FCC Fines Clear Channel for Contests

The FCC has fined clear channel for violating the regulations concerning broadcast contests.  If your FCC licensed station conducts contests, it must be familiar with the rules in order to stay out of trouble.  One of the more interesting aspects of this decision is that the contest was promoted over the air, but conducted via the web.  Even though the contest was not conducted over the air, the FCC rules still apply.

“Clear Channel asserts that the Contest “was conducted on the Station Websites, and not as an over-the-air contest.”23 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. 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. The Commission’s rules clearly provide that “[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][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 nonbroadcast 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. Accordingly, we find that Clear Channel’s failure to broadcast the material terms of the Contest constitutes a violation of section 73.1216.”

Read the entire order.

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