WASHINGTON - November 1 - U.S. Senator Russ Feingold has sent a letter to Federal Communications Commission (FCC) Chairman Kevin Martin to inquire about the status of the agency’s investigation into possible violations of federal pay-for-play, or “payola” law. The agency’s investigation is based on a previous investigation by New York Attorney General Elliot Spitzer. Spitzer has indicated there is evidence that radio station groups and their employees violated both state and federal law by accepting unlawful payments and other consideration from major record labels in return for airplay, among other questionable practices.

“I hope this request will prompt the FCC to make a clear statement that it will not tolerate payola in any form, in order to close any supposed loopholes,” Feingold said. “I urge the FCC to build on Attorney General Spitzer’s investigation and assert its authority to prevent payola to the fullest extent possible.”

Following a settlement that Spitzer reached in August 2005 with Sony BMG, Chairman Martin released a statement indicating the seriousness of payola and the FCC’s intention to investigate and prosecute violations. Martin said that the FCC’s Enforcement Bureau had been directed to review the settlement agreement reached by Sony BMG and Spitzer, and investigate any incidents in which the agreement discloses evidence of payola rule violations. Yet there still is a lack of clarity about the FCC’s jurisdiction, leading to uncertainty about whether loopholes exist in the federal law. Attorney General Spitzer’s actions to shut down both traditional and new forms of payola show that the FCC could and should exert more authority.

“Radio listeners should not have to worry whether a song was played because the station manager got a free laptop, or because the station’s parent company is producing the artist’s upcoming concert,” Feingold said. “I look forward to hearing from Chairman Martin about his efforts to end abuse of our public airwaves.”

Feingold is a strong supporter of stopping anti-competitive practices in the radio industry. Most recently, he introduced the Radio and Concert Disclosure and Competition Act of 2005, which proposes a multi-faceted approach to the various entrenched forms of payola. The bill would simultaneously strengthen the FCC’s ability to prove and punish violations, clearly prohibit indirect payola, prevent cross-ownership from hindering fair competition, and increase transparency through disclosure of payments to radio stations from artists, labels, promoters and others who may have an interest in improperly influencing airplay decisions. The legislation would give people confidence that the songs they hear on the radio are played because of perceived merit, and not because the station cut a backdoor deal for financial gain.

A copy of Feingold’s letter is available here.

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