Request for Comments on the Use of Video News Releases by Broadcast Licensees and Cable Operators, 24791-24794 [05-9105]
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Federal Register / Vol. 70, No. 90 / Wednesday, May 11, 2005 / Notices
Street, SW., Room CY–A257,
Washington, DC 20554. This document,
NECA’s submission, and any
subsequently filed documents in this
matter may also be purchased from the
Commission’s duplicating contractor,
BCPI, Inc. Customers may contact BCPI,
Inc. at their Web site https://
www.bcpiweb.com or call 1–800–378–
3160. A copy of NECA’s submission
may also be found by searching on the
Commission’s Electronic Comment
Filing System (ECFS) at https://
www.fcc.gov/cgb/ecfs (insert CC Docket
No. 98–67 into the Proceeding block).
To request materials in accessible
formats for people with disabilities
(Braille, large print, electronic files,
audio format), send an e-mail to
fcc504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY). This document can also be
downloaded in Word or Portable
Document Format (PDF) at: https://
www.fcc.gov/cgb/dro.
Synopsis
On April 25, 2005, pursuant to 47
CFR 64.604(c)(5)(iii)(H), the National
Exchange Carrier Association (NECA),
the Interstate Telecommunications
Relay Services (TRS) Fund
Administrator, submitted its annual
payment formula and fund size estimate
for the Interstate TRS Fund for the
period July 1, 2005 through June 30,
2006. See Telecommunications Services
for Individuals with Hearing and Speech
Disabilities, and the Americans with
Disabilities Act of 1990, Interstate
Telecommunications Relay Services
Fund Payment Formula and Fund Size
Estimate (filed April 25, 2005) (2005
TRS Rate Filing).
NECA proposes a carrier contribution
factor of 0.00528, and a fund size
requirement of $413.3 million. NECA
proposes per completed minute
compensation rates of: $1.312 for
traditional TRS and for Internet Protocol
(IP) Relay (compared to $1.398 for the
2004–2005 fund year); $1.579 for
Speech-to-Speech (STS) (compared to
$1.596 for the 2004–2005 fund year);
and $5.924 for Video Relay Service
(VRS) (compared to $7.596 for the 2004–
2005 fund year). In the 2004 TRS Report
and Order and FNPRM, the Commission
sought comment on whether the
Commission should require the TRS
Fund administrator to determine and
propose separate compensation rates for
IP Relay and traditional TRS. See
Telecommunications Relay Services and
Speech-to-Speech Services for
Individuals with Hearing and Speech
Disabilities, Report and Order, Order on
Reconsideration, and Further Notice of
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Proposed Rulemaking, (2004 TRS
Report and Order and FNPRM), CC
Docket Nos. 90–571 and 98–67, CG
Docket No. 03–123, 19 FCC Rcd 12475,
pages 12564–12565, paragraph 233, June
30, 2004; published at 69 FR 53346 and
69 FR 53382, September 1, 2004.
NECA indicates that if the
Commission did require separate
compensation rates, NECA would
propose an IP Relay rate of $1.278, and
a traditional TRS rate of $1.440. We seek
further comment on whether the
Commission should adopt separate
compensation rates for IP Relay and
traditional TRS for the 2005–2006 fund
year.
Federal Communications Commission.
Jay Keithley,
Deputy Bureau Chief, Consumer &
Governmental Affairs Bureau.
[FR Doc. 05–9405 Filed 5–10–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[MB Docket No. 05–171; FCC 05–84]
Request for Comments on the Use of
Video News Releases by Broadcast
Licensees and Cable Operators
Federal Communications
Commission.
ACTION: Notice.
AGENCY:
SUMMARY: This document, reminds
broadcast licensees, cable operators and
others of sponsorship identification
requirements applicable to video news
releases and solicits public comment on
the use of video news releases by
broadcast licensees and cable operators.
DATES: Comments may be filed on or
before June 22, 2005, and reply
comments may be filed on or before July
22, 2005.
ADDRESSES: You may submit comments,
identified by docket number, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web site: https://
www.fcc.gov/cgb/ecfs/. Follow the
instructions for submitting comments.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
FOR FURTHER INFORMATION CONTACT:
Hope Cooper Media Bureau (202) 418–
PO 00000
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24791
1440, TTY (202) 418–7172, or e-mail at
Hope.Cooper@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s document
in MB Docket No. 05–171, FCC 05–84,
released April 13, 2005. The complete
text of the document is available for
inspection and copying during normal
business hours in the FCC Reference
Center, 445 12th Street, SW.,
Washington, DC 20554, and may also be
purchased from the Commission’s copy
contractor, BCPI, Inc., Portals II, 445
12th Street, SW., Room CY–B402,
Washington, DC 20554. Customers may
contact BCPI, Inc. at their Web site
https://www.bcpi.com or call 1–800–
378–3160.
Synopsis
1. The Commission has recently
received a large number of requests that
it consider whether the use of ‘‘video
news releases’’ or ‘‘VNRs,’’ by broadcast
licensees, cable operators, and others
complies with the Commission’s
sponsorship identification rules. (See,
e.g., Letter from Josh Silver, Executive
Director, Free Press, et al., to Honorable
Kevin Martin, Chairman, FCC et al.
