Last week, the Federal Communications Commission (FCC) issued fines totaling $3.33 million against Sinclair Broadcast Group and 18 other broadcasters. The fines, which stem from alleged violations of the Children’s Television Act (CTA), focus on the broadcast of Hot Wheels toy commercials during episodes of the "Team Hot Wheels" show. The FCC determined that the airing of commercials related to the program itself transformed the entire episode into a "program-length commercial," a violation of the agency’s rules limiting commercial content in children's programming.

At the heart of the case is the Children’s Television Act, which Congress enacted in 1990 to ensure that children are not overexposed to commercial content on television. The CTA mandates strict limits on the amount of advertising that can be aired during children’s programming—10.5 minutes per hour on weekends and 12 minutes per hour on weekdays. The law also includes provisions designed to prevent "host-selling," which occurs when programs related to a specific product are paired with commercials for that same product, as the FCC alleged happened with the Hot Wheels commercials and “Team Hot Wheels.” 

Sinclair argued for a reduction in fines based on a variety of reasons, including that it voluntarily disclosed the violations as part of its license renewal process, and that it took corrective action after discovering the issue – suggesting that these should be considered mitigating factors, among other arguments. However, the FCC maintained that a reduction in fines was not warranted. 

This case underscores the FCC’s stringent approach to enforcing the Children’s Television Act and serves as a reminder to broadcasters of the importance of robust and effective compliance programs. Whether inadvertent or not, violations of the CTA can result in significant financial penalties, especially when they involve program-length commercials or other content deemed likely to confuse young viewers.