A US senator’s complaint to the FCC accused radio stations of trading airtime for free artist performances. Eighteen months later, that tip has landed iHeartMedia in a settlement, in which the company pledges to overhaul its sponsorship disclosure practices.
The payola complaint came from Senator Marsha Blackburn (R-TN), who wrote to FCC Chairman Brendan Carr in January 2025 alleging that stations were offering artists more airplay in exchange for performing free shows, with an implicit threat of reduced airplay for artists who declined.
The Bureau issued an industry-wide enforcement advisory on the practice days later, and Carr followed up directly with iHeart that February, requesting information tied to the iHeart Country Festival in Austin.
iHeart responded that artists perform at its events for promotional value, comparing the short festival sets to movie trailers, and said radio airplay was never part of the arrangement. The Bureau opened a formal inquiry that May, followed by a supplemental inquiry in February, with iHeart submitting responses across both rounds.
The FCC’s Enforcement Bureau adopted a consent decree on July 8, closing the investigation without a fine. iHeart admits the factual findings in the FCC’s order but makes no admission that it violated any law. The company must name a compliance officer and market-level compliance contacts within 30 days, build a formal compliance plan within 60 days, and train employees who work with artists, managers and labels on sponsorship identification requirements.
The company also agreed to new public-facing disclosures.
For a list of flagship events, including the iHeartRadio Music Festival, the iHeartRadio Music Awards, the iHeartCountry Festival, and iHeart Podcast Awards, along with any qualifying event in ten specific markets, iHeart must post the artist lineup, note that performing may lead to a natural increase in airplay, and disclose whether an artist’s label or representatives helped cover costs of the appearance.
The requirement specifically covers events in Atlanta, Charlotte, Columbus, Grand Rapids, Minneapolis, Nashville, Omaha, Phoenix, Tampa and Washington, DC, as well as the company’s national tentpole events.
In addition, iHeart must also maintain a compliance hotline, retain documentation for at least three years, put whistleblower protections in place, and file compliance reports with the FCC at 120 days, then annually through the three-year term of the decree. The FCC agreed to dismiss any pending third-party complaints related to the investigation and will not use the case to challenge iHeart’s basic qualifications to hold its broadcast licenses.
