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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                                 )                           
                                                     File No. EB-09-IH-0756  
     In the Matter of                            )                           
                                                     FRN: 0015043227         
     GOOD KARMA BROADCASTING, LLC                )                           
                                                     NAL/Account No.:        
     Licensee of Station WKNR(AM), Cleveland,    )   201132080018            
     Ohio                                                                    
                                                 )   Facility ID No. 28509   
                                                                             
                                                 )                           


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: December 8, 2010 Released: December 8, 2010

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

   I. INTRODUCTION

    1. In this  Notice of Apparent Liability for Forfeiture ("NAL"), we
       propose a monetary forfeiture in the amount of $4,000 against Good
       Karma Broadcasting, LLC ("Good Karma" or the "Licensee"), licensee of
       Station WKNR(AM), Cleveland, Ohio (the "Station"), for its apparent
       willful and repeated violation of Section 73.1216 of the Commission's
       rules. As discussed below, we find that Good Karma violated the
       contest rule requirements by broadcasting information about a contest
       without fully and accurately disclosing all of its material terms.

   II. BACKGROUND

    2. The Enforcement Bureau (the "Bureau") received a complaint (the
       "Complaint") alleging that the Station had conducted a "bogus" contest
       called "Who Said That" (the "Contest") during the "Really Big Show" on
       weekdays from 10:00 a.m. to noon, since approximately November 2007.
       Specifically, the Complainant alleged that the Station provided no
       clues, cut-off callers on-air, stopped discussing prizes, and provided
       "no real payoff" for Contest winners.

    3. On June 19, 2009, and August 26, 2009, the Bureau sent letters of
       inquiry to the Licensee. In response, Good Karma admitted that,
       regularly during early 2007 to the summer of 2008, and then
       sporadically thereafter until September 4, 2009, the Station aired a
       "bit" called "Who Said That?" during "The Really Big Show with Tony
       Rizzo." Good Karma states that, during broadcasts of the Contest, the
       Station aired a voice recording of an unnamed individual in the sports
       world and listeners called in or sent an e-mail to the Station to try
       to correctly identify the speaker. If the listener correctly
       identified the speaker, the Station awarded a prize to the winner.
       After a winner was named, the Station aired a clip of another unnamed
       individual, and the Contest continued.

    4. The Licensee asserts that Station staff mentioned certain basic
       "material terms" on-air as they discussed the Contest. According to
       the Licensee, these "material terms" included certain facts about how
       the Contest worked, including that: (1) the program host airs the
       clip; (2) listeners call the studio telephone line or send an e-mail
       and attempt to correctly identify the voice in the clip; (3) if the
       listener correctly identifies the voice in the clip, a prize is
       awarded; and (4) once the voice in the clip is correctly identified, a
       new clip is selected and the bit continues. The Licensee also notes
       that it posts general contest rules applicable to all Station contests
       on its website.

    5. The Station conducted the Contest regularly and as planned with
       certain sports clips, but that practice changed when the Station began
       airing the last clip, which aired from the fall of 2007 until the
       Station concluded the Contest on September 4, 2009. Good Karma notes
       that no one correctly identified the speaker in the last clip for more
       than twenty months. Good Karma states that when the Station began
       airing the last clip from the fall of 2007 continuing until the summer
       of 2008, the Station aired a prize announcement during each weekday,
       two-hour program and notified listeners that additional prizes would
       be added each week. The Licensee admits, however, that the Station did
       not announce the entire list of accumulated prizes, instead
       "identify[ing] the new prize and emphasiz[ing] material prizes in the
       package." Between the summer of 2008 and September 4, 2009,
       announcements concerning the Contest became more infrequent, limited
       to approximately three or four times per week and then only when
       callers brought up the topic. At that time, according to Good Karma,
       some originally-identified prizes were no longer available. Although
       the Station did not announce any change in the prizes, Good Karma
       claims that if someone had correctly identified the speaker in the
       last clip, the Station would have offered a similar package of prizes
       to what was originally announced based on what was available in the
       Station's prize closet or offered by an advertiser at that time.

   III. DISCUSSION

    6. 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 Good Karma is apparently liable for a forfeiture in the amount of
       $4,000 for its apparent willful and repeated violation of Section
       73.1216 of the Commission's rules.

