Would Rehr Ever Write This Letter?

October 24, 2006

David Rehr of the NAB wants you to believe that his actions regarding SDARS are motivated with a pure heart. If his concern rests with ensuring that regulations are followed, perhaps he will write a letter like this:


The Honorable Kevin J. Martin
Chairman
Federal Communications Commission
445 12th Street, SW
Washington DC, 20554

Dear Mr. Chairman,

CASE (Consumer Association for Satellite Entertainment) writes to express our alarm regarding recent happenings by members of NAB for various violations which are not consistent with laws and regulations as outline by the FCC. Given the scope of the NAB’s wanton disregard for FCC rules and regulations, CASE respectfully submits that the FCC launch a full investigation into the NAB and its members conduct and candor before the Commission to determine the true extent of their persistent and pervasive non-compliance with FCC regulations, and impose appropriate sanctions.

Although the actions by specific NAB members differ slightly, they all point to a clear attempt to circumvent regulations and continue illegal activities. For instance:

- In the last two weeks accusations of Payola have once again reached headline status. NAB radio stations continue to do business in shady and questionable ways despite massive fines being levied in the past. NEW YORK POST ARTICLE

- This year at least 9 New York radio stations are under investigation by Elliot Spitzers office for payola related violations. MEDIA ALLIANCE PUBLICATION

- Across the country, there are nearly 200 radio stations under investigation for Payola out of a membership of a bit over 600 stations. This represents nearly 33% of the NAB radio broadcaster membership, and these are only the ones that have been caught!! You can see a map of those stations HERE

It would appear that getting royalty free content to play is not satisfactory to the members of the NAB. It appears that perhaps these stations also want to get paid by artists and labels to play songs or even get onto a playlist. Clearly this behavior by members of the NAB is pervasive in the industry, and the NAB as an association makes no real effort to curb the behavior of their membership. Accordingly, the FCC should immediately commence a full investigation into the operations of not only the NAB, but all of the members as well, including their conduct and candor before the FCC. Given the alarming number of cases that relate simply to payola, perhaps the scope of the investigation should much more detailed.

CASE looks forward to discussing these and other issues of concern with you and your fellow Commissioners. Please let us know what we can do to assist the FCC in its consideration of these and other matters.

Sincerely,

SSG

NOTE: This letter was based upon the format used by Mr. Rehr in his letter to the FCC complaining about Sirius and XM

10/25/2006 01:40:00 PM

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