(March 21, 2005) (stating that the
authors ‘‘are writing you today on behalf
of nearly 40,000 Americans who have
signed a petition urging the Federal
Communications Commission to
investigate all broadcasters who
distribute government-sponsored news
reports without properly identifying
their source’’); Letter from Honorable
John F. Kerry, U.S. Senator, to
Honorable Michael Powell, Chairman,
FCC (March 15, 2005); Letter from
Honorable Daniel Inouye, U.S. Senator,
to Honorable Michael K. Powell,
Chairman (March 14, 2005). Also, the
Commission has received thousands of
e-mails about this practice.) VNRs are
essentially prepackaged news stories,
that may use actors to play reporters and
include suggested scripts to introduce
the stories. (See, e.g., Joe Mandese, The
Art of Manufactured News, Broadcasting
and Cable, March 28, 2005, at 24; David
Barstow and Robin Stein, The Message
Machine: How the Government Makes
News; Under Bush, a New Age of
Prepackaged News, New York Times,
March 13, 2005, at A1.) These practices
allow such externally prepackaged news
stories to be aired, without alteration, as
broadcast or cable news. Some of the
parties contacting the Commission have
suggested that broadcast licensees and
cable operators may have aired VNRs
with news stories containing material
paid for, prepared and/or provided to
them by or on behalf of commercial,
governmental and other entities without
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disclosing, at the time of the airing, the
source of and the circumstances
surrounding their acquisition of such
material.
2. With this Public Notice (PN), the
Commission reminds broadcast
licensees and cable operators that air
VNRs, as well as all entities and
individuals involved in the production
and provision of the material at issue
here, of their respective disclosure
responsibilities under the Commission’s
sponsorship identification rules. These
rules are grounded in the principle that
listeners and viewers are entitled to
know who seeks to persuade them with
the programming offered over broadcast
stations and cable systems. (See, e.g,
Applicability of Sponsorship
Identification Rules, PN, 28 FR 4732
(May 6, 1963); Sponsorship
Identification Rules, Applicability, 40
FR 41936 (September 3, 1975).) For the
reasons noted in this PN, and as
provided for in the statutory provisions
and in the Commission’s rules,
whenever broadcast stations and cable
operators air VNRs, licensees and
operators generally must clearly
disclose to members of their audiences
the nature, source and sponsorship of
the material that they are viewing. We
will take appropriate enforcement
action against entities that do not
comply with these rules. This PN is
confined to the disclosure obligations
required under section 317 and our
rules thereunder, and does not address
the recent controversy over when or
whether the government is permitted to
sponsor VNRs, which is an issue beyond
the Commission’s jurisdiction.
The Sponsorship Identification Rules
3. The sponsorship identification
rules, which are contained in sections
317 and 507 of the Communications Act
of 1934, as amended (the ‘‘Act’’) (47
U.S.C. 317, 508), and sections 73.1212
and 76.1615 of the Commission’s rules
(47 CFR 73.1212, 76.1615), generally
require that, when payment has been
received or promised to a broadcast
licensee or cable operator for the airing
of program material, at the time of the
airing, the station or cable system must
disclose that fact and identify who paid
or promised to provide the
consideration.
4. Specifically, section 317(a)(1) of the
Act provides, in pertinent part:
All matter broadcast by any radio
station (The Commission has ruled that
the sponsorship identification
requirements also apply to origination
programming by cable operators.
Amendment of the Commission’s
Sponsorship Identification Rules
(Sections 73.119, 73.289, 73.654, 73.789
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and 76.221), Report and Order (R&O),
40 FR 18395 (April 28, 1975), paragraph
37 (‘‘We see no reason why the rules for
such cablecasting should be different
from those for broadcasting, for the
consideration of keeping the public
informed about those who try to
persuade it would appear to be the same
in both cases.’’) Under our rules,
origination cablecasting is defined as
‘‘programming (exclusive of broadcast
signals) carried on a cable television
system over one or more channels and
subject to the exclusive control of the
cable operator.’’ 47 CFR 76.5(p). The
broadcast and cable rules are
substantially identical with the single
exception that paragraph (c) of the
broadcast rule, which pertains to reports
under section 508 of the Act (which
applies only to broadcasters), is not
applicable to cable television. See In the
Matter of Amendment of the
Commission’s Sponsorship
Identification Rules, R&O, 40 FR 18395
(April 28, 1975).) for which any money,
service, or other valuable consideration
is directly or indirectly paid, or
promised to or charged or accepted by,
the station so broadcasting, from any
person, shall at the time the same is so
broadcast, be announced as paid for or
furnished, as the case may be, by such
person. * * *
To provide parties with the
information necessary to air these
disclosures, section 507(a) requires that
each station employee who has accepted
or agreed to accept consideration for the
airing of program matter, or any person
who has paid or has agreed to so pay
any such employee, must disclose that
fact to the station prior to the airing of
the matter. Similarly, section 507(b)
imposes such a duty of disclosure upon
any person involved in the production
or preparation of broadcast matter who
receives or agrees to receive, or provides
or promises to provide, such
consideration. The disclosure must be
made to each payee’s employer, the
person for whom the material is being
produced, or the licensee. Section
507(c) requires this disclosure by
anyone who supplies broadcast matter
to the person to whom he or she
provides the matter. In this way, the
information must ultimately be
provided up the chain of production
and distribution, before the time of
broadcast, to the licensee so that it can
timely air the required disclosure.
