Payola and Plugola   47CFR73.4180 | 47USC508
[Though the FCC regulation cites 47USC507, the actual US code is 47USC508. USC507 refers to "Violation of Great Lakes Agreement."]
The acceptance of cash, travel, meals or other benefits in exchange for playing records or plugging products or events on the air is a danger sign of payola or plugola. Either practice may expose the licensee to FCC sanctions and payola could result in fines and imprisonment for the licesnsee and the personnel involved.
Payola is accepting or agreeing to accept anything of value in return for broadcasting records or any other material without disclosing that the payment is made. Section 507 of the Communications Act requires station employees who receive such payments to report them to station management before broadcast. Failure to do so can result in a $10,000 fine and up to a year in prison. In addition, Section 317 requires that the broadcast of such material contain a sponsorship identification announcement. Violation of this section subjects the licensee to FCC action.
Plugola is the practice of promoting a licensee's or on-air personality's nonbroadcast activities on the air. In contrast to payola, such announcements are permitted if management is aware of what is going on, the interest of the licensee or announcer involved is disclosed and the announcements carry the proper sponsor identification.

Obscene or Indecent Material   47CFR73.4170 | 18USC1464
[As of January 2004, these rules became much more stringent in the wake a "wardrobe malfunction" during the Superbowl halftime show featuring Janet Jackson. Fines have been increased significantly, to as high a $250,000.]
The broadcast of obscene or indecent material is prohibited by law and carries a maximum penalty of a $10,000 fine or a two year jail sentence, or both. It can also result in FCC administrative sanctions, including fines and the revocation of the broadcaster's license.
The Commission's new indecency policy has taken away much of the certainty in determining whether material is permissible for broadcast. Prior to April 1987, the FCC limited enforcement of the indecency standard to repetition of the "seven dirty words" contained in George Carlin's "Filthy Words" monologue. The new policy uses the more general interpretation that language or material which depicts or describes sexual or excretory activities or organs, in terms patently offensive as measured by contemporary community standards for the broadcast medium, shall be deemed indecent if there is a reasonable risk that children may be in the audience. The 10:00 p.m. "safe harbor" previously established by the Commission has been pushed back to midnight, although the FCC has not committed itself to maintaining this post-midnight "safe harbor" and there is not definitive ruling as to what time the "safe harbor" ends. Repetition of the language is also no longer determinative: the FCC will instead look at the context in which the material was aired to determine if innuendo or double entendre may be indecent. If the material also appeals to the purient interest of the audience, it may be "obscene" and its broadcast at any time is prohibited.
The FCC has refused to exempt from the policy the airing of indecent language during the coverage of a news event (e.g., a trial or public meeting), although again the context in which the language is aired and the licensee's determination as to whether children may be in the audience will be considered. A warning that such material contains language which may be offensive to some segments of the audience is still good practice, but may not provide much of a shield should the FCC inquire about the language used.
If there is a chance that the FCC might consider any part of a broadcast indecent or obscene, the material must be checked with the appropriate station officials before airing. This is a licensee decision -- not one for the individual employee.

Drug Lyrics   47CFR73.4095 | 47USC312a
While the broadcast of songs containing "drug lyrics" is a matter of licensee discretion, the Commission has established a procedures by which licensees must exercise responsibility and judgement in the screening of songs which may promote drug usage.
Some songs contain references to drugs which are simply incidental or which, in effect, warn against the use or abuse of drugs. Such songs would not normally be of concern to the Commission.
If your station's music format provides for the broadcast of songs which might promote the use of drugs, management should establish screening procedures to ensure that responsible judgements can be made about the appropriateness of broadcasting such songs. One or more members of your station's staff should attempt to have a reasonably current understanding of "street" or slang references to popular drug terminology.

Rebroadcasting Telephone Conversations   47CFR73.1206 | 47CFR73.4265
[Additional rules regarding the recording of voice vary from state to state. Know the rules in this area for your locality.]
Before you broadcast live or record a telephone conversation for later broadcast, you must expressly notify the other party that the conversation will be taped or broadcast (or both). This prior notification results in implied consent if the party stays on the line. Specific notification/consent is not required during an "open mike" show, when it can be presumed that the "call in" party is aware that he or she is being or likely will be broadcast.

Sponsorship Identification   47CFR73.1212 | 47CFR73.4242 | 47USC317
Whenever a station receives anything valuable in exchange for broadcasting certain material (however short), a sponsorship identification announcement must be made. For example, "teaser" announcements in which the sponsor's identity is not revealed violate the FCC's rules. Generally, the name of the company or individual actually paying for the announcement is required, although if the commercial is for a product manufactured by the company the brand name of the product will suffice. Failure to make a required sponsorship identification announcement is considered a serious offense by the FCC, since it violates Section 317 of the Communications Act.

