The FCC has issued a new enforcement advisory targeting payola practices, specifically addressing concerns about radio stations requiring artists to perform for free in exchange for airplay. This comes after Senator Marsha Blackburn raised concerns about the practice affecting both established and emerging artists.

Key Points of the FCC Advisory:

• Radio stations cannot demand free or reduced-fee performances in exchange for airplay
• Station licensees must ensure employees aren't selling airtime perks
• Higher standards apply to stations reporting to record charting services
• Simple employee affidavits against payola may not be sufficient compliance
• Stations hosting artist events must ensure compliance with payola requirements

The FCC has established a dedicated email ([email protected]) for reporting potential violations and will investigate substantive allegations.

Parallel Legislative Developments:

• The American Music Fairness Act has been reintroduced, seeking to establish royalty payments for recordings on terrestrial radio
• The Local Radio Freedom Act, opposing new performance fees, has gained support from 114 representatives
• The National Association of Broadcasters backs the Local Radio Freedom Act

The situation represents an ongoing tension between radio broadcasters and music industry stakeholders, with the American Music Fairness Act facing significant challenges in implementation despite bipartisan support.

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