FCC Chairman Brendan Carr to Launch Investigation into New “Payola Scheme” Allegedly Used by Radio Stations

Last week, the Federal Communications Commission launched an investigation into public broadcasting companies PBS and NRP. Now, it looks like the FCC will be launching an investigation into multiple terrestrial radio stations after Tennessee Senator Marsha Blackburn urged the agency to look into a new form of illegal pay-for-play scheme she alleges is happening.

Videos by American Songwriter

FCC chairman Brendan Carr shared the letter he received from Senator Blackburn on Twitter yesterday (February 3). “Thank you Senator Blackburn for raising this important issue regarding Payola schemes perpetrated by broadcasters,” Carr wrote in the tweet. “This conduct hurts America’s songwriters & musicians. I’ve asked our Enforcement Bureau to examine this & will provide an update here this week,” he added.

[RELATED: The FCC Received Over 100 Pages of Complaints About Rihanna’s Super Bowl Halftime Performance]

Thank you Senator Blackburn for raising this important issue regarding Payola schemes perpetrated by broadcasters.

This conduct hurts America’s songwriters & musicians.

I’ve asked our Enforcement Bureau to examine this & will provide an update here this week. @MarshaBlackburn pic.twitter.com/VzfAvYrxGJ

— Brendan Carr (@BrendanCarrFCC) February 3, 2025

Senator Blackburn Urges the FCC to Launch a New Investigation

Senator Blackburn wrote Chairman Carr a letter bringing attention to what she called “an issue critically impacting Tennessee’s content creators, particularly its songwriters and music community.”

“Federal law prohibits stations from accepting payment for airtime without disclosing the transaction—a practice commonly known as ‘payola,’” she wrote in the letter. Payola, she pointed out violates the Sponsorship Identification Rules.

Then, she went on to describe what she called a “troubling new tactic” used by radio stations. “Instead of demanding cash or lavish perks from record labels in exchange for airplay, they now pressure artists to perform ‘free radio shows’ also referred to as ‘listener appreciation shows’ or ‘charitable concert events,’” Blackburn explained.

Blackburn alleged that radio stations and networks offer more airplay to artists who play free shows. Moreover, she alleges that “There is often an implicit suggestion that declining to perform could result in reduced airplay.” She added that radio stations financially benefit from the shows through sponsorship deals and ticket sales while the artists and record companies “absorb the expense.”

The senator went on to say that artists at all levels play dozens of these free shows every year. However, newer artists tend to play more free shows hoping to get more airplay to bolster their fledgling careers.

“Federal law and FCC rules prohibit radio stations from receiving undisclosed compensation for broadcasting songs, and this principle must extend to free performances for radio stations and networks,” she wrote.

Blackburn ended the letter by urging Carr and the FCC to launch an investigation into an alleged new form of payola. “I urge you to take swift action to end this abuse and protect our music community,” she wrote.

Featured Image by Chip Somodevilla/Getty Images