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FCC Fines WOBO $3,000
- Thread starter microbob
- Start date
TV has been given greater latitude with underwriting than radio - allowing even 30 second produced spots in certain designated markets. It's not easy getting a significant amount of money from, say, Subaru, without them getting a little soft sell corporate identity in return. The argument was it costs so much more to operate a public TV station than a radio station.
I do wish any commercial radio operators who complain of the "free ride" non-commercial radio gets with underwriting would understand what the rules really are for the industry, instead of sounding jealous and thinking the non-comms are getting business dollars they would otherwise get. It really doesn't work that way, guys.
I do wish any commercial radio operators who complain of the "free ride" non-commercial radio gets with underwriting would understand what the rules really are for the industry, instead of sounding jealous and thinking the non-comms are getting business dollars they would otherwise get. It really doesn't work that way, guys.
JRY phone numbers and addresses are permitted. Verbage that identifies the underwriter is permitted. Call to actions, prices and qualitative or comparative descriptions are forbidden.
From John Broomall who is an expert in non-comm rules...
1. My opinions expressed below are probably more valid than anyone else on this list. For the past 17 years I have raised millions in underwriting for an private Christian NCE TV stations, obtained and monitored underwriting from hundreds of organizations, and consulted with two FCC law firms and even directly with FCC attorneys. In addition I have attended a legal seminar on political advertising.
Even tho I work in the number nine TV market - almost in the shadow of a regional FCC Field Enforcement Office - our station has never been fined, sanctioned, or inspected by the FCC.
2. Quoting various FCC regulations does not automatically validate the views of the person doing the quoting. Contradictions between various regulations issued at different time is common, not rare. A top FCC LPFM authority has said, "ask the same question to five people at the FCC and you will get five answers." Lawyers earn a good living because everyone does not interpret even "obvious" regulations in the same fashion.
With the above disclaimers, here are my professional views on various concerns expressed without quoting more regs:
A. Underwriting is divided into two catagories concerning length (I) spot announcements, typically 60 seconds or less (and preferably 30 seconds or less) and (II) programs
B. There are three types of underwriters: (i) businesses, (II), non-profit organizations, and (III) political candidates. For purposes of classification, an individual who wants the NCE station to air a particular program or spot is classified as a "business" even if not incorporated. "Non-profit organizations" included religious and secular organizations recognized by IRS and government entities.
C. BUSINESSES may contribute money or "anything of value" to an NCE. Acknowledging support from businesses it is not optional, it is required by law - the so-called "payola law" which will not be discussed in detail here. (I) Originally support by businesses could be acknowledged only by name, address, and telephone number. (II) Many years ago the FCC relaxed the requirement to also allow non-persuasive or "fanciful" corporate slogans, and brief value-neutral description of an underwriter's products or services. (III) "Call to action," "prices," and qualitative or comparative descriptions are still forbidden. (IV) Thus, to air a live remote from a business is legal IF the public is not directly or indirectly encouraged to patronize the business.
D. NON-PROFIT organizations (I) may air virtually anything (including "call to action" and "suggested donations") that is related to the non-profit authorized purposes in an underwriting announcement. Thus, to ask the public to donate to get a book or tape from the NCE is legal. A church cannot encourage the public to "patronize Granny's Hot Wings" (a real business owned by a church in Atlanta). (Obviously this is different from a "chicken dinner" at a "family night" at the church.)
(2) (I) The same rules apply to programs produced by non-profit groups such as churches so long as "financial appeals" are limited to 10 percent of the program time. Thus, a "prayer line" number can be listed on the bottom of a screen throughout a program on an NCE TV station but an "offer of the pastor's book for a donation" cannot be left on the screen. (II) NCEs are permitted and encouraged to air "pledge drives" to raise money for their operations for hours or days at a time, but an NCE cannot "interrupt regular programming to raise money for other organizations, no matter how worthy, without prior FCC approval." For example, after 9-11 NCE could not air Red Cross drives for the victims families without FCC approval.
POLITICAL RULES are length and contradictory. (I) Since a politician's spots is a "call to action / vote" if should be illegal, but all stations including NCE must air anything they are asked to by candidates for Federal office (Congress, President, Vice President.) Since censoring the ad is absolutely forbidden, pray that a candidate does not air the "seven dirty words" in his spot. (II) An NCE cannot charge a fee to air a political spot but can require the candidate to "reimburse its expenses" for arriving the spot!
[email protected]
Christian Community Broadcasters
(678) 880-0676; FAX: (413) 480-9675
From John Broomall who is an expert in non-comm rules...
