FCC Chief Orders Investigation of Illegality at NPR and PBS and Casts Doubt on Their Reason to Exist

Federal Communications Commission Chairman Brendan Carr has put the Public Broadcasting System and National Public Radio on notice that he has ordered an investigation into those outlets for violating federal law by airing paid advertisements. In a two-page letter, Chairman Carr informed PBS and NPR, “I am concerned that NPR and PBS broadcasts could be violating federal law by airing commercials. In particular, it is possible that NPR and PBS member stations are broadcasting underwriting announcements that cross the line into prohibited commercial advertisements.”

The issue is underwriting announcements of NPR and PBS programming by for-profit entities.

NPR and PBS have for decades aired sponsorships under rules set forth by the government. While public broadcasters are restricted by law from accepting traditional commercials, the F.C.C. has become more permissive over the years about what public stations are allowed to air. The F.C.C.’s evolving stance on the issue has gradually allowed public radio stations to become less dependent on government funding.

Eric Nuzum, a former NPR executive and co-founder of the audio consulting and production company Magnificent Noise, said that sponsorships and underwriting differ sharply from advertising on commercial TV and radio in several respects.

“The difference is, in a commercial, the sponsor can say anything they want — it’s their time,” Mr. Nuzum said. “In an underwriting situation, the station provides an acknowledgment of who’s providing the funding, along with basic information about the underwriter.”

As Carr says in his letter, it is one thing to credit underwriters, but you cross the line into advertisement when they “promote the contributor’s products, services, or businesses, and they may not contain comparative or qualitative descriptions, price information, calls to action, or inducements to buy, sell, rent, or lease.”

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