interference protections between LPFM and full-power FM stations, the elimination of third-adjacent channel protections, and proposes some changes in LPFM rules, including proposals to allow LPFM stations to operate with up to 250 watts ERP in smaller markets, and even to operate FM translator stations of their own.
The first order attempts to resolve the issues about the FM translator applications that have been pending since 2003.  LPFM advocates contend that the thousands of applications that remain to be processed will foreclose LPFM opportunities, particularly in larger markets, by using up all available spectrum.  The translator applicants, on the other hand, have contended that translators provide an important service - expanding the reach of noncommercial stations and now allowing new outlets to more readily make available to the public the signals of AM stations and FM HD streams.  The order sets out markets where the FCC has found that spectrum is indeed limited for LPFM opportunities, where translator applications will be dismissed to provide opportunities for a certain base level of  LPFM service.  The order does not fully adopt the system proposed in the FCC's July NPRM in this matter (see our summaries here and here)  which would have required the blanket dismissals of all translator applications in spectrum limited markets.  Instead, it provides opportunities for some translators to be processed even in these markets with limited LPFM opportunities, where it can be shown that these translators do not in fact block such opportunities. This is detailed below, as are the rules that the FCC has adopted which set local and national limits on the number of applications from the 2003 window that one applicant can continue to process and some changes in the rules regarding FM translator use by AM stations.

In beginning its analysis, the FCC first needed to interpret the LCRA to determine what Congress intended as to the priorities to be assigned to translators and LPFM stations. The LCRA calls for both translators and LPFM stations to be made available in the various communities across the country. In determining where to process the pending translator applications, the FCC decided that it must take into account not only the pending translator applications, but also existing translators in various markets, to assess whether both services were available in particular communities. By determining that translators were already available in most markets, the FCC decided that, in many markets where new translator applications blocked the availability of spectrum for new LPFM stations, such applications would have to be dismissed to make channels available for LPFM.
Based on that analysis, FCC decided to adopt the ?service floors? for LPFM stations, guaranteeing that there were a minimum number of available channels for LPFM stations in each market. These channels floors were adopted as proposed in the FCC's July rulemaking in this matter, setting requirements for the number of LPFM channels needed in a market in a range from 8 to 12, depending on the size of the market. This floor was based not on the number of translators already available in the market, but instead based on the average number of noncommercial stations in particular market sizes, which the Commission seemed to believe set some sort of standard as to how many LPFMs would be needed in that market.  Based on a complicated analysis of LPFM channel availability, where translator applications preclude opportunities to meet the LPFM service floors, they are to be dismissed.
In its Notice of Proposed Rulemaking in this proceeding, released last July, the FCC had proposed to divide markets into ones where all translators would be processed, and ones where all would be dismissed, based on whether there were a sufficient number of channels that could be used by LPFM applicants to meet the LPFM service floor. The FCC had made this go,no-go decision based on the availability for LPFMs of channels in a market determined from a grid 31 geographical seconds by 31 geographical seconds in size, overlaid onto the market. The Commission surveyed the points on the grid to determine the availability for LPFM service on each FM channel somewhere on the grid.  In reviewing the comments filed in this proceeding, the FCC backed away from the determination that markets would be all or nothing for translator applicants.
Instead, the FCC adopted a much more complicated process, determining that some markets which had been ?process-all markets?, where all of the 2003 translator applications would be processed, overstated the opportunity for LPFM use, particularly where these markets were densely populated in their core areas. Thus, the Commission determined that it would overlay yet another smaller 21 by 21 grid over the larger grid that it had initially used. If, in any particular market, 75% of the population of the market was contained in that smaller grid, the smaller grid would be used to evaluate whether there was sufficient opportunity for LPFMs to meet the service floor in that more densely populated central urban core area.  Appendix A of the FCC's order sets forth the analysis of the 31 by 31 grid, and Appendix B sets forth the analysis of the markets requiring the more detailed 21 by 21 analysis because of their densely populated urban core.
However, in all markets, what had been ?dismiss-all markets? are in fact no longer markets in which all translators will necessarily be dismissed. Instead of "dismiss all" markets, the FCC now refers to markets with insufficient spectrum to allow for the enough LPFM stations to meet the service floor if all translator applications are processed,  as "spectrum-limited markets."  In these spectrum limited markets, if a translator applicant can show that it proposes to operate on a channel where LPFM stations could not operate because of limitations imposed by nearby full-power stations, then the translator application will not be dismissed. This is possible as LPFM interference is based on mileage spacings to full-power stations, while translators can be located closer to a full-power station on the same channel, or on an adjacent channel, where the translator applicant can show that there will be no actual interference to that full-power station.

