Spitzer, CBS Settle Payola Allegations

An agreement has been reached between New York Attorney General Eliot Spitzer and CBS Radio over payola allegations.
CBS will institute some reforms and pay $2 million to not-for-profit entities to fund music education, Spitzer’s office said.
In response, FCC Commissioner Jonathan Adelstein said in a statement he commended Spitzer for the “breakthrough” and said the settlement “should provide new fuel to drive the FCC payola investigation to completion. Since payola saps the vitality out of radio, this is a win not only for listeners everywhere, but also for the radio industry itself.”
The development follows earlier settlements between Spitzer’s office and SonyBMG, Warner, Universal and EMI.
Separately, Entercom said this week said a New York State Supreme Court judge allowed Spitzer’s payola lawsuit against the broadcaster to go forward and denied Entercom’s motion to dismiss the suit.