CW said:
IF they are selling ads, they are in violation of non-profit rules....period! Easy to prove....if the "spot" runs and sounds like a typical commercial than a one or two liner "underwriting" announcement, then its illegal.......The FCC has recently hit a couple of LPFMs for doing that...Livingston TX has a LPFM on 96.1 that runs ADs with Big Daddy and Little Jimmy (or something like that) talking about the local John Deere dealership and giving out their number, etc...THATs a SPOT!...yes the FCC already knows about them.....they will get busted soon enough)
I'm not trying to defend anyone, but in the 1980’s, the FCC loosened the underwriting rules and approved "Enhanced Underwriting." An Enhanced Underwriting Announcement can sound very much like a commercial message. The main differences between these spots and a true commercial are: It may make no qualitative or comparative statements, it may not mention price (free is a price) and it can't contain a call to action. You may not run an announcement that contains an inducement to buy, sell, rent or invest. For instance, you couldn’t say “Stop by our showroom…” or “Try new amazing Product X.” On the other hand, it is OK to use logos or slogans that identify the product, but do not promote it. You may also mention brand names or trade names, and you may make value neutral descriptions of a product or service.
It is perfectly alright to identify the business, state what they do, give their address, phone number, business hours, etc. These "Enhanced" spots can and do sound very much like commercials, but they are allowed under current FCC rules. A creative writer can do some amazing things within those parameters. The big trick is to avoid the "promotional” problem. It is easy to go overboard.
Further, for the spot to be a commercial, the station in question must receive some form of compensation for running it. Compensation can be in forms other than cash. Trade outs and other consideration qualify as compensation. If the station is truly uncompensated, then anything goes. It is hard to imagine such a situation, but I suppose it could happen.
It is also OK to run spots that do not adhere to enhanced underwriting guidelines if they are for other noncommercial ventures, even though you are compensated for running them. Examples of this could include Arts Festivals, Civic Theater, the local Symphony, Colleges, Schools, Churches and other organizations that enjoy 501(c)(3) status. Some of the religious broadcasters use that loophole to market autographed copies of the Bible, CD's, books, concert tickets and numerous other fund raising activities that usually benefit their parent organization.
Do some stations abuse the rules? You bet. It seems to be very common. Some of the abuses are truly unintentional, while other stations make it a constant habit to push the limits. I heard one NCE running a car dealer spot that was touting "No money down and 0% interest.” That is a clear violation. Several stations been busted for this. Even very respectable stations like KERA-TV push the envelope from time to time. Watch some of the car spots PBS runs, and you will note that they are identical to the low key spots you see on commercial TV, except there is no dealer billboard at the end.
The FCC’s rules on Underwriting are very vague, leaving a lot to the station’s management for interpretation. That is part of the problem. The rules can be confusing for the broadcaster as well as to everyone else. In fact, the rules state, “…the Commission will continue to rely on the good faith determinations of public broadcasters in interpreting our noncommercialization guidelines.”
