iHeartMedia has agreed to beef up its anti-payola compliance policies to resolve a Federal Communications Commission (FCC) investigation that questioned whether the radio giant offers artists additional airplay in exchange for free performances at its events.
The consent decree, announced on Thursday (July 9) and reviewed by Billboard, does not include any financial penalty or determination that iHeart is involved in payola — the illegal practice of trading radio plays for undisclosed payments. iHeart maintains that artists choose to perform free or low-cost gigs for exposure, and that these concerts have no effect on airplay.
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To settle the investigation launched by the FCC last year, iHeart has agreed to create a new internal plan for complying with anti-payola laws, including setting up trainings for employees and establishing a whistleblower hotline. A senior corporate manager at the company will become its new compliance officer and report to the board. And for three years, iHeart will file regular reports to the FCC disclosing all artists who’ve performed at company events, the amount of compensation received and the airplay stats for their music before and after each concert.
