By Mike Cavender, RTDNA Executive Director

As in-market competition for more viewers and listeners continues to heat up, contests, even within or surrounding newscasts, are seen by some as one way to get a competitive edge. 

Now that most stations either have their own online presence—or partners who do—there may be some confusion about whether FCC rules apply to contests that may be conducted on air—but promoted only online. 

Well, there’s no confusion at the FCC.  And the verdict is that it doesn’t matter. The broadcast rules apply regardless of where the contest is promoted.  

In a recent client letter from Kathy Kirby and Kathryne Dickenson of Wiley Rein, LLC, RTDNA’s communications law firm, there are some good lessons on how you and your station can stay safe while still using both media to accomplish the contest’s goal. 

The article is reproduced below in its entirety: 

FCC Issues Fine for Online Contest Promoted On-Air

On January 19, 2012, the Federal Communications Commission (FCC or Commission) issued a Notice of Apparent Liability for Forfeiture (NAL) in the amount of $22,000 against the licensee of six Los Angeles radio stations for failing to properly disclose the material terms of a contest in accordance with the FCC's contest rule.  The NAL comes on the heels of another recent fine upheld by the Commission against a Massachusetts broadcaster for failing to promptly award a contest prize. 

The FCC's contest rule requires broadcasters to "fully and accurately disclose the material terms" of contests broadcast on-air.  Here, the licensee acknowledged that it did not disclose the contest's terms on-air but argued that it was not required to do so because the contest was conducted entirely online.  The licensee did admit, however, that it promoted the contest on-air by encouraging listeners to submit entries on stations' websites.  It was that promotion, the Commission found, that triggered the contest rule.  The licensee ran afoul of that rule when it aired promotions for the online contest without the requisite on-air periodic disclosures of the contest's material terms.  The Commission further noted that non-broadcast disclosures, such as providing contest rules online, may be considered in determining whether adequate disclosure has been made but may not be substituted for broadcast disclosures.

The licensee also was cited for failing to accurately disclose the contest's material terms because the contest rules specified conflicting entry deadline dates.  The NAL, therefore, also serves as an apt reminder to broadcasters to carefully review contest terms before disclosing them. 

The Commission's recent enforcement actions signal its continued interest in broadcast contests.  In response, broadcasters should carefully review the Commission's contest rule and make sure that they are in compliance when conducting contests.

As always, the best legal advice is to be sure you have some from your local FCC attorneys when it comes to understanding this latest twist in the contest arena.