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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                            )                                
                                                                             
                                            )                                
                                                                             
                                            )                                
                                                                             
     In the Matter of                       )                                
                                                                             
     Clear Channel Communications, Inc.     )                                
                                                                             
     Ultimate Parent Company of             )   File No.: EB-08-IH-1738      
                                                                             
     AMFM Broadcasting Licenses, LLC        )   NAL/Acct. No.: 201232080015  
                                                                             
     Licensee of Stations KOST(FM),         )   FRN: 0005780325              
     KHHT(FM),                                                               
                                            )   Facility ID Nos. 34424,      
     KBIG-FM, and KYSR(FM), all of Los          35022,                       
     Angeles, California;                   )                                
                                                6360, and 36019              
     Citicasters Licenses, Inc.             )                                
                                                Facility ID No. 19218        
     Licensee of Station KIIS-FM, Los       )                                
     Angeles, California;                       Facility ID No. 34425        
                                            )                                
     Capstar TX LLC                                                          
                                            )                                
     Licensee of Station KFI(AM), Los                                        
     Angeles, California                    )                                
                                                                             
                                            )                                
                                                                             
                                            )                                
                                                                             
                                            )                                


                  Notice of apparent liability for forfeiture

   Adopted: January 19, 2012 Released: January 19, 2012

   By the Acting Chief, Investigations and Hearings Division, Enforcement
   Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability For Forfeiture ("NAL"), we find
       that Clear Channel Communications, Inc. ("Clear Channel" or
       "Licensee"), the ultimate parent company of the licensees of
       commercial radio stations KOST(FM), KHHT(FM), KBIG-FM, KYSR(FM),
       KIIS-FM, and KFI(AM), Los Angeles, California (the "Stations"),
       apparently willfully violated section 73.1216 of the Commission's
       rules by failing to "fully and accurately disclose the material terms
       of a contest." Based upon our review of the facts, we find the
       Licensee apparently liable for a monetary forfeiture in the amount of
       twenty two thousand dollars ($22,000).

   II. BACKGROUND

    2. The Commission received a complaint on July 25, 2008, alleging that
       Clear Channel failed to conduct its "Chevy" contest (the "Contest") in
       accordance with its advertised terms and the Commission's rules.
       Specifically, the complainant alleges that Clear Channel conducted a
       Contest over the Stations in which listeners were invited to prepare
       and submit video commercials for Chevrolet in an effort to win the
       prize of an automobile. The complainant further alleges that the
       Contest was rigged because the prize was awarded to a friend or family
       member of an employee of the Licensee and that the winning video was
       submitted after the Contest submission deadline.

    3. In response to the Complaint, the Enforcement Bureau ("Bureau"), by
       letter dated September 23, 2008, inquired of Clear Channel concerning
       these allegations. Clear Channel responded on October 30, 2008. The
       Bureau sent a further letter of inquiry to Clear Channel on November
       25, 2009, to which it responded on December 17, 2009. In its LOI
       Response, Clear Channel denies the allegation that the Contest was
       rigged and explains that, although the prize was awarded to a friend
       of one of its employees, there were no irregularities involved and the
       selection was in accordance with the Contest rules. In addition, Clear
       Channel states that no videos were submitted after the Contest
       submission deadline. Finally, throughout its LOI Response, Clear
       Channel claims that the Contest was conducted entirely online.

