The NAB is challenging the FCC’s new foreign sponsorship identification rule changes under the Paperwork Reduction Act of 1995. The NAB continues to argue that these requirements violate federal law while placing an excessive burden on broadcasters.
The rules, which took effect on August 15, require broadcasters to verify that airtime lessees are not affiliated with foreign governments, extending obligations to specific types of advertising such as political issue ads and public service announcements, in addition to traditional leases.
In its November 4 filing, the NAB argues that the FCC’s expanded rule violates the Communications Act of 1934. The organization asserts that Congress has not granted the FCC authority to regulate lessees’ content or to require broadcasters to verify the identities of their lessees beyond typical sponsorship identification.
The NAB contends that the FCC’s rule imposes a content-based restriction, which unfairly singles out political issue ads and PSAs for foreign sponsorship checks, while commercial advertisements remain unaffected. By focusing on specific types of content, the FCC is allegedly discriminating against certain forms of speech, which violates the First Amendment.
The filing goes on to say that the FCC has significantly underestimated the number of broadcasters and lessees affected by the rule change. In its proposal, the FCC assumes a minimal impact, but data suggests that in 2024 alone, over half a million political issue ads were uploaded to broadcasters’ online public inspection files.
According to the NAB, the FCC’s estimated compliance time – ranging from as little as four seconds per response – is unrealistic, especially when assuming no need for legal assistance.
In addition, the NAB warns that including political issue ads and PSAs may deter smaller community organizations from using broadcast media due to increased compliance burdens. The NAB notes that the FCC hasn’t shown that foreign entities are using these ads to influence US broadcasts, making this added requirement unnecessarily restrictive.
The rule requires broadcasters to obtain and store certifications from lessees verifying non-foreign status, accessible to the public. The NAB argues this is especially burdensome for small broadcasters, as it demands proof of compliance for each agreement, disrupting regular operations. Many broadcasters, especially smaller stations, may need to hire legal help to manage these requirements, raising further compliance costs and straining limited budgets.
The NAB urges the FCC to revert to the 2021 rule, focusing on leases alone, and to adjust its impact estimates. They recommend removing certification requirements for political and PSA ads or providing exemptions for smaller stations. If implemented, NAB suggests automation and flexibility in sponsorship ID requirements to ease compliance.
