In 2011, the FCC issued an Enforcement Advisory stating that local stations must not discriminate with respect to advertising sales. Stations were required to certify that they do not discriminate at renewal. At the time, the FCC stated:
“The Enforcement Bureau issues this Enforcement Advisory to remind commercial broadcast licensees of their obligation to certify on their renewal application (Form 303-S) that their advertising sales contracts do not discriminate on the basis of race or ethnicity and that such contracts contain nondiscrimination clauses.”
Compliance with this policy means stations must include nondiscrimination provisions in all sales contracts. If these provisions are not included, a station must explain why in its renewal application.
Recent renewal decisions make it clear that the FCC is focusing on this issue. While the Commission did not fine stations for not including these disclosures, it signaled that it may penalize stations in the future. In one of the decisions the Commission noted:
“While the Licensee certified “No” in its Application, there has been no evidence presented to the Commission that the Licensee or the Station has engaged in discriminatory behavior with regards to its advertising. We therefore conclude that the Licensee’s failure to include non-discrimination clauses in the Station’s advertising sales agreements does not warrant a monetary forfeiture. However, future failures to include non-discrimination clauses in advertising sales agreements may result in more severe sanction, including the assessment of monetary forfeiture. (emphasis supplied)
To avoid potential liability, stations should make sure all sales contracts contain non-discrimination clauses.
You can see the FCC Enforcement Advisory here.
For additional information from noted communications lawyer David Oxenford, click here.
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