Overview
- The FCC has launched an inquiry into iHeartMedia's compensation practices for artists performing at its iHeartCountry Festival on May 3 in Austin, Texas.
- FCC Chairman Brendan Carr questioned if iHeartMedia coerced artists into accepting reduced pay or free performances to avoid unfavorable radio airplay.
- The investigation centers on potential violations of federal 'payola' laws, which require disclosure of any financial arrangements influencing radio programming.
- iHeartMedia denied any wrongdoing, claiming that participation in its events does not affect radio airplay and provides promotional value similar to talk shows or televised performances.
- The FCC has given iHeartMedia 10 days to provide detailed information about artist compensation, internal policies, and compliance with sponsorship disclosure rules.