Noncommercial Broadcaster Fined $25,000 for Underwriting and Sponsorship Identification Violations

A noncommercial educational radio licensee has been fined $25,000 for violating federal laws that prohibit noncommercial stations from airing advertisements and require broadcasters to air sponsorship identification announcements for paid programming. The licensee also accepted a two-year license renewal term and agreed to develop a compliance program for all five of its stations.

The case arose from a challenge to the license renewal of station WBAI-FM in New York, which is owned by the Pacifica Foundation. Several parties alleged that programs that aired on the station amounted to product infomercials, with calls to action, pricing information, comparative and qualitative descriptions, and inducements to buy. Such practices are explicitly prohibited by the FCC’s rules.

The licensee initially denied wrongdoing but ultimately entered into a consent decree with the FCC’s Media Bureau.

For more information about noncommercial underwriting limitations, and sponsorship identification requirements, contact an attorney in our Media practice group.