   I. DISCUSSION

    4. Under section 503(b)(1) of the Communications Act of 1934, as amended
       (the "Act"), any person who is determined by the Commission to have
       willfully or repeatedly failed to comply with any provision of the Act
       or any rule, regulation, or order issued by the Commission shall be
       liable to the United States for a forfeiture penalty. Section
       312(f)(1) of the Act defines willful as "the conscious and deliberate
       commission or omission of [any] act, irrespective of any intent to
       violate" the law. The legislative history to section 312(f)(1) of the
       Act clarifies that this definition of willful applies to both sections
       312 and 503(b) of the Act, and the Commission has so interpreted the
       term in the section 503(b) context. The Commission may also assess a
       forfeiture for violations that are merely repeated and not willful.
       "Repeated" means that the act was committed or omitted more than once
       or lasts more than one day. In order to impose such a penalty, the
       Commission must issue a notice of apparent liability, the notice must
       be received, and the person against whom the notice has been issued
       must have an opportunity to show, in writing, why no such penalty
       should be imposed. The Commission will then issue a forfeiture if it
       finds, by a preponderance of the evidence, that the person has
       willfully or repeatedly violated the Act or a Commission rule. As
       described in greater detail below, we conclude under this procedure
       that Clear Channel is apparently liable for a forfeiture in the amount
       of twenty two thousand dollars ($22,000) for its apparent willful and
       repeated failure to fully and accurately disclose the material terms
       of its Contest.

    5. Under section 73.1216 of the Commission's rules, a broadcast licensee
       "that broadcasts or advertises information about a contest it conducts
       shall fully and accurately disclose the material terms of the
       contest." Material terms, among other things, include any eligibility
       restrictions, means of selection of winners, and the extent, nature
       and value of prizes.

    6. We find that Clear Channel apparently violated section 73.1216 of the
       Commission's rules by failing to fully and accurately disclose the
       material terms of the Contest in the method prescribed by the
       Commission's rules. Clear Channel asserts that the Contest "was
       conducted  on the Station Websites, and not as an over-the-air
       contest." It acknowledges, however, that the Stations broadcast
       advertisements for the Contest. Clear Channel further acknowledges
       that its Contest rules were not broadcast, but instead were made
       available via the Stations' websites. By asserting that the Contest
       was conducted "on the Station websites," Clear Channel appears to
       imply that the Contest was not subject to the Commission rule's
       requirements, or that, alternatively, its method of disclosure was
       otherwise mitigating or exculpating. The Commission, however, has
       previously found a licensee liable under section 73.1216 in a case
       where the licensee promoted its contest through broadcast even though
       the contest itself was conducted principally through its website.
       Thus, Clear Channel's broadcast promotion of the Contest renders it
       fully subject to the Commission's rule. Moreover, the Commission has
       found that licensees cannot avail themselves of alternative
       non-broadcast announcements to satisfy the requirement that they
       accurately announce a contest's material terms. The Commission's rules
       clearly provide that "[t]he material terms should be disclosed
       periodically by announcements broadcast on the station conducting the
       contest." The Commission's rules provide that while disclosure by
       non-broadcast means (such as on a website) can be considered in
       determining whether adequate disclosure has been made, any
       non-broadcast disclosures must be "[i]n addition to the required
       broadcast announcements" and cannot substitute for them. Accordingly,
       we find that Clear Channel's failure to broadcast the material terms
       of the Contest constitutes a violation of section 73.1216.

    7. In addition, we find that Clear Channel violated section 73.1216 by
       failing to accurately disclose its Contest's material terms by
       providing conflicting information to listeners as to when the
       submissions were due.  Specifically, we note that the Contest Period
       is defined in paragraph three of the Stations' Official Contest Rules
       as encompassing the period from February 11, 2008, to March 21, 2008.
       Further, paragraph seven of the Official Contest Rules stipulates that
       "[a]ll [s]ubmissions . . . must be received by the close of the
       Contest Period." This information conflicts temporally with the
       information provided in paragraph nine of the rules, which provides
       that "[o]n or about March 10, 2008[,] a panel of impartial judges
       shall consider all submissions received by the Contest deadline (as
       defined herein), and select no less than two (2) and nor [sic] more
       than twenty (20) [f]inalists" which will be posted on the Stations'
       websites for the purpose of allowing listeners to vote "for the best
       of the [f]inalists" during the period from March 12 to March 21, 2008.
       Thus, there is a discrepancy as to whether the deadline for
       submissions was March 10 or March 21, 2008, that may have confused
       listeners and Contest participants.