1. My opinions expressed below are probably more valid than anyone else on this list. For the past 17 years I have raised millions in underwriting for an private Christian NCE TV stations, obtained and monitored underwriting from hundreds of organizations, and consulted with two FCC law firms and even directly with FCC attorneys. In addition I have attended a legal seminar on political advertising.
Even tho I work in the number nine TV market - almost in the shadow of a regional FCC Field Enforcement Office - our station has never been fined, sanctioned, or inspected by the FCC.
2. Quoting various FCC regulations does not automatically validate the views of the person doing the quoting. Contradictions between various regulations issued at different time is common, not rare. A top FCC LPFM authority has said, "ask the same question to five people at the FCC and you will get five answers." Lawyers earn a good living because everyone does not interpret even "obvious" regulations in the same fashion.
With the above disclaimers, here are my professional views on various concerns expressed without quoting more regs:
A. Underwriting is divided into two catagories concerning length (I) spot announcements, typically 60 seconds or less (and preferably 30 seconds or less) and (II) programs
B. There are three types of underwriters: (i) businesses, (II), non-profit organizations, and (III) political candidates. For purposes of classification, an individual who wants the NCE station to air a particular program or spot is classified as a "business" even if not incorporated. "Non-profit organizations" included religious and secular organizations recognized by IRS and government entities.
C. BUSINESSES may contribute money or "anything of value" to an NCE. Acknowledging support from businesses it is not optional, it is required by law - the so-called "payola law" which will not be discussed in detail here. (I) Originally support by businesses could be acknowledged only by name, address, and telephone number. (II) Many years ago the FCC relaxed the requirement to also allow non-persuasive or "fanciful" corporate slogans, and brief value-neutral description of an underwriter's products or services. (III) "Call to action," "prices," and qualitative or comparative descriptions are still forbidden. (IV) Thus, to air a live remote from a business is legal IF the public is not directly or indirectly encouraged to patronize the business.
D. NON-PROFIT organizations (I) may air virtually anything (including "call to action" and "suggested donations") that is related to the non-profit authorized purposes in an underwriting announcement. Thus, to ask the public to donate to get a book or tape from the NCE is legal. A church cannot encourage the public to "patronize Granny's Hot Wings" (a real business owned by a church in Atlanta). (Obviously this is different from a "chicken dinner" at a "family night" at the church.)
(2) (I) The same rules apply to programs produced by non-profit groups such as churches so long as "financial appeals" are limited to 10 percent of the program time. Thus, a "prayer line" number can be listed on the bottom of a screen throughout a program on an NCE TV station but an "offer of the pastor's book for a donation" cannot be left on the screen. (II) NCEs are permitted and encouraged to air "pledge drives" to raise money for their operations for hours or days at a time, but an NCE cannot "interrupt regular programming to raise money for other organizations, no matter how worthy, without prior FCC approval." For example, after 9-11 NCE could not air Red Cross drives for the victims families without FCC approval.
POLITICAL RULES are length and contradictory. (I) Since a politician's spots is a "call to action / vote" if should be illegal, but all stations including NCE must air anything they are asked to by candidates for Federal office (Congress, President, Vice President.) Since censoring the ad is absolutely forbidden, pray that a candidate does not air the "seven dirty words" in his spot. (II) An NCE cannot charge a fee to air a political spot but can require the candidate to "reimburse its expenses" for arriving the spot!
[email protected]
Christian Community Broadcasters
(678) 880-0676; FAX: (413) 480-9675
RockNuts! said:POLITICAL RULES are length and contradictory. (I) Since a politician's spots is a "call to action / vote" if should be illegal, but all stations including NCE must air anything they are asked to by candidates for Federal office (Congress, President, Vice President.)
This part is not true as of 2000.
Quoting from:
http://www.nfcb.org/conference/2012...oadcast-Summary-for-NCE-Stations-June2012.pdf
Reasonable Access
Unlike commercial broadcasters, who are required by Section 312(a) of the Communications Act to provide legally-qualified candidates for federal office with “reasonable access,” public stations are exempt from that requirement. This exemption came about through a change in the Communications Act adopted in 2000, following abuse of the reasonable access provision by federal candidates who demanded that public stations air their campaign spots.
The rest is still true -- but now NCE stations can avoid the mess by refusing to provide political time to anyone.
Yes. That from John Broomall was from 2004.
Here is more from the FCC regarding phone numbers and addresses from this FCC website
http://transition.fcc.gov/mb/audio/nature.html
"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 (address), (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."
