Clear Channel Concludes Internal Investigation Into Payola
October 11, 2005 at 4:09 PM (PT)
CLEAR CHANNEL COMMUNICATIONS today announced the results of an internal investigation into the allegations raised in the wake of the payola legal settlement between NEW YORK STATE Attorney General ELIOT SPITZER and SONY BMG. The SPITZER/SONY BMG settlement alleged that some CLEAR CHANNEL RADIO programmers engaged in illegal pay-for-play activities.
After what the company has called a “thorough investigation,” evidence of wrongdoing was apparently found in two instances and CLEAR CHANNEL has dismissed those individuals from the company. In other instances, the company found evidence of “inappropriate conduct,” and those individuals have been the subject of “disciplinary action.” The company will not be releasing the names of those who were a subject of the investigation, terminated or given disciplinary or other punitive action.
“We take this issue very seriously and our policy is clear: If you engage in pay-for-play, you cannot work for CLEAR CHANNEL,” said CLEAR CHANNEL RADIO CEO JOHN HOGAN. “We believe the vast majority of our programmers are doing a terrific job, fully within the law.”
Additionally, to ensure such behavior does not occur again, all CLEAR CHANNEL RADIO programmers and general managers will receive extra education on the company’s anti-payola policies. In addition, the payola affidavits that are signed annually by programming personnel are being revised to be more explicit about activities that are not permitted under the policy.