Contests and Promotions   47CFR73.1216 | 47USC509
A station cannot broadcast information that misleads the audience about station conducted contests. The rules must be made clear from the very beginning, and the station must follow the rules to the letter. The licensee must disclose "any material term" of the contest's rules or operation. It cannot misrepresent the chance of winning, for example. A violation of the contest rules could subject the licensee to FCC fines and provides grounds for revocation of license.
While the Commission will no longer hold a station accountable for contests which adversely affect the public interest, state and local laws may still hold the station liable for damages cause by contests. If the conduct involves a felony, it could reflect on the licensee's character at renewal time. Problems could develop with contests that require contestants to actually search for prizes or to get to a particular location in a short time, or which otherwise endanger people and property.

Lotteries   47CFR73.1211
Broadcasting information about or promoting a lottery is a criminal offense under federal law and a violation of FCC rules. There are only two exceptions -- state operated lotteries and fishing contests that are self liquidating (all proceeds are consumed by prizes and operating expenses). Remember, although state law may permit a lottery, broadcasters must follow the federal prohibitions.
(Note: At the time of this writing, legislation pending before congress would make the federal and state laws more compatible. However, until new legislation is enacted, broadcasters must abide by the federal prohibition.)
The three elements of a lottery are

1. the award of a prize
2. where the ultimate winner is selected or ties are broken by chance
3. where some payment must be made, or other "consideration" furnished, to the promoter by anyone who wants to participate.

Station Identification Announcements   47CFR73.1201
The FCC requires that each station make identification announcements at the beginning of each broadcast day, and hourly, as close to the hour as feasible at a natural break in the programming (e.g., at the end of a record or between plays of a football game).
The official ID must contain the station's call letters followed immediately by the name of the city of license. In addition, the licensee's name and frequency may be included between the call letters and the city of license. Note that this is the only extra matter that may be included between the call letters and the city of license. Thus, "WET, Backwater Broadcasting at 95.9 FM in Grinder's Switch" would be acceptable. On the other hand, "WET, rockin' Grinder's Switch" or "WET, rockin' Grinder's Switch all the time" would not be acceptable.
In addition, a station may include the name of any other community or communities with its official station identification. However, the community of license must be named first, for example, "WET, Grinder's Switch - New York City." No additional FCC authorization is needed to add additional cities to the station identification. Moreover, it is not necessary that the station be able to demonstrate signal coverage over any of the additional cities named in the identification.

Mechanical Reproduction Announcements   47CFR73.1208
[With the advent of equipment that allows for "voice-tracking," or the pre-recording of a DJ which plays as if the DJ were live, this rule has become somewhat clouded. Many stations voice-track their overnight shows and appear to be live while, in fact, there is no DJ present.]
No recorded program material in which the element of time is of special significance, or in which an affirmative effort is made to create the impression it is live, may be broadcast without an appropriate announcement at the beginning of the program or program segment that is being recorded. The language of the announcement must be clear and in terms commonly understood by the public. Where the time element is not of special significance, the announcement need not be made, but the licensee is prohibited under FCC rules from trying to create the impression that the program is live when it is actually recorded.
Time is considered of special significance in certain programs (e.g., a speech, news event, or special event) when the failure to announce the mechanical or recorded nature of the program would create, either intentionally or unintentionally, the impression or belief on the part of the audience that the event is occurring simultaneously with the broadcast. This requirement does not apply to recorded announcements which are of commercial, promotional or public service nature.

Unauthorized Communications Rebroadcasts   47CFR73.1207 | 47USC325
[The Emergency Broadcast System (EBS) has been changed to the Emergency Alert System (EAS).]
The program of another broadcast station may not be rebroadcast without receiving the written consent of the originating station. If possible, this consent first should be obtained in writing. If not possible, oral consent should later be confirmed in writing.
Stations originating emergency communications under a detailed state EBS operational plan are deemed to have conferred consent to rebroadcast the emergency communications.

Point to Point Communications   47CFR73.1250
Except in emergencies, a radio station may not broadcast a message intended primarily for a specific individual or group (such as a sales meeting). This applies to both coded and uncoded transmissions. In an emergency (e.g., a hurricane), a broadcast station may be used to get emergency messages to fire, police, other civil authorities and to individuals in distress.
Incidentally, commercials should not be broadcast during "emergency operations," such as when a daytime only radio station broadcasts at night following a flood or earthquake.

