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Feds Vs Labels

08/09/05
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(Audio Aggression) The recent $10 million settelement between New York State Attorney General Eliot Spitzer and Sony BMG has resulted in an official investigation by the FCC of the payola activities.

"I am very concerned about the activities that led the New York Attorney General to investigate Sony BMG Music Entertainment and ultimately resulted in a settlement agreement with that company," said FCC Chairman Kevin Martin in a statement announcing the probe. "The FCC has longstanding rules prohibiting payola. These rules serve the important purpose of ensuring that the listening public knows when someone is seeking to influence them. Broadcasters must comply with these rules. The Commission will not tolerate non-compliance. While payola may not be a widespread practice in the broadcasting industry, to the extent it is going on, it must stop." [see full story for more] - Click here for the Full Story

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