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10/15/2009
On October 5, 2009, the Federal Trade Commission announced that it finalized the update to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Guides”), which have been in effect in their current form since 1980.1 The evolving practice of companies marketing their goods and services through bloggers and other “new media” received special attention.

The FTC’s changes now make explicit that the principles in the Guides apply to a company’s marketing of its products or services through third parties using “new media,” such as blogs and social networks, and that both advertisers and their “sponsored” endorsers have responsibility for the content of such endorsements as well as for disclosure of commercial links that consumers would not expect to exist between the advertiser and the endorser (such as payments or free products in exchange for a blog post containing a positive product review). The update also includes a couple of changes to the old rules, including the elimination of the safe harbor originally authorized under the 1980 Guides for ads with unrepresentative consumer testimonials–in most such ads now, including a disclaimer such as “results not typical” or “results may vary” will no longer be sufficient.

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10/2/2009
As we wrote in an earlier Advisory, the FCC adopted an order in April 2009 revising FCC Form 323, its Ownership Report form for commercial stations. It also expanded the types of entities and licensees required to file Form 323, announcing that owners of all commercial AM, FM, TV, LPTV and Class A TV stations would need to file the new form by November 1, 2009. The FCC later suspended its existing biennial Ownership Report filing requirement for stations that were to have filed in June, August, or October of 2009, since those stations would have to file the new Form 323 by November 1, 2009 in any event.

At this time, the Office of Management and Budget (OMB) has not yet approved the new Form 323 for use by the FCC. In response to numerous calls from station counsel and industry representatives, the FCC today announced that it is suspending the requirement that stations file the revised Form 323 by November 1, 2009. Instead, stations will be required to file the new Form 323 by a date to be later announced by the FCC that is at least thirty days after the release of a public notice of OMB approval of the new form. In the meantime, the FCC announced that it will continue to suspend the filing of biennial ownership reports on existing Form 323 until the new form is available.

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September 2009
As previously reported, stations that have not yet completed construction or commenced operation of their final post-transition DTV facilities must continue the required general DTV Consumer Education Initiatives until they commence operation on their post-transition DTV facilities. Such stations will be required to file another FCC Form 388 by October 10, 2009, providing the Commission with the details of the DTV Consumer initiatives that they performed between July 1 and September 30, 2009.

By October 10, 2009, those television stations, which completed construction and commenced operation with their post-transition final DTV facilities after June 30, 2009 or have not yet completed construction and commenced operation of their post-transition digital facility, are required to report on the DTV Education Initiatives undertaken in the months of July, August and September by electronically filing the FCC Form 388. The FCC Form 388 is also required to be placed in the station’s public inspection file by October 10, 2009 and posted by that date to the station’s website, if it has one. Details of the FCC’s DTV Consumer Education requirements can be found in our Advisory, “FCC Adopts New DTV Consumer Education and Reporting Requirements,” available on the firm’s website, www.pillsburylaw.com.

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September 2009
The next Quarterly Issues/Programs List (“Quarterly List”) must be placed in stations’ local public inspection files by October 10, 2009, reflecting information for the months of July, August and September 2009.

Content of the Quarterly List
The FCC requires each broadcast station to air a reasonable amount of programming responsive to signifi­cant community needs, issues, and problems as determined by the station. The FCC gives each station the discretion to determine which issues facing the community served by the station are the most signifi­cant and how best to respond to them in the station’s overall programming.

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September 2009

As we recently reported, the FCC has altered the schedule for the filing of Biennial Ownership Reports by commercial broadcast stations. Those Reports must now be filed by November 1, 2009 and by the same date every two years thereafter. However, the schedule for the filing of Biennial Ownership Reports for noncommercial broadcast stations remains unchanged.

Noncommercial radio stations licensed to communities in Alaska, American Samoa, Florida, Guam, Hawaii, Marianas Islands, Oregon, Puerto Rico, the Virgin Islands and Washington, and noncommercial television stations licensed to communities in Iowa and Missouri, must file their Biennial Ownership Reports by October 1, 2009.

As discussed in a Client Advisory sent earlier this month, the FCC released an Order on May 29, 2009, suspending the biennial ownership reporting requirement for licensees of commercial radio and television broadcast stations that would otherwise have been required to file their reports by June 1, August 1 or October 1, 2009. Accordingly, all commercial radio and television stations are currently scheduled to sub­mit their biennial ownership reports by November 1, 2009, and every odd numbered year by the same deadline.