    8. Finally, with respect to the Complaint's allegation of contest
       rigging, we are persuaded that there were no violations of the
       pertinent statute, 47 U.S.C. S: 509. Clear Channel submitted evidence
       that credibly refutes these allegations. As the record reflects, the
       ultimate winner was selected by audience and website viewer vote, not
       by the Licensee's selection, which undermines the complainant's
       charges of manipulation. Thus, we are persuaded that no rigging
       occurred in this instance.

    9. Based upon the evidence before us, and in view of the applicable law
       and Commission precedent, we find that Clear Channel apparently
       willfully violated section 73.1216 of the Commission's rules. The
       Commission's Forfeiture Policy Statement and section 1.80 of the
       Commission's rules specify a base forfeiture amount of four thousand
       dollars ($4,000) for each violation of section 73.1216. In assessing
       the monetary forfeiture amount, we must take into account the
       statutory factors set forth in section 503(b)(2)(E) of the Act and
       section 1.80 of the Commission's rules, which include the nature,
       circumstances, extent, and gravity of the violation, and with respect
       to the violator, the degree of culpability, any history of prior
       offenses, ability to pay, and other such matters as justice may
       require. We believe that the substantial revenues of Clear Channel and
       its previous violations of Commission rules warrant a proposed
       forfeiture above the base amount. We also note that six radio stations
       participated in the contest at issue. Accordingly, the instant case
       warrants an upward adjustment from the base forfeiture amount. After
       considering all the foregoing factors, and in view of the particular
       facts of this case, we find that Clear Channel is apparently liable
       for a forfeiture in the amount of twenty two thousand dollars
       ($22,000). In view of today's action, and in light of Clear Channel's
       prior history of non-compliance, we caution that the imposition of
       even higher forfeitures may result in the future if such misconduct
       persists.

   II. ORDERING CLAUSES

   10. ACCORDINGLY, IT IS ORDERED, pursuant to section 503(b) of the Act, and
       sections 0.111, 0.311, and 1.80 of the Commission's rules, that Clear
       Channel Communications, Inc. is hereby NOTIFIED of its APPARENT
       LIABILITY FOR FORFEITURE in the amount of twenty two thousand dollars
       ($22,000) for apparently willfully and repeatedly violating section
       73.1216 of the Commission's rules.

   11. IT IS FURTHER ORDERED, pursuant to section 1.80 of the Commission's
       rules, that within thirty (30) days of the release of this NAL, Clear
       Channel Communications, Inc. SHALL PAY the full amount of the proposed
       forfeiture or SHALL FILE a written statement seeking reduction or
       cancellation of the proposed forfeiture.

   12. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission. The
       payment must include the NAL/Account number and FRN number referenced
       above. Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis,
       Missouri 63101. Payment by wire transfer may be made to ABA Number
       021030004, receiving bank TREAS/NYC, and account number 27000001. For
       payment by credit card, an FCC Form 159 (Remittance Advice) must be
       submitted.  When completing the FCC Form 159, enter the NAL/Account
       number in block number 23A (call sign/other ID), and enter the letters
       "FORF" in block number 24A (payment type code). Requests for payment
       of the full amount under an installment plan should be sent to: Chief
       Financial Officer -- Financial Operations, Federal Communications
       Commission, 445 12th Street, S.W., Room 1-A625, Washington, D.C.
       20554. Please contact the Financial Operations Group Help Desk at
       1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures. Clear Channel will also send electronic
       notification on the date said payment is made to
       Terry.Cavanaugh@fcc.gov, Jeffrey.Gee@fcc.gov,
       Kenneth.Scheibel@fcc.gov, and Amelia.Brown@fcc.gov.

   13. The response, if any, must be mailed to Theresa Z. Cavanaugh, Acting
       Chief, Investigations and Hearings Division, Enforcement Bureau,
       Federal Communications Commission, 445 12th Street, SW, Room 4-C330,
       Washington, D.C. 20554, and SHALL INCLUDE the NAL/Acct. number
       referenced above. In addition, to the extent practicable, a copy of
       the response, if any, should also be transmitted via e-mail to
       Terry.Cavanaugh@fcc.gov, Jeffrey.Gee@fcc.gov,
       Kenneth.Scheibel@fcc.gov, and Amelia.Brown@fcc.gov.

