Sen. Feingold Calls for Strong Consent Decree on Payola

By Stevie Converse
FMBQ

Senator Russell Feingold (D-WI) has sent a letter to Senate Commerce Committee Chairman Daniel Inouye and ranking member Ted Stevens asking that at their upcoming hearing on FCC activities and policy, the Committee use the time to ask the FCC Commissioners about the status of their payola investigation and emphasize the need for a strong decree on the topic. The FCC has been considering a consent decree with four of the major radio broadcasters (Clear Channel, CBS Radio, Entercom and Citadel) that were implicated by New York Attorney General Eliot Spitzer's payola investigation. Earlier this week, news surfaced that the FCC and the broadcasters may be close to reaching a settlement.

"While there are reports that the FCC is nearing completion of a settlement, the details of the potential decree are not available," writes Feingold in his letter. "With these companies representing a significant part of the radio industry it is important that this agreement receive public scrutiny. I know that you plan to have an oversight hearing on all FCC activities and policy later this week. I encourage you to use this hearing to ask the Commissioners about the status of the current payola investigation and emphasize the need for a strong consent decree. I know there is some pressure on the Commission to come to a quick resolution, but it is much more important that any settlement provide a strong message that payola will not be tolerated in any form."

Feingold goes on to ask for a separate hearing on competition in the radio, music and concert industries in order to better explore the problems and potential solutions of pay-for-play. "I also encourage you to invite investigators from the New York Attorney General's Office, the FCC Commissioners and music, radio and concert industry representatives to testify before you at that time. A hearing addressing these issues could further explore ways to end this practice and assure radio listeners that they no longer have to wonder whether what they are hearing on the radio is based on merit or thinly veiled bribes," he concludes.


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