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September 2009
The next Children’s Television Programming Report must be filed with the FCC and placed in stations’ local Public Inspection Files by October 10, 2009, reflecting programming aired during the months of July, August and September 2009.

Statutory and Regulatory Requirements
As a result of the Children’s Television Act of 1990 and the FCC Rules adopted under the Act, full power and Class A television stations are required, among other things, to: (1) limit the amount of commercial matter aired during programs originally produced and broadcast for an audience of children 12 years of age and younger; and (2) air programming responsive to the educational and informational needs of children 16 years of age and younger. Each of these requirements translates into the obligation to pre­pare supporting documents on a quarterly basis.

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September 2009
This Broadcast Station EEO Advisory is directed to radio and television stations licensed to communities in: Iowa, Missouri, Alaska, Hawaii, Oregon, Washington, Guam, American Samoa, Marianas Islands, Florida, Puerto Rico and the Virgin Islands, and highlights the upcoming deadlines for compliance with the FCC’s EEO Rule.

Introduction
October 1, 2009 is the deadline for certain broadcast stations licensed to communities in the States/Territories referenced above to place their Annual EEO Public File Report in their public inspection files and post the report on their website, if applicable.

Under the FCC’s rule that became effective as of March 10, 2003, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal employment opportunity to all qualified persons and practice nondiscrimination in employment.

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September 2009
Federal Communications Commission has announced that full payment of all applicable Regulatory Fees for Fiscal Year 2009 must be received no later than September 22, 2009. The price of missing the deadline is a 25% up-charge.

On August 21, 2009, the Federal Communications Commission released a Public Notice officially announcing September 22, 2009 as the deadline for payment for its annual regulatory fees for FY 2009. Licensees and permittees subject to annual regulatory fees must make their payments no later than 11:59 pm, EDT, on September 22, 2009.

The penalty for late or non-payment of the annual regulatory fee is 25% of the total amount owed and not paid. In addition, the Commission will refuse to process a licensee’s/permittee’s applications until full payment, including any applicable penalty, has been received. Lastly, failure to pay in full may also subject a regulatee to loss of its FCC authorizations.

This year the FCC mailed assessment notices to licensees/permittees reflecting the FCC’s understanding of their required payment obligations. Those notices may not include all of your stations and do not take into account any of your auxiliary licenses for which fees are also due. Accordingly, you should not assume that the notice is correct or complete.

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September 2009
As previously reported, the FCC released an Order on May 29, 2009, suspending the biennial ownership reporting requirement for commercial radio and television broadcast stations that would otherwise have been required to file their reports by June 1, August 1 or October 1, 2009.

Accordingly, commercial radio stations licensed to communities in Alaska, American Samoa, Florida, Guam, Hawaii, Mariana Islands, Oregon, Puerto Rico, Saipan, Virgin Islands and Washington and commercial television stations licensed to communities in Iowa or Missouri need not file their Biennial Ownership Reports by October 1. Rather, they will be required to file their Biennial Ownership Reports by November 1, 2009, as will all other commercial, full-power AM, FM, TV, LPTV and Class A television stations licensed to communities in any State or Territory of the United States.

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9/10/2009
On September 8, 2009, the Office of Foreign Assets Control (“OFAC”) of the Department Treasury and the Bureau of Industry and Security (“BIS”) of the Department of Commerce issued final rules in the Federal Register amending the Cuba Sanctions program and the Export Administration Regulations (“EAR”) to increase the range of telecommunications services that can be provided between the United States and Cuba and exports and re-exports of items to implement those services, as well as authorizing related payments and travel. These are included in a larger set of rule changes implementing the President’s April 13, 2009, directive to promote contact between family members and the flow of information between the two countries.

The new OFAC rule removes the policy directive requiring individual licenses for the provision of telecom­munications services and authorizes certain telecommunications services, contracts, related payments, and travel-related transactions by general licenses. Of primary importance is the addition of satellite (including radio and TV) and cellular services as covered technologies. Certain additional transactions involving third countries and related to the provision of services between Cuba and the U.S. will now be permitted but will require specific licenses.

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