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FCC Chairman Questions Underwriting Practices At NPR & PBS
Newley appointed FCC Chairman BRENDAN CARR has raised concerns about underwriting practices at NPR, PBS, and other non-commercial stations, alleging potential violations of FCC regulations by crossing the line into commercial advertising. An investigation is underway.
For years, Congressional Republicans have wanted to defund CPB (CORPORATION FOR PUBLIC BROADCASTING), which allocates federal funding to public radio and television stations, including NPR and PBS. Critics argue that these outlets show a perceived liberal bias in their programming.
CPB, established by CONGRESS in 1967, funds and supports public broadcasting across the U.S. According to NPR, they receive about 1 percent of its annual budget directly from the federal government -its member stations on average get 10 percent of their funds from the CPB. PBS recently told THE WASHINGTON POST that 16 percent of its budget comes from the government.
What Is Underwriting For Non-Commercial Stations?
Underwriting is a form of sponsorship, allowing businesses and organizations to provide financial support to non-commercial stations in exchange for on-air acknowledgments. However, FCC regulations prohibit traditional commercial advertising on non-commercial radio and TV stations. If underwriting announcements resemble commercial advertising, the FCC can impose fines or revoke a station’s license.
FCC Rules Permit Underwriting Announcements To:
Identify the sponsor (business or organization name).
Provide a factual description of products or services.
Include contact details (phone number, website, or address.
Feature a non-promotional company slogan.
FCC Rules Prohibit Underwriting Messages From:
Using promotional language (e.g., “best coffee in town” or “huge sale this weekend”).
Issuing calls to action (e.g., “visit today” or “call now”).
Mentioning prices or discounts (e.g., “50% off” or “only $9.99”).
Sounding like traditional advertising (e.g., comparisons, endorsements, or persuasive messaging).
The investigation will determine whether any non-commercial stations have violated these regulations. The FCC can’t defund public broadcasters, but an investigation could give CONGRESS the rationale to do so.