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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
July 26, 2010 Jen Howard, 202-418-0506
Email: jen.howard@fcc.gov
UNIVISION RADIO PAYS $1 MILLION TO RESOLVE
"PAY-FOR-PLAY" INVESTIGATION
FCC Settlement Requires Univision to Adopt Significant Business Reforms to
Ensure Future Compliance and Protect Consumers
Washington, D.C. -- Today, the Federal Communications Commission's
Enforcement Bureau released a Consent Decree entered into with Univision
Radio, Inc. to resolve allegations that Univision radio stations or their
employees secretly accepted payment from a record label in exchange for
the radio stations giving more frequent airplay to the label's artists,
without making the disclosures to listeners required by section 507 of the
Communications Act. In a companion criminal action, a federal district
court has accepted the plea of Univision Services, Inc. to charges filed
by the U.S. Department of Justice ("DOJ"), based on the same facts. The
FCC and the DOJ coordinated their respective investigations and
enforcement actions.
"Payola -- the idea of pay-for-play -- misleads the listening public,"
said FCC Chairman Julius Genachowski. "This agreement with Univision
underscores the FCC's focus on consumer protection and our commitment to
ensuring that broadcasters play it straight with the public."
As part of the FCC settlement and the DOJ action, the Univision companies
will pay $1 million to the U.S. Treasury. The FCC-Univision Consent
Decree also obligates Univision to implement certain business reforms and
compliance measures designed to ensure future compliance with the
Commission's rules. Key provisions of the settlement include:
* General prohibition on Univision stations and employees exchanging
airplay for cash or other items of value, except under specified
conditions, and provided that such exchanges comply with sponsorship
identification laws;
* Limits on the size of gifts, concert tickets, and other valuable items
that Univision stations and employees can accept from record labels;
* Appointment of a Compliance Officer and regional Compliance Contacts
responsible for monitoring and reporting company performance under the
settlement; and
* Regular training of programming personnel on payola restrictions.
FCC Enforcement Bureau Chief Michele Ellison stated, "Broadcasters play a
critical role in educating and entertaining the public and along with that
special role comes some fundamental obligations. We will continue to work
with other government agencies, including criminal law enforcement
authorities where appropriate, leveraging all the tools at our disposal to
protect consumers and prevent them from being misled."
The FCC's Media Bureau concurred in today's settlement, and the FCC's
Office of Inspector General coordinated with DOJ on the criminal
proceeding.
Action by the Enforcement Bureau of the FCC on July 26, 2010, by Order
(DA
10-45).
--FCC--
News about the Federal Communications Commission can also be found
on the Commission's website www.fcc.gov.
NEWS
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the
full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322