M96-1736
Federal Communications Commission 
Washington, D.C. 20554
In Reply Refer To:
1800C-1MD
93020559
Released: October 22, 1996 
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
KTBY. Inc. .
Licensee. KTBY(TV). Anchorage. AK 
1840 S. Bragaw Street. *101 
Anchorage. AK 99508
Dear Licensee:
This letter constitutes a NOTICE OF APPARENT LIABILITY FOR A FORFEITURE 
("NAL") in the amount of ten thousand dollars (510,000) pursuant to Section 503(b) of the 
Communications Act of 1934. as amended, under authority delegated to the Chief, Mass 
Media Bureau, by Section 0.283 of the Commission's Rules. This forfeiture proceeding 
concerns apparently repeated violations by KTBY(TV), Anchorage, Alaska, of the 
Commission's rule limiting the amount of commercial matter that may be aired during 
children's programming.
In response to the Children's Television Act of 1990. Pub. L. No. 101-437, 104 Stat. 996- 
1000. codified at 47 U.S.C. Sections 303a. 303b and 394, the Commission adopted rules 
prohibiting the broadcast, on weekdays, of more than 12 minutes of commercial time and, on 
weekends, of more than 10.5 minutes of commercial time per hour of children's 
programming. 47 C.F.R. § 73.670. The Commission also reaffirmed its policies against host- 
selling and other types of interweaving and stated that where these practices resulted in a 
"program-length commercial," the entire program would count as commercial time for 
purposes ot' the children's advertising limits. See Children's Television Programming. 6 FCC 
Red 2111. 2117-18, recon.. 6 FCC Red 5093, 5097. 5098-99 (1991).
On October 1. 1993. the Mass Media Bureau's Enforcement Division sent you a letter of 
inquiry citing possible policy and rule violations during certain children's programs which had 
been monitored on KTBY(TV) by our Alaska field personnel earlier in the year. The letter 
directed your attention to two situations. The first involved an apparent promotion for 
National Bank of Alaska by program hosts during the Fox 4 Kids Club program on Monday. 
February 1. 1993. The second involved an advertisement for Pizza Hut which featured "Goof 
Wear" during the half-hour Goof Troop show broadcast on Tuesday, February 2. 1993. You 
responded by letter dated October 15. 1993.
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Fox 4 Kids C'lub: National Bunk of Alaska
In this spm. live program characters Kidd and Kiddie Fox. demonstratins: "the virtues and 
values of saving money as opposed to spending it foolishly on candy and junk food" 
(according to your explanation), appeared to encourage viewers to save their money at 
National Bank of Alaska, a sponsor of that day's program. The videotape of the program 
shows Kiddie Fox saying to Kidd Fox. "I saved up my allowance and all my birthday checks 
from Grandma and Grandpa Fox. took it to National Bank of Alaska, opened up a savings 
account, and saved enough for the bike of my dreams!" Kidd regrets that he squandered his 
money, but Kiddie comforts him. saying. "There's still hope. kids. Watch National Bank of 
Alaska Kids Club Monday on the Fox 4 Kids Club and learn cool stuff about money!" (It is 
important to note that this spot occurred during the so-called "National Bank of Alaska Kids 
Club Monday" program.)
You claim that this was not a violation of the Commission's rules and policies concerning 
children's television advertising because it was a "non-paid" spot intended as "edutainment." 
That there was no separate consideration for the spot, however, does not necessarily resolve 
the matter. "[E]veh if no separate consideration is received for such mentions." spots that are 
part of a program package for which the broadcaster receives consideration are "bonus" spots. 
to be treated as commercial matter. 6 FCC Red 2124. n.25. See also SuoerStation. Inc.. 8 
FCC Red 490 (MMB 1993) ("cross-promotionals" for related for-profit business are to be 
counted as commercial time, even though air time was not purchased). Although it is not 
definitively established that there was an arrangement with the sponsor such .that it could 
expect bonus spots, it appears from the mention that it was connected with KTBY's receipt of 
consideration from National Bank of Alaska. (It is unlikely, for example, that the hosts in 
this program would have mentioned the name of a competing bank instead.)
