UMG says it has had promotional guidelines in place since 2006 that incorporate federal anti-payola laws and has “devoted significant resources” to implementing and enforcing that policy. “We believe that those statutes help ensure that our music is judged on its own merits,” Senior VP Saheli Datta said in a letter to the Federal Communications Commission.
The letter, made public Wednesday, is part of an investigation by FCC Commissioner Michael O’Rielly into allegations of potential violations of pay-to-play rules. His review began last fall after a story was published in Rolling Stone last August, which quoted some broadcasters alleging record promoters were using cash apps and directing money to corporate accounts in exchange for spins.
Last month the FCC released responses from Sony Music and Warner Music Group in which both record companies said they continue to abide by a 2005 agreement with the New York Attorney General’s office limiting promotional activities and training record company employees about how to comply with anti-payola laws.
Yet UMG wasn’t as black-and-white in its denial as its counterparts. It acknowledged that the labels under its umbrella use independent record promoters to work records to radio stations. But the company said it “has no visibility into the details of the arrangements between the radio stations and the independent promoters.” It did say that if a UMG employee becomes aware of a violation of the pay-to-play policy, the company has a 24-hour hotline to anonymously report the abuse.
The FCC’s payola investigation isn’t a priority, given a focus on COVID-19 related issues. But O’Rielly told Inside Radio the information so far suggests reports of payola may be overblown anyhow. Yet it’s too soon to say for sure, he said, and by making the three record companies’ letters public the next step is to see whether anyone can come forward and refute what has been communicated to the FCC and back up any allegations with evidence.
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