   14. The Commission will not consider reducing or canceling a forfeiture in
       response to a claim of inability to pay unless the respondent submits:
       (1) federal tax returns for the most recent three-year period; (2)
       financial statements prepared according to generally accepted
       accounting practices ("GAAP"); or (3) some other reliable and
       objective documentation that accurately reflects the respondent's
       current financial status. Any claim of inability to pay must
       specifically identify the basis for the claim by reference to the
       financial documentation submitted.

   15. IT IS FURTHER ORDERED that the Complaint in this proceeding IS GRANTED
       to the extent indicated herein and IS OTHERWISE DENIED, and the
       complaint proceeding IS HEREBY TERMINATED.

   16. IT IS FURTHER ORDERED that a copy of this NAL shall be sent, by First
       Class Mail and Certified Mail-Return Receipt Requested, to Clear
       Channel Communications, Inc., 2625 S. Memorial Drive, Suite A, Tulsa,
       Oklahoma 74129; and to Andrew W. Levin, Executive Vice President and
       Chief Legal Officer, Clear Channel, 200 East Basse Road, San Antonio,
       Texas 78209-8328.

   FEDERAL COMMUNICATIONS COMMISSION

   Theresa Z. Cavanaugh

   Acting Chief, Investigations and Hearings Division

   Enforcement Bureau

   Stations KOST(FM), KHHT(FM), KBIG-FM, and KYSR(FM) are licensed to AM/FM
   Broadcasting Licenses, LLC; Station KIIS-FM is licensed to Citicasters
   Licenses, Inc.; and Station KFI(AM) is licensed to Capstar TX LLC. At the
   time of the complaint, the licensee of KFI(AM) was Capstar TX Limited
   Partnership. On December 18, 2009, the Commission approved the assignment
   of Station KFI(AM)'s license from Capstar TX Limited Partnership to
   Capstar TX LLC (File No. BALH-20091202AIC), which was consummated on
   December 31, 2009. At the time of the complaint, the licensee of KIIS-FM
   was Citicasters Licenses, L.P. On December 9, 2008, the Commission
   approved the assignment of Station KIIS-FM's license from Citicasters
   Licenses, L.P. to Citicasters Licenses, Inc. (File No. BAL-20081201DGA),
   which was consummated on December 31, 2008.

   47 C.F.R. S: 73.1216.

   See complaint dated July 25, 2008, IC Number 08-R1037916 ("Complaint").

   See id.

   See id.

   See Letter from Benigno E. Bartolome, Deputy Chief, Investigations and
   Hearings Division, Enforcement Bureau, Federal Communications Commission,
   to Clear Channel Communications, Inc., dated September 23, 2008 ("LOI").

   See Letter from Andrew W. Levin, Esq., Clear Channel Communications, Inc.,
   to Rebekah Bina, Attorney Advisor, Investigations and Hearings Division,
   Enforcement Bureau, Federal Communications Commission, dated October 30,
   2008 ("LOI Response"). In a letter accompanying its LOI Response, Clear
   Channel requested, pursuant to 47 C.F.R. S: 0.459, that the Commission
   afford confidentiality to certain documents included in its LOI Response
   that contain proprietary information. See Letter from Tom W. Davidson,
   Esq., Akin Gump Strauss Hauer & Feld, LLP, Counsel to Clear Channel
   Communications, Inc., to Marlene H. Dortch, Secretary, Federal
   Communications Commission, dated October 30, 2008. Because this NAL does
   not disclose such information, we need not rule on the confidentiality
   request. Unless and until we so rule, we will honor Clear Channel's
   request for confidential treatment of these documents. See 47 C.F.R. S:
   0.459(d)(1).