5. Moreover, section 317(b) of the Act
requires that any broadcast station that
has received such information pursuant
to section 507 must air the section 317
announcement, as if the consideration
was paid to the station for airing the
broadcast matter, even if the station
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itself received no such consideration.
(See, e.g., Letter to Mr. Earl Glickman,
President, General Media Associates,
Inc., 3 FCC 2d 326 (1966); KMAP, Inc.,
Memorandum Opinion and Order, 44
FCC 2d 971 (1974).) Section 317(c)
requires each licensee to ‘‘exercise
reasonable diligence to obtain from its
employees, and from other persons with
whom it deals directly in connection
with any program or program matter for
broadcast, information to enable such
licensee to make the announcement
required by this section.’’
6. Based upon these requirements of
section 317 of the Act, the
Commission’s rules require broadcasters
(section 73.1212) and cable operators
(section 76.1615), where appropriate, to
inform their audience, at the time of
airing: (1) That such matter is
sponsored, paid for or furnished, either
in whole or in part; and (2) by whom or
on whose behalf such consideration was
supplied. The announcement must fully
and fairly disclose the true identity of
the person or persons, or corporation,
committee, association or other
incorporated group, or other entity by
whom or on whose behalf such payment
is made or promised, or services or
other valuable consideration is received,
or by whom the material or services
received by the licensee or operator are
furnished. Where an agent or other
person or entity contracts or otherwise
makes arrangements with a station or
cable system on behalf of another, and
that fact is known or, by the exercise of
reasonable diligence could be known to
the station or system, the announcement
should disclose the identity of the
person or persons or entity on whose
behalf the agent is acting, rather than
the agent. (47 CFR 73.1212(e),
76.1615(d).)
7. In situations in which a broadcast
licensee has not directly received or
been promised consideration, has not
received any section 507 report that
material has been paid for from its
employees or others that must make
such reports pursuant to that section of
the Act, and, acting with the requisite
diligence, has no information
concerning the making of such promise
or payment, section 317(a)(1) of the Act
provides generally that no sponsorship
identification is necessary with regard
to material that is furnished to the
licensee ‘‘without charge or at a nominal
charge.’’
Political and Controversial Issue
Programming
8. The sponsorship identification
rules impose upon broadcast licensees
and cable operators a greater obligation
of disclosure in connection with
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political material and program matter
dealing with controversial issues. The
Commission has noted that, particularly
in the case of such programming,
audience members are ‘‘entitled to know
when the program ends and the
advertisement begins.’’ (Richard
Kielbowicz and Linda Lawson,
‘‘Unmasking Hidden Commercials in
Broadcasting: Origins of the
Sponsorship Identification Regulations,
1927–1963,’’ Fed. Comm. L.J. 329 at 344
n. 80 (2004) citing FCC, Public Service
Responsibility of Broadcast Licensees 47
(1946).) Congress has acknowledged the
danger that groups advocating ideas or
promoting candidates, rather than
consumer goods, might be particularly
inclined to attempt to mask their
sponsorship in order to increase the
apparent credibility of their messages.
(56 Fed. Comm. L.J. at 338.) Thus,
deviating from the general rule
contained in section 317(a)(1) that no
sponsorship identification
announcement is necessary if material is
provided to a station free or at a
nominal charge, section 317(a)(2) of the
Act enables the Commission to require
such an announcement regarding
material so provided, if the
programming involves political material
or the discussion of a controversial
issue.
9. Consistent with this statutory
provision, both the broadcast rule
(section 73.1212(d)) and the cable rule
(section 76.1615(c)) expressly require
the airing of sponsorship disclosure in
such situations. In contrast to the
general disclosure requirement that a
single announcement be made at the
time of airing of the material, for
political or controversial programming
of more than five minutes’ duration, the
announcements must be made both at
the beginning and the conclusion of the
airing of the material. (47 CFR
73.1212(d), 76.1615(c). For political or
controversial programming that is five
minutes or less in duration, only one
announcement must be made, at the
beginning or the end of the material. Id.)
Moreover, if a corporation, committee,
association or other unincorporated
group or other entity is paying for or
furnishing the broadcast matter, the
station must include, for public
inspection at the location of its public
file (47 CFR 73.3526, 73.3527), a list of
the chief executive officers or members
of the executive committee or of the
board of directors of such corporation,
committee, association, other
unincorporated group or other entity.
(47 CFR 73.1212(e).)
