(1) A lottery administered by a State under the law of the State and broadcast by an authorized radio or television station in a place in that State or another State administering such a lottery. (18 U.S.C. 1307(a); 102 Stat. 3205). (4) A lottery, gift company or similar program not described in paragraph (c)(1) of this section that is or is not otherwise prohibited by the state in which it is conducted and that is: FCC fines for violating FCC rules for contests have been common in recent years. Because of these fines, we recently hosted a webinar for the Kansas Association of Broadcasters on the requirements of Section 73.1216 of the FCC Rule, which governs the conduct of broadcast-sponsored contests. We also discussed what should be addressed in the competition rules, the problems related to contests that advertisers sponsor themselves, and the considerations broadcasters should take to avoid civil liability when running contests. Other legal issues that should be considered in a contest or lottery advertised on a broadcaster were also discussed. The slides from our presentation, which describe the legal issues we are discussing, can be found here.
Student Media`s executive director, program director, and consultants know a lot about the FCC`s specific rules and regulations. If you have any questions about anything, please contact one of these people. You`ll learn about some of the FCC`s most important rules by studying this section of the guide. Perhaps the most important thing to keep in mind when studying these rules is that they must be followed. Broadcasters who do not comply with FCC rules are regularly fined and subsequently denied the privilege of broadcasting. Under federal lottery laws, it is illegal to run a lottery by mail or telephone. Let`s start by explaining what a lottery is. A lottery is generally defined as a promotion in which the following three elements are present: prize, luck, and consideration (also known as the “standard lottery rule”).
So when can you issue a call to action? If you`re referring to a non-profit like WKNC, you can demand anything you want. Even if the nonprofit benefits financially (i.e. “send your donations to the American Red Cross”), it`s still legal. In this way, we are allowed to make public announcements that contain calls to action. If WKNC is listed as a co-sponsor of an event, you must determine who is the primary beneficiary before issuing calls to action. If it`s WKNC, like the Double Barrel Benefit, then do it. When it comes to for-profit activities, the usual rules apply and you should avoid calls to action. If you`re not sure if something is charitable, it`s best to play it safe. The FCC is short for the Federal Communications Commission, a government agency based in Washington, DC.
It is a branch of the U.S. government, just like the Internal Revenue Service or the Federal Bureau of Investigation. Your job as a DJ is to familiarize yourself with the many rules that the FCC holds broadcasters and advertisers accountable for. The FCC consists of five commissioners who regulate all aspects of the operation of the radio industry – from broadcasting licenses, issuing call letters, regulating the Emergency Alert System (EAS), making surprise visits to broadcasters to check the public record, or simply late at night to ensure legal identifiers are properly established. (1) A state-operated lottery acting under the authority of state law that is submitted: To ensure that you run a compliant promotion that does not violate federal lottery laws, please contact us before launching your next promotion. To make something a lottery, all three elements must be present. A prize is anything of value to the participant. It doesn`t matter what the price is, or whether it`s a discount or refund. Chance is when the prize is awarded to a person whose selection is determined in whole or in part by chance and not by the abilities of the participant. Being the eighth caller is a form of coincidence.
Consideration occurs when a participant is required to present money or other valuables (such as a registration fee) or “must provide money or other valuables or possess a product sold, manufactured, made available or distributed by a sponsor of a programme broadcast on the relevant channel”. (1) For the purposes of clause (c) of this section, “lottery” means the pooling of proceeds from the sale of tickets or opportunities and the random allocation of such proceeds or portions thereof to one or more opportunity takers or ticket purchasers. This does not include placing or accepting bets or bets on sporting events or competitions. While there are instances where advertising or information about lotteries is allowed, you have to infer that the FCC has very specific rules about how broadcasters run contests (like sweepstakes). For this reason, the promotion department must monitor all competitions that take place on WKNC. (a) No licensee of an AM, FM, television or Category A television broadcaster, except as referred to in paragraph (c) of this section, may broadcast advertising or information about lotteries, gift companies or similar programs offering prizes that depend wholly or in part on ticket or chance, or a list of prizes drawn or awarded through this lottery. Business or gift program, whether or not this list includes some or all of these prizes. (18 U.S.C. 1304, 62 Stat. 763). What are some of the topics we discussed? We recently imposed fines of approximately $22,000 for an online contest advertised on air without the broadcaster revealing all the substantive rules on air. Even inaccurate competition rules resulted in $4,000 in fines, as did a contest that was not conducted according to the rules advertised in the air.
Beyond these issues, broadcasters must consider other legal liabilities that may arise in the event of harm to subscribers – highlighted by the Sacramento case a few years ago.