[grc] RE Call To Action

[Michael Richards]

Very intriguing question, Gregg!

Historically, legal notices were always published in newspapers -- so there is little guidance from rules or statutes governing broadcasting.   In this age, local newspapers are not the community forums they once were -- and it is interesting that a court would allow broadcast of public notices in lieu of "publication." (Some courts have allowed online publication -- and the FCC is moving in that direction for assignments etc).

As a lawyer, I have to be careful here -- as small details are everything and I don't want to create a troublesome conflict.

But I can say that, analytically, the issue is whether this "paid PSA" equals an advertisement.  The rules limiting calls to action, etc., are based in part on a policy of "fairness" (I will leave it to others to argue what's fair and what's foul -- I'm only explaining policy here!).

The idea was that NCEs (this includes LPFM) pay no taxes or regulatory fees, and are also exempt from filing fees.  Commercial stations are not.  That's why they get to make money from "advertising" and NCEs only get to "acknowledge" underwriters.  We all know that in the era of "enhanced" underwriting there are lots of arguments and disputes over when the line gets crossed.

But when an announcement is identical to what may be made on a commercial station (in a paid spot), a commercial licensee who sees a potential revenue loss (or anyone who may have a grievance with an NCE), could make a plausible argument that a paid announcement that tells people to file (even in a court ordered situation).  The exchange of money for the announcement is the gateway legal analysis factor.

For better or worse, facts and circumstances -- rather than red line distinctions between allowable and not -- really matter in a situation like this.

Sometimes, FCC legal staff will answer a "hypothetical" -- but any such advice is not legally binding.  It can be a good guidance, but the law is clear that you use it at your own peril.



Michael W. Richards
Attorney
7008 Westmoreland Avenue
Suite E-8
Takoma Park, MD 20912
Tel. 202.657.5780
michael at michaelrichards.us<mailto:michael at michaelrichards.us>
On Twitter: Commlawguy
-------------------------------------------------------
TAX ADVICE DISCLAIMER: Under applicable U.S. Treasury Regulations, please be advised that any U.S. tax advice contained in this email or any attachment hereto is not intended or written to be used, and cannot be used, either (i) for purposes of avoiding penalties imposed under the U.S. Internal Revenue Code, or (ii) for promoting, marketing, or recommending to another party any tax-related matter addressed herein.

This message was sent by an attorney. It is confidential and may contain privileged attorney-client communication or work product intended only for the individual or entity named within the message. If you are not the intended recipient, or the agent responsible to deliver it to the intended recipient, any review, dissemination, distribution, or copying of this message is prohibited. If this email message was received in error, we would appreciate your notifying us by reply e-mail and deleting the original message from your system. Thank you for your cooperation


-----Original Message-----
From: grc <grc-bounces at maillist.peak.org<mailto:grc-bounces at maillist.peak.org>> On Behalf Of UnderCurrents Radio via grc
Sent: Monday, December 16, 2019 4:06 PM
To: _GRC list <grc at maillist.peak.org<mailto:grc at maillist.peak.org>>
Subject: [grc] Call To Action

Hello GRC Hive-Mind,

We’re working with an ad agency that wants to place a paid-PSA that contains a clear call-to-action (“File a claim”).  But it’s not for goods & services — it’s a court-ordered public notice for a bankruptcy proceeding.  In this context do the same FCC limitations apply?

Thanks!

Gregg McVicar
www.undercurrentsradio.net<http://www.undercurrentsradio.net> <http://www.undercurrentsradio.net/>


_______________________________________________
grc mailing list
grc at maillist.peak.org<mailto:grc at maillist.peak.org>
http://maillist.peak.org/mailman/listinfo/grc