Four radio giants have agreed to pay the United States government a total $12.5 million dollars to settle an Federal Communications Commission investigation into their "payola" practices—the undisclosed play of music in exchange for cash, gifts, or favors.

The FCC says that CBS radio, Entercom Communications, Clear Channel Communications, and Citadel Broadcasting will agree to:

• prohibit airplay for cash and goods "except under specified conditions"
• put limits on gifts from big broadcasters to company stations
• appoint officers who will monitor compliance with the agreement
• train personnel on how to avoid violations of the new rules

The Consent Agreement, announced on Friday, April 13th, does allow the companies the following leeway:

• Stations may ask for and receive a wide variety of on air giveaway items of value, such as CDs or airplane tickets, as long as they broadcast the value of the prizes and their donor.
• Station personnel can solicit and receive up to 20 copies of a CD "to familiarize Company employees with recordings," as well as various kinds of swag—from T-shirts to coffee mugs—as long as the value of each item does not go above $25 and the materials are used at company parties.
• Companies can ask for a receive up to 20 tickets for a single day concert or industry event "to be used by Company employees to familiarize them with the performing Artists."
• Station personnel can receive "modest personal gifts for life event, professional achievement and holidays, or gifts commemorating achievement by Company or a Record Label," as long as the value of the gift does not exceed $150, as far as the employee can tell.
• Station employees can receive meals and entertainment at a single event up to $150 in value "provided that the event is attended by a Record Label employee and has a legitimate business purpose, and any payment is consistent with the value of the meal or entertainment."
• Company stations can receive up to 20 stipends for "reasonable travel and lodging expenses" to industry events, as long as the compliance officer approves of the gift.
• Companies must maintain a database of gifts and favors received by its stations.

FCC Chair Kevin Martin praised the agreement with CBS, Entercom, Clear Channel, and Citadel.

"Through this strong enforcement action that we take today, the Commission has provided clear guidance to licensees and sent a strong message that the practice of payola must stop for good," Martin said in a public statement.

It is unclear whether Clear Channel has formally answered Mt. Wilson Broadcasters Inc.'s latest assertion that the radio giant uses its clout to monopolize radio advertising in Los Angeles.

"The facts are that some advertisers do allocate all of their radio advertising budget to Clear Channel stations and, further, that some advertisers understand that the 'better advertising rates and promotion packages' are conditioned upon the advertiser devoting 100% of its radio advertising budget to Clear Channel stations," Mt. Wilson writes in a statement filed with the Federal Communications Commission.

On January 19th, Mt. Wilson, which owns two radio stations in Los Angeles, filed comments with the FCC accusing Clear Channel of anti-competitive behavior. Specifically, Mt. Wilson charges that Clear Channel, which owns eight AM and FM radio stations in LA, demands a "quid pro quo" relationship from advertisers.

Clear Channel Communications has filed papers with the Federal Communications Commission denying charges that its eight affiliated Los Angeles radio stations require regional advertisers to do all their business with the broadcasting giant.

The firm calls Mt. Wilson FM Broadcasters Inc.'s allegations "vague and baseless" and "substantively meritless."

On January 19th, Mt. Wilson, which owns two radio stations in Los Angeles, filed a statement with the FCC accusing Clear Channel of anti-competitive behavior. Specifically, Mt. Wilson charges that Clear Channel demands a "quid pro quo" relationship from advertisers.

"The Clear Channel modus operandi allows the advertiser to utilize any one or all of the Clear Channel stations and, further, to receive discounts," Mt. Wilson's filing claims:

The contest was conducted with outdated rules, some entry forms were ignored in the final tally while others were lost, and managers used different procedures for handing out first and second place prizes.

On the other hand, personnel at Jacksonville TV station WAWS at least tried to fix the mess that was their "Win a Hot Rod for Dad" contest. So the FCC has proposed their lowest possible fine for the debacle: four thousand dollars.

Clear Channel's Fox-30 WAWS sponsors various contests, from picking NASCAR winners to choosing the Teacher of the Month. In June of 2004 the station told viewers to fill out forms at any one of 15 Dodge dealerships in and around Jacksonville to be eligible for the first place prize, a Dodge car, or 15 second place prizes, tickets to a local theme park.