*Pages 1--1 from  Microsoft Word - 50480.doc*
 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).  FOR  IMMEDIATE  RELEASE 
 CONTACT:  Rudy  Brioché:  (202)  418-  2300  e-  mail:  rudy.  brioche@  fcc.  gov 
 July  25,  2005 
 COMMISSIONER  ADELSTEIN  CALLS  FOR  FCC  INVESTIGATION  BASED  ON  SPITZER  PAYOLA  SETTLEMENT 


 Commissioner  Adelstein  is  calling  for  an  investigation  of  payola  practices  uncovered  by  New  York  Attorney  General  Eliot  Spitzer,  based  on  the  announcement  of  a  settlement 
 with  Sony  BMG  Music  Entertainment  today. 
 Commissioner  Adelstein  said,  “It’s  a  real  tribute  to  Attorney  General  Eliot  Spitzer  that  he  has  blown  the  lid  off  a  potentially  far-  reaching  payola  scandal.  I’ve  been  expressing 
 concern  about  this  for  some  time  in  terms  of  enforcing  our  federal  rules,  but  it  took  someone  with  Spitzer’s  tenacity  and  subpoena  power  to  bring  forward  solid  evidence.” 


 “We’ve  seen  a  lot  of  smoke  around  payola  for  a  while,  but  now  we  know  it’s  coming  from  a  real  fire.  It’s  time  to  dump  a  bucket  of  cold  water  on  it. 
 It's  unfair  to  listeners  if  they  hear  songs  on  the  radio  because  someone  was  paid  off,  not  because  it's  good  music. 
 We  need  an  immediate  investigation  to  determine  whether  these  practices  violate  federal  payola  laws.  I’ve  asked  Mr.  Spitzer  to  share  all  of  the 
 evidence  that  he  has  uncovered  with  the  FCC.” 
 Commissioner  Adelstein  has  challenged  the  entertainment  industry  to  reform  its  practices,  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). 
 At  the  urging  of  Commissioner  Adelstein,  the  Commission  issued  a  unanimous  Public  Notice  on  Video  News  Releases  and  a  fact  sheet  on  payola.  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.” 
 (http://  hraunfoss.  fcc.  gov/  edocs_  public/  attachmatch/  FCC-  05-  84A1.  doc)  (http://  www.  fcc.  gov/  cgb/  consumerfacts/  PayolaRules.  html). 
 -  FCC  - 


 News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov 
 TTY:  1-  888-  835-  5322 
1