The FCC has proposed a fine for KXOL in Los Angeles for failing to promptly award a contest prize. Here’s the scoop:
Contest Rules: The radio station’s contest rules stipulated that the prize should be awarded within 30 days of a winner submitting all required paperwork.
Delayed Prize: However, the station didn’t deliver the prize until over a year after the contest rules specified.
FCC’s Notice: The FCC’s Enforcement Bureau issued a Notice of Apparent Liability, proposing an $8,000 fine for this violation.
FCC Rule Violation: The station’s actions were deemed to violate Section 73.1216 of the FCC rules, which requires contests to be conducted “fairly and substantially as represented to the public.”
Material Term: The FCC considers “timely fulfillment of the prize” as a material term in contest rules. When violated, it constitutes a breach of the FCC rule.
Fine Considerations: The prize amount was only $396, but the FCC proposed a higher fine due to the station’s size. A $4,000 fine might be seen as a mere cost of doing business for a large company, so the FCC adjusted it upward. The FCC could have fined the station for each day the award was delayed, potentially resulting in hundreds of thousands of dollars in fines.
Excuses Not Accepted: The station’s excuses (including COVID lockdowns and a ransomware attack) were not credited by the FCC. The prize should have been awarded before these events occurred.
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