The Federal Communications Commission ("FCC") announced that it has entered into a settlement with the Cesar Chavez Foundation, which owns radio stations KNAI-FM and KUFW-FM, resolving allegations that the Foundation violated the FCC's underwriting rules for non-commercial educational broadcasters.
Although non-commercial stations are not permitted to run typical advertising from for-profit companies, they are permitted to include promotional announcements that acknowledge donations in very limited ways. Promotional announcements are not permitted to include many of the elements that you would find in traditional advertising, such as calls to action, pricing information, or comparative advertising.
The Foundation agreed to pay $115,000 to settle the investigation.
The underwriting rules . . . permit noncommercial educational stations to obtain financial support while also protecting the public’s use and enjoyment of commercial-free broadcasts.