A NEW COMPANY - A NEW APPROACH


IMPORTANT MESSAGE TO ALL ADVERTISERS

11-30-2011

    This year, we must file an application with the Federal Communications Commission (“FCC”) in order to renew our broadcasting license for another 8-year term.  The FCC has adopted a new form of application (FCC Form 303-S) which we must file in order to do so.  That form requires us to certify, regarding advertising contracts, as follows:

Non-Discriminatory Advertising Sales Agreements. Commercial licensee certifies that

its advertising sales agreements do not discriminate on the basis of race or ethnicity and

that all such agreements held by the licensee contain nondiscrimination clauses.


        On the surface, such a certification is simple to make because all our advertising agreements have contained that clause for some years.  However, on March 22, 2011, the FCC released a Public Notice (copy attached) that places an obligation on us to conduct due diligence to insure that agencies networks, rep firms, and program suppliers like yours, with which it deals, also comply with the FCC’s requirements:


Licensees must have a good faith basis for an affirmative certification and a reasonable basis for believing that factual information provided to the Commission is truthful and accurate. For example, a licensee that uses a third party to arrange advertising sales is responsible for exercising due diligence to ensure that the advertising agreement contains the nondiscrimination clause and does not discriminate on the basis of race or ethnicity. Furthermore, a broadcaster that learns of a violation of a nondiscrimination clause while its license renewal application is pending should update its license renewal application so that it continues to be accurate. A misrepresentation in an application filed with the Commission could result in the initiation of license revocation proceedings.


Needless to say, this concerns us because the federal government has now imposed a condition on the renewal of our operating license that requires us to guarantee that the agreements you have with your clients also contain a nondiscrimination clause.


    As you can see, this is an extremely important matter. The agreements you have with your clients must contain a non-discrimination clause.  Here is a suggested clause that we believe will comply with the FCC’s requirements:

“This agency [network][rep firm][program supplier] does not discriminate in the sale of advertising time, and will accept no advertising which is placed with an intent to discriminate on the basis of race or ethnicity.  When you engage us to place advertising for you, you certify that you are not buying broadcasting air time under our advertising sales contract for a discriminatory purpose, included but not limited to decisions not to place advertising on particular stations on the basis of race, national origin, or ancestry, and that this requirement is a material term of our advertising contract with you.”

Though the FCC has mandated certification on our part, we believe that none of the agencies, network, representative firms or program suppliers has policies that differ from those stated by the FCC.  If, for some reason, your policies do not conform to those stated in the notice, we do need to hear from you.  If, as we believe, you are in compliance, we need not hear back from you.

Thank you for your understanding of this situation and unless we hear otherwise from you, our presumption is that you too understand the importance of having similar non-discrimination clauses in your agreements.


                        Sincerely Yours,

                                                                               ERIC HATCHER

                                                                               General Manager