Category Archives: October 2018

NAB files comments with the FCC on Audio Marketplace Competition

NABThe NAB has filed comments with the FCC concerning competition in the audio programming marketplace as part of the agency’s congressionally-mandated communications marketplace report. The NAB’s comments state, “While today AM and FM radio still account for 50% of daily time spent listening to audio sources for those ages 13+, well ahead of any other single audio platform, total time spent listening to AM/FM radio on a weekly basis has been heading downward.”

The comments laid out the current audio marketplace and the NAB notes that “digital technologies have significantly expanded the number of audio content providers and the marketplace choices available to listeners. This expansion within the marketplace has led to changes in the marketplace for both listenership and advertising.”

Beware of the Political File Obligations in this Hot Political Advertising Year

David Oxenford - Color
David Oxenford

By: David Oxenford, Wilkinson Barker Knauer LLP

In this “political” year with Congressional mid-term elections in November, including many hotly contested races for seats in the U.S. House of Representatives and the Senate, as well as many state and local elections, I receive many questions from broadcasters across the country. Perhaps the area in which most questions are received deals with the “political file,” particularly because these files are now available online. The fact that this file can now be viewed by anyone anywhere across the country has raised many questions that were perhaps less top-of-mind when the file was available only by physically visiting the main studio of a broadcast station. So, with the election just over a month away, meaning that the busiest advertising period will be coming up between now and the election, I thought that it would be worth taking a look at some of the online public file issues.

As an initial matter, it is worth mentioning that the political file has two main purposes. First, it is designed to provide information to the public about who is trying to convince them to vote in a certain way or to take action on other political issues that may be facing their country or community. Second, the file is to inform one candidate of what uses of broadcast stations his or her opponents are making. Thus, the documents placed in the file must be kept in the file for only two years from the date that they were created – perhaps on the assumption that at that point, we will be on to the next election cycle and old documents really won’t matter to the public or to competing candidates in the last election. But what needs to go into the file?

For any request for advertising made by any legally qualified candidate for any public office (Federal, state or local), the following information needs to be maintained in the file:

  • Whether the request to purchase time was accepted or rejected;
  • If accepted, the rate charged for the ads in the advertising schedule;
  • The date and time that the ads are to be aired, with the exact times that they were aired to be added to the file after they run;
  • The class of advertising time purchased (which will be determined by the rights associated with the spots, e.g. whether they are fixed or preemptible, the daypart or rotation in which the spots will run, etc.)
  • The name of the candidate and his or her authorized committee, and the treasurer of the committee.

All information should go into the file as soon as an order is received – certainly within 24 hours. The only exception is for the details of the exact times that the spots ran, which can be inserted into the file when your traffic system generates those reports – provided that they must be provided sooner on request.

That same information as provided for a candidate ad needs to be put into the file for any advertising relating to a “political matter of national importance.” That would include any ad by a non-candidate group (e.g., a PAC, labor union, corporation or other interested individual) dealing with any issue likely to be dealt with here in Washington. Such issues would include:

  • Any ad dealing with a legally qualified candidate for Federal office (either attacking or supporting a candidate); or
  • Any national legislative issue of public importance (e.g., an ad saying “write your Congressman and tell him to vote” for or against some issue being dealt with by the Federal government).

In the political file for these Federal issue ads, in addition to all of the information for candidate ads, the file also needs to include a description of the issue that the ad addresses. That can be the name of the candidate that the ad supports or attacks, or the name of a Federal issue that the ad addresses. In some cases the ad can address both a candidate and an issue. In that case, it is probably safest for the political file to list both the candidate and the issues addressed. The FCC’s Media Bureau issued a decision in January 2017 requiring that dual identification (see our article here), but that decision was withdrawn when the current FCC Chairman came into office with a promise that the FCC would reexamine the issue and release a new decision (see our article here). While that new order has apparently been drafted and has been on circulation among the Commissioners for a vote since May 2018, the decision has not yet been released. Watch for a clarification that could come at any time.

All issue ads, whether dealing with Federal, state or local issues (state and local issues could include state ballot initiatives, local zoning or school bond issues, or attacks on state or local candidates), also require information about the sponsor of the ads. The information includes the following:

  • The name of the person or entity purchasing the time, and
  • A list of the chief executive officers, members of the executive committee or of the board of directors of such entity.

