BROADCASTERS FORK OVER $12.5M TO SETTLE FCC PAYOLA CLAIMS

The FCC has released its Orders adopting Consent Decrees with CBS Radio, Citadel Broadcasting, Clear Channel and Entercom agreeing to pay a combined $12.5 million to close the investigation into possible payola violations.

The Consent Decrees resolve allegations that the broadcasters may have accepted cash or other valuable consideration from record labels in exchange for airplay of artists from those labels, without disclosing those arrangements. May have?

In addition to the $12.5 million in voluntary contributions, the broadcasters agree to implement certain business reforms and compliance measures.

*Prohibition on company stations and employees exchanging airplay for cash or other items of value except under specified conditions

*Limits on gifts, concert tickets, and other valuable items from record labels to company stations or employees

*Appointment of Compliance Officers and market-level Compliance Contacts responsible for monitoring and reporting company performance under the Consent Decrees

*Regular training of programming personnel on payola restrictions.

Said FCC Chairman Kevin Martin, "The Commission has longstanding rules prohibiting payola. These rules serve the important purpose of ensuring that the listening public knows when someone is seeking to influence them or the types of music that they hear on the radio. As I have said before, the Commission will not tolerate non-compliance with its rules.

"The four companies have agreed to implement various business reforms to ensure that their respective stations and employees do not violate the sponsorship identification laws in the future.

"Through this strong enforcement action that we take today, the Commission has provided clear guidance to licensees and sent a strong message that the practice of payola must stop for good. And hopefully now we'll never have to listen to 'The Macarena' ever again."