    7. Section 73.1216 provides: "A licensee that broadcasts or advertises
       information about a contest it conducts shall fully and accurately
       disclose the material terms of the contest, and shall conduct the
       contest substantially as announced or advertised. No contest
       description shall be false, misleading, or deceptive with respect to
       any material term." Material terms under the rule "include those
       factors which define the operation of the contest and which affect
       participation therein," and generally include, among other things,
       instructions on "how to enter or participate; eligibility
       restrictions; . . . whether prizes can be won; when prizes can be won;
       . . . the extent, nature and value of prizes; [and] time and means of
       selection of winners; . . . ."  Although licensees have discretion in
       determining the time and manner of disclosing a contest's material
       terms, and need not enumerate the terms each time it airs an
       announcement promoting a contest, "the obligation to disclose the
       material terms arises at the time the audience is first told how to
       enter or participate [in the contest] and continues thereafter."
       Finally, disclosure of material terms must be by announcements
       broadcast on the station; non-broadcast disclosures of material terms
       can be made to supplement, but not substitute for, broadcast
       announcements. 

    8. Licensees, as public trustees, have the affirmative obligation to
       prevent the broadcast of false, misleading or deceptive contest
       announcements, and to conduct their contests substantially as
       announced. A broadcast announcement concerning a contest is false,
       misleading, or deceptive "if the net impression of the announcement
       has a tendency to mislead the public." In enforcing this rule, the
       Bureau has repeatedly held that licensees are responsible for
       broadcasting accurate statements as to the nature and value of contest
       prizes, and will be held accountable for any announcement that tends
       to mislead the public.

    9. As an initial matter, we reject Good Karma's characterization of "Who
       Said That?" as a program feature or "bit," as opposed to a contest
       subject to the Commission's rules. We find that "Who Said That?" is a
       contest under Section 73.1216 because it was a licensee-conducted
       scheme in which prizes were offered, based upon knowledge of the
       identity of the speaker in the clip, to members of the public. We
       further hold that Good Karma failed to fully and accurately disclose
       all material terms of the Contest. In particular, the Licensee
       apparently failed to periodically make on-air announcements of the
       Contest's material terms throughout the course of the Contest, as
       required. The Licensee admitted that for over a year during the course
       of the Contest (from the summer of 2008 until September 4, 2009), the
       Station stopped announcing prizes, unless a listener called in and
       tried to guess the identity of the voice in the last clip.  In
       addition, the Station apparently failed to announce on-air certain
       material terms throughout the course of the Contest - namely, the
       extent, nature, and value of the prizes. In this regard, the Station
       failed to specify on-air the list of accumulated prizes during each
       program and that some alternate prizes the Station deemed of equal
       value would be substituted for previously announced prizes.

   10. The Licensee notes its disclosure of general contest rules on the
       Station's website, which include a provision allowing the subject
       stations to substitute a prize of equal or greater value for all
       contests and giveaways and to end or stop any contest at any time. We
       reject any suggestion that such non-broadcast disclosure may act as a
       substitute for broadcast announcements. Although non-broadcast
       disclosures can supplement broadcast announcements, it is
       well-established that they cannot act as a substitute for the
       broadcast of material terms of a contest. Accordingly, the fact that
       certain terms of the Contest were posted on the Station's website does
       not excuse the Licensee from liability.

   11. The Licensee also asserts that the nature of certain prizes implied
       that they would no longer be available, thereby relieving the Station
       of the requirement to provide clarifying information. We disagree. The
       nature, extent, and value of the prizes, substituted or otherwise,
       could not be self-evident to listeners absent a full announcement, and
       they were not evident to the Complainant. Furthermore, licensees have
       the affirmative obligation to prevent misleading announcements
       respecting the contests that they conduct. They cannot rely on
       implications to accomplish that result. We therefore find that Good
       Karma violated Section 73.1216 of the Commission's rules by failing to
       fully and accurately disclose the material terms of the Contest.

   12. Pursuant to the Commission's Forfeiture Policy Statement and Section
       1.80 of the rules, the base forfeiture for violations of the contest
       rules is $4,000. 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, which include the nature, circumstances,
       extent, and gravity of the violations, and with respect to the
       violator, the degree of culpability, any history or prior offenses,
       ability to pay, and other such matters as justice may require.
       Applying the Forfeiture Policy Statement, Section 1.80, and the
       statutory factors to the instant case, we conclude that Good Karma
       willfully and repeatedly violated Section 73.1216 of the Commission's
       rules and is apparently liable for a forfeiture in the amount of
       $4,000.

   IV. ORDERING CLAUSES

   13. Accordingly, IT IS ORDERED, pursuant to Section 503(b) of the Act, and
       Sections 0.111, 0.311, and 1.80(f)(4) of the Commission's rules, that
       Good Karma Broadcasting, LLC is hereby NOTIFIED of its APPARENT
       LIABILITY FOR FORFEITURE in the amount of $4,000 for apparently
       willfully and repeatedly violating Section 73.1216 of the Commission's
       rules.

