An LPFM in central Virginia has entered into a consent decree with the FCC to renew its license after it was found to have violated the commission’s underwriting laws.
Charlottesville’s 101.3 WVAI(LP) is licensed to Air Mix Virginia and is known as “101 Jamz.” The 21-watt LPFM station runs a hip-hop/R&B format.
Notably, WVAI was not issued a monetary forfeiture and its renewal appears to be for the full eight-year term. That’s unlike 97.9 WREN(LP), a Charlottesville LPFM that agreed to a decree with the commission last year under similar circumstances. That station, licensed to Genesis Media, had to pay a civil penalty of $1,000 under a shortened two-year renewal term.
Back in September 2019, Saga’s Tidewater Communications, which owns six stations in the Charlottesville market, filed a consolidated petition to deny the WVAI renewal. The filing also contained petitions against the renewals of four additional LPFMs in central Virginia: WREN, 92.3 WXRK(LP) and 94.7 WPVC(LP), each licensed to Charlottesville, as well as 96.5 WKMZ(LP) in Ruckersville.
The WPVC and WKMZ licenses were subsequently cancelled.
Tidewater cites examples of underwriting violations
LPFMs are not permitted to broadcast any advertisements or any programming material aired “in exchange for any remuneration” and intended to “promote any service, facility or product” of for-profit entities.
Tidewater alleged that WVAI was regularly broadcasting commercials that were in violation of the laws.
The commission sent a letter of inquiry to WVAI in June 2020, requesting additional information, which it provided.
Subsequently, Tidewater submitted another informal objection, alleging that WVAI continued to violate the underwriting guidelines. In the objection, Tidewater included October 2020 audio recordings of announcements that it said were in violation.
Tidewater submitted example spots WVAI aired for Elite Audio, Price Hyundai, Price Kia, Outback Steakhouse and Free Bridge Auto. The text of the Hyundai spot is below:
“With get in, get out shopping, purchasing a vehicle can be done from your home. With delivery of your selection payment deferral is available too, plus Hyundai assurance now includes three years scheduled maintenance. The show room is open if you do want to come in with the Kona and Ionix all electrics now in stock. That’s Price Hyundai, 29 north and at Jim Price Hyundai dot com.”
Tidewater pointed to the case of WWRI(LP) in Coventry, R.I. Owner Marconi Broadcasting Foundation paid a $15,000 civil penalty and also agreed to a compliance plan.
In light of what it argued were multiple violations, Tidewater requested the commission deny WVAI’s renewal.
An “elaborate sham”
The five Charlottesville LPFMs that Tidewater originally filed its petition against all operated under different licensees, as per FCC rules. But just like in the WREN case, Tidewater raised concerns that the stations formed the Virginia Radio Co-op, allowing them to use the same transmitter site, antenna, studio and office facilities. Tidewater alleged the stations may have used the operating agreement to collaborate and consult with each other about their LPFM applications.
It also raised concerns about the sale of underwriting announcements by licensees associated with the Co-op.
“It is unquestioned that all of the LPFM stations are marketed together by an entity known as Experience Media,” Tidewater wrote in its initial 2019 petition. That entity was ultimately replaced by one named Experience Sales.
Tidewater attached a copy of promotional literature for the company, which included a rate card showing the cost of advertising on four of the five LPFM stations it filed the petition against.
“The reality is that this is merely an elaborate sham designed to give the appearance of compliance with the commission’s rules and policies, while operating a commercial enterprise,” Tidewater claimed.
Commission expresses concern, arrangement akin to shared services
According to the commission’s account, Air Mix Virginia said no programming aired on WVAI had been under the control or agreement of anyone other than itself, and that the Co-op had no involvement in station decision-making.
It said that the marketing materials put out by Experience Media/Sales “did not indicate that the purchase of underwriting announcements on one station was tied to the purchase of announcements on any other station or that a discount was being offered for the purchase of underwriting announcements on more than one of the stations,” according to the FCC’s findings.
“We note, though, that we remain concerned about these types of arrangements and will subject any similar arrangements to careful scrutiny going forward,” the Media Bureau wrote.
As far as its underwriting announcement distribution, Air Mix Virginia told the commission that it “sets the price for its underwriting spots, is free to reject spots and indeed has rejected spots” that Experience Media/Sales provided.
The commission compared the overall arrangement to a shared-services agreement.
License renewed under the decree
“We remain troubled by this type of arrangement, and will continue to subject any similar agreements to careful review,” the commission wrote of the Charlottesville LPFMs.
Ultimately, though, the commission did not find WVAI in any violation in terms of cross-ownership limits or locally originated programming requirements.
It found that the public interest would be served if it agreed to a consent decree with Air Mix Virginia for violations of its underwriting laws in order to renew its license. By virtue of the agreement, WVAI admitted it violated the laws.
The commission concluded its investigation as a result. Air Mix Virginia must develop a compliance plan to ensure future adherence to underwriting laws, which includes staff training. Reports must be filed within 90 days of the start date, a year after the start date and then again in 2027.
(Read the commission’s memo and order on the WVAI consent decree.)
