http://money.cnn.com/2004/06/09/news...reut/index.htm
Clear Channel to pay $1.75M FCC fine
Radio station operator will pay a record fine to settle indecency complaints, a source says.
June 9, 2004: 10:50 AM EDT
WASHINGTON (Reuters) - Clear Channel Communications Inc., the biggest owner of U.S. radio stations, plans to admit it aired indecent material and pay a record $1.75 million penalty to settle numerous complaints that include the ones against shock jock Howard Stern, a person familiar with the matter said Wednesday.
Clear Channel is said to face a record $1.75 million fine due to programming such as shock jock Howard Stern.
Clear Channel (CCU: down $0.04 to $37.94, Research, Estimates), which has run afoul with indecency limits previously for the antics of disc jockeys, also plans to agree to take steps to prevent further such incidents, including formalizing its zero-tolerance policy.
The Federal Communications Commission had already proposed three fines against the radio giant and was investigating 14 other incidents, the source said, declining further identification.
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The agency also had numerous other complaints against Clear Channel radio stations that it had not yet acted upon but the agreement, which could be released as early as Wednesday, would "wipe the slate clean," the source said.
"It's not just about the punishment, more importantly it's about the deterrent effect," the source said.
An FCC spokeswoman declined to comment. Clear Channel representatives were not immediately available for comment.
The agency has been cracking down on radio and television stations after a spate of indecency incidents, including pop singer Janet Jackson exposing a bare breast during a national television broadcast earlier this year.
Parents groups and some lawmakers have demanded stations clean up their acts or face higher penalties and possibly lose their broadcast license.
Clear Channel has already clamped down, throwing shock jock Howard Stern's show off six of its stations and adopting a zero tolerance policy against broadcasts that violate the federal standards.
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U.S. radio and television stations are barred from airing obscene material and are limited to airing indecent comments, such as explicit and graphic sexual references, to late night hours when children are less likely to be listening or watching.
Some broadcasters, including Stern, have expressed outrage at the crackdown, arguing that their free speech rights are being violated.
While the penalty is the largest ever negotiated by the FCC for such violations, it would be dwarfed by the $116.5 million Clear Channel earned in the first quarter of 2004