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Request for Comments
10. In addition to reminding broadcast
licensees, cable operators, and others,
pursuant to this PN, of their respective
disclosure responsibilities under the
Commission’s sponsorship
identification rules, the Commission
seeks comment on VNRs and their use
by broadcast licensees and cable
operators. With this more detailed
information, we will be better
positioned to monitor this area and
ensure that broadcast licensees, cable
operators and others comply with our
rules. To this end, we seek comment on
the ways in which VNRs are used in
programming, and on which practices
are the most common. For example, we
also seek comment on whether the
entities producing or providing VNRs,
including the government, pay
broadcast licensees and cable operators
to air VNRs, or whether the VNRs are
provided free of charge, without
separate payment or consideration. Are
mechanisms in place to ensure that
broadcast licensees and cable operators
receive notice regarding the payment of
consideration from all individuals and
entities that are involved in the
production and provision of VNRs? Are
mechanisms in place to ensure that
broadcast licensees and cable operators
receive notice regarding the identity of
entities providing programming
involving political material or the
discussion of controversial issues of
public importance? Do broadcast
licensees and cable operators receive
VNRs as part of an overall news service,
which may be provided under contract
or on a subscription basis? If so, should
this affect the applicability of our
sponsorship identification rules?
Finally, we seek comment on whether
there are alternative or better means of
ensuring proper disclosure concerning
VNRs in addition to those prescribed by
the existing rules. The Commission
intends to issue a report, or initiate a
more formal proceeding, as appropriate,
on the comments received in response
to these questions about VNRs
forthwith. Although we seek comment
on the use of VNRs in this Notice, we
emphasize that the rules remain in
effect and that we will continue to
investigate complaints and enforce the
rules during the pendency of this
proceeding.
Conclusion
11. In sum, the Commission
acknowledges the critical role that
broadcast licensees and cable operators
play in providing information to the
audiences that they serve. This
information is an important component
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24793
of a well-functioning democracy. Along
with this role comes the responsibility
that licensees and operators make the
sponsorship announcements required
by the foregoing rules and obtain the
information from all pertinent
individuals necessary for them to do so.
We remind all such licensees and
operators, as well as those involved in
the production and provision of the
material that they air, that they must
strictly adhere to the foregoing
requirements and to fully meet their
responsibilities under them.
12. The Commission will investigate
any situation in which it appears that
these requirements of the law may have
been violated and will order
administrative sanctions against its
regulatees, including the imposition of
monetary forfeitures and the initiation
of license revocation proceedings,
where such action is appropriate. In
addition to these sanctions that the
Commission may impose, we note that
the criminal penalty for violation of the
disclosure requirements of section 507
of the Act is a fine of up to $10,000,
imprisonment of not more than a year,
or both. (47 CFR 508(g).)
Procedural Matters
13. Ex Parte Rules. There are no ex
parte or disclosure requirements
applicable to this proceeding pursuant
to 47 CFR 1.1204(b)(1).
14. Comments Information. Pursuant
to sections 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using: (1) The Commission’s
Electronic Comment Filing System
(ECFS), (2) the Federal Government’s
eRulemaking Portal, or (3) by filing
paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (May 1, 1998).
Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://www.fcc.gov/
cgb/ecfs/ or the Federal eRulemaking
Portal: https://www.regulations.gov.
Filers should follow the instructions
provided on the Web site for submitting
comments.
In completing the transmittal screen,
ECFS filers should include their full
name, U.S. Postal Service mailing
address, and the applicable docket
number. Parties may also submit an
electronic comment by Internet e-mail.
To get filing instructions, filers should
send an e-mail to ecfs@fcc.gov, and
include the following words in the body
of the message, ‘‘get form.’’ A sample
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form and directions will be sent in
response.
Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. Filings can be
sent by hand or messenger delivery, by
commercial overnight courier, or by
first-class or overnight U.S. Postal
Service mail (although we continue to
experience delays in receiving U.S.
Postal Service mail). All filings must be
addressed to the Commission’s
Secretary, Office of the Secretary,
Federal Communications Commission.
The Commission’s contractor will
receive hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary at 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours
at this location are 8 a.m. to 7 p.m. All
hand deliveries must be held together
with rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743. U.S. Postal Service firstclass, Express, and Priority mail should
be addressed to 445 12th Street, SW.,
Washington DC 20554.
People with Disabilities: Contact the
FCC to request materials in accessible
formats (braille, large print, electronic
files, audio format, etc.) by e-mail at
FCC504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at 202–
418–0531 (voice), 202–418–7365 (TTY).
Federal Communications Commission.
Marlene H, Dortch,
Secretary.
[FR Doc. 05–9105 Filed 5–10–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
Media Security and Reliability Council
Federal Communications
Commission.
ACTION: Notice of meeting of Media
Security and Reliability Council.
AGENCY:
SUMMARY: In accordance with the
Federal Advisory Committee Act, Public
Law 92–463, as amended, this notice
advises interested persons that the
Advisory Committee, The Media
Security and Reliability Council (MSRC)
will be holding its semiannual meeting
at the Federal Communications
Commission in Washington, DC.
