Federal law and FCC rules require that employees of broadcast stations, program producers, program suppliers and others who, in exchange for airing material, have accepted or agreed to receive payments, services or other valuable consideration must disclose this fact. Disclosure of compensation provides broadcasters the information they need to let their audiences know if material was paid for, and by whom.
What the Rules Say
The Communications Act and the FCC’s rules require that:
- When a broadcast licensee has received or been promised payment for the airing of program material, then, at the time of the airing, the station must disclose that fact and identify who paid for or promised to pay for the material. All sponsored material must be explicitly identified at the time of broadcast as paid for and by whom, except when it is clear that the mention of a product or service constitutes sponsorship identification;
- Any broadcast station employee who has accepted or agreed to accept payment for the airing of program material, and the person making or promising to make the payment, must disclose this information to the station prior to the airing of the program;
- Any person involved in the supply, production or preparation of a program who receives or agrees to receive, or makes or promises to make payment for the airing of program material, or knows of such arrangements, must disclose this information prior to the airing of the program. Broadcast licensees must make reasonable efforts to obtain from their employees and others they deal with for program material the information necessary to make the required sponsorship identification announcements;
- The information must be provided up the chain of production and distribution before the time of broadcast, so the station can air the required disclosure; and
- These rules apply to all kinds of program material aired over broadcast radio and television stations. Some of the rules also may apply to cablecasts.
Filing a Complaint
The FCC recognizes that broadcasters play a critical role in providing information to the communities and audiences they serve. If you suspect a broadcaster has violated the FCC’s rules, you can file a complaint with the FCC.
Payola Rules Guide (pdf)