[Congressional Record Volume 153, Number 61 (Tuesday, April 17, 2007)]
[Senate]
[Page S4590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           PAYOLA SETTLEMENT

  Mr. FEINGOLD. Mr. President, I would like to briefly comment on an 
important settlement that has been recently announced by the Federal 
Communications Commission, FCC.
  Four major radio station groups, Clear Channel, Entercom, Citadel, 
and CBS Radio, have taken an important first step in cleaning up the 
radio industry through today's consent decree with the FCC and side 
agreement with the independent music community on airplay and rules of 
engagement. I want to especially commend Commissioner Adelstein for his 
tireless work to bring these groups together and then-Attorney General 
Spitzer for spearheading the initial investigation that has led to 
State and now Federal settlements.
  I was encouraged to see internal business reforms, increased 
recordkeeping for transactions between labels and radio stations and 
unfettered access to these records by the FCC as part of the consent 
decrees. While these provisions are not as broad as those included in 
my previous payola legislation, the increased recordkeeping and 
disclosure in the consent decrees represent a step in the right 
direction. Transparency and accountability through sustained oversight 
will go a long way in eliminating the pervasive shadowy practices that 
have plagued the radio industry on and off almost since its inception.
  While the parties to the consent decrees do not directly admit 
wrongdoing, the payment of $12.5 million to the U.S. Treasury from the 
four station groups is an implicit acknowledgement that the evidence 
uncovered by then-Attorney General Eliot Spitzer showed that 
significant abuses had taken place. From all accounts, the stations 
also deserve some credit for working in good faith with the FCC and the 
independent music community to work toward a solution that did more 
than just put this matter behind them. The internal reforms and side 
agreement negotiated with the American Association of Independent 
Music, A2IM, appear to show a real desire to change and include the 
voices of local, unsigned and independent musicians that have 
unfortunately been missing more often than not from our public airwaves 
over the past decade or more.
  I am pleased by the voluntary side agreement by the radio station 
groups to provide more airtime and fair rules of engagement. These 
rules of engagement require nondiscriminatory treatment for labels and 
musicians seeking to be played at the stations and echo requirements 
from my previous payola legislation. I am heartened that these major 
radio station groups have apparently come to the realization that the 
old system wasn't working and that it was in their best interest to 
make it easier for small labels and local musicians to be heard. With 
more and more musicians being successful without or with limited radio 
airplay--just look at the commercial and critical success of the Dixie 
Chicks' last album--I hope radio stations are realizing they must 
change and play what their potential listeners want to hear in order to 
remain relevant. I hope this important commitment by four station 
groups will be replicated throughout the rest of the radio industry.
  I have a few lingering concerns that both the consent decrees and 
side agreement depend heavily on continued good faith instead of strong 
enforceable standards. I have no reason to believe that the potential 
good from these agreements will not be fulfilled, but we can't allow 
backsliding, especially after the 3-year term of the decrees expires. 
This means that the FCC will need to maintain vigorous and continued 
oversight. I urge the FCC to take the next step of building on this 
first wave of settlements and reaching agreements or taking enforcement 
action against the other stations implicated by the Spitzer 
investigation.

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