Contests and lotteries: state registration
Article Abstract:
A broadcaster's car giveaway, or a similar station contest, must comply with FCC rules and state registration laws. States will often require winners' affidavits to be filed. Stations should clearly state that winners will have to pay sales taxes and registration fees if an automobile is the prize. A signed written agreement between the station and the car dealer is also essential. Stations should also consider giving an alternate cash prize if the winner cannot pay for the tax and registration.
Publication Name: Broadcasting and the Law
Subject: Mass communications
ISSN: 0161-5823
Year: 1996
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Contests and lotteries
Article Abstract:
Radio giveaways must qualify as contests to be permitted, as lotteries are prohibited. Contest rules must be fully disclosed and followed exactly. Each contest should adhere to relevant state laws as well as FCC regulations. Winners should sign an appearance release and a liability release for noncash prizes, and must receive an IRS Form 1099 for any prize over $600. An example is included describing a contest awarding a car.
Publication Name: Broadcasting and the Law
Subject: Mass communications
ISSN: 0161-5823
Year: 1996
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Payola
Article Abstract:
Radio stations must be vigilant in maintaining compliance with FCC guidelines on payola and plugola. Disc jockeys are prohibited from receiving compensation to promote specific songs or musical groups. Format playlists, program logs, logger tape systems, and random air checks are methods of monitoring the conduct of on-air personnel and preventing payola violations. A sample station contract clause on payola is included.
Publication Name: Broadcasting and the Law
Subject: Mass communications
ISSN: 0161-5823
Year: 1996
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