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Updated: FCC Amends Contest Rule for Broadcasters
Practical Law Legal Update w-000-6004 (Approx. 4 pages)
Updated: FCC Amends Contest Rule for Broadcasters
by Practical Law Commercial Transactions
| Law stated as of 16 Feb 2016 • USA (National/Federal) |
The Federal Communications Commission (FCC) has released a Report and Order amending its Contest Rule for radio and television broadcast stations and expanding the manner in which broadcast licensees can make required disclosures about the material terms of any contests they broadcast.
On September 17, 2015, the Federal Communications Commission (FCC) released a Report and Order to update its disclosure requirements under the Contest Rule (47 C.F.R. § 73.1216) for radio and television broadcasters (In re: Amendment of Section 73.1216 of the Commission's Rules Related to Broadcast Licensee-Conducted Contests).
Disclosing the Material Terms of a Contest
Under the Contest Rule, broadcast licensees must disclose on air the material terms of any contests that they broadcast. The FCC's Report and Order updates this rule by now permitting broadcast licensees to comply with their obligation to disclose material contest terms by either:
- Making the terms available in writing on a publicly accessible website, which can be either:
- the station's website;
- the licensee's website; or
- if neither the individual station nor the licensee has its own website, any website that is readily accessible to the public.
- Broadcasting the terms on the air.
For a website to be considered publicly accessible, it must be designed to be accessible to the public:
- 24 hours a day and 7 days a week.
- For free.
- Without any registration requirement.
Requirements for Online Disclosures
If a broadcast licensee decides to disclose contest terms online rather than on the air, it must comply with certain rules governing the method of disclosure. These rules are comparable to the rules that apply to on-air disclosures.
Broadcast licensees who disclose contest rules online must:
- Broadcast the relevant website address periodically, with sufficient information, so that a consumer can easily find the material contest terms online.
- Establish, on the website's home page, a conspicuously located and clearly labeled link or tab to the material contest terms.
- Maintain contest terms online for at least 30 days after the contest has ended.
- Announce on air any changes to the material terms of a contest and direct participants to the website to review the changes.
- Ensure that any material terms disclosed on a website conform in all substantive respects to the terms mentioned over the air.
For more general information on federal laws governing contests, see Practice Note, Running a Sweepstakes or Contest in the US.
Update
On October 23, 2015, the FCC issued a final rule adopting the September 17, 2015 Report and Order (Broadcast Licensee-Conducted Contests, 80 Fed. Reg. 64354-02 (Oct. 23, 2015)).
This final rule contains new or modified information collection requirements subject to the Paperwork Reduction Act of 1995. The requirements will be submitted to the Office of Management and Budget (OMB) for review. Once the OMB has approved these changes, the FCC will publish a document in the Federal Register announcing the rule's effective date.
Update II
On February 12, 2016, the OMB approved, for a period of three years, the September 17, 2015 Report and Order (Broadcast Licensee-Conducted Contests, 80 Fed. Reg. 64354-02 (Oct. 23, 2015)). Along with the OMB's approval, the Federal Register announcement provides the effective date for the updated Contest Rule as February 12, 2016.