http://www.radioink.com/Article.asp?id=2938333&spid=246986-12-15
Has your station or company ever been fined by the FCC and you felt it was being unfair? If so, you may have an important ally on your side. In a scathing speech before the Federal Communications Bar Association Thursday, FCC Commissioner Michael O'Rielly unloaded on the Commission's Enforcement Bureau, which is run by Travis LeBlanc, a former Special Assistant Attorney General of California. O'Rielly gave examples of how the Bureau acts like a bully and only cares about how much money in fines it can extract from those companies it regulates.
O'Rielly says the Enforcement Bureau no longer serves its three core functions: to end practices that violate the rules, imposing penalties, and acting as a deterrent. Instead O'Rielly says the Commission seems more intent on obtaining newspaper headlines trumpeting accusations and eye-popping fines. "In other words, self-aggrandizing fanfare is a major objective and often appears to be more important than case foundation, correcting the violation, or establishing a reasonable deterrent."
Commissioner O'Rielly gave an example of "a couple of parties" he heard from that were potentially subject to enforcement actions. He says when they tried to discuss their situation with the Enforcement Bureau, they were told that any potential settlement would generate a penalty in the multiple-hundreds of millions or billions and require an admission of guilt. And, they were told there was no room for negotiation. They should take it or leave it. O'Rielly says, suffice it to say, no agreements were reached in these circumstances. "In the few settlements that have occurred, parties have told me that settling for unfair terms was just a better option than years of prosecution and having their company name dragged through the mud. And, of course, there are those circumstances when entities have transactions before the Commission and are essentially forced to acquiesce to enforcement settlements to facilitate the approval process." Could one of those "parties" O'Rielly is referring to be iHeartMedia, over The Bobby Bones EAS tones? That incident resulted in a $1 million fine against radio's largest company.
O'Rielly says, in one case, a proposed penalty was increased by 400 percent based on an upward adjustment of 100 percent for each of four factors, including the violator's ability to pay. "We have also seen situations where the penalty amount is not based on the actual violation, but instead seems to be picked out of a hat, loosely based on a company's revenues." O'Rielly says in another case, the Commission attempted to impose a penalty comparable to the total amount imposed on another entity, which was subject to a multi-agency settlement.
O'Rielly says it's a troubling disconnect on how enforcement success should be measured. He says recent Commission leadership comments show that enforcement effort is judged by how much money can be extracted in fines and penalties. "In other words, under this approach, if the dollar value of fines and penalties exceeds that from previous years, then it proves that enforcement is effective." O'Rielly says this way of thinking is backward and harmful and the true measurement of success should be whether regulatees are complying with the law and the Commission's rules.
Text from Commissioner O'Rielly's speech:
http://images.radcity.net/5173/5174078.pdf
Show Posts
