FCC Issues Political File Rule Clarifications

The FCC recently released two decisions and a consent decree relating to political advertising disclosure requirements and broadcast station compliance with the FCC’s online political file rule. The FCC’s inquiries and resulting Orders were prompted by complaints filed by two public advocacy groups alleging that numerous stations had omitted required political information from their online public inspection files. The consent decree was prompted by a candidate’s complaint that a television station had no public file records with respect to advertisements aired by the opposing candidate.

The FCC characterizes the decisions as “clarifications” of the current rule requirements, and the clarifications fall into three main categories: (i) candidates covered by an advertisement; (ii) issues covered by an advertisement; and (iii) sponsorship identification disclosure obligations. Each of the categories is discussed below.

Candidates Covered by an Advertisement

The FCC’s decisions clarify that when a political advertisement mentions more than one candidate, the licensee must fully disclose all candidates (not just the lead candidate) in its online public file entry. For example, if a spot promotes one individual for President and another individual for U.S. House of Representatives, presumably the licensee would need to include separate entries for each candidate in its public inspection file. For practical purposes, it appears that the same paperwork would need to be uploaded in the Federal/President and Federal/US House subsections of the political file.

Issues Covered by an Advertisement

The FCC similarly clarifies that when a political advertisement mentions both (i) candidate(s) and (ii) national legislative issues of public importance, the FCC’s new rule interpretation would require that licensee disclose both the candidate(s) and the issues. For example, if a spot promotes an individual for President and mentions several “political” issues of “national importance,” presumably the licensee would need to include a page in the political paperwork summarizing the issues covered by the advertisement.

Sponsorship Identification Disclosure Obligations

The FCC’s political file rule has historically required stations to include a list of the chief executive officers or members of the executive committee or of the board of directors of the organization placing a political advertisement. However, it is common practice for the advertising agency placing the spot to not provide the information at all or to provide the name of only one executive of the organization. The FCC clarifies that if a licensee reasonably believes the initial information it has received from a sponsor is insufficient, the licensee has an affirmative obligation to inquire further. Interestingly, the FCC further states that the licensee is not required to reject the spot or research the organization’s management if the ad agency declines to provide the information.

In sum, while the FCC issued only admonishments with respect to the rule violations resulting from the complaints that were filed, the consent decree included a $32,000 civil penalty, which likely indicates that the FCC intends to vigorously enforce its political file rule in the future. Moreover, broadcasters should remain aware that the transition to the online public inspection files hosted on the FCC’s website makes it relatively simple for public advocacy groups, competing candidates, and the FCC to access a station’s online political file to determine compliance. Accordingly, the utmost care should be taken to assure that complete political information is uploaded on a timely basis. It remains to be seen if the new Republican leadership at the FCC will take action to carve back this expansion of the rule.

If you have any questions regarding the FCC’s political file rules, please contact any attorney in our office.