Radio Survivor

Is Your Station's Underwriting in Order?

As everyone in non-commercial radio in the United States knows, there’s often a fine line between underwriting messages to indicate sponsored programming and commercial announcements.

College, community and other non-commercial radio stations are not allowed to air commercials, but they can play underwriting announcements which simply acknowledge the support received by an outside entity. It’s extremely important that underwriting adheres to guidelines set forth by the FCC and that it doesn’t veer into commercial territory.

On June 15, non-commercial, educational radio station KUFW-FM in Woodlake, California, was levied a fine (PDF) of $12,500 for repeatedly broadcasting 4 different commercial announcements in 2006. These commercials were played more than 2000 times over the air.

The FCC’s Notice of Apparent Liability to Forfeiture letter to KUFW outlines what defines a prohibited advertisement:

“Advertisements are defined by the Act as program material broadcast ‘in exchange for any remuneration’ and intended to ‘promote any service, facility, or product’ of for-profit entities. The pertinent statute specifically provides that noncommercial educational stations may not broadcast advertisements.”

Additionally, the letter explains how underwriting differs from advertising, providing examples of how an announcement can veer into illegal territory:

“Although contributors of funds to such stations may receive on-air acknowledgements, the Commission has held that such acknowledgements may be made for identification purposes only, and should not promote the contributors’ products, services, or businesses. Specifically, such announcements may not contain comparative or qualitative descriptions, price information, calls to action, or inducements to buy, sell, rent or lease.”

Owned by The National Farm Workers Service Center, KUFW is part of the Radio Campesina Network of radio stations. The network of 9 radio stations provides music and Spanish-language programming to reach ” an underserved, largely immigrant population.”

The FCC found fault with KUFW for airing commercials for Mario’s Auto Sales, Big Brand Tire, and Muebleria La Tabatia. Language in the underwriting announcements served to promote products, used comparative and qualitative language, and inducements to buy products. Here are some examples from the ads that led to the fine:

“…we find that the Mario’s Auto Sales announcement impermissibly promotes the underwriter and its product through the use of favorable and qualitative expressions such as ‘beautiful Harley Davidson light trucks,’ ‘we have it here,’ and ‘where we are proud to be Mexicans.’ This announcement also contains inducements, such as ‘whatever vehicle with no down payment.’

The two announcements for Big Brand Tire impermissibly seek to distinguish the underwriter’s products. The first announcement claims that the company’s rims ‘will make you stand out’ and ‘make your vehicle unique.’ It also uses comparative phrasing such as, ‘We have the most recent selection when it comes to rims from A to Z’ and ‘we don’t give you a cat for a rabbit here.’ The announcement also includes an inducement for free tire alignments and free flat tire repairs to encourage patronage…”

It’s extremely important that all non-commercial stations review the scripts for underwriting announcements, as the FCC strongly states in their letter to KUFW that future infractions by other stations may be dealt with even more severely:

“…we caution the Licensee and all noncommercial educational licensees that, in future cases, violations of the type encountered here may result in even harsher sanctions than we propose in this case. Licensees have an ongoing duty to understand and carefully abide by the limitations in the Act and in our rules concerning advertising on noncommercial stations.”

To help protect your station from verging into illegal commercial territory, I’d encourage you to take a close look at the FCC’s notice to KUFW (PDF). At the end of the letter are complete examples of the underwriting scripts that got the station into trouble. Additionally, there was a similar case in 2009 in which KXPW-LP (Power Radio Corporation) was also issued a Notice of Apparent Liability for Forfeiture after they aired prohibited commercial announcements. To see their illegal scripts, take a look at the FCC notice to KXPW (PDF).

Mind Those FCC Files, People

If you’re running a college radio station it’s a good idea to beef up your understanding of FCC rules and deadlines. Recently Colby Community College radio station KTCC was schooled in the lesson that ignorance is no excuse when it comes to FCC license renewal.

Because they missed several deadlines for the renewal of their station’s license they have been accused of “failing to timely file a license renewal application and engaging in unauthorized operation of the Station.”

Here’s a tip for other stations:  radio station license renewal applications are due FOUR MONTHS PRIOR to the expiration date on one’s FCC license.

