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1 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, DC 20554 Complaint of Campaign Legal Center and Sunlight Foundation Against Scripps Media, Inc., licensee of KNXV-TV, Phoenix, AZ For Violations of the Communications Act § 315 and FCC Regulation § 73.1212 ) ) ) ) ) ) ) ) ) ) ) ) To: Enforcement Bureau COMPLAINT The Campaign Legal Center and the Sunlight Foundation file this complaint regarding violations of the Communications Act and the Federal Communications Commission’s (“FCC”) regulations by Scripps Media, Inc., licensee of KNXV-TV. In January 2014, KNXV-TV ran a political ad sponsored by the House Majority PAC (“HMP”). The station failed to disclose information about HMP and the ad in its online political file as required by the Communications Act and the FCC’s regulations. I. Facts A. Parties The Campaign Legal Center is a nonpartisan, nonprofit organization that promotes awareness and enforcement of political broadcasting laws. The Campaign Legal Center’s mission is to represent the public interest in the enforcement of media and campaign laws. Through public education, advocacy for federal rulemaking proceedings, and congressional
Transcript
Page 1: SunlightKNXV-HMPac

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Before the

FEDERAL COMMUNICATIONS COMMISSION

Washington, DC 20554

Complaint of

Campaign Legal Center and Sunlight

Foundation

Against

Scripps Media, Inc., licensee of

KNXV-TV, Phoenix, AZ

For Violations of the Communications Act

§ 315 and FCC Regulation § 73.1212

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To: Enforcement Bureau

COMPLAINT

The Campaign Legal Center and the Sunlight Foundation file this complaint regarding

violations of the Communications Act and the Federal Communications Commission’s (“FCC”)

regulations by Scripps Media, Inc., licensee of KNXV-TV. In January 2014, KNXV-TV ran a

political ad sponsored by the House Majority PAC (“HMP”). The station failed to disclose

information about HMP and the ad in its online political file as required by the Communications

Act and the FCC’s regulations.

I. Facts

A. Parties

The Campaign Legal Center is a nonpartisan, nonprofit organization that promotes

awareness and enforcement of political broadcasting laws. The Campaign Legal Center’s

mission is to represent the public interest in the enforcement of media and campaign laws.

Through public education, advocacy for federal rulemaking proceedings, and congressional

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action, the Campaign Legal Center seeks to shape political broadcasting policies and promote

effective enforcement of the public interest obligations of the media.1

The Sunlight Foundation is a nonpartisan nonprofit that advocates for open government

globally and uses technology to make government more accountable to all. Sunlight

accomplishes these goals at municipal, federal, and international levels by building tools that

empower democratic participation and by working with policymakers and civil society

organizations to employ a technology-centric and transparency-oriented approach to their work.

The Sunlight Foundation has built tools that empower individuals and journalists to better and

more easily understand political spending across the United States, which depend on data found

within broadcast stations' political files and elsewhere.2

KNXV-TV is an ABC-affiliated broadcast station in Phoenix, Arizona. Phoenix is the

12th largest Designated Market Area in the country, serving more than 1.8 million households.3

Scripps Media, Inc., licensee of KNXV-TV, is owned by the E.W. Scripps Company. The E.W.

Scripps Company is headquartered in Cincinnati, Ohio, and is a media conglomerate that deals in

television, newspaper, and digital application and marketing services.4

1 See Campaign Legal Center, http://www.campaignlegalcenter.org (last visited Apr. 3, 2014).

2 For instance, Political Ad Sleuth and Ad Hawk are two such tools. See Political Ad Sleuth,

http://politicaladsleuth.com (a searchable database created from FCC online public file

documents); Ad Hawk, http://adhawk.sunlightfoundation.com (a mobile app allowing

identification of political ads). 3 Local Television Market Universe Estimates, The Nielsen Company, (2013),

http://www.tvb.org/media/file/TVB_Market_Profiles_Nielsen_TVHH_DMA_Ranks_2013-

2014.pdf. 4 Scripps, About Us, http://www.scripps.com/about (last visited Apr. 3, 2014).