   See Letter from Kenneth M. Scheibel, Assistant Chief, Investigations and
   Hearings Division, Enforcement Bureau, to Clear Channel Communications,
   Inc., dated November 25, 2009 ("Further LOI").

   See Letter from Tom W. Davidson, Esq., Akin Gump Strauss Hauer & Feld,
   LLP, Counsel to Clear Channel Communications, Inc., to Rebekah Bina,
   Attorney Advisor, Investigations and Hearings Division, Enforcement
   Bureau, Federal Communications Commission, dated December 17, 2009
   ("Further LOI Response").

   See LOI Response at 11, 14-15.

   See id. at 11.

   See id. at 2-6.

   See 47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1).

   47 U.S.C. S: 312(f)(1).

   See H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51 (1982).

   See, e.g., Southern California Broadcasting Co., Memorandum Opinion and
   Order, 6 FCC Rcd 4387, 4388 (1991).

   See, e.g., Callais Cablevision, Inc., Grand Isle, Louisiana, Notice of
   Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359, 1362, para.
   10 (2001) ("Callais Cablevision") (issuing a Notice of Apparent Liability
   for, inter alia, a cable television operator's repeated signal leakage).

   Southern California Broadcasting Co., 6 FCC Rcd at 4388, para. 5; Callais
   Cablevision, Inc., 16 FCC Rcd at 1362, para. 9.

   See 47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

   See, e.g., SBC Communications, Inc.,  Forfeiture Order, 17 FCC Rcd 7589,
   7591, para. 4 (2002) (forfeiture paid).

   See 47 C.F.R. S: 73.1216.

   See id., nn. 1(b)-2.

   See LOI Response at 3, 5-6 & Exhibit I. The six Stations are KFI(AM),
   KOST(FM), KHHT(FM), KIIS-FM, KBIG-FM, and KYSR(FM).

   See id. at 6.

   See id.

   See AMFM Broadcasting Licenses, LLC, Notice of Apparent Liability for
   Forfeiture, 24 FCC Rcd 1529 (Enf. Bur., Investigations & Hearings Div.
   2009) (rejecting Clear Channel's argument that the contest in that case
   was conducted solely via the Station's website when on-air announcements
   were also made) ("AMFM Broadcasting").

   See 47 C.F.R. S: 73.1216 ("[a] licensee that broadcasts or advertises
   information about a contest it conducts shall fully and accurately
   disclose the material terms of the contest . . .") (emphasis added); see
   also AMFM Broadcasting, 24 FCC Rcd at 1532, para. 8.

   See AK Media Group, Inc.,  Notice of Apparent Liability for Forfeiture, 15
   FCC Rcd 7541, 7543 (Enf. Bur. 2000) (finding contest rule violation for
   failure to broadcast a contest's material term and holding that posting
   rules at the station and on a website do not suffice to satisfy rule);
   Clear Channel Broadcasting Licenses, Inc., Notice of Apparent Liability
   for Forfeiture, 15 FCC Rcd 2734, 2735 (Enf. Bur. 2000) (finding contest
   rule violation for failure to broadcast a contest's material term and
   holding that posting rules at the station's website, standing alone, does
   not satisfy rule's requirements) (Clear Channel Broadcasting).

   See 47 C.F.R. S: 73.1216 n.2 (emphasis added).

   See id.

   See LOI Response & Exhibit E ("Official Contest Rules").

   See LOI Response & Exhibit E at 1.

   See LOI Response & Exhibit E at 3.

   See id. Further compounding this confusion is the fact that "Contest
   deadline" is not defined in the Official Contest Rules.

   The complainant alleged that the Contest prize was awarded to a friend or
   family member of an employee of the Licensee, and that the winning video
   was submitted after the Contest submission deadline, but provided no
   evidence of rigging. See Complaint.

