Underwriting

Last Updated on January 15, 2025 by Content Director

Noncommercial educational (NCE) radio stations, including most FCC-licensed student radio stations, are prohibited from airing traditional commercial advertisements. This restriction ensures that these stations maintain their educational focus and operate in the public interest.

Understanding Underwriting Announcements

While NCE stations cannot broadcast commercials, they are permitted to acknowledge contributions from sponsors through underwriting announcements. These acknowledgments must adhere to specific FCC guidelines to avoid being classified as promotional content.

Prohibited Content in Underwriting Announcements

To comply with FCC regulations, underwriting announcements must avoid the following:

• Calls to Action: Directives encouraging listeners to take specific actions are not allowed. For example:
  • “Call XYZ Automotive today.”
  • “Visit our store at 123 Main Street.”
• Price Information: Mentioning prices, discounts, or any financial incentives is prohibited. For instance:
  • “Get an oil change for only $19.95.”
  • “Free consultation with every purchase.”
• Comparative or Promotional Language: Statements that compare the sponsor to others or promote their superiority are not permitted. Examples include:
  • “We are the number one car dealer in the county.”
  • “The best service in town.”
• Detailed Product or Service Listings: Providing extensive lists of products or services can be considered promotional. For example:
  • “We offer Pennzoil, Quaker State, XYZ, CCC, SSS, and QQQ oils.”

Permissible Content in Underwriting Announcements

Underwriting announcements can include:

• Sponsor Name: Identifying the sponsor by name.
• Value-Neutral Descriptions: Brief, factual descriptions of the sponsor’s products or services without promotional language.
• Brand Slogans: Established slogans that are not promotional.
• Location Information: The sponsor’s address or website, provided it’s presented factually without urging action.

Consequences of Non-Compliance

Violations of these guidelines can lead to FCC enforcement actions, including fines and other penalties. It’s crucial for NCE stations to train staff and volunteers to recognize and adhere to these regulations to maintain compliance.

Additional Resources

For more detailed information, refer to the FCC’s guidelines on the noncommercial nature of educational broadcasting.

Disclaimer

This overview is for general informational purposes and should not be considered legal advice. For specific legal guidance, consult a qualified attorney experienced in communications law.

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