   14. 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, Good
       Karma Broadcasting, LLC SHALL PAY the full amount of the proposed
       forfeiture or SHALL FILE a written statement seeking reduction or
       cancellation of the proposed forfeiture.

   15. 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, MO
       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 full payment under
       an installment plan should be sent to:  Chief Financial Officer -
       Financial Operations, 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. Good Karma Broadcasting, LLC will also
       send electronic notification on the date said payment is made to
       Hillary.DeNigro@fcc.gov, Ben.Bartolome@fcc.gov, Anjali.Singh@fcc.gov,
       and Melissa.Marshall@fcc.gov.

   16. The response, if any, must be mailed to Hillary S. DeNigro, Chief,
       Investigations and Hearings Division, Enforcement Bureau, Federal
       Communications Commission, 445 12th Street, SW, Room 4-C330,
       Washington, D.C. 20554, and must include the NAL/Account Number
       referenced above. In addition, a copy of the response must be
       transmitted via e-mail to Hillary.DeNigro@fcc.gov,
       Ben.Bartolome@fcc.gov, Anjali.Singh@fcc.gov, and
       Melissa.Marshall@fcc.gov.

   17. 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.

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

   19. IT IS FURTHER ORDERED that a copy of this NAL shall be sent, by First
       Class Mail and Certified Mail - Return Receipt Requested, to Good
       Karma Broadcasting, LLC, 100 Stoddart Street, P.O. Box 902, Beaver
       Dam, Wisconsin 53916 and to its counsel, Nancy A. Ory, Esquire, Lerman
       Senter PLLC, 2000 K Street, N.W., Suite 600, Washington, DC 20006, and
       by First Class mail to the Complainant.

   FEDERAL COMMUNICATIONS COMMISSION

   Hillary S. DeNigro

   Chief, Investigations and Hearings Division

   Enforcement Bureau

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

   See Form 2000E Complaint, filed on February 13, 2009.

   Id.

   See Letter from Rebecca A. Hirselj, Assistant Chief, Investigations and
   Hearings Division, Enforcement Bureau, Federal Communications Commission,
   to Good Karma Broadcasting, LLC, dated June 19, 2009; Letter from Rebecca
   A. Hirselj, Assistant Chief, Investigations and Hearings Division,
   Enforcement Bureau, Federal Communications Commission, to Good Karma
   Broadcasting, LLC, dated August 26, 2009.

   See Letter from Nancy A. Ory, Lerman Senter PLLC, Counsel for Good Karma
   Broadcasting, LLC, to Marlene H. Dortch, Secretary, Federal Communications
   Commission, at 2, 4, 5, dated September 11, 2009 ("Second LOI Response").
   Good Karma states that while it views "Who Said That?" more as a program
   feature than a traditional radio contest, it nevertheless complied with
   the requirements of Section 73.1216 by disclosing material terms of the
   "contest" on air and by awarding prizes in accordance with such material
   terms. See Letter from Nancy A. Ory, Lerman Senter PLLC, Counsel for Good
   Karma Broadcasting, LLC, to Marlene H. Dortch, Secretary, Federal
   Communications Commission, at 6, dated July 20, 2009 ("First LOI
   Response").

   See First LOI Response at 2; Second LOI Response at 2. We note that the
   Licensee refers to the Contest throughout its pleadings in this case as a
   "scheme" or a "bit." See, e.g., First LOI Response at 3.

   See First LOI Response at 2.

   See id. at 2-3.

   See id. at 3.

   Id. at 3-4.

   See id. at 3.

   See id.

   See id. at 2; Second LOI Response at 5.

   See First LOI Response at 3.

   See Second LOI Response at 2, 3.

   Id. at 2. Good Karma notes that, "[f]or example, if the new prize was a
   t-shirt or coffee mug, it would generally be disclosed that week, but
   would not be repeated on air each following week." Id.

   See id. at 4.

   See id. at 3.

   See id.

   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), recons. denied, 7 FCC Rcd 3454 (1992).

   See, e.g., Callais Cablevision, Inc., Grand Isle, Louisiana, Notice of
   Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359, 1362 P: 10
   (2001) (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 P: 5; Callais
   Cablevision, Inc., 16 FCC Rcd at 1362 P: 9.

   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 P: 4 (2002) (forfeiture paid).

   47 C.F.R. S: 73.1216.

   Id., Note 1(b).

   Id. (emphasis added).

   Id., Note 2.