However, in making the showing that the translator grant is possible because it will not block any viable LPFM opportunities, the translator applicant must assume that any LPFM applicant will be able to obtain a waiver of interference to full-power stations operating on second-adjacent channels (more explanation about this second-adjacent channel interference in Part 2 of our report on the LPFM orders, to be posted soon).
Even these modifications to the process-all and dismiss-all market definitions do not end the FCC?s examination of the impact of translators on LPFM opportunities. The FCC was concerned that there was little opportunity for LPFM stations in the largest of markets because of existing spectrum use in those markets. But, it found that, in these largest of radio markets, there was an opportunity for LPFMs to serve population centers that existed beyond the 31 by 31 grid areas. Thus, any translator applicant proposing to serve areas in these markets, even if the area is beyond the 31 by 31 grid, must demonstrate that its proposed translator will not preclude an LPFM opportunity at the site of its proposed translator. If the translator application would preclude such use, the applicant can show that there is another channel available at the site for LPFM use. If it cannot make either showing, the translator application will be dismissed.  
Obviously, this presents a very complex methodology for translator applicants to use to determine whether or not their pending applications can continue to be processed. This complex methodology will seemingly create some degree of confusion as to which translators can be processed and which will be dismissed, and it will require substantial effort by the FCC to evaluate the showings made by translator applicants. Even though this process is not clear-cut, the FCC has imposed yet another complexity onto the system, by adopting caps on the number of pending translator applications that can continue to be processed, both on a national and on a local basis.
The FCC determined that one applicant can only continue to prosecute 50 applications on a nationwide basis. In local markets, applicants are limited to prosecuting one application in any spectrum-limited market. These caps were not adopted to protect opportunities for LPFM stations, but instead to deter speculation in construction permits for new translators. The FCC felt that some applicants were not filing for translators for purposes of building those stations, but instead for purposes of selling the permits they received. While there might be other more effective ways of combating such speculation by directly targeting those applicants who don?t truly plan on building out the translators for which they are applying (e.g. limits on the profits from resale or outright bans on resale of construction permits), the Commission felt that additional public comment would be needed before such processes could be adopted.  As the Commission was in a rush to wrap up the proceeding, they adopted this more indirect policy of combating perceived speculation.
Apparently, applicants will have to elect which of their applications to continue to process before any evaluation will be made of which will be allowed to be processed under the LPFM protection criteria set out above. Thus, applicants picking 50 applications to prosecute may well end up prosecuting less than 50 applications if the FCC does not accept their showings of protection to LPFM opportunities in spectrum-limited markets, and those picking one application in a market may well end up with none if their pick is one that the FCC later determines is one that does not protect LPFM opportunities.
After the determinations are made as to which applications to process by those who are subject to the cap, and whether or not applications are limited by LPFM opportunities, the FCC will open a settlement window so that the remaining applications that are mutually exclusive can attempt to work out their differences. After the settlement window, any remaining mutually exclusive applications will go to an auction.
Many of the new translators already granted and sold by the alleged speculators went to AM broadcasters, who were recently granted permission by the FCC to use FM translators to rebroadcast their stations. The limits on application processing by current translator applicants may well cut off the ready supply of additional translators to be used by AM licensees. Even though there may not be a supply of new translators to be used by AMs because of these limits on processing, the FCC did amend its rules to allow the use of new translators by AMs. Under the rules adopted almost three years ago allowing the use of FM translators by AM operators, only those translators already in existence could be used to rebroadcast AM stations. Now, any translator, whenever it is granted, can be used to rebroadcast AM stations.
We will write about the FCC?s decisions as to changes in the operating rules for LPFM stations in a subsequent article. These rules described here, setting out the processing of translator applications so as to protect LPFM opportunities, leave open many questions, and may yet be subject to appeal. So the last chapter in this long story may not have yet been written.
[In the interests of full disclosure, note that I have represented translator applicants in this proceeding]

