*Pages 1--5 from Microsoft Word - 19182.doc* Federal Communications Commission DA 00- 268 Federal Communications Commission Washington, D. C. 20554 In reply refer to: 1800E1- LG Facility I. D. No. 68883 February 10, 2000 Released: February 11, 2000 CERTIFIED MAIL - RETURN RECEIPT REQUESTED United Television, Inc. Licensee, Station KMSP- TV 11338 Viking Drive Eden Prairie, MN 55344 Dear Licensee: This letter constitutes a NOTICE OF APPARENT LIABILITY FOR FORFEITURE in the amount of fourteen thousand dollars ($ 14,000), pursuant to Section 503( b) of the Communications Act of 1934, as amended, 47 U. S. C. § 503( b), for repeated violations of the Commission's Rule limiting the amount of commercial matter that may be aired during children's programming. In the Children's Television Act of 1990, Pub. L. No. 101- 437, 104 Stat. 996- 1000, codified at 47 U. S. C. Sections 303a, 303b and 394, Congress directed the Commission to adopt rules, inter alia, limiting the amount of commercial matter that television stations may air during children's programming and to consider, in its review of television license renewals, the extent to which the licensee has complied with such commercial limits. Accordingly, the Commission adopted Section 73.670 of the Rules, 47 C. F. R. § 73.670, which limits the amount of commercial matter which may be aired during children's programming to 10.5 minutes per hour on weekends and 12 minutes per hour on weekdays. The Commission also reaffirmed and clarified its long- standing policy against "program- length commercials." The Commission defined a "program- length commercial" as "a program associated with a product, in which commercials for that product are aired," and stated that the entire duration of any program- length commercial would be counted as commercial matter for the purpose of the children's television commercial limits. Children's Television Programming, 6 FCC Rcd 2111, 2118, recon. granted in part, 6 FCC Rcd 5093, 5098 (1991). The commercial limits became effective on January 1, 1992. Children's Television Programming, 6 FCC Rcd 5529, 5530 (1991). On December 1, 1997, you filed a license renewal application (FCC Form 303- S) for station KMSP-TV, Minneapolis, Minnesota (File No. BRCT- 971201LB). In response to Section III, Question 4 of 1 Federal Communications Commission DA 00- 268 2 that application, you certify that, during the previous license term, station KMSP- TV failed to comply with the limitations on commercial matter in children's programming specified in Section 73.670 of the Commission's Rules. You refer to Exhibit C of the renewal application, where you indicate that station KMSP- TV exceeded the children’s television commercial limits on 12 occasions between January 12, 1994, and October 19, 1997. Of those commercial overages, one was one was ten seconds in duration, one was 15 seconds in duration, two were 30 seconds in duration and eight were program- length commercials. You attribute the four conventional overages to inadvertence and human error on the part of station KMSP- TV’s staff, whereas you claim that the program- length commercials resulted from errors on the part of a program distributor. Station KMSP- TV's record of exceeding the Commission's commercial limits on children's television programming on 12 occasions during the last license term constitutes a repeated violation of Section 73.670 of the Commission's Rules. Accordingly, pursuant to Section 503( b) of the Communications Act, you are hereby advised of your apparent liability for forfeiture in the amount of fourteen thousand dollars ($ 14,000) for station KMSP- TV’s apparent repeated violation of Section 73.670 of the Commission's Rules. The amount specified was reached after consideration of the following criteria: (1) the number of instances of commercial overages; (2) the length and nature of each such overage; (3) the period of time over which such overages occurred; (4) whether or not the licensee established an effective program to ensure compliance; and (5) the specific reasons that the licensee gives for the overages. These criteria are appropriate in analyzing violations of the commercial limits during children's programming since they take into account, inter alia, "the nature, circumstances, extent, and gravity of the violation, and, with respect to the violator, the degree of culpability," as required under § 503( b)( 2)( D) of the Communications Act. 