FCC Fines Clear Channel For Online Contest

The Federal Communications Commission has fined Clear Channel $22,000 for failing to adequately disclose the terms of an online contest that invited users to create video ads promoting Chevrolet.

The decision, issued by the Enforcement Bureau, stemmed from a 2008 Clear Channel contest that promised a Chevy to the user who designed the best ad for the car. The promotion prompted a complaint to the FCC alleging that some Clear Channel radio stations didn't clearly state when contest submissions were due. The official contest rules, which were posted online, said that the contest ran from Feb. 11, 2008 to March 21 2008, but also said that judges would select finalists on March 10, according to the ruling. That discrepancy “may have confused listeners and contest participants,” the FCC Enforcement Bureau said in its ruling. The FCC also faulted Clear Channel for promoting the contest on-air, but only disclosing the terms online. “Licensees cannot avail themselves of alternative non-broadcast announcements to satisfy the requirement that they accurately announce a contest’s material terms,” the FCC wrote.