Oxenford is a partner in Davis Wright Tremaine's Washington, DC office. He has represented broadcasters for over 25 years on a wide array of matters from purchases and sales of broadcast properties and the negotiation of programming agreements to regulatory matters.

Read his blog HERE

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Sunday, March 11, 2012

(LEGAL) What Are The Public File Rules?

3-9-2012

A Radio Ink Reader asks: "I would like clarification on the Public Issues. We keep a log of each show that airs on our stations and generate a public issues list that identifies issues important to the community within our city of license. But I am now getting conflicting information - some say we have to have the list, others say we do not.  I know we need the log of the shows but do we or don't we have to have an actual list placed in the public file within 10 days of the last quarter?

John Garziglia says:  The FCC requires that every three months, a list of programs that have provided the station?s most significant treatment of community issues during the preceding three month period, be put into a station?s local public file. 

Significantly, it is not a ?log? of programs.  Depending upon what is on a ?log?, that log may or may not be sufficient for the public file issues/programs list requirement.  Rather, for the public file issues/programs list, the FCC requires a brief narrative describing the community issues that were given significant treatment in the station?s programming, and a brief description of the programming that provided the treatment of those issues.  In addition to a brief description of the programming, the issues/programs list must include the time, date, duration and title of each program in which each community issue was addressed. 

The FCC?s requirement has two elements: (1) the description of the program; and (2) the community issue that the particular program addressed.  Thus, merely having a listing of programs in the local public file does not fulfill the second part of the requirement.  But, there is no requirement that the issues addressed by the programming be a ?list?.  Rather, part of the description of each program can state the issue addressed by the programming.

Since the FCC adopted the requirement for issues/programs lists in the local public file, few FCC cases deal directly with the quality or sufficiency of a broadcaster?s issues/programs lists.  Rather, the FCC?s issues/programs lists enforcement actions almost all concern a lack of the quarterly issues/programs list, either discovered in an FCC inspection, through a citizen complaint, or at license renewal time. 

Even though the FCC rarely penalizes a radio station for an inadequate issues/programs list, that does not mean it cannot happen in the future.  Now that we are into the radio license renewal cycle, there very well may be license renewal objections filed to stations that are alleged to have inadequate issues/programs lists as well as the underlying public interest programming, and the station?s license renewal expectancy could depend upon the quality of the issues/programs lists. 

In doing a check of your radio station?s compliance with the FCC?s issues/programs list requirements, first confirm that all issues/programs lists from the previous quarter back to the date of the last license renewal are in the file.  Next, keep in mind that issues of importance to a particular community may be expected to change over time.  Therefore, there should not be the same issues stated quarter after quarter. 

Confirm that in addition to a brief description of the programming and issue itself, the issues/programs list includes the time, date, duration and title of each listed program.  The FCC has stated in the past that a listing of five to ten of the most significant programs treating discrete community issues in each quarter is likely sufficient. 

Finally, keep in mind that the FCC has said that public service announcements alone are insufficient to meet a radio station?s obligation to present programming that meets the needs of the community.  Therefore, be sure that the issues/programs lists do not substantially rely upon PSAs or other similar programming. 

The important dates to calendar for the issues/programs lists are January 10th, April 10th, July 10th and October 10th.  These are the dates by which the issues/programs list for each previous three month quarter must be put into the local public file. 