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B. The Advertisement

In January 2014, KNXV-TV broadcast a political ad sponsored by HMP.5 HMP is a

Super PAC headquartered in Washington, D.C., that focuses on responding to Republican

advertisements and helping Democrats win seats in the U.S. House of Representatives.6

The HMP ad, entitled “Listens,” refers to U.S. Representative Ann Kirkpatrick.

Kirkpatrick is the current Representative from Arizona’s 1st Congressional District, and is

running for reelection. The ad, transcribed below, refers to flaws in the HealthCare.gov website

and describes Kirkpatrick’s efforts to make sure national health care plans work effectively for

families and businesses.7

[Narrator:] It’s here, in small towns and wide-open spaces, that Ann Kirkpatrick listens and learns. It’s why she blew the whistle on the disastrous health care website, calling it “stunning ineptitude,” and worked to fix it. She fought to hold insurance companies accountable so they can’t deny coverage for pre-existing conditions, or drop coverage when you get sick. Ann Kirkpatrick: seeing what’s wrong, doing what’s right.

HMP ran this and another ad in Tucson and Phoenix, spending over $200,000.8 HMP spent over

$28,000 to broadcast this ad at KNXV-TV for one week.

5 Exhibit A, attached, provides a screenshot of HMP’s website confirming that the ad aired in

Phoenix during January 2014. The ad is available at https://www.youtube.com/watch?v=wlv-

YvK7I98. 6 House Majority PAC, Our Story, http://www.thehousemajoritypac.com/about-us/our-story (last

visited Mar. 4, 2014). 7 See Press Release, House Majority PAC (Jan. 16, 2014),

http://www.thehousemajoritypac.com/news/press-releases/house-majority-pac-unveils-tv-spots-

defending-arizona-reps-kirkpatrick-barber-against-deceptive. 8 Id.

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II. Argument

The HMP ad triggers KNXV-TV’s political file disclosure requirements in the

Communications Act and the FCC’s regulations. KNXV-TV, however, has failed to disclose the

required information.

A. The Communications Act and the FCC’s regulation requirements.

When broadcasters run political ads, they must meet specific disclosure requirements set

forth in the Communications Act and the FCC’s regulations.

Section 315(e)(1) of the Communications Act requires that broadcast licensees maintain

records regarding any request to purchase broadcast time that “communicates a message relating

to any political matter of national importance, including (i) a legally qualified candidate; (ii) any

election to Federal office; or (iii) a national legislative issue of public importance.”9

For such requests, the licensee must disclose “the name of the candidate to which the

communication refers and the office to which the candidate is seeking election, the election to

which the communication refers, or the issue to which the communication refers (as

applicable).”10

The licensee must disclose a list of the purchaser’s “chief executive officers or

members of the executive committee or of the board of directors.”11

Similarly, FCC regulations require licensees to disclose information about paid

broadcasts if those broadcasts concern a “political matter” or discuss a “controversial issue of

public importance,” and the ad is paid for by “a corporation, committee, association or other

unincorporated group, or other entity.”12

In such cases, the FCC also requires a “list of the chief

9 47 USC § 315(e)(1)(B)(i)–(iii) (2014).

10 Id. § 315(e)(2)(E).

11 Id. § 315(e)(2)(G).

12 47 CFR § 73.1212(e). See also id. § 73.1943. Currently, a station in the top-50 designated

market areas and affiliated with a top-four network must upload its political file to the FCC’s

online database; however, all television stations will be required to do so beginning in July 2014.

Standardized and Enhanced Disclosure Requirements for Television Broadcast Licensee Public

Interest Obligations, Second Report and Order, 27 FCC Rcd 4535, 4536–37 (2012).

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executive officers or members of the executive committee or of the board of directors, committee

association or other unincorporated group or other entity.”13

B. The HMP ad triggers the disclosure requirements of § 315(e)(2) of the

Communications Act and § 73.1212(e) of the FCC’s regulations.

