FCC Investigates iHeartMedia Over Potential Payola Violations at Music Festival
The investigation focuses on whether iHeartMedia pressured artists to perform for free or reduced pay in exchange for favorable radio airplay.
- 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.