Broadcasting Telecasting (Jan-Mar 1960)

ternal offices and bureaus. He pointed out that both the Attorney General and the Legislative Oversight Subcommittee have been critical of the Commission in the area of investigations. Cowgill's Recommendations • The Broadcast Bureau prepared for Commission consideration two proposals for rulemaking "designed to require licensees to take affirmative steps to prevent the broadcast of matter as the result of payola received by their employes." One was a brief encompassing language of the Bureau; the second reviewed at length (without submitting specific language) recommendations of the Attorney General "with the thought in mind that the Commission may wish to consider more comprehensive amendments. . . ." Mr. Cowgill proposed that rulemaking be instituted to add the following paragraph to the Commission's rules: "(f) All licensees and operating permittees of broadcast stations (1) shall on a continuing basis, keep all of their employees informed of the requirements of Section 317 of the Communications Act and of the above subparagraphs of this section of the Rules; (2) shall instruct such employees to advise immediately the licensee, permittee and the appropriate management official of any payments, offers of payments, or promises of payments made by any individual to the employees in return for broadcasting matter; and (3) shall, if such matter is broadcast, make the announcements required by the Communications Act and the Rules. The term "continuing basis" contemplates, in addition to other steps, a semi-annual reaffirmance of the licensees' and permittees' advice and instructions to their employees. Licensees and permittees shall notify the Commission in writing within 10 days of each payment, offer of payment or promise of payment to an employee for broadcasting matter, together with a statement as to the disposition of the case." As presented to the Commission Friday, comments on the proposal would be due March 1, with reply comments due 10 days later. As an "alternative notice," the Broadcast Bureau submitted verbatim AVi pages of recommendations lifted from the Attorney General's report to the President on "Deceptive Practices in Broadcasting Media." In that report, the Attorney General recommended that the FCC take the following actions: (1) Adopt regulations which would require some guarantees of honesty with respect to matter that is broadcast. (2) Amend existing regulations so as to cover payola. (3) Adopt regulations to cover situations in which a station licensee or employe own outside interests in an enterprise which will substantially benefit, if without appropriate announcement, its products are played or discussed over the air. Mr. Cowgill's memorandum, dated Jan. 26, was on the Commission meeting agenda a week ago but no action was taken. A Commissioner's Proposal • "It is my feeling that action is warranted by the Commission at this time toward the promulgation of a rule dealing with Doerfer, state heads to exchange opinions Presidents of state broadcaster associations and FCC Chairman John C. Doerfer will huddle Feb. 25 on what the Commission should do about program regulation. NAB's fifth annual Conference of Presidents of State Broadcaster Associations, a two-day event, opens Feb. 24 at the Shoreham Hotel, Washington. The presidents will face up to the toughest legislative and regulatory crisis since the group was formed under NAB auspices. The regulatory problem was switched to a new tack Jan. 26 when NAB President Harold E. Fellows presented a revised concept of the association's stand on program regulation (Broadcasting, Feb. 1). NAB now concedes to the Commission some program control though the extent of this concession was not clear after the FCC had heard NAB's testimony and had cross-examined witnesses for the industry. Chairman Doerfer will talk to the state presidents at the Feb. 25 luncheon session, according to Howard H. Bell, NAB assistant to the president in charge of conference planning. The opening day will include a keynote address by President Fellows; roundtable on the Washington crisis, and a talk on the right to advertise by Carlton Dargusch. counsel to Ohio Assn. of Broadcasters. FCC Comr. Robert E. Lee and other federal officials will review the emergency broadcasting system. Speaker at the Feb. 24 luncheon will be Rep. Daniel K. Inouye (D-Hawaii), in honor of Hawaii's first participation as a state in the Voice of Democracy contest. The presidents will join with the state winners of the contest at the annual awards luncheon. Fifty-one state contest winners, including D.C., will be guests of the contest sponsors in all-expense trips to Washington. A national winner will receive a $1,500 scholarship. Sponsors are NAB and Electronic Industries Assn. in cooperation with Veterans of Foreign Wars. A board of 13 prominent judges will select the national winner. contrived quiz programs," Comr. Ford began his proposed rulemaking dated Jan. 14. He said the rule would "prohibit contrived contests of skill, knowledge or intellect unless accompanied by an announcement dispelling the impression that they are actually bona fide contests." The commissioner said that the public has a right to know what it is watching or listening to. He pointed out that, under Sec. 317 of the Communications Act, the FCC has a statutory mandate to assure that any program material for which consideration is received "shall be announced as such with the source identified." As drafted, Comr. Ford's rule relates only to tv, but, he stated, it could be included in fm and am rules as well. Text of the Ford proposal: "Quiz programs and other contests of skill or intellect, announcement, (a) No television broadcast station shall broadcast any program in which the appearance of a bona fide and extemporary game, contest or competition of knowledge, skill or intellect is of special significance if the outcome of such event has been in fact prearranged, or participants or contestants have been provided with information, instructions or any other communication for the purpose of influencing the outcome, by any person acting in behalf of the station or in behalf of any producer, sponsor or advertising agency associated with the program: Provided, however, that any such program may be broadcast if it is accompanied by an appropriate announcement dispelling the impression of genuineness or extemporariness. (b) It is recognized that the precise form of the identifying announcement may vary from program to program. It shall, however, in all cases describe the nature of the program in a manner sufficiently complete to apprise the audience that the events in question are not in fact spontaneous or genuine matches of knowledge, skill or intellect. Such announcements shall be made at the beginning and the end of each program. (c) No license shall be granted to a television broadcast station having any contract, arrangement or understanding, express or implied with a network organization unless the station has obtained satisfactory assurance from the network organization that any program of the type described in subsection (a) will be accompanied by an announcement in compliance with subsections (a) and (b) of this section. All three of the memorandums submitted by Messrs. Ford, FitzGerald and Cowgill originally were on the agenda for the regular Commission meeting last Wednesday. However, they were 32 (PAYOLA & QUIZ LEGISLATION) BROADCASTING, February 8, 1960