DATES: June 2, 2005 at 10 a.m. to 11:30
a.m.
VerDate jul<14>2003
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Federal Communications
Commission, Commission Meeting
Room, Room TW–C305, 445 12th St.
SW., Washington, DC 20554.
FEDERAL COMMUNICATIONS
COMMISSION
FOR FURTHER INFORMATION CONTACT:
Barbara Kreisman, Designated Federal
Officer of MSRC, 445 12th St. SW.,
Washington, DC 20554; telephone (202)
418–1600, e-mail
Barbara.Kreisman@fcc.gov.
Press Contact, Meribeth McCarrick,
Office of Media Relations, 202–418–
0654, meribeth.mccarrick@fcc.gov.
Next Meeting of the North American
Numbering Council
ADDRESSES:
The
Council was established by the Federal
Communications Commission to bring
together the leaders of United States
mass media companies, cable television
and satellite service providers, trade
associations, public safety
representatives, manufacturers and
other related entities. MSRC II is chaired
by David J. Barrett, President and Chief
Executive Officer of Hearst-Argyle
Television, Inc. MSRC was formed
following the events of September 11,
2001, in order to study, develop and
report on best practices designed to
assure the optimal reliability, robustness
and security of the broadcast and
multichannel video programming
distribution industries.
The agenda for the meeting is as
follows: The Council will review
progress reports of its two working
groups: The Toolkit Development
Working Group and the Local
Coordination Working Group.
Information concerning the activities of
MSRC can be reviewed at www.fcc.gov/
MSRC. Material relevant to the June 2
meeting will be posted there.
Members of the general public may
attend the meeting. The Federal
Communications Commission will
attempt to accommodate as many
people as possible. However,
admittance will be limited to the seating
available. A live RealAudio feed will be
available over the Internet; information
on how to tune in can be found at the
Commission’s Web site www.fcc.gov.
The public may submit written
comments to the Council’s designated
Federal Officer before the meeting.
SUPPLEMENTARY INFORMATION:
Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 05–9410 Filed 5–10–05; 8:45 am]
BILLING CODE 6712–01–P
PO 00000
[CC Docket No. 92–237; DA 05–1153]
Federal Communications
Commission.
ACTION: Notice.
AGENCY:
SUMMARY: On May 6, 2005, the
Commission released a public notice
announcing the May 17, 2005 meeting
and agenda of the North American
Numbering Council (NANC). The
intended effect of this action is to make
the public aware of the NANC’s next
meeting and its agenda.
DATES: Tuesday, May 17, 2005, 9:30 a.m.
ADDRESSES: Telecommunications
Access Policy Division, Wireline
Competition Bureau, Federal
Communications Commission, The
Portals II, 445 12th Street, SW., Suite 5–
A420, Washington, DC 20554. Requests
to make an oral statement or provide
written comments to the NANC should
be sent to Deborah Blue.
FOR FURTHER INFORMATION CONTACT:
Deborah Blue, Special Assistant to the
Designated Federal Officer (DFO) at
(202) 418–1466 or
Deborah.Blue@fcc.gov. The fax number
is: (202) 418–2345. The TTY number is:
(202) 418–0484.
SUPPLEMENTARY INFORMATION: Released:
May 6, 2005.
The North American Numbering
Council (NANC) has scheduled a
meeting to be held Tuesday, May 17,
2005, from 9:30 a.m. until 5 p.m. The
meeting will be held at the Federal
Communications Commission, Portals
II, 445 12th Street, SW., Room TW–
C305, Washington, DC. This meeting is
open to members of the general public.
The FCC will attempt to accommodate
as many participants as possible. The
public may submit written statements to
the NANC, which must be received two
business days before the meeting. In
addition, oral statements at the meeting
by parties or entities not represented on
the NANC will be permitted to the
extent time permits. Such statements
will be limited to five minutes in length
by any one party or entity, and requests
to make an oral statement must be
received two business days before the
meeting.
Proposed Agenda—Tuesday, May 17,
2005, 9:30 a.m.*
1. Announcements and Recent News.
* The Agenda may be modified at the discretion
of the NANC Chairman with the approval of the
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[Federal Register Volume 70, Number 90 (Wednesday, May 11, 2005)]
[Notices]
[Pages 24791-24794]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9105]
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FEDERAL COMMUNICATIONS COMMISSION
[MB Docket No. 05-171; FCC 05-84]
Request for Comments on the Use of Video News Releases by
Broadcast Licensees and Cable Operators
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: This document, reminds broadcast licensees, cable operators
and others of sponsorship identification requirements applicable to
video news releases and solicits public comment on the use of video
news releases by broadcast licensees and cable operators.
DATES: Comments may be filed on or before June 22, 2005, and reply
comments may be filed on or before July 22, 2005.
ADDRESSES: You may submit comments, identified by docket number, by any
of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: https://
www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
FOR FURTHER INFORMATION CONTACT: Hope Cooper Media Bureau (202) 418-
1440, TTY (202) 418-7172, or e-mail at Hope.Cooper@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
document in MB Docket No. 05-171, FCC 05-84, released April 13, 2005.
