Specifically, the indicted Doc Gallagher, a Christian financial advisor who bought time on several stations. One of them, KAAM/Dallas, had to shell out $125,000 to the complainants. If the station doesn't know their scam artists, how can they be held partially liable. Afterall, stations can't vet out every client they have.
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Is a radio station legally liable for unwittingly running a scam artist?
- Thread starter Rance Butler
- Start date
I'd be interested to know the answer as well - I'm guessing it depends heavily on the contract between the station and the company or organization who bought the air time? There was one station I used to listen to where their weekends were almost completely filled with brokered programming. They'd sell 30 or 60 minute blocks to whomever would pay for them. While there were a few local, somewhat interesting programs - cultural, ethnic music, special interest, opinion, etc. for the most part they were airing mostly infomercials and shows hosted by financial advisors and snake oil salesmen.
At one point, I looked into one company constantly advertising an amazing, can't lose stock trading program: It turns out the free intro. course with complimentary lunch was more or less an opportunity for them to take you aside while you were eating the pizza (complimentary lunch) and tell you how impressed they were with how quickly you were catching on and offer you the next level of their instruction, for a fee. That course would then lead to other offers which cost more $$. They had a fair amount of complaints. I often thought of showing up and if the "instructors" weren't impeccably dressed with nice cars and rolling in dough themselves, I'd ask why I'd want any kind of guidance or mentorship from them and walk out.
Another show featured calls from people describing their ailments, and a Dr. would advise which supplements to take and give callers the number of the company he worked with or perhaps owned where they could buy these amazing life-changing elixirs. I looked him up at one point and if I recall correctly, he had an academic-type doctorate and wasn't a medical doctor at all. Also, he'd been dead for nearly a year at that point and all his shows they were airing were replays of his past programs.
At one point, I looked into one company constantly advertising an amazing, can't lose stock trading program: It turns out the free intro. course with complimentary lunch was more or less an opportunity for them to take you aside while you were eating the pizza (complimentary lunch) and tell you how impressed they were with how quickly you were catching on and offer you the next level of their instruction, for a fee. That course would then lead to other offers which cost more $$. They had a fair amount of complaints. I often thought of showing up and if the "instructors" weren't impeccably dressed with nice cars and rolling in dough themselves, I'd ask why I'd want any kind of guidance or mentorship from them and walk out.
Another show featured calls from people describing their ailments, and a Dr. would advise which supplements to take and give callers the number of the company he worked with or perhaps owned where they could buy these amazing life-changing elixirs. I looked him up at one point and if I recall correctly, he had an academic-type doctorate and wasn't a medical doctor at all. Also, he'd been dead for nearly a year at that point and all his shows they were airing were replays of his past programs.
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I thought this sounded familiar. We discussed this last summer:
I worked a station that sold time to mainly ethic groups who did their own music programs. A few were English language and a couple were unusual. While we were never sued for the show contents, we were sued twice by advertisers on the brokered programs who claimed they did not get the advertising promised. In one case, we had cancelled a program for non-payment. In both instances, we showed our contracts that had all the proper legalese and explained how we operated. In both cases, the judge ruled in our favor.
As for the station being accountable, the station should not be. It is no different than you leasing office space in the building you own. A landlord cannot be held responsible for the legality of the business conducted by the tenant. In fact, their business is none of your business.
In radio, if we got complaints from callers, we would address them with the client but honestly we'd believe the client over the complainer because we know the client and don't know anything about the complainer.
As for the station being accountable, the station should not be. It is no different than you leasing office space in the building you own. A landlord cannot be held responsible for the legality of the business conducted by the tenant. In fact, their business is none of your business.
In radio, if we got complaints from callers, we would address them with the client but honestly we'd believe the client over the complainer because we know the client and don't know anything about the complainer.
Yet the FCC believes it can quash pirates by making landlords responsible for the illegal operation of unlicensed radio stations in rented spaces.
All kinds of alarms go of there!
You gotta ask yourself: If I came up with some sure-fire GRQ scheme--whether it be stocks, or bonds, or Vegas, etc....when would I have the time, let alone the inclination, to go teach someone else how it works? Wouldn't I be spending all my time either working on my scheme and getting rich, or off on my yacht somewhere, actually enjoying my new-found wealth?
Wow. Roll over Gene Scott and tell J. Vernon McGee the news!