1 As noted supra, station KMSP- TV exceeded the children's television commercial limits on 12 occasions, including eight program- length commercials. Overages of this number and nature mean that children have been subjected to commercial matter greatly in excess of the limits contemplated by Congress when it enacted the Children's Television Act of 1990. Children's Television Programming, supra, 6 FCC Rcd at 2117- 18. We note, here, that Congress was particularly concerned about program- length commercials because young children often have difficulty distinguishing between commercials and programs. S. Rep. No. 227, 101st Cong., 1st Sess. 24 1 In United States Telephone Ass'n. v. FCC, 28 F3rd 1232 (D. C. Cir. 1994), the U. S. Court of Appeals for the District of Columbia set aside Policy Statement, Standards for Assessing Forfeitures, 6 FCC Rcd 4695 (1991), recon. denied, 7 FCC Rcd 5339 (1992), revised, 8 FCC Rcd 6215 (1993), stating that the guidelines for assessing forfeitures established therein must be subject to public comment to comply with the Administrative Procedure Act. In accordance with the court's decision, the Commission released Forfeiture Guidelines - Notice of Proposed Rulemaking in CI Docket No. 95- 6, 10 FCC Rcd 2945 (1995). After receiving and considering comments from the public in that proceeding, the Commission adopted Forfeiture Guidelines - Report and Order in CI Docket No. 95- 6, 12 FCC Rcd 17087 (1997) (Forfeiture Guidelines). Forfeiture Guidelines became effective on October 14, 1997. 62 Fed. Reg. 43474 (August 14, 1997). However, with regard to (i) all cases pending when Forfeiture Guidelines was adopted, and (ii) all cases involving "violations arising from facts that occurred before the effective date of th[ at] order," forfeiture amounts are to be assessed "under the case- by- case approach in effect when the violation occurred," in conformity with the standards set out in Section 503 of the Communications Act. Id. at 17108- 9. 2 Federal Communications Commission DA 00- 268 3 (1989). Given this Congressional concern, the Commission made it clear that program- length commercials, by their very nature, are extremely serious violations of the children's television commercial limits, stating that the program- length commercial policy "directly addresses a fundamental regulatory concern, that children who have difficulty enough distinguishing program content from unrelated commercial matter, not be all the more confused by a show that interweaves program content and commercial matter." Children's Television Programming, supra, 6 FCC Rcd at 2118. Accordingly, the Commission has routinely assessed higher forfeitures for program- length commercials than for a greater number of conventional overages. See, e. g., Channel 39 Licensee, Inc. (WDZL( TV)), 12 FCC Rcd 14012, 14015 n. 3. (1997). The violations occurred, moreover, over an extended period of approximately three years and nine months. When it delayed the effective date of Section 73.670 of the Rules from October 1, 1991, until January 1, 1992, the Commission stated that "giving the additional time to broadcasters and cable operators before compliance with the commercial limits is required will have the effect of enabling broadcasters and cable operators to hone their plans to ensure compliance . . . ." Children's Television Programming, 6 FCC Rcd at 5530 n. 10. Based on the information contained in station KMSP- TV’s renewal application, it is apparent that you initially failed to establish an effective program to ensure compliance with the commercial limits. Further, the reasons offered for the violations do no excuse or mitigate them. Specifically, the fact that the eight program- length commercials appear to have occurred due to errors made by program distributors does not absolve you of responsibility for those violations. The Commission has consistently held that a licensee's reliance on a program's source or producer for compliance with our children's television rules and policies will not excuse or mitigate violations which do occur. See, e. g., Max Television of Syracuse, L. P. (WSYT( TV)), 10 FCC Rcd 8905 (MMB 1995); Mt. Mansfield Television, Inc. (WCAX- TV), 10 FCC Rcd 8797 (MMB 1995); Boston Celtics Broadcasting Limited Partnership (WFXT( TV)), 10 FCC Rcd 6686 (MMB 1995); WRGB Broadcasting, Inc., MMB Admonition dated August 10, 1994. Likewise, the Commission has repeatedly rejected inadvertence