The complete text of the document is available for inspection and
copying during normal business hours in the FCC Reference Center, 445
12th Street, SW., Washington, DC 20554, and may also be purchased from
the Commission's copy contractor, BCPI, Inc., Portals II, 445 12th
Street, SW., Room CY-B402, Washington, DC 20554. Customers may contact
BCPI, Inc. at their Web site https://www.bcpi.com or call 1-800-378-
3160.
Synopsis
1. The Commission has recently received a large number of requests
that it consider whether the use of ``video news releases'' or
``VNRs,'' by broadcast licensees, cable operators, and others complies
with the Commission's sponsorship identification rules. (See, e.g.,
Letter from Josh Silver, Executive Director, Free Press, et al., to
Honorable Kevin Martin, Chairman, FCC et al. (March 21, 2005) (stating
that the authors ``are writing you today on behalf of nearly 40,000
Americans who have signed a petition urging the Federal Communications
Commission to investigate all broadcasters who distribute government-
sponsored news reports without properly identifying their source'');
Letter from Honorable John F. Kerry, U.S. Senator, to Honorable Michael
Powell, Chairman, FCC (March 15, 2005); Letter from Honorable Daniel
Inouye, U.S. Senator, to Honorable Michael K. Powell, Chairman (March
14, 2005). Also, the Commission has received thousands of e-mails about
this practice.) VNRs are essentially prepackaged news stories, that may
use actors to play reporters and include suggested scripts to introduce
the stories. (See, e.g., Joe Mandese, The Art of Manufactured News,
Broadcasting and Cable, March 28, 2005, at 24; David Barstow and Robin
Stein, The Message Machine: How the Government Makes News; Under Bush,
a New Age of Prepackaged News, New York Times, March 13, 2005, at A1.)
These practices allow such externally prepackaged news stories to be
aired, without alteration, as broadcast or cable news. Some of the
parties contacting the Commission have suggested that broadcast
licensees and cable operators may have aired VNRs with news stories
containing material paid for, prepared and/or provided to them by or on
behalf of commercial, governmental and other entities without
[[Page 24792]]
disclosing, at the time of the airing, the source of and the
circumstances surrounding their acquisition of such material.
2. With this Public Notice (PN), the Commission reminds broadcast
licensees and cable operators that air VNRs, as well as all entities
and individuals involved in the production and provision of the
material at issue here, of their respective disclosure responsibilities
under the Commission's sponsorship identification rules. These rules
are grounded in the principle that listeners and viewers are entitled
to know who seeks to persuade them with the programming offered over
broadcast stations and cable systems. (See, e.g, Applicability of
Sponsorship Identification Rules, PN, 28 FR 4732 (May 6, 1963);
Sponsorship Identification Rules, Applicability, 40 FR 41936 (September
3, 1975).) For the reasons noted in this PN, and as provided for in the
statutory provisions and in the Commission's rules, whenever broadcast
stations and cable operators air VNRs, licensees and operators
generally must clearly disclose to members of their audiences the
nature, source and sponsorship of the material that they are viewing.
We will take appropriate enforcement action against entities that do
not comply with these rules. This PN is confined to the disclosure
obligations required under section 317 and our rules thereunder, and
does not address the recent controversy over when or whether the
government is permitted to sponsor VNRs, which is an issue beyond the
Commission's jurisdiction.
The Sponsorship Identification Rules
3. The sponsorship identification rules, which are contained in
sections 317 and 507 of the Communications Act of 1934, as amended (the
``Act'') (47 U.S.C. 317, 508), and sections 73.1212 and 76.1615 of the
Commission's rules (47 CFR 73.1212, 76.1615), generally require that,
when payment has been received or promised to a broadcast licensee or
cable operator for the airing of program material, at the time of the
airing, the station or cable system must disclose that fact and
identify who paid or promised to provide the consideration.
4. Specifically, section 317(a)(1) of the Act provides, in
pertinent part:
All matter broadcast by any radio station (The Commission has ruled
that the sponsorship identification requirements also apply to
origination programming by cable operators. Amendment of the
Commission's Sponsorship Identification Rules (Sections 73.119, 73.289,
73.654, 73.789 and 76.221), Report and Order (R&O), 40 FR 18395 (April
28, 1975), paragraph 37 (``We see no reason why the rules for such
cablecasting should be different from those for broadcasting, for the
consideration of keeping the public informed about those who try to
persuade it would appear to be the same in both cases.'') Under our
rules, origination cablecasting is defined as ``programming (exclusive
of broadcast signals) carried on a cable television system over one or
more channels and subject to the exclusive control of the cable
operator.'' 47 CFR 76.5(p). The broadcast and cable rules are
substantially identical with the single exception that paragraph (c) of
the broadcast rule, which pertains to reports under section 508 of the
Act (which applies only to broadcasters), is not applicable to cable
television. See In the Matter of Amendment of the Commission's
Sponsorship Identification Rules, R&O, 40 FR 18395 (April 28, 1975).)
