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Spitzer criticizes FCC "inaction" on payola crisis

by Matthew Lasar  Mar 8 2006 - 12:00am     

New York Attorney General Eliot Spitzer today called on the Federal Communications Commission to take more aggressive steps to stop radio stations from accepting "payola"—undisclosed payment for broadcasting songs.

"The agency's inaction is especially disappointing given the pervasive nature of this problem and its corrosive impact on the entertainment industry," Spitzer declared in a press statement.

The comments came as Spitzer's office announced a lawsuit against Entercom Communications Corporation, which owns and operates 105 radio stations on the east coast. The suit charges that Entercom stations solicited payments from record companies for air time, and traded air time for gifts, promotional items, and personal trips.

Spitzer cited Entercom corporate emails that allegedly reveal pay-for-play deals between the corporation's radio stations and promoters.

"Hello Lisa," one email to a promoter begins. "I'm writing to confirm WBEE's receipt of a Dell computer, value $2512.08. Thank you again; we enjoyed doing the promotion with you."

But Spitzer seemed to save his harshest words for the FCC.

"Almost a year after payola was exposed in significant detail, the FCC has yet to respond in any meaningful way," he charged.

Later today FCC Commissioner Jonathan Adelstein issued a public response to Spitzer's lawsuit—although not his criticism of the FCC. Adelstein praised Spitzer's action and cited an FCC investigation of payola in the music industry launched last August after Spitzer's office came to an agreement with SONY BMG on payola practices.

"Given the voluminous documents pointing to major, systematic violations of FCC rules, the penalties should be commensurate with the crime," Adelstein said. "We can't let any violators get away with a slap on the wrist."

The FCC response to Spitzer did not disclose what progress, if any, the FCC had made in its investigation. Adelstein's statement also referred to a speech he made before the Media Institute, a Washington, D.C. think tank, last May. At the event Adelstein conceded that "the FCC, perhaps, has become lax" in enforcing payola rules.

Technically, it is not against the law for a radio or TV station to take various kinds of payment in exchange for air time. But station personnel must reveal at the time of the broadcast the identity of the person or company that gave money or gifts for access to the frequencies' on-air schedule.


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