Gene Scott may have been many things, but he came by his academic degrees honestly and never pitched miracle cures or any similar quackery. He did funnel a portion of his flock's generous tithes to his wives/girlfriends and his stable of prize-winning show horses, though, IIRC.
I remember reading that Scott had viewers/listeners make checks and money orders out to him, which allowed him to cash them and use the funds in any manner he wished.
I thought he did business under the name of "Faith Center." I used to watch him occasionally when he owned WHCT-TV in Hartford, was entertained by his style and somewhat curious about his theology, so I wrote for more info and got a solicitation letter. Pretty sure I made a one-time gift to Faith Center, not W. euGene Scott. Of course, I didn't stay interested for long, and never sent anything else his way, although the solicitation letters continued for a couple of years.
K
kenglish
Guest
The FCC has to determine that there really is a pirate operating from that location, and then notify the property owner or manager that there is criminal activity going on.
Once notified, then the owner is liable.
It's like allowing someone to continue operating a meth lab, or prostitution.
I'll take it a step further: The management decided to allow our brokers to sublet their blocks (BAD IDEA), like mini-LMAs. Now our station, say like college station of old, had all of these "mini-radio stations," with everyone of their own opinion on how the station should sound. It was an ungodly disaster of egos of everyone is a "radio star." Did clients get into fist fights in the lobby. You bet. Did people hit the floor, cold? Did cops have to be called? Yes.
Anyway, two of the "clients" subletting time off of our contacted broker-host, had dicey products. Management's opinion: "It's not our client, it's their client. As long as the disclaimer runs, we're fine." We had one pastor who had a home improvement service he advertised during his radio sermons. He did shoddy work, renegged on contracts. Next thing you know, we're getting attorney letters from the ripped off home owner to return their money. We had a preacher (our client) running a scam selling travel packages to the Holy Land: he split town. Same thing: the disclaimer will protect us, says management.
Another station: With all of the brokers (and their sublets), it got so bad - - we were wall-to-wall disclaimers. All of the subletting by the clients -- who signed contracts with us -- now we had all of these 15 minute shows, live shows, mind you. Imagine a work day with all of these people, turning over live, 15 minute shows. A mess. And we ran disclaimers BEFORE and AFTER every one of the shows (...the following show is, etc. into "...the proceeding show was, etc.) We'd all joke our slogan was (Calls) "Your All Disclaimer Station."
Now, we did (try) break that up with imaging between. But the brokers freaked out: "That's my time, you're stealing my time playing your stuff." So we stopped. Imagine that "sound" of back-to-back disclaimers. It was an embarrassment.
And yes, we'd had those problems, mentioned above, with businesses buying spots from our brokers (or the subletters) and, when their spots didn't air, they came at US, wanting refunds. We didn't sell the spot . . . and we didn't make the (awful) spots. But yet, it was "our fault." We never got sued, but we did have blistery, ambulance-chasing type attorneys pop into the office or shoot off an official letter. We'd shove a contact at 'em, and it'd be over (thank god).
Always hiding behind the disclaimer and the contract is, I think, a terrible way to do business, especially when listeners of your station are being deceived and ripped off with medical, financial, and religious scams. I agree with b-turner that the station shouldn't be held accountable (the leasing office space comparison). Yes, the station is the landlord and the broker is the tenant. However, I still think an operator should be responsible and not fall back on giving up on quality for cash: the old "not legally, but morally" argument.
The BIG problem was the brokers misrepresented themselves as being "employed" by us. That's why we'd get hassles from their time subletters or their advertiser-spot buyers. "They are on your staff" or "they're your employee, you're responsible for their actions," they say.
And heaven forbid they were a preacher-pastor. Then you'd get the "god clause" thrown at you and told, as someone on another thread mentioned: "I obey God's law, not man's law," when you'd show them the contract they signed. They'd toss it in the air (we even had one rip it in half). We'd even have clients freak out if we played an Hour ID: it was "their time."
It's like a Radio Brokers Indoctrination School. No matter the station or the city, they're exactly the same, obnoxious clones.
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Cay Daze, it sounds like we worked the same type of station.