for which any money, service, or other valuable consideration is
directly or indirectly paid, or promised to or charged or accepted by,
the station so broadcasting, from any person, shall at the time the
same is so broadcast, be announced as paid for or furnished, as the
case may be, by such person. * * *
To provide parties with the information necessary to air these
disclosures, section 507(a) requires that each station employee who has
accepted or agreed to accept consideration for the airing of program
matter, or any person who has paid or has agreed to so pay any such
employee, must disclose that fact to the station prior to the airing of
the matter. Similarly, section 507(b) imposes such a duty of disclosure
upon any person involved in the production or preparation of broadcast
matter who receives or agrees to receive, or provides or promises to
provide, such consideration. The disclosure must be made to each
payee's employer, the person for whom the material is being produced,
or the licensee. Section 507(c) requires this disclosure by anyone who
supplies broadcast matter to the person to whom he or she provides the
matter. In this way, the information must ultimately be provided up the
chain of production and distribution, before the time of broadcast, to
the licensee so that it can timely air the required disclosure.
5. Moreover, section 317(b) of the Act requires that any broadcast
station that has received such information pursuant to section 507 must
air the section 317 announcement, as if the consideration was paid to
the station for airing the broadcast matter, even if the station itself
received no such consideration. (See, e.g., Letter to Mr. Earl
Glickman, President, General Media Associates, Inc., 3 FCC 2d 326
(1966); KMAP, Inc., Memorandum Opinion and Order, 44 FCC 2d 971
(1974).) Section 317(c) requires each licensee to ``exercise reasonable
diligence to obtain from its employees, and from other persons with
whom it deals directly in connection with any program or program matter
for broadcast, information to enable such licensee to make the
announcement required by this section.''
6. Based upon these requirements of section 317 of the Act, the
Commission's rules require broadcasters (section 73.1212) and cable
operators (section 76.1615), where appropriate, to inform their
audience, at the time of airing: (1) That such matter is sponsored,
paid for or furnished, either in whole or in part; and (2) by whom or
on whose behalf such consideration was supplied. The announcement must
fully and fairly disclose the true identity of the person or persons,
or corporation, committee, association or other incorporated group, or
other entity by whom or on whose behalf such payment is made or
promised, or services or other valuable consideration is received, or
by whom the material or services received by the licensee or operator
are furnished. Where an agent or other person or entity contracts or
otherwise makes arrangements with a station or cable system on behalf
of another, and that fact is known or, by the exercise of reasonable
diligence could be known to the station or system, the announcement
should disclose the identity of the person or persons or entity on
whose behalf the agent is acting, rather than the agent. (47 CFR
73.1212(e), 76.1615(d).)
7. In situations in which a broadcast licensee has not directly
received or been promised consideration, has not received any section
507 report that material has been paid for from its employees or others
that must make such reports pursuant to that section of the Act, and,
acting with the requisite diligence, has no information concerning the
making of such promise or payment, section 317(a)(1) of the Act
provides generally that no sponsorship identification is necessary with
regard to material that is furnished to the licensee ``without charge
or at a nominal charge.''
Political and Controversial Issue Programming
8. The sponsorship identification rules impose upon broadcast
licensees and cable operators a greater obligation of disclosure in
connection with
[[Page 24793]]
political material and program matter dealing with controversial
issues. The Commission has noted that, particularly in the case of such
programming, audience members are ``entitled to know when the program
ends and the advertisement begins.'' (Richard Kielbowicz and Linda
Lawson, ``Unmasking Hidden Commercials in Broadcasting: Origins of the
Sponsorship Identification Regulations, 1927-1963,'' Fed. Comm. L.J.
329 at 344 n. 80 (2004) citing FCC, Public Service Responsibility of
Broadcast Licensees 47 (1946).) Congress has acknowledged the danger
that groups advocating ideas or promoting candidates, rather than
consumer goods, might be particularly inclined to attempt to mask their
sponsorship in order to increase the apparent credibility of their
messages. (56 Fed. Comm. L.J. at 338.) Thus, deviating from the general
rule contained in section 317(a)(1) that no sponsorship identification
announcement is necessary if material is provided to a station free or
at a nominal charge, section 317(a)(2) of the Act enables the
Commission to require such an announcement regarding material so
provided, if the programming involves political material or the
discussion of a controversial issue.
9. Consistent with this statutory provision, both the broadcast
rule (section 73.1212(d)) and the cable rule (section 76.1615(c))
expressly require the airing of sponsorship disclosure in such
situations. In contrast to the general disclosure requirement that a
single announcement be made at the time of airing of the material, for
political or controversial programming of more than five minutes'
duration, the announcements must be made both at the beginning and the
conclusion of the airing of the material. (47 CFR 73.1212(d),
76.1615(c). For political or controversial programming that is five
minutes or less in duration, only one announcement must be made, at the
beginning or the end of the material. Id.) Moreover, if a corporation,
committee, association or other unincorporated group or other entity is
paying for or furnishing the broadcast matter, the station must
include, for public inspection at the location of its public file (47
CFR 73.3526, 73.3527), a list of the chief executive officers or
members of the executive committee or of the board of directors of such
corporation, committee, association, other unincorporated group or
other entity. (47 CFR 73.1212(e).)