Moreover, despite your characterization of these spots as "interstitials." the material promotes 
the show's sponsor during the sponsored programming using the program's main characters. 
While these characters are not prohibited from plugging station sponsors outside of the show 
with which they are identified, doing so within their program, in exchange for consideration, 
is "host-selling," a practice the Commission has denounced because it takes unfair advantage 
of the trust that children place in these characters. Action for Children's Television. 50 FCC 
2d 1, 8. 16-17 (1974). Additionally, such host-selling interweaves program elements and 
commercial elements in a way that violates the Commission's basic policies requiring 
adequate separation so that young children will not be confused in distinguishing advertising 
from program material.
In view of all the circumstances, we believe the above-described "interstitial" was a violation 
of our host-selling policy. We ADMONISH you to avoid such situations in the future.
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Goof Troop: Pizza Hut
This paid advertisement promoted the specially-priced "personal pan pizza" as part of the 
"goofiest pizza pack ever, starring Disney's Goof Troop." It included animated footage of 
Coot" Troop characters and shots of children dancing while wearing merchandise ("Goof 
Wear") containing Goof Troop characters or designs.
You state that this spot aired within the Goof Troop show a total of four times over a four- 
week period, as part of a contract to promote a "personal pan pizza," not to sell Goof Troop 
paraphernalia. You add. however, that because our letter alerted you to the fact that 
advertisers sometimes include such secondary elements in their spots, you initiated a 
procedure of prior visual review of each advertisement to be aired in KTBY's children's 
programming.
A "program-length commercial" is a program associated with a product, in which commercials 
for that product are aired. It is counted in its entirety as commercial matter. Children's 
Television Programming. 6 FCC Red at 2117-18. The Goof Troop characters and products in 
the advertisement are clearly related to the Goof Troop program in which the advertisement 
was aired. Accordingly, these Pizza Hut advertisements with Goof Troop characters turn the 
subject 30-minute Goof Troop programs into program-length commercials, causing 
KTBY(TV) to have exceeded the limits on commercial matter in children's programming on 
those four occasions.
Pursuant to 47 (J.S.C. § 503(b). KTBY. Inc.. is hereby advised of its apparent liability for a 
forfeiture in the amount of ten thousand dollars (510,000) for its apparent repeated violations 
of 47 C.F.R. § 73.670. by airing the program-length commercials described above on four 
consecutive Tuesdays, beginning February 2. 1993, and ending February 23, 1993. The 
amount specified was reached after consideration of the factors set forth in Section 503(b)(2) 
of the Communications Act. including "the nature, circumstances, extent, and gravity of the 
violation." 47 U.S.C. § 503(b)(2)(D).
In particular, we have considered the number of instances of commercial overages, the nature 
of the overages, the period of time over which such overages occurred, and the reasons the 
overages occurred. Here we have a relatively large number (in terms of monitoring) of 
potentially serious violations, caused by the licensee's apparent inattentiveness to "secondary 
elements" during the four weeks in question. In this case, we believe the "secondary 
elements" were too obvious to have been overlooked so easily. There must have been 
something besides coincidence that placed this particular Pizza Hut commercial with Goof 
Troop characters (as indicated in the advertising schedule you submitted) only on Tuesdays 
between 3 p.m. and 5:30 p.m.. surrounding and engulfing the half-hour Goof Troop program 
at 4 p.m. on Tuesdays. Although the maximum forfeiture amount authorized is $25.000 per 
violation, we believe that in these circumstances a $10,000 forfeiture is a fair and effective 
monetarv sanction for the violations described above.
13872
With respect to this forfeiture proceeding, you are afforded a period of thirty (30) days from 
the release date of this document "to show, in writing, why a forfeiture penalty should not be 
imposed or should be reduced, or to pay the forfeiture. Any showing as to why the forfeiture 
should not be imposed or should be reduced shall include a detailed factual statement and 
such documentation and affidavits as may be pertinent." 47 C.F.R. § 1.80(0(3). Other 
relevant provisions of Section 1.80 of the Commission's Rules are summarized in the 
attachment to this letter.
FEDERAL COMMUNICATIONS COMMISSION
Roy VStewart
. Mass Media Bureau
13873