Broadcasting Telecasting (Jan-Mar 1960)

GOVERNMENT BITTER COMPLIANCE TO FCC NOTICE But 'plugola' opinion brings sharp industry responses Stunned broadcasters last week resignedly began complying with the new FCC interpretation of what constitutes a commercial program and at the same time industry forces rallied to force a reconsideration of the FCC notice. Compliance with the new look, issued March 16 (Broadcasting, March 21), ran an erratic course. As the week drew to a close many stations either ditched all free records from their air, or followed instructions by announcing they had been supplied gratis by manufacturers or distributors. A campaign to have the document stayed or reissued in another form — to permit it to be attacked or clarified — was mounted early last week. NAB on Wednesday filed a formal petition with the FCC asking that the new look in identifications be stayed and that further proceedings be instituted so that broadcasters could legally comment. CBS on Tuesday asked that the interpretations be incorporated in the pending payola rule-making case and that the industry be invited to comment. NBC asked that the commission institute general rulemaking on the subject so that comments could be filed. An emergency meeting of the executive committee of the Federal Communications Bar Assn. was called for Friday by FCBA President Frank U. Fletcher. Phones Busy • The FCC and Washington lawyers were flooded with telephone calls from furious station operators seeking clarification and interpretations of the FCC notice. Broadcasters' spleen was directed at the FCC action which overturned 30 years of broadcast practice virtually without warning. Adding choler to their anguish was the fact that broadcasters would be required to follow a purity in practices which is not required of any other business enterprise. As the week ended, no action was reported from the FCC. The commission sat Thursday on regular agenda items. It had held no meeting on the regular Wednesday meeting day because of the absence of two commissioners. Although the FCC notice carried no effective date, which presumed the interpretations were effective immediately, it was learned that the commission has no intention of instituting proceedings against stations which did not fully comply at the opening of business March 17. A reasonable length of time to revise practices will be allowed, an FCC source said. No special enforcement program is contemplated, this same source stated. The normal procedures will be followed. These are based on the investigation of complaints and a check of stations' renewal applications by the staff. NAB's petition was filed at the order of its three-man policy committee. The committee met March 21 in Washington. It is headed by Clair R. McCollough. Steinman Stations, and includes G. Richard Shafto, WIS-AM-TV Columbia, S.C., and Merrill Lindsay, WSOY-AM-FM Decatur, 111. The committee was formed to direct NAB policy following the death of NAB President Harold E. Fellows. The committee issued a statement explaining the FCC notice "has caused consternation within the industry" because long-established practices have suddenly been upset. Constant, repetitive announcements will be required during recorded programs, it was explained, and the selection of music would be restrained. The committee insisted receipt of free records doesn't limit a station's musical objectivity. A "petition for further proceedings" was filed March 23 by Douglas A. Anello, NAB chief counsel. The petition noted the "sweeping nature" of the document and its serious impact on "established and unquestioned practices" in broadcasting. Affected parties should have a chance to comment on possible changes and the basis for the action, it was stated. NAB emphasized the confusion over the term "consideration," citing legislative history and reviewing the recording industry's practices in providing records free or at a nominal charge. "Specific rulemaking proposals" are warranted, NAB concluded. Networks Ask Rule-making • CBS declared that the commission's notice does not clarify the situation and "goes beyond the intent and purpose of Sec. 317." If the announcements are required, the network said, "extensive changes" may be required in the regular operation of broadcast stations and networks. "It is doubtful." CBS said, "that such changes are called for in the interest of good broadcasting". The network stated that the March 16 document involved a "substantial" alteration of present rules and asked that it be included in the present payola proceeding (see page 66) so that comments can be filed. NBC termed the March 16 interpretations "novel" and different from previous interpretations of Sec. 317. It requested a general rulemaking so that licensees might discuss the items. Broadcasters, meanwhile, in great FCC should admit it goofed . . . . I T should be abundantly clear to the FCC that it went I too far in its March 16 effusion on sponsor identification. It has thrown broadcasters into confusion. It threatens licensees without adequate warning or notice. There appears to be no legal recourse other than an appeal to the FCC's sense of fairness and justice, since it did not issue an order. The disputed document is a 2,500 word "interpretation" vague in some areas and mercilessly specific in others. The NAB and others in timely fashion have asked the FCC to reconsider. They ask that the memorandum be stayed pending rulemaking proceedings to clarify and modify the interpretations. AN EDITORIAL Certainly the FCC should recognize that there is need for clarification. An action as far-reaching as this memorandum should be subjected to the established procedural processes. The slightest change in a secondary FCC rule, under the law, entails rulemaking procedures with the opportunity to file comments by parties in interest. There are some 5,000 am, fm and television licensees, including non-commercial educational stations who are confounded by the interpretative memorandum. The FCC should admit that it goofed. It should stay the effectiveness of the March 16 memorandum and start over with rulemaking proceedings. 58 BROADCASTING, March 28, 1960