Engineering Operator Licensing   47CFR73.1300 | 47USC318
[As of January 1st, 1996 a DJ, board operator or on-air talent is no longer required to hold a Restricted Radiotelephone Operator Permit. However, such a permit may be required by the station for hiring and those who maintain the transmitter and equipment are still required to hold a valid FCC engineering license. The Emergency Broadcast System (EBS) has been changed to the Emergency Alert System (EAS).]
Broadcast stations may be operated as either attended (where a designated person is responsible for the proper operation of the transmitting apparatus either at the transmitter site, a remote control point or an ATS control point) or unattended (where highly stable equipment or automated monitoring of station operating parameters is employed). No prior FCC approval is required to operate a station in the unattended mode. Regardless of which method of station operation is employed, licensees must employ procedures which will ensure compliance with Part 11 of 47CFR, the rules governing the Emergency Alert System (EAS).

Station Logs   47CFR73.1800 | 47CFR73.1820 | 47CFR73.1835 | 47CFR73.1840
[The Emergency Broadcast System (EBS) has been changed to the Emergency Alert System (EAS).]
Although the FCC has eliminated its program logging requirements, Commission rules still mandate the maintenance of station operating (transmitter) logs. Except where automatic equipment records information for the operating log, remember to enter:

1. The time the station goes on and off the air;
2. The time the tower lights are turned on and off, or if automatically controlled, the time of the daily check of proper operation (unless an automatic alarm system meeting FCC specifications is installed), and any failure of the lighting system;
3. The time EBS alerts are received and transmitted.

Emergency Alert System   47CFR11 | 47CFR73.1250 | 47CFR73.4097
[The Emergency Broadcast System (EBS) has been changed to the Emergency Alert System (EAS).]
Be certain that all operating personnel (announcers, newscasters and engineers) are thoroughly familiar with EBS procedures and that these procedures are periodically reviewed. Remember, the Emergency Broadcast System depends not only on industry planning but also on the knowledge and competence of "the person on the board" when an emergency strikes.

Pubic Inspection Files   47CFR73.3526 | 47CFR73.3527
The FCC requires licensees to maintain certain records in a file for public inspection during regular business hours (usually 9:00 am-5:00 pm). While the station may require personal identification (names and addresses) of those wishing to inspect the files, it may not require information about their organizational affiliations or their intended use of the information gathered from the files. Duplicating materials in the files should be arranged through the station manager.

Tower Lights   47CFR73.1213
The FCC requires that you report immediately, by telephone or telegraph, to the nearest Flight Service Station or office of the Federal Aviation Administration and "extinguishment" or improper functioning of any top steady burning light or any flashing obstruction light, regardless of where it is located on the tower, if not corrected in 30 minutes. The FAA must also be notified when the repairs are made.
Keep the FAA's phone number posted and be sure all personnel who may have occasion to check the tower lights know the procedure for notifying the FAA of the tower light failure or improper operation.

Defamation: Libel and Slander   [no cite]
Defamation is a false statement spoken (slander) or written (libel) about a person or group, which damages the person or group in the eyes of a majority or significant minority of your community. On-air personnel should be cautious when broadcasting potentially damaging information about persons or groups in the community. Whether a statement is defamation is determined by state laws, so local counsel should be contacted if a question arises.
NAB has prepared a videotape, "Staying Out of the Libel Stew," and offers a booklet, "Synopsis of the Law of Libel and the Right of Privacy," which are available through the NAB Publications Department.

Network Clipping   [no cite]
Although the FCC has eliminated its rules in this area, on-air radio personnel should still be cautious about "clipping" network radio programs. "Network Clipping" is the failure of the licensee to fulfill its contractual obligation to the network with which it is affiliated or to a syndicator by certifying that specific material was broadcast in full when there were, in reality, cancellations or deletions.
The "clipped" material could be commercials, program content, network identifications, or any other network originated transmission which the station had contracted to broadcast. "Clipping" network or syndicated material could lead the station into expensive and time consuming litigation.

Copyright Problems   47USC605
While your station's ASCAP, BMI and SESAC licenses may cover the performance of recorded music played on your station, they might not authorize the airing of other recorded material, such as certain non-musical recordings, old radio or television programs, or movies. Unauthorized, indiscriminate use of these materials can cause problems for your station. Always check with management before airing these materials to be certain the station is licensed to do so.
"Fair use" of these materials is permitted by the Copyright Act for purposes such as news reporting, comment or criticism. Determination as to whether the use is "fair" involves the purposes and character of the use, including whether it is for commercial or educational purposes; the nature of the copyrighted work; the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and the effect of the use upon the potential market for or value of the work. If there is doubt as to whether the station is licensed to air the material or the use is "fair," the station's attorney should be contacted.
You should also know that your ASCAP, BMI and SESAC licenses do not authorize your station to re-record portions of songs as part of producing commercial spots. A good place to start to obtain such authorization is the Harry Fox Agency in New York.

This document is intended to serve as a source of general information on legal issues of interest to the broadcasting industry. Broadcasters seeking information on how the principles discussed may apply to their specific circumstances should seek the advice of their own attorneys.

Copyright © 1988. National Association of Broadcasters, Washington DC. All rights reserved.
Last edited in March 2004.