The FCC’s Media Bureau has repealed the COVID-related guidance issued in March 2020, which allowed broadcasters and other media companies to offer free advertising time without considering it in the calculation of Lowest Unit Rates (LUR) during pre-election periods. The guidance was provided to support struggling local businesses during the pandemic when the advertising market collapsed.
Broadcasters were permitted to give free ad time as long as it was not tied to an advertising contract. With the end of the pandemic emergency, the FCC believes this accommodation can be discontinued. However, there may still be limited circumstances where broadcasters can offer free time without LUR implications, such as when the advertiser is not currently running ads on the station. It is advisable to consult with an attorney to determine the applicability of these exceptions.
More details are available in David Oxenford’s latest Broadcast Law Blog post.
