Podcasters and Broadcasters – Disclose Those Sponsors!

By: David Oxenford (The Broadcast Law Blog)

This week, I attended the Podcast Movement Annual Convention, held this year in the DC area. As always, the convention was a great opportunity to catch up with industry peers and observe emerging trends—AI, unsurprisingly, was a popular topic across multiple panels, as it is at nearly every media event these days. The event also served as a reminder that amidst the recent focus on FCC and other regulatory issues, we haven’t discussed podcasting as much lately. In the past, we’ve covered various podcast-related topics, including the use of music in podcasts (see our previous articles here, here, and here). We’ve also addressed legal considerations like obtaining guest releases, clarifying podcast ownership (especially relevant if the Federal Trade Commission’s proposed ban on noncompete agreements takes effect, which could lead to shifts in podcast-related employment—though a recent court decision challenging the ban may delay its implementation), and other matters I’ve previously presented at this very conference.

Today, I want to revisit a topic from my earlier coverage of podcasting legal issues—one that’s gained renewed importance due to a recent FTC ruling: sponsorship identification.

Broadcasters are well-acquainted with the FCC’s requirements for identifying sponsors who provide something of value in exchange for airtime. Failing to comply can result in fines, as highlighted in past cases we’ve discussed (see examples here and here). However, many broadcasters may be less familiar with the FTC’s stricter rules on sponsorship identification, which cover additional aspects like the truthfulness of endorsements and testimonials. FTC enforcement can be just as stringent—if not more so—than the FCC’s, as shown in the fines imposed two years ago on Google and a broadcaster for DJs promoting Pixel phones they hadn’t actually used. Last week, the FTC expanded its rules by adopting a final regulation prohibiting the purchase and sale of fake reviews and testimonials for products and services. The new rule allows the agency to seek civil penalties against violators and targets activities such as buying or selling fake consumer reviews, manipulating reviews without disclosing insider relationships, creating deceptive company-controlled review websites, and suppressing negative reviews.

We’ll be writing more about this FTC decision soon, but it’s crucial to note that these rules apply equally to podcasters and any other online content creators…

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