FCC Probes iHeartMedia Following Accusations of Payola Law Violations

variety.com:

Thania Garcia The Federal Communications Commission has warned radio station owners that it is cracking down on what it describes as “payola” practices.

In a letter sent Monday to iHeartMedia CEO Robert Pittman, FCC chairman Brendan Carr says the FCC is scrutinizing the company’s activity particularly around the live music events it hosts throughout the year.

Specifically, the FCC is pressing iHeart on whether it improperly pressures artists to perform without payment at events such as the upcoming iHeartCountry Music Festival on May 3 in Austin, Texas. “It would be particularly concerning to me if, on the heels of the FCC’s Enforcement Advisory,iHeart is proceeding in a manner that does not comply with federal ‘payola’ requirements,” Carr writes in the letter (issued Tuesday). “Indeed, I want to know whether iHeart is effectively and secretly forcing musicians to choose between, one, receiving their usual, ordinary, and full scale compensation for performing or, two, receiving less favorable airplay on iHeart radio [sic] stations.” Carr references the FCC’s Feb.

6-issued advisory that followed payola accusations — or “forced quid pro quo” — leveled by Sen. Marsha Blackburn (R-Tenn.), reminding radio broadcasters that manipulating airplay based on artist participation in station events without proper disclosure violates federal laws. “This upcoming iHeart event provides the Commission with a real-world example of how suchevents are put together—including artist solicitation and compensation,” Carr’s letter continues.