FCC Reminds Broadcasters of Payola Law

posted on 3.03.2025

A late January letter by U.S. Sen. Marsha Blackburn, R-TN, to FCC Chairman Brendan Carr has prompted the commission to issue an enforcement advisory to broadcasters reminding them that any form of payola is prohibited by federal law.

While offering no specific examples, Blackburn said in her letter “We have heard the new scheme works in this manner: radio stations and networks offer more airtime for an artist’s songs if the artist performs a free show. There is often an implicit suggestion that declining to perform could result in reduced airplay.”

Blackburn’s Jan. 30 letter requested an investigation.

The FCC’s Enforcement Bureau issued an enforcement advisory earlier this month.

“Payola rules prohibit any paid content aired without sponsorship identification, whether or not it is music, but music airplay has historically been the most likely subject of a payola complaint,” said attorneys Scott Flick and Adam Sandler of TAB’s FCC counsel Pillsbury Winthrop Shaw Pittman.

The attorney duo said the FCC’s advisory seeks to ensure that broadcasters are not compelling or accepting free or reduced-fee performances by artists in exchange for more favorable airplay. 

“Under the payola laws, station licensees and their personnel are prohibited from accepting anything of value in exchange for more favorable airplay, unless it is properly disclosed on-air,” said Flick and Sandler. 

"Station licensees should always be vigilant to prevent violations of the payola rules.” 

They note that failure to report the acceptance or agreement to accept something of value in exchange for more favorable airplay can subject the violator to criminal penalties, including fines and imprisonment of up to one year.

“The FCC’s new emphasis on the mechanics of concert fees requires that stations involved in such concerts work closely with their counsel to avoid violations.”

Flick and Sandler have written on the topic in the latest edition of the FCC Enforcement Monitor, a monthly feature at the CommLawCenter.com blog.

Additionally, stations can access, download, and review the Pillsbury Communications Practice’s advisory to broadcasters, Paying the Piper – Avoiding Payola/Plugola Violations and Minimizing

Liability, in the Members section of the TAB website.

Questions? Contact TAB’s Michael Schneider or call (512) 322-9944.

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