iHeartMedia, FCC Enter Consent Decree Over Payola Claims

FCC's Brendan Carr and iHeart's Bob Pittman John Lamparski/Getty Images; Rory Doyle/Getty Images Logo text

iHeartMedia is entering a consent decree with the Federal Communications Commission over the regulatory organization’s payola investigation, the FCC announced on Thursday.

The FCC first announced a probe against iHeart last year over what it called “showola,” investigating claims that iHeart gave increased airplay to artists who played the radio conglomerate’s concerts and music festivals.

In its initial reply to the FCC, iHeart denied leveraging airplay for live performances, telling the FCC that “musicians perform at iHeart events for the promotional value, not for additional airplay on Company Stations.”

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iHeart further told the FCC that it “takes seriously its obligations under the sponsorship identification laws, including the federal payola laws.” iHeart didn’t immediately reply to request for comment on the agreement.

The consent decree itself doesn’t include any fines or fees for iHeart. The decree will end three years from its effective date, and the main remedy is a new “compliance plan” iHeart will develop in the next 60 days. That plan includes annual reports from iHeart, a disclosure of an anti-payola policy to artists and other disclosures on artists performing at iHeart’s events.

The FCC said Thursday that iHeart and the organization agreed to a consent decree as further investigation “would be time-consuming and would require substantial expenditure of public and private resources.”

“The FCC is committed to ensuring that artists—especially up-and-coming ones—get a fair shake in their dealings with the broadcast industry,” FCC chairman Brendan Carr said in a statement. “Artists’ talent and the listening public should determine their success. Today’s agreement adds significant new protections and offers the FCC greater transparency to ensure that artists retain their right to decide when and where they will perform. Artists have every right to ensure that the radio industry complies with the payola and showola regulations that protect them.”