From FCC at
Commission Policy on the Noncommercial Nature of Educational Broadcasting
Enhanced Underwriting and Donor Acknowledgements
Beyond the airing of paid promotional announcements, our recent review of underwriting activities indicates that some public broadcasters may be airing donor and underwriter announcements which exceed the Commission's guidelines. In light of these instances and an ongoing debate in the public broadcasting community on these issues, we believe that a brief statement concerning the obligations of public broadcasters with respect to donor and underwriting acknowledgements is appropriate. In March 1984, we relaxed our noncommercial policy to allow public broadcasters to expand or "enhance" the scope of donor and underwriter acknowledgements to include (1) logograms or slogans which identify and
do not promote, (2) location information, (3) value neutral descriptions of a product line or service, and (4) brand and trade names and product or service listings.
1984 Order at 263. That action was taken as another step in our ongoing effort to strike a reasonable balance between the financial needs of public broadcast stations and their obligation to provide an essentially noncommercial service. It was our view that "enhanced underwriting" would offer significant potential benefits to public broadcasting in terms of attracting additional business support and would thereby improve the financial self-sufficiency of the service without threatening its underlying noncommercial nature. In this regard, we emphasized that such announcements could not include qualitative or comparative language and that the
Order should not be construed as allowing advertisements as defined in Section 399B of the Communications Act.
Id. (Footnote 1)
We recognized in our
1982 Order that it may be difficult at times to distinguish between announcements that promote and those that identify. For that reason, we expressly stated that we expect public broadcast licensees to review their donor or underwriter acknowledgements and make reasonable good faith judgements as to whether they identify, rather than promote.
1982 Order at 911. We saw no purpose at the time, or at the time we adopted our
1984 Order, in fashioning rigid regulations or guidelines to ensure the noncommercial nature of public broadcasting, and we were concerned that such guidelines would inhibit public broadcasters' ability to seek and obtain the funds needed to present quality programming and to remain financially viable. It continues to be our view that the public broadcaster's good faith judgement must be the key element in meeting Congress' determination that the service should remain free of commercial and commercial-like matter. In response to requests for guidance, however, we will attempt to further clarify the guidelines applicable to public broadcasters' exercise of their discretion.
We reiterate that acknowledgements should be made for identification purposes only and should not promote the contributor's products, services, or company. For example, logos or logograms used by corporations or businesses are permitted so long as they do not contain comparative or qualitative descriptions of the donor's products or services. Similarly, company slogans which contain general product-line descriptions are acceptable if not designed to be promotional in nature. Visual depictions of specific products are permissible. We also believe that the inclusion of a telephone number in an acknowledgement is within these general guidelines and, therefore, permissible.
Several examples of announcements that would clearly violate the rule may be helpful:
- A. Announcements containing price information are not permissible. This would include any announcement of interest rate information or other indication of savings or value associated with the product. An example of such an announcement is:
- -- "7.7% interest rate available now."
-
-
- B. Announcements containing a call to action are not permissible. Examples of such announcements are:
- -- "Stop by our showroom to see a model";
-
- -- "Try product X next time you buy oil."
-
- C. Announcements containing an inducement to buy, sell, rent, or lease are not permissible. Examples of such announcements are:
- -- "Six months' free service";
-
- -- "A bonus available this week";
-
- -- "Special gift for the first 50 visitors."
-
Additionally, examples of proscribed product messages can be seen in the instances where the Commission has assessed forfeitures or issued letters of warning for rule violations. (Footnote omitted.) [See the
original April 11, 1986 Public Notice for material omitted in the 1992 Reprint]