The HMP ad triggers the disclosure requirements of § 315(e)(2) of the Communications

Act and § 73.1212(e) of the FCC’s regulations for two reasons. First, the ad references

Representative Kirkpatrick. Kirkpatrick is a “legally qualified candidate” for the U.S. House of

Representatives because she maintains a public campaign website where she collects donations

and issues press releases.14

She also raised over $825,000 for her campaign through February

2014.15

Second, the ad communicates a message relating to both a “national legislative issue of

public importance” and a “controversial issue of public importance” for purposes of the

Communications Act and the FCC’s regulations. The ad discusses health care reform and the

flaws in the HealthCare.gov website. Health care reform is a national legislative and

controversial issue. Through the Affordable Care Act and Healthcare.gov, Congress

implemented comprehensive health care reforms. Health care reform is subject to nationwide

debate and media coverage, and impacts citizens across the entire country.16

It is the

quintessential controversial issue of public importance. Health care reform (and its website,

HealthCare.gov) was President Obama’s key initiative and has been subject to multiple court

challenges, including at the Supreme Court.

13

47 CFR § 73.1212(e). 14

See Kirkpatrick for Arizona, http://www.kirkpatrickforarizona.com (last visited Mar. 4, 2014). 15

See Rebekah L. Sanders, Rep. Ann Kirkpatrick Leads Foes in Donations, AZ Central (Feb. 1,

2014), http://www.azcentral.com/news/politics/articles/20140131kirkpatrick-leads-foes-

donations.html. 16

E.g., Why is Obamacare so controversial?, BBC (Mar. 28, 2014),

http://www.bbc.com/news/world-us-canada-24370967.

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C. KNXV-TV failed to disclose the name of the candidate, the office sought, and the

nationally important issue referred to in the ad.

KNXV-TV uploaded the following to its online political file regarding the sale of airtime

for “Listens”: the contract for the sale of airtime, which discloses rates, dates, and times in

compliance with section 315(e)(2)(A)-(D); and the National Association of Broadcasters (NAB)

Form PB-18, “Agreement Form for Non-Candidate/Issue Advertisements.” Copies of both are

included in Exhibit B.

The station failed to disclose the candidate’s name, the office sought, and the issue

addressed by the ad. The NAB form provides the space to disclose what § 315 requires. The

form asks whether the ad communicates a “message relating to any political matter of national

importance.” The form’s examples of “national legislative issue[s] of public importance” include

the “Affordable Care Act.” Despite these considerations, KNXV-TV indicated that the ad does

not communicate a message of national importance, and therefore did not disclose the candidate,

the office sought, or the issue referred to by the ad. KNXV-TV even attached the “Agreed Upon

Schedule” on page 5, which is only necessary for ads that communicate a message of national

importance.

Similarly, the station failed to list the chief executive officer or members of the executive

committee or the board. The NAB form asks for this information twice, on pages 2 and 3.

KNXV-TV disclosed this information only on page 3, and did so incorrectly. It listed the

“Deputy Director,” Nicholas Pancrazio. A deputy director is not a chief executive officer, nor

does it constitute a list of members of the executive committee or of the board of directors. These

omissions are in violation of the Communications Act and the FCC’s disclosure rules.

Conclusion

The Communications Act and FCC rules are intended to inform the public about the

amount of spending and source of funding when broadcast stations air paid programming

concerning candidates, elections, and political matters of public importance. KNXV-TV has

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failed to disclose this important information. Thus, the Campaign Legal Center and the Sunlight

Foundation respectfully request that the FCC take prompt action to ensure that this information is

made available to the public through KNXV-TV’s public file. We further request that the FCC

take other measures, such as assessing forfeitures and issuing a Public Notice reminding

broadcast stations of their obligations, to ensure that this and other broadcast stations include all

of the legally required disclosures in the future.

Of counsel:

Matthew J. Dulac

Georgetown Law Student

Dated: May 1, 2014

Respectfully submitted,

Eric G. Null

Angela J. Campbell

Andrew Jay Schwartzman

Institute for Public Representation

Georgetown University Law Center

600 New Jersey Avenue, NW

Suite 312

Washington, DC 20001

(202) 662-9535

Counsel for Campaign Legal Center

and Sunlight Foundation

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Exhibit A

This screenshot is from House Majority PAC’s website describes the “Listens” ad, available at:

http://www.thehousemajoritypac.com/news/press-releases/house-majority-pac-unveils-tv-spots-

defending-arizona-reps-kirkpatrick-barber-against-deceptive.

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This screenshot is of the House Majority PAC ad, available at:

https://www.youtube.com/watch?v=wlv-YvK7I98.

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Exhibit B

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