I'm lucky. We never allowed subletting of sold time. Just handling the clients was enough. One of the cultures was that if they bought from you they had power over you. I had one programmer inviting people over to the station, a 1,200 square foot station. Once we hit about 15 people showing up, they began opening doors to offices, sitting at desks, opening drawers. I told the client he needed to ask his guests to leave. He told me, you don't understand, I buy the time. I told him it had better be down to not more than 5 people in 5 minutes or I would take control of the station. He thought it was a hollow threat. So, 5 minutes later after nothing happened, I hit the sign off and turned off the transmitter. I then announced everyone must leave. When the client balked, I said I was calling the police. The people left and the client wanted a credit. I looked at him and said there would be no credit and after I read him the riot act, and he agreed to my demands I would turn the transmitter on and continue. He learned a lesson that day. Honestly, the only way I found where I maintained control was to, as bad as it sounds, be rougher on them than they ever thought of being on me.
We wound up creating a code of conduct and rules of what they could and could not do on the air. One rule was to not criticize anyone's beliefs and accuse people of any act that might result in legal action. We made them sign saying they received the booklet and agreed to all terms.
The funniest thing I did was I signed up a new programmer and they wanted to use our studio. I said they needed to get with us so we could show them how to operate the board and get in a little practice. They didn't. When they couldn't get a CD on the air, the board op went in and showed them. In their native language they said they were sorry about the technical glitches and that it was because of this stupid white guy working at the station. Another programmer that I became friends with, called to tell me what they said. After their show I said I wanted to talk to them about what they said on the air. They claimed to be busy, so I insisted they meet with me before the next show. They blew me off. On Friday, when traffic is horrendous in Houston, they had to drive across the city to meet with me. They were shocked I knew what they said. They asked if I spoke the language. I said no but understood enough to know. I then said one more outburst like that and they're gone. Seeing their body language I said they should look for another station. They were gone in a 4 weeks and followed the rules until they left. That surprised me.
On topic, I think the radio station should not be held accountable for the actions of a programmer/time buyer. The only exception is if the station knows the client is not following the law. I would think that could only be proven by listeners contacting the station about the client. I would be having a heart to heart with a client if a customer called claiming wrongdoing. I'd start with wanting to know how the client was going to remedy the issue and require some evidence the problem was solved.
I'm lucky. We never allowed subletting of sold time. Just handling the clients was enough. One of the cultures was that if they bought from you they had power over you. I had one programmer inviting people over to the station, a 1,200 square foot station. Once we hit about 15 people showing up, they began opening doors to offices, sitting at desks, opening drawers. I told the client he needed to ask his guests to leave. He told me, you don't understand, I buy the time. I told him it had better be down to not more than 5 people in 5 minutes or I would take control of the station. He thought it was a hollow threat. So, 5 minutes later after nothing happened, I hit the sign off and turned off the transmitter. I then announced everyone must leave. When the client balked, I said I was calling the police. The people left and the client wanted a credit. I looked at him and said there would be no credit and after I read him the riot act, and he agreed to my demands I would turn the transmitter on and continue. He learned a lesson that day. Honestly, the only way I found where I maintained control was to, as bad as it sounds, be rougher on them than they ever thought of being on me.
We wound up creating a code of conduct and rules of what they could and could not do on the air. One rule was to not criticize anyone's beliefs and accuse people of any act that might result in legal action. We made them sign saying they received the booklet and agreed to all terms.
The funniest thing I did was I signed up a new programmer and they wanted to use our studio. I said they needed to get with us so we could show them how to operate the board and get in a little practice. They didn't. When they couldn't get a CD on the air, the board op went in and showed them. In their native language they said they were sorry about the technical glitches and that it was because of this stupid white guy working at the station. Another programmer that I became friends with, called to tell me what they said. After their show I said I wanted to talk to them about what they said on the air. They claimed to be busy, so I insisted they meet with me before the next show. They blew me off. On Friday, when traffic is horrendous in Houston, they had to drive across the city to meet with me. They were shocked I knew what they said. They asked if I spoke the language. I said no but understood enough to know. I then said one more outburst like that and they're gone. Seeing their body language I said they should look for another station. They were gone in a 4 weeks and followed the rules until they left. That surprised me.
On topic, I think the radio station should not be held accountable for the actions of a programmer/time buyer. The only exception is if the station knows the client is not following the law. I would think that could only be proven by listeners contacting the station about the client. I would be having a heart to heart with a client if a customer called claiming wrongdoing. I'd start with wanting to know how the client was going to remedy the issue and require some evidence the problem was solved.
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