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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322  FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACT: 
 June  15,  2005  Rudy  Brioché:  (202)  418-  2300  e-  mail:  rudy.  brioche@  fcc.  gov 
 COMMISSIONER  ADELSTEIN  APPLAUDS  NEW  FCC  FACT  SHEET  ON  PAYOLA  RULES 
 Commissioner  Adelstein  applauded  the  issuance  by  the  FCC  of  a  Fact  Sheet  on  “FCC’s  Payola  Rules”  that  provides  critical  information  about  “What  the  Payola  Rules  Say”  and  “What  You 
 Can  Do  if  You  Think  the  Rules  Have  Been  Violated.” 
 Adelstein  said,  “We  are  enlisting  everyone  who  watches  and  listens  to  the  media  in  the  effort  to  catch  violations  of  our  payola  rules.  Like  a  Neighborhood  Watch  program,  putting 


 viewers  on  alert  will  help  us  enforce  the  law  and  deter  future  abuses.  It  serves  as  another  reminder  that  there  is  an  unequivocal,  legal  obligation  --  up  and  down  the  chain  of 
 production  and  distribution  --  to  disclose  all  forms  of  payola.” 
 “Broadcasters  and  cable  operators  really  need  to  take  these  rules  seriously.  There  are  major  penalties  involved  that  can  include  up  to  a  year  in  jail.  But  even  beyond  the 
 penalties,  it  is  the  longstanding  policy  of  this  country  that  the  American  people  have  a  right  to  know  who  is  promoting  a  product,  policy  or  message  to  them,”  said  Adelstein. 


 On  April  13  th  ,  2005,  the  Commission  issued  a  Public  Notice  on  Video  News  Releases  (VNRs),  in  response  to  public  and  congressional  inquiries  about  broadcast  licensees  and  cable  operators  who 
 failed  to  disclose  the  sponsorship  of  certain  “prepackaged  news  stories.”  In  the  Notice,  the  FCC  said  the  payola  rules  “are  grounded  in  the  principle  that  listeners  and  viewers  are  entitled  to 
 know  who  seeks  to  persuade  them  with  the  programming.”  Public  comments  are  due  June  22,  2005. 


 In  a  speech  before  the  Media  Institute,  on  May  25  th  ,  2005,  Commissioner  Adelstein  challenged  the  industry  to  reform  its  practice,  and  he  openly  called  for  the  American  public  to  help  the  FCC 
 in  monitoring  and  enforcing  the  rules  against  airing  undisclosed  promotions,  including  VNRs  and  product  placements.  (http://  hraunfoss.  fcc.  gov/  edocs_  public/  attachmatch/  DOC-258962A1. 
 pdf) 
 FCC  Fact  Sheet  on  Payola  Rules  attached.  (http://  www.  fcc.  gov/  cgb/  consumerfacts/  PayolaRules.  html) 


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