and human error, the only reasons cited for the four remaining violations, as bases for excusing violations of the children's television commercial limits. See, e. g., LeSea Broadcasting Corp. (WHMB- TV), 13 FCC Rcd 2751 (1998); Buffalo Management Enterprises Corp. (WIVB- TV), 10 FCC Rcd 4959 (MMB 1995); Act III Broadcasting License Corp. (WUTV( TV)), 10 FCC Rcd 4957 (MMB 1995); Ramar Communications, Inc. (KJTV( TV)), 9 FCC Rcd 1831 (MMB 1994). Given all of these considerations, the violation of Section 73.6 70 of the Commission's Rules by station KMSP- TV on 12 occasions, including eight program- length commercials, warrants a forfeiture in the above- specified amount of $14,000. This forfeiture amount is consistent with the forfeitures assessed in other, similar cases. For example, in WPIX, Inc. (WPIX( TV)), 14 FCC Rcd 9077 (MMB 1999), we assessed a $14,000 forfeiture for 14 violations of the commercial limits. The violations in that case consisted of two overages less than 30 seconds in duration, two 30- second overages, one three- minute overage, one five and one- half- minute overage and eight program- length commercials, which occurred over a period of almost four years. The licensee of station WPIX( TV) attributed the violations to inadvertence and human error on the part of the station’s staff and a television network and program distributor/ syndicator, and claimed to have taken steps to prevent future violations. In another case, WPTT, Inc. (WCWB( TV)), DA 99- 1724 3 Federal Communications Commission DA 00- 268 4 (MMB rel. Aug. 27, 1999), we assessed a $14,000 forfeiture for eight violations of the commercial limits, all program- length commercials, which occurred over a period of more than three years and six months. There, too, the licensee asserted that inadvertence and human error on the part of station WCWB( TV) 's employees and a program syndicator caused the eight violations, and that corrective measures had been taken by station WCWB( TV) following each incident to ensure future compliance with the children's television commercial limits. When compared, several similarities may be drawn between WPIX, Inc., WPTT, Inc. and the instant case. The violations in all three cases occurred over an extended period of at least three years, and the licensees offered similar explanations for their respective violations. Furthermore, even though station WPIX( TV) reported a slightly higher number, and station WCWB( TV) reported a slightly lower number, of total violations than station KMSP- TV, all three stations reported the same number of program- length commercials. For all of these reasons, we find station KMSP- TV’s violations, on balance, to be comparable to those at issue in WPIX, Inc. and WPTT, Inc., and conclude that an appropriate, comparable forfeiture is in the amount of $14,000. You are afforded a period of 30 days from the date of this letter "to show, in writing, why a forfeiture penalty should not be imposed or should be reduced, or to pay the forfeiture. Any showing as to why the forfeiture should not be imposed or should be reduced shall include a detailed factual statement and such documentation and affidavits as may be pertinent . . . ." Section 1.80( f)( 3) of the Commission's Rules, 47 C. F. R. § 1.80( f)( 3). Other relevant provisions of Section 1.80( f)( 3) of the Commission's Rules are summarized in the attachment to this letter. Notwithstanding the substantial nature of the violations described here and the severity with which we regard them, we find you qualified to remain a Commission licensee and conclude that grant of your application would serve the public interest, convenience and necessity. Therefore, the license renewal application of United Television, Inc., for station KMSP- TV, Minneapolis, Minnesota, File No. BRCT- 971201LB, IS HEREBY GRANTED, subject to the condition that, on December 31, 2006, or by such other date as the Commission may establish in the future under Section 309( j)( 14)( A) and (B) of the Communications Act, the licensee shall surrender either its analog or its digital television channel for reallocation or reassignment pursuant to Commission regulations. The channel retained by the licensee will be used to broadcast digital television only after this date. FEDERAL COMMUNICATIONS COMMISSION Roy J. Stewart Chief, Mass Media Bureau Enclosure 4 Federal Communications Commission DA 00- 268 5 cc: Marvin J. Diamond, Esq. 5