   47 U.S.C. S: 509 (Prohibited Practices in Case of Contests of Intellectual
   Knowledge, Intellectual Skill, or Chance).

   See LOI Response at 3-4 & Exhibit E - The Chevrolet "Make Your Own
   Commercial" Contest Official Rules ("Official Contest Rules"), and Further
   LOI Response at 4 & Exhibit 1. Clear Channel's responses are supported by
   sworn declarations of Jim Murphy, Vice President, Business Affairs, Clear
   Channel Los Angeles; Jeff Thomas, Vice President, Director of Sales, Clear
   Channel Los Angeles; Michele Laven, Director of Integrated Media, Clear
   Channel Los Angeles; and Noah Caldwell, Integrated Media Designer, Clear
   Channel Los Angeles. See LOI Response at Exhibit K and Further LOI
   Response at Exhibit 2.

   See LOI Response at 4 and Application of WorldCom, Inc. and MCI
   Communications Corporation for Transfer of Control of MCI Communications
   Corporation to Worldcom, Inc., Memorandum Opinion and Order, 13 FCC Rcd
   18025, 18134 P: 193 (1998) (citing  47 C.F.R. S: 1.17 for proposition
   that, in light of their duty to be truthful and accurate in their
   representations to the Commission, statements provided by Commission
   licensees in response to investigatory or adjudicatory matters within the
   Commission's jurisdiction are awarded substantial weight in the absence of
   persuasive evidence to the contrary).

   See The Commission's Forfeiture Policy Statement and Amendment of Section
   1.80 of the Rules to Incorporate the Forfeiture Guidelines, Report and
   Order, 12 FCC Rcd. 17087, 17113 (1997), recons. denied 15 FCC Rcd 303
   (1999) ("Forfeiture Policy Statement");  47 C.F.R. S: 1.80(b).

   See 47 U.S.C. S: 503(b)(2)(E); 47 C.F.R S: 1.80(b)(4).

   See id.

   In 2010, Clear Channel and its consolidated subsidiaries had revenues of
   more than $5.86 billion. See United States Securities and Exchange
   Commission Form 10-K, Annual Report, Clear Channel Communications, Inc.
   (2010) at 26. Therein, Clear Channel noted that it is the "largest radio
   broadcaster in the United States (based on revenues). As of December 31,
   2010, [it] owned 892 domestic radio stations servicing approximately 150
   U.S. markets, including 47 of the top 50 markets and 89 of the top 100
   markets." Id. at 1-2.

   See, e.g., Clear Channel Broadcasting Licenses, Inc., Licensee of Station
   WRUM(FM), Orlando, Florida, Notice of Apparent Liability, 21 FCC Rcd 6808
   (Enf. Bur. Investigations & Hearings Div. 2006) (imposing a $6,000
   forfeiture for failure to conduct a contest as announced and advertised)
   (forfeiture paid); see also AMFM Broadcasting, 24 FCC Rcd 1529 (Enf. Bur.
   Investigations & Hearings Div. 2009) (imposing a $6,000 forfeiture for
   failure to conduct a contest on KOST(FM) as announced and advertised)
   (forfeiture paid); Clear Channel Broadcasting, 15 FCC Rcd 2734 (Enf. Bur.
   2000) (imposing $4,000 forfeiture for failure to disclose a material term
   of the contest); Capstar TX Limited Partnership, Notice of Apparent
   Liability for Forfeiture, 20 FCC Rcd 10636 (Enf. Bur. Investigations &
   Hearings Div. 2005) (forfeiture paid); Citicasters, Co., Notice of
   Apparent Liability for Forfeiture, 15 FCC Rcd 16612, 16613-14 (Enf. Bur.
   2000).

   See id. As noted above, Clear Channel has violated our contest rule
   multiple times.

   See 47 U.S.C. S: 503(b).

   See 47 C.F.R. S:S: 0.111, 0.311, and 1.80.

   For purposes of the forfeiture proceeding initiated by this NAL, Clear
   Channel Communications, Inc. shall be the only party to this proceeding.

   (Continued from previous page)

   (continued....)

                                   Federal Communications Commission DA 12-64

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                                   Federal Communications Commission DA 12-64