In the decision referenced above on which we are awaiting a final FCC ruling, the Media Bureau had required that stations, if they are given only a single name of an officer or director of an entity buying issue ads, ask the ad buyer for the names of additional officers or directors – on the assumption that it is unlikely that any organization has but a single officer or director. While that responsibility has not yet been clarified, it is probably advisable that stations make such inquiries.

We note that many stations use forms to gather the information necessary to respond to these questions – often forms generated by a group owner or one of the “PB” forms created by the NAB. These are good models to use to gather the information for the file, but the station still needs to make sure that the information provided by the political buyer fully responds to the questions on the form. We have heard of many cases where non-candidate groups do not want to say on the form that they are buying ads on a Federal issue, even when they are clearly attacking a candidate for Federal office, perhaps because they do not want all the information about the advertising buy (including the price and schedule) to be revealed in the public file. Stations need to inquire if the information provided is not complete, as the burden is on the station, not the ad buyer, for this information to be complete and accurate and timely placed in the online public file.

Also, do not put information into the file about the method of payment for the ads. We have seen cases where checks from advertisers, or worse yet, information about their electronic payment methods, have been included in the public file, potentially revealing sensitive information that could compromise bank accounts. Do not place this information into the file.

Finally, be alert to state record-keeping requirements. States including Washington and New York have recently enacted state laws that may impose different or additional paperwork obligations on political advertising (see our article here). If your station is in one of those states, be sure to not only observe the FCC’s rules, but also those of the state in which you are located.

Good luck in keeping all these rules straight in the last weeks before the election. For more information about political advertising obligations, see our Guide to Political Broadcasting, here. And, of course, ask your own lawyer as these issues arise, as they raise many tricky issues that may depend on the specific facts of your case to get the right answer.

David Oxenford is MAB’s Washington Legal Counsel and provides members with answers to their legal questions with the MAB Legal Hotline. Access information here. (Members only access).

There are no additional costs for the call; the advice is free as part of your MAB membership.

Deadline Reminder: Broadcast Station Quarterly Reports Due October 10, 2018

By October 10, 2018, all radio and television broadcast stations, both commercial and noncommercial, must prepare a list of important issues facing their communities of license, and the programs aired during July, August and September dealing with those issues. All TV stations and radio stations must post these documents to the FCC’s online public file database. The FCC’s online public inspection file database may be accessed HERE.

Also by October 10, all commercial full power and Class A TV stations must prepare and file the Children’s Programming Report on FCC Form 398 for the third quarter of 2018, and post online documentation demonstrating compliance with the limits on commercial matter aired during children’s programming.

FEMA’s National EAS/WEA Test ‘Successfully Originated and Disseminated’

As  most broadcasters are aware,  FEMA conducted another National EAS Test and added a second test to cellphones to test Wireless Emergency Alerts (WEA) on October 3.

With regard to the EAS portion of the test, the MAB received just a few reports regarding re-transmission of the test, and, though still being investigated, it appears those might be related to equipment configuration issues at the station end.   Two callers to the MAB were having issues logging into the the FCC’s ERTS site to report the test results as required.

A poll of 1,894 US adults conducted by YouGov.com regarding the Wireless Emergency Alerts, showed that 72% of the population received the alert, 18% did not, 5% not sure and 5% did not have a cellphone.

FEMA’s statement following the test was as follows:

“The national EAS and WEA test messages were successfully originated and disseminated through FEMA’s IPAWS to the wireless provider gateways and EAS message servers. All wireless provider gateways acknowledged receipt of the test message. 

Additional results from EAS participant station reception and broadcast of the national test message will be collected over the next month and reported later and compared against previous test results.

FEMA is committed to continuously improving the national alert and warning systems and supporting local authorities in getting effective and timely warning to people.

Only WEA compatible cellphones that are switched on and within range of an active cell tower, and whose wireless provider participates in WEA will be capable of receiving the test message.

Additionally, if a user is on a call, or with an active data session open on their phone, they might not have received the message.”

Statewide RMT Cancelled for October 10; Stations Should Run Required Weekly Test

State EAS/SECC Chairman Gary Blievernicht has announced that the Statewide Required Monthly Test (RMT), scheduled for October 10 has been cancelled.  47 CFR 11.61(3)(ii) states, “A national test shall replace the required weekly and monthly tests for all EAS participants … in the week and month in which it occurs.

Stations, however, should run a Required Weekly Test (RWT) the week of October 8.

If you have any questions, contact Dan Kelley at the MAB.