FCC Issues Warning Over "Payola" Practices

Earlier this month, the Federal Communications Commission issued an Enforcement Advisory warning radio broadcasters not to engage in "payola" practices in connection with having musical artists perform at radio station events or festivals.

As the FCC explained, "payola" is the "unreported payment to – or acceptance by – employees of broadcast stations, program producers, or program suppliers of any money, service, or valuable consideration to achieve airplay for any programming." If a payment has been made in exchange for airplay, the broadcaster is required to disclose that during the broadcast.

In its Enforcement Advisory, the FCC expressed a concern about the manipulation of radio airplay by a broadcaster based on a musical artist's agreement to participate in a broadcast station's promotion or event, often without receiving payment for the appearance.