While no one may look at a radio station?s local public file for months or even years, if issues/programming lists are missing or deficient the one time that either an FCC inspector or member of the public does visit, or when the license renewal application question is accurately answered, it will likely result in a substantial fine and could impact the station?s license renewal application.  Therefore, it is essential to insure that your radio station?s local public file contains on a timely basis every quarter both a description of community issues, and a description of programming broadcast to address those community issues. 

Fore more articles from John Garziglia go HERE
You may also like David Oxenford's BLOG

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com. Have a question for our "Ask The Attorney" feature? Send to edryan@radioink.com.

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Saturday, February 18, 2012

(LEGAL) Jock Endorsements. What Are The Rules?

2-17-2012

A General Manager e-mailed in a great question for our "Ask The Attorney" blog this week concerning live reads and product endorsements. What are my station?s legal obligations since the FTC passed new rules requiring those endorsing products to identify they are being compensated by the sponsor?  Do my jocks have to implicitly  explicitly say on air in that commercial that they are being paid for their testimonials? Attorney John Garziglia tackled that question for us and here is his answer.

Radio personalities giving testimonials for a product or service raise regulatory compliance issues under both Federal Trade Commission and Federal Communications Commission rules and policies. Both the FTC and FCC have long required that compensation received, including free products, for an on-air testimonial, be revealed.  The more recent FTC guidelines now envelope new media and social media, including bloggers and web commentary, into existing FTC testimonial guidelines. 

Simply put, an on-air testimonial endorsement of a product or service, whether in an advertisement, in program content, or in a talk show, requires that consideration received in connection with it be disclosed.  Additionally, the testimonial must not be false, deceptive or misleading.

Let?s see how this translates into practice for hard-working radio personalities.  A radio personality visits a ski resort and gets free lift tickets because the ski resort thinks the personality may talk on the air about the great skiing. Indeed, the radio personality returns to the air the next day and does several bits about skiing, naming the ski resort.  Both the FTC guidelines and the FCC?s sponsorship ID rules require that the receipt of the free ski lift tickets be revealed to the radio listeners. 

If the ski resort has made a buy on the radio station and the radio personality is being asked to voice a spot with a testimonial, this is where FTC guidelines kick in.  In giving his or her testimonial of the great skiing, the radio personality must keep in mind that he or she must have personally experienced the great skiing, and the radio personality must give an honest assessment (i.e. saying it was great powder if in fact the ground was mostly bare is a no-no).

With endorsements and testimonials, of the two agencies the FCC is the greater enforcement worry for pursuit of sponsorship ID violations.  Any on-air endorsement or mention of an advertiser?s product or service in exchange for consideration either to the air personality or to the radio station must have a sponsorship identification.  Any live read that does not appear to a normal listener to be an advertisement, but actually is an advertisement, should be tagged with an explicit sponsorship ID. 

If an air personality receives free product or payment for broadcast content, and it is not revealed on the air, that is the classic definition of payola or plugola, depending upon whether what is being plugged is music or another product.  It is a significant violation of Section 73.1212, the FCC?s sponsorship identification rule.

If a radio station is contemplating an advertising campaign in which its air personalities deliver testimonials about products or services, particularly about investments, gold, or medical devices or services, it is prudent to search on the FTC?s website for its rules and guidelines regarding endorsements and testimonials, and to engage legal counsel familiar with the FTC?s rules.  While the FTC puts most of the burden on advertisers for compliance with its rules, no radio station wants to be caught up in an FTC investigation of false or misleading testimonial claims.

In summary, a radio station?s legal obligation is that an air personality?s on-air testimonial must reveal if there was a payment of money, product or services, must be based upon the air personality?s actual knowledge or experience, and must be truthful. 

John F. Garziglia is a Communications Law Attorney with Womble Carlyle Sandridge & Rice in Washington, DC and can be reached at (202) 857-4455 or jgarziglia@wcsr.com. Have a question for our "Ask The Attorney" feature? Send to edryan@radioink.com.

