Broadcasters Accuse FCC of Overreach with Rules on Foreign Disclosures

WASHINGTON -- The Federal Communications Commission is defending itself in court in Washington, D.C. against allegations from U.S. broadcasters that the agency exceeds its authority with new rules on business transactions with foreign governments.

The rules approved by the FCC last Spring require broadcast stations to disclose when their programming is sponsored by foreign government entities.

They also must investigate whether purchasers of their program time represent any foreign government or affiliated organizations. The program time typically refers to ads or infomercials.

The National Association of Broadcasters (NAB) calls the rules a heavy-handed governmental intrusion chasing after a phantom problem. The industry association also says they violate First Amendment free speech rights of the media.

The FCC and broadcasters are scheduled for a hearing April 12 in the U.S. Circuit Court of Appeals for the District of Columbia. The FCC regulates broadcasters and can fine, suspend or remove the licenses of stations that violate its rules.

The agency’s authority is limited by the federal Administrative Procedure Act, which requires the FCC to use the least restrictive means of regulating broadcasters and only when it represents a compelling governmental interest.

The new rules coincide with concerns in Congress heightened by evidence the Russian government tried to influence the 2016 presidential election in favor of Donald Trump. The Russians allegedly used the U.S. media to discredit his Democratic opponent, Hillary Clinton.

The FCC accused the NAB in a court filing last month of complaining unnecessarily about a small procedural change.

Broadcasters could fulfill their duties in minutes by running the names of companies seeking to lease airtime through two government databases that track foreign companies, the FCC says. If the names do not appear, they don’t need to do anything else.

For more information, contact The Legal Forum (www.legal-forum.net) at email: [email protected] or phone: 202-479-7240.