Entercom "Payola" Update, In Cahoots With NAB, RIAA

Judge Denies Entercom Motion To Dismiss Payola Suit
Oct. 17, 2006 By Paul Heine, www.radioandrecords.com

A New York State Supreme Court judge has denied a motion filed by Entercom Communications to dismiss a suit brought against the broadcaster by Eliot Spitzer, clearing the way for the New York State Attorney General's payola case to move forward. In a 25-page Memorandum Decision obtained by R&R, Judge Ira Gammerman knocked down all of Entercom’s arguments for dismissal. The decision, which comes six months after Entercom’s filing, allows Spitzer’s first pay-for-play complaint brought against a radio company for fraud and deceptive business practices to proceed to the discovery phase. Entercom has 20 days to respond to the complaint. It was not immediately known whether the company planned to appeal the decision. In its motion for dismissal, Entercom cited New York law stating that compliance with federal law is a "complete defense" against state consumer-protection laws. Entercom said it complied fully with federal law in disclosing when it accepted payment for airplay and that Spitzer has no authority to enforce federal payola laws. But the judge said that doesn’t preclude the attorney general from enforcing consumer protection statutes that prohibit deceptive business practices. ...read more: here

10/17/2006 09:55:00 AM

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