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Wednesday, February 15, 2012

Conclave Webinar Focuses On Political Rules For Radio

2-15-2012

Candidates, SuperPacs, and radio?a trifecta for trouble. Just what are the rules for radio in this politically charged year or any year? Gregg Skall (pictured) of the law firm of Womble Carlyle Sandridge & Rice is an expert in political broadcasting rules/regulations, and is the featured presenter for the Conclave?s next webinar The Rules of Radio on Wednesday, February 29th at 2PM Central.

Skall will cover the FCC rules that relate to the appearances of political candidates on broadcast media and its use by them to advance their candidacy. Who is a legally recognized candidate by the FCC, what options are available to candidates once their opposition appears on a station, and what qualifies as an appearance are just some of the topics to be covered.

Conclave webinars are free, however preregistration is required via the Conclave?s website at www.theconclave.com.
All Conclave webinars are moderated by Conclave Board Member Jay Philpott, air talent at Hubbard Radio's 106-5 The Arch, WARH/St. Louis.

The Conclave is a 36-year-old 501(c)3 non-profit corporation. The Conclave offers year-round learning to the industry including webinars, TalenTrak, and the Summer Learning Conference ? and has provided nearly $100,000 annually in media scholarships. For more information on the Learning Conference and Conclave educational programs, visit www.theconclave.com.

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Monday, January 23, 2012

$22,000 FCC Clear Channel Fine For Contest Rules.

The stations hit with the fine are KOST-FM, KHHT-FM, KBIG-FM, KFI-AM and KYSR-FM and the 2008 contest involved a car giveaway. The Clear Channel cluster asked listeners to produce commercials for a car, the best commercial would be voted on by website users. The FCC says Clear Channel deserves the fine of $22K because it failed to broadcast all the rules of the contest on the air. Clear Channel posted the contest rules online, the contest winner was chosen via online voting but the FCC says more details about contest rules should have been broadcast.

Take a look at how broadcast attorney David Oxenford summarized the situation in his blog:
1.You must provide all of the material rules of the contest in on-air announcements a sufficient number of times so that a listener could be expected to hear such announcements and
2.The rules for a contest that is primarily conducted through a station website must still be broadcast on the air if the fact that the contest is occurring on the website is promoted over the air (see our article on a previous case reaching the same conclusion).
The big fine is a result multiple stations being involved in the contest. Here are more details from the FCC ruling:

"Under section 73.1216 of the Commission?s rules, a broadcast licensee ?that broadcasts or advertises information about a contest it conducts shall fully and accurately disclose the material terms of the contest. Material terms, among other things, include any eligibility restrictions, means of selection of winners, and the extent, nature and value of prizes. We find that Clear Channel apparently violated section 73.1216 of the Commission?s rules by failing to fully and accurately disclose the material terms of the Contest in the method prescribed by the Commission?s rules.  Clear Channel asserts that the Contest ?was conducted on the Station Websites, and not as an over-the-air contest. It acknowledges, however, that the Stations broadcast advertisements for the Contest. Clear Channel further acknowledges that its Contest rules were not broadcast, but instead were made available via the Stations? websites.25 By asserting that the Contest was conducted ?on the Station websites,? Clear Channel appears to imply that the Contest was not subject to the Commission rule?s requirements, or that, alternatively, its method of disclosure was otherwise mitigating or exculpating.  The Commission, however, has previously found a licensee liable under section 73.1216 in a case where the licensee promoted its contest through broadcast even though the contest itself was conducted principally through its website. Thus, Clear Channel?s broadcast promotion of the Contest renders it fully subject to the Commission?s rule. Moreover, the Commission has found that licensees cannot avail themselves of alternative non-broadcast announcements to satisfy the requirement that they accurately announce a contest?s material terms.28 The Commission?s rules clearly provide that ?[t]he material terms should be disclosed periodically by announcements broadcast on the station conducting the contest.? The Commission?s rules provide that while disclosure by non-broadcast means (such as on a website) can be considered in determining whether adequate disclosure has been made, any non-broadcast disclosures must be ?[i]n addition to the required broadcast announcements? and cannot substitute for them.30 Accordingly, we find that Clear Channel?s failure to broadcast the material terms of the Contest constitutes a violation of section 73.1216.

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