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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).  FOR  IMMEDIATE  RELEASE 
 CONTACT:  Rudy  Brioché:  (202)  418-  2300  e-  mail:  rudy.  brioche@  fcc.  gov 
 November  22,  2005 
 COMMISSIONER  ADELSTEIN  APPLAUDS  NEW  YORK  ATTORNEY  GENERAL  PAYOLA  SETTLEMENT  WITH  WARNER  MUSIC 


 In  response  to  NYAG  Spitzer’s  recently  announced  payola  settlement  with  Warner  Music  Group,  Commissioner  Adelstein  said: 
 “Attorney  General  Eliot  Spitzer  has  once  again  achieved  a  breakthrough  in  the  effort  to  combat  payola  and  protect  consumers 
 from  misleading  broadcasts.  The  settlement  with  Warner  Music  Group  adds  more  dirt  to  the  mountain  of  evidence  that  payola  is 
 pervasive  in  the  music  business.  This  agreement  once  again  raises  serious  concerns  that  not  only  has  New  York  State  law  been  violated, 
 but  Federal  law  under  the  FCC’s  jurisdiction,  as  well.  The  FCC  needs  to  act  on  this  evidence  and  conclude  as  soon  as  possible  the 
 investigation  we  are  now  undertaking.” 
 On  August  8,  2005,  the  FCC  launched  its  own  investigation  into  music  industry  payola  practices.  (http://  hraunfoss.  fcc.  gov/  edocs_  public/  attachmatch/  DOC-  260446A1.  pdf). 


 Commissioner  Adelstein  strongly  supported  this  investigation.  (http://  hraunfoss.  fcc.  gov/  edocs_  public/  attachmatch/  DOC-  260453A1.  pdf). 


 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 
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