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FCC investigates payola scandal

WASHINGTON, Aug. 8 (UPI) -- Federal Communications Chairman Kevin Martin Monday said he has ordered an official investigation into the radio/recording industry payola scandal.

New York Attorney General Eliot Spitzer made headlines two weeks ago announcing Sony BMG Music Entertainment agreed to pay $10 million to settle his investigation that found it bribed radio stations to play music recorded by its artists.

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In a statement released Monday, Martin said the FCC Enforcement Bureau was reviewing the settlement and will "investigate any incidents in which the agreement discloses evidence of payola rule violations," Billboard.com reported.

Billboard said the EMI Group, Warner Music Group, Clear Channel Radio, Cox Radio, Universal Music Group, Infinity Broadcasting and Entercom have reportedly received subpoenas as part of the investigation.

"The FCC has longstanding rules prohibiting payola," Martin's statement said. "Broadcasters must comply with these rules. The commission will not tolerate non-compliance."

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