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The Federal Communications Commission announced that it reached a settlement with iHeartMedia, resolving allegations that IHeart engaged in illegal “payola” practices by arranging for musical artists to perform at station-hosted music shows or festivals for free or for reduced compensation in exchange for more favorable airtime for their songs, without disclosing to listeners that this is taking place.
FCC rules require that broadcasters disclose when content contained in a broadcast has been paid for and to disclose the identity of the person furnishing the money or other consideration.
In approving the settlement, the FCC stated, “Our action today advances the Commission's longstanding goals of protecting consumers by ensuring that they know who is attempting to persuade them and protecting broadcasters and sponsors from unfair competitors that fail to abide by our disclosure."
In early 2025, the FCC issued an Enforcement Advisory, warning broadcasters not to “compel or accept unreported free or unreported reduced fee performances by musicians in exchange for more favorable airplay.”
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