Although the FCC levied a fine of $7,000 against the station back in 2007, KTCC sent letters appealing that decision on the grounds of both financial hardship and a misunderstanding of license renewal rules. Just this week the FCC responded that these excuses were not sufficient to reduce or eliminate the fine. According to the “Forfeiture Order” dated April 5, 2010 (PDF):

“As the Commission has held, however, violations resulting from inadvertent error or failure to become familiar with the FCC’s requirements are willful violations. In the context of a forfeiture action, ‘willful’ does not require a finding that the rule violation was intentional. Rather, the term ‘willful’ means that the violator knew that it was taking (or, in this case, not taking) the action in question, irrespective of any intent to violate the Rules.”

In this particular case, the radio station advisor (and radio broadcasting instructor!) Corey Sorenson argued that he was late in renewing the FCC license because he misunderstood the instructions and had inherited the job from a previous advisor who had kept insufficient records. According to the FCC’s Forfeiture Order:

“In his letter, Mr. Sorenson requests that the forfeiture be reconsidered in light of the situation he faced when he began his employment at the college. He states that he ‘was not given any training on what needed to be done with regard to FCC filing, as no one at the college knew what the processes or requirements were.’  Mr. Sorenson also states that he began the renewal process in January 2005 but ‘ran into some problems because there were no records for [Licensee’s] CORES password from the previous instructor.’  He adds that he ‘filled out the licensee renewal’ but ‘had misread the instructions and mistakenly thought [he] was finished.’”

This situation is unfortunate, but it illustrates the often tumultuous world of college radio, in which there may not be consistent staff members and advisors from year to year. Even if stations are in a state of disarray, someone needs to be responsible for FCC-related files and deadlines.

KTCC wasn’t alone in this recent round of forfeiture orders. High school station WLMH (at Little Miami High School in Ohio) was also fined $1500 for renewing late and some other non-student stations received fines as well. In the past we’ve seen this story played with Gaston College’s $8000 fine for public file violations and, most recently, University of Wisconsin-Parkside station WIPZ getting shut down for broadcasting without a license.

Do you know where your station's public file is?

One of the things that every radio DJ learns during training is the importance of a station’s “public file.”

Every FCC-licensed broadcast station in the United States is required to maintain a public inspection file, containing a number of items including documents pertaining to a station’s license and ownership.

The file should also house FCC complaints, a political file (with details on requests for purchase of airtime by political candidates, etc.), letters and emails from the public (only required of commercial stations), the manual “The Public and Broadcasting,” an issues/programs list related to public service programming, a list of donors, and a number of other items required by the FCC.

If a member of the public enters a radio or TV station requesting to see a station’s public file, they are supposed to be granted access to those documents. Part of the rationale for this is to ensure that stations are serving the public interest.

Unfortunately, some stations (and station staffs) are unclear on the rules regarding public files; so have been hit with hefty fines when they did not comply with public requests.

In the most recent incident, Gaston College radio station WSGE in Dallas, North Carolina was levied a fine of $8,000 by the FCC for “willfully and repeatedly violating Section 73.3527 of the Commission’s rules relating to a noncommercial licensee’s obligation to properly maintain and make available a public inspection file.”

According to the FCC’s forfeiture order (dated January 29, 2010), a member of the public was refused access to the radio station’s public file during regular business hours and was told to make an appointment with the station’s attorney. Upon return to the station, he was eventually given access to the file and complained to the FCC that certain items were either missing or incomplete.

What’s interesting (and alarming) about this case is the station’s allegation that the individual who came to the station requesting access to the file was from a religious institution with a vested interest in trying to get the Gaston College station kicked off the air. According to the FCC’s Forfeiture Order:

“Gaston College characterized the Complainant’s behavior during the first visit as ‘hostile,’ and asked the Bureau to view the Complaint in the context of its past dealings with the Complainant’s employer, Columbia Bible College.

In this regard, Gaston College contended that Columbia Bible College has been engaged in a ‘pattern of harassment and intimidation’ by pursuing FCC proceedings against Gaston College, and that Columbia Bible College’s actions, through the Complainant, are motivated by its prior unsuccessful efforts to acquire the Station. Gaston College alleged that Columbia Bible College is attempting to misuse the Commission’s processes to force the licensee to sell the Station.”

This is enough to send chills up the spine of every college radio station staffer and is a good reminder for stations to get their files in order and instruct all station staff on procedures in regard to requests from the public to view the public file.

At the same time, it’s disturbing to think that there are groups out there who are focused on filing complaints with the FCC in order to get stations kicked off the air.