   See id. ("material terms should be disclosed periodically by announcements
   broadcast on the station conducting the contest") (emphasis added).
   Posting contest rules on a station's website does not satisfy Section
   73.1216's requirement that a licensee broadcast the material terms of a
   contest it conducts. See, e.g., AK Media Group, Notice of Apparent
   Liability for Forfeiture, 15 FCC Rcd 7541, 7543 P: 7 (Enf. Bur. 2000)
   (forfeiture paid) ("AK Media NAL"); Service Broadcasting Group, LLC,
   Notice of Apparent Liability for Forfeiture, 24 FCC Rcd 8494, 8498 (Enf.
   Bur., Investigations & Hearings Div. 2009) (forfeiture paid) ("Service
   NAL").

   See WMJX, Inc., Decision, 85 FCC 2d 251, 269 (1981) (holding that proof of
   actual deception is not necessary to find violations of contest rules, and
   that the licensee, as a public trustee, has an affirmative obligation to
   prevent the broadcast of false, misleading or deceptive contest
   announcements); Amendment of Part 73 of the Commission's Rules Relating to
   Licensee-Conducted Contests, Report and Order, 60 FCC 2d 1072 (1976).

   See Headliner Radio, Inc., Memorandum Opinion and Order, 8 FCC Rcd 2962
   (Mass Media Bur. 1993) (finding that the airing of a misleading
   advertisement concerning a licensee's contest violated the Commission's
   contest rules because the contest was not then conducted "substantially as
   announced or advertised").

   WMJX Inc., 85 FCC 2d at 269-270, n.82 (citing Eastern Broadcasting Corp.,
   Decision, 14 FCC 2d 228, 229 (1968)).

   See, e.g., Clear Channel Broadcasting Licenses, Inc.,  Notice of Apparent
   Liability for Forfeiture, 21 FCC Rcd 6808, 6809 (Enf. Bur., Investigations
   & Hearings Div. 2006) (forfeiture paid); Citicasters Co., Notice of
   Apparent Liability for Forfeiture, 15 FCC Rcd 16612, 16613-14 (Enf. Bur.
   2000) (forfeiture paid) ("Citicasters NAL"); Clear Channel Broadcasting
   Licenses, Inc., Notice of Apparent Liability for Forfeiture, 15 FCC Rcd
   2734, 2735 (Enf. Bur. 2000) (forfeiture paid) ("Clear Channel NAL").

   See 47 C.F.R. S: 73.1216, Note 1(a); First LOI Response at 2, 3.

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

   See id., Note 2.

   See Second LOI Response at 4-5.

   See 47 C.F.R. S: 73.1216, Note 1(b); Clear Channel NAL, 15 FCC Rcd at 
   2735 (finding that failure to disclose the nature and value of the prize
   is a clear violation of Section 73.1216); Second LOI Response at 2-3.

   See Second LOI Response at 2-3.

   See id. at 3, 5.

   See id.

   See AK Media NAL, 15 FCC Rcd at 7543 (finding contest rule violation for
   station's failure to broadcast a contest's material term and holding that
   posting rules at the station and on its website do not satisfy rule);
   Clear Channel NAL, 15 FCC Rcd at 2735 (finding contest rule violation for
   failure to broadcast a contest's material term and holding that posting
   rules at the station's website does not suffice to satisfy rule); Service
   NAL, 24 FCC Rcd at 8499 (finding that off-air contest instructions do not
   excuse a licensee from liability). See also 47 C.F.R. S: 73.1216, Note 2
   (stating "[t]he material terms should be disclosed periodically by
   announcements broadcast on the station conducting the contest") (emphasis
   added).

   See Second LOI Response at 3. For example, the Licensee cites tickets to a
   sporting event, which would be worthless after the date of the event. See
   id.

   See authorities cited in supra note 33.

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

   See 47 U.S.C. S: 503(b)(2)(E).

   See Citicasters NAL, 15 FCC Rcd at 16613-14 (assessing $4,000 forfeiture
   for failure to announce a contest's material term); Capstar TX Limited
   Partnership, Notice of Apparent Liability for Forfeiture, 20 FCC Rcd
   10636, 10641 (Enf. Bur., Investigations & Hearings Div. 2005) (assessing
   $4,000 forfeiture for failure to announce a contest's material term and
   for neglecting to conduct the contest as announced) (forfeiture paid).

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

   See 47 C.F.R. S:S: 0.111, 0.311, 1.80(f)(4).

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

   See 47 C.F.R. S: 1.1914.

   For the purposes of the forfeiture proceeding initiated by this NAL, Good
   Karma Broadcasting, LLC shall be the only party to this proceeding.

   Federal Communications Commission DA 10-2319

   2

   2

   Federal Communications Commission DA 10-2319

                                       .