Request for Comments
10. In addition to reminding broadcast licensees, cable operators,
and others, pursuant to this PN, of their respective disclosure
responsibilities under the Commission's sponsorship identification
rules, the Commission seeks comment on VNRs and their use by broadcast
licensees and cable operators. With this more detailed information, we
will be better positioned to monitor this area and ensure that
broadcast licensees, cable operators and others comply with our rules.
To this end, we seek comment on the ways in which VNRs are used in
programming, and on which practices are the most common. For example,
we also seek comment on whether the entities producing or providing
VNRs, including the government, pay broadcast licensees and cable
operators to air VNRs, or whether the VNRs are provided free of charge,
without separate payment or consideration. Are mechanisms in place to
ensure that broadcast licensees and cable operators receive notice
regarding the payment of consideration from all individuals and
entities that are involved in the production and provision of VNRs? Are
mechanisms in place to ensure that broadcast licensees and cable
operators receive notice regarding the identity of entities providing
programming involving political material or the discussion of
controversial issues of public importance? Do broadcast licensees and
cable operators receive VNRs as part of an overall news service, which
may be provided under contract or on a subscription basis? If so,
should this affect the applicability of our sponsorship identification
rules? Finally, we seek comment on whether there are alternative or
better means of ensuring proper disclosure concerning VNRs in addition
to those prescribed by the existing rules. The Commission intends to
issue a report, or initiate a more formal proceeding, as appropriate,
on the comments received in response to these questions about VNRs
forthwith. Although we seek comment on the use of VNRs in this Notice,
we emphasize that the rules remain in effect and that we will continue
to investigate complaints and enforce the rules during the pendency of
this proceeding.
Conclusion
11. In sum, the Commission acknowledges the critical role that
broadcast licensees and cable operators play in providing information
to the audiences that they serve. This information is an important
component of a well-functioning democracy. Along with this role comes
the responsibility that licensees and operators make the sponsorship
announcements required by the foregoing rules and obtain the
information from all pertinent individuals necessary for them to do so.
We remind all such licensees and operators, as well as those involved
in the production and provision of the material that they air, that
they must strictly adhere to the foregoing requirements and to fully
meet their responsibilities under them.
12. The Commission will investigate any situation in which it
appears that these requirements of the law may have been violated and
will order administrative sanctions against its regulatees, including
the imposition of monetary forfeitures and the initiation of license
revocation proceedings, where such action is appropriate. In addition
to these sanctions that the Commission may impose, we note that the
criminal penalty for violation of the disclosure requirements of
section 507 of the Act is a fine of up to $10,000, imprisonment of not
more than a year, or both. (47 CFR 508(g).)
Procedural Matters
13. Ex Parte Rules. There are no ex parte or disclosure
requirements applicable to this proceeding pursuant to 47 CFR
1.1204(b)(1).
14. Comments Information. Pursuant to sections 1.415 and 1.419 of
the Commission's rules, 47 CFR 1.415, 1.419, interested parties may
file comments and reply comments on or before the dates indicated on
the first page of this document. Comments may be filed using: (1) The
Commission's Electronic Comment Filing System (ECFS), (2) the Federal
Government's eRulemaking Portal, or (3) by filing paper copies. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(May 1, 1998).
Electronic Filers: Comments may be filed electronically using the
Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs/ or the
Federal eRulemaking Portal: https://www.regulations.gov. Filers should
follow the instructions provided on the Web site for submitting
comments.
In completing the transmittal screen, ECFS filers should include
their full name, U.S. Postal Service mailing address, and the
applicable docket number. Parties may also submit an electronic comment
by Internet e-mail. To get filing instructions, filers should send an
e-mail to ecfs@fcc.gov, and include the following words in the body of
the message, ``get form.'' A sample
[[Page 24794]]
form and directions will be sent in response.
Paper Filers: Parties who choose to file by paper must file an
original and four copies of each filing. Filings can be sent by hand or
messenger delivery, by commercial overnight courier, or by first-class
or overnight U.S. Postal Service mail (although we continue to
experience delays in receiving U.S. Postal Service mail). All filings
must be addressed to the Commission's Secretary, Office of the
Secretary, Federal Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service Express
Mail and Priority Mail) must be sent to 9300 East Hampton Drive,
Capitol Heights, MD 20743. U.S. Postal Service first-class, Express,
and Priority mail should be addressed to 445 12th Street, SW.,
Washington DC 20554.
People with Disabilities: Contact the FCC to request materials in
accessible formats (braille, large print, electronic files, audio
format, etc.) by e-mail at FCC504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at 202-418-0531 (voice), 202-418-7365
(TTY).
Federal Communications Commission.
Marlene H, Dortch,
Secretary.
[FR Doc. 05-9105 Filed 5-10-05; 8:45 am]
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