"We also believe that the inclusion of a telephone number in an acknowledgement is within these general guidelines and, therefore permissible."
Here is more from the FCC regarding phone numbers and addresses from this FCC website
http://transition.fcc.gov/mb/audio/nature.html
"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 (address), (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."
"We also believe that the inclusion of a telephone number in an acknowledgement is within these general guidelines and, therefore permissible."
Thanks, Rocks.... Except for the fact that i saw a station get thumped for for airing a phone number, i would agree.
Like i said, that is what caused me to cash in the non comm chips, so to speak.
Someone mentioned a jealousy towards non comms..... no jealousy. The bulk of the non comms make money. They don't call it a profit but it is a gain from donations/grants and these folks do not deserve to be "fee free", any longer.
Most don't pay any taxes, either. Why should the commercial guys pay their way?
Like i said, that is what caused me to cash in the non comm chips, so to speak.
Someone mentioned a jealousy towards non comms..... no jealousy. The bulk of the non comms make money. They don't call it a profit but it is a gain from donations/grants and these folks do not deserve to be "fee free", any longer.
Most don't pay any taxes, either. Why should the commercial guys pay their way?
jry said:Thanks, Rocks.... Except for the fact that i saw a station get thumped for for airing a phone number, i would agree.
Like i said, that is what caused me to cash in the non comm chips, so to speak.
Someone mentioned a jealousy towards non comms..... no jealousy. The bulk of the non comms make money. They don't call it a profit but it is a gain from donations/grants and these folks do not deserve to be "fee free", any longer.
Most don't pay any taxes, either. Why should the commercial guys pay their way?
Well it's in the FCC rules that phone numbers are OK and have always been. Would love to read the FCC decision on this station that got thumped for giving a phone number. Since it IS legal and within the FCC rules to give phone numbers, there had to be more to that story. If you can provide a link to the FCC decision in this case, it would be most helpful.
I agree that many of the large University supported non-comms have plenty of money. But the very nature of a non-profit is to not make money in general, but rather break even while supporting the non-profit's mission. For small non-profits, having to pay these regulatory fees would put us under. The fact is, non-comms have very little money making opportunities these days. The economy is bad, no one has any money they want to spend. Royalties are bad enough. If we could sell commercials then I'd have no problem in paying regulatory fees. It's a trade off. Non-comms win in terms of getting out of fees and commercial stations win in terms of being able to sell freely, commercials and not having the burden of living with handcuffs on their microphones.
D
del_griffith
Guest
jry: I've heard of "call BR-549" seen as a call to action while "information available at BR-549" pass muster. So it could have been a phone number with a call to action as the word "call" would count toward that type of identification. Both are phone numbers. One is a call to action. One is passive.
del_griffith said:jry: I've heard of "call BR-549" seen as a call to action while "information available at BR-549" pass muster. So it could have been a phone number with a call to action as the word "call" would count toward that type of identification. Both are phone numbers. One is a call to action. One is passive.
That could very well be. I still have some archives from this station (sold it in 2001) and i think it includes the story that caused me to sell it. I need to start digging.
Usually the problem IS the word, "Call", which is a "call to action."
Likewise, the use of the term, "brought to you by", instead of "underwriting provided by".
There is no problem with "their telephone number is..." which is a simple informational statement, and not a call to action.
What has not yet been ruled on, but I suspect may eventually be considered positive as well is an informational statement about website addresses. Saying, for example, "by phone, their number is (number) and on the web, its (address)". Again this is NOT yet ruled upon, though, IMHO should not be considered an issue. We'll see what happens down the road.
My personal opinion also is a simple, non-descript music bed under the voice should not be a problem, either, though I know it can be such. What goes too far, in my opinion, obviously would be a jingle...and I have had to reject those from potential underwriters as well. My logic here is that the language of a spot is what determines if it is a commercial...and music underneath is just window dressing and production values. But, again..that's just my personal opinion.
But, I'll agree with all here that underwriting language has to be seriously worked on in the copy writing phase. It's very easy to slip into commercial writing mode.
Likewise, the use of the term, "brought to you by", instead of "underwriting provided by".
There is no problem with "their telephone number is..." which is a simple informational statement, and not a call to action.
What has not yet been ruled on, but I suspect may eventually be considered positive as well is an informational statement about website addresses. Saying, for example, "by phone, their number is (number) and on the web, its (address)". Again this is NOT yet ruled upon, though, IMHO should not be considered an issue. We'll see what happens down the road.
