Univision pays $1 Million to resolve Pay-For-Play.

According to Radio Ink magazine, Univision Radio has entered into a consent decree with the FCC that resolves allegations that Univision stations or employees secretly accepted payment form a record label in return for more frequent airplay, without informing listeners as the law requires.

In a criminal action based on the same facts, a federal district court has accepted the plea of Univision Services Inc. The FCC and the Department of Justice coordinated their investigations and enforcement actions in the matter.

“Payola — the idea of pay-for-play — misleads the listening public,” FCC Chairman Julius Genachowski said. “This agreement with Univision underscores the FCC’s focus on consumer protection and our commitment to ensuring that broadcasters play it straight with the public.”

Under the settlement with the FCC and the DOJ action, Univision will pay $1 million as a voluntary contribution to the U.S. Treasury when the consent decree becomes a final order. The consent decree also requires business reforms and compliance measures, including a general ban on Univision stations and employees exchanging airplay for cash or other items of value, except under specified conditions and if they meet sponsorship identification last; limits on the size of gifts, tickets, and other items Univision stations and employees can accept from labels; and the appointment of a compliance officer and regional compliance contacts who will monitor and report on Univision’s performance under the settlement.

The compliance officer will report annually for three years, and Univision will also maintain a hotline where employees can call the compliance officer to ask questions and report any violations. Univision will also have to regularly train personnel on payola restrictions and include a clause on the sponsorship identification rules in new employee contracts.

“Broadcasters play a critical role in educating and entertaining the public and along with that special role comes some fundamental obligations,” FCC Enforcement Bureau Chief Michele Ellison said. “We will continue to work with other government agencies, including criminal law enforcement authorities where appropriate, leveraging all the tools at our disposal to protect consumers and prevent them from being misled.”

Univision Statement

Univision noted in a statement that it reported the illictit activity itself. “The actions of these employees were undertaken without the knowledge of anyone at Univision outside of [Univision Music Group],” Univision said in a statement. “Upon learning of these activities, Univision self-reported to the U.S. Attorney’s Office and has cooperated fully with law enforcement authorities throughout the investigation process.” Univision Music Group has since been sold.