My personal opinion also is a simple, non-descript music bed under the voice should not be a problem, either, though I know it can be such. What goes too far, in my opinion, obviously would be a jingle...and I have had to reject those from potential underwriters as well. My logic here is that the language of a spot is what determines if it is a commercial...and music underneath is just window dressing and production values. But, again..that's just my personal opinion.
But, I'll agree with all here that underwriting language has to be seriously worked on in the copy writing phase. It's very easy to slip into commercial writing mode.
D
del_griffith
Guest
Gotta be careful with years ago. Years ago, there had to a first class license on duty for a directional array during all operating hours. Years ago, there had to be someone manning the transmitter. Years ago, you could only own one of each service in a market. Years ago there was the Fairness Doctrine. Years ago when building a station you had to disclose financials including P&L. Many things were in place years ago.
del_griffith said:Gotta be careful with years ago. Years ago, there had to a first class license on duty for a directional array during all operating hours. Years ago, there had to be someone manning the transmitter. Years ago, you could only own one of each service in a market. Years ago there was the Fairness Doctrine. Years ago when building a station you had to disclose financials including P&L. Many things were in place years ago.
True OH SO TRUE. I had a "Critical Array" that was staffed 24/7. What was the rule, 2 degrees and 3 percent or ?
What i am talking about with the non comms wasn't that long ago.
And "years ago", restrictions on everything were much different in this business.
That's cause times were different, "years ago".
"Years ago", commercial operators didn't live in fear of competition. Now, anything that even looks like it in the remotest sense brings their lobbyists to the doorway of the FCC pleading for regulation.
Sometimes I agree with this, and sometimes it just seems silly.
Radio's real competition is not commercial vs. non-comm...nor should it be. Radio...all of it should be focused on new competitors that want to eat our lunch...
That's cause times were different, "years ago".
"Years ago", commercial operators didn't live in fear of competition. Now, anything that even looks like it in the remotest sense brings their lobbyists to the doorway of the FCC pleading for regulation.
Sometimes I agree with this, and sometimes it just seems silly.
Radio's real competition is not commercial vs. non-comm...nor should it be. Radio...all of it should be focused on new competitors that want to eat our lunch...
Non-comms have been able to include addresses (street or internet) and phone numbers of underwriting sponsors for at least the last 20 years. Yes, sometimes an outfit will spend money with a non-comm station instead of buying commercials on other stations, because they know they're getting recognition among the kinds of listeners they want as customers or clients. Public radio doesn't have to be relegated to "second-class status" in the broadcasting industry anymore, dodging the darts of commercial operators who resent them getting a piece of the pie. As for other types of non-comms, it's up to them how seriously they want to be taken. A station like WOBO, for instance, is a pretty small potato compared to, say, WVXU or WGUC.
jry said:I don't care if a business donates to NPR or the local non comm. I don't like the free ride that they get. Most of them make big time money and spend it like crazy.
It is time that they started paying their FCC fees.
Don't agree JRY. Wanna see our books?
The very nature of a non-profit is to carry out their mission with a hope and a prayer that you can find the funding. We do it on dust droppings! You have the free ride being able to sell commercials. If non-comms made so much money, why did you sell yours and move to commercial radio and go to a large expense to do so?
RockNuts! said:jry said:I don't care if a business donates to NPR or the local non comm. I don't like the free ride that they get. Most of them make big time money and spend it like crazy.
It is time that they started paying their FCC fees.
Don't agree JRY. Wanna see our books?
The very nature of a non-profit is to carry out their mission with a hope and a prayer that you can find the funding. We do it on dust droppings! You have the free ride being able to sell commercials. If non-comms made so much money, why did you sell yours and move to commercial radio and go to a large expense to do so?
I do not doubt your financial claims. Some do work hard to eke out their existence.
I am a for profit corporation that PAYS FOR YOUR existence. Your free ride is calculated into what i send the FCC, every year for the use of the free airwaves. You guys pay no sales tax, no income tax, your donors donate and take that off of their taxes and we commercial guys pay for it.
I ditched the non comm because i was unwilling to skirt the rules on "Call to Action". If an operator runs by the rules, half of what is aired in the name of grants would result in fines.
Our experiment in the wild world of non comm resulted in a station that was in the top ten. We had guys wanting to buy spots and couldn't run them.
D
del_griffith
Guest
Strange, but I always thought advertising was a tax deduction. Since much advertising is institutional (image vs call to action) it's about the same as underwriting on a non-comm.
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