WASHINGTON—The Federal Communications Commission has entered into consent decrees with several broadcasters that resolve a 2018 case relating to violations of rules governing children’s programming.

As part of recent orders and consent degrees issued between July 17 and 22, the FCC also agreed to renew the broadcast TV licenses for stations owned by MPS Media, Mercury Broadcasting, Second Generation of Iowa, Deerfield and Manhan Media, Waitt Broadcasting, New Age Media and GoCom Media.

The investigations stem from violations occurring between Nov. 10 and Dec, 16, 2018, when a commercial for “Hot Wheels Super Garage” was inadvertently aired 11 times during eight 30-minute-long episodes of “Team Hot Wheels.” The FCC found that this violated the Children’s Television Act of 1990 which, among other things, states that a program associated with a product, in which commercials for that product are aired, would be treated as a program-length commercial.

In 2022, the FCC levied $3.3 million in fines and September of 2024 the FCC has released a forfeiture order against 19 station groups covering 113 TV stations for a total $3,334,000 in fines for violations in the case.

The newest consent degrees follow a major settlement in late June of 2024 with Sinclair of various investigations, including violations of children's programming rules in the “Hot Wheels” case. In that settlement, Sinclair did not admit to wrongdoing but agreed to make a voluntary payment of $500,000 and to put systems in place to avoid future violations.

The FCC had initially levied a $2.652 million fine on Sinclair, which was opposed by then-commissioner Brendan Carr, a Republican appointee who is now FCC chair.

As part of the newest consent degrees issued between July 17 and 22, the FCC also agreed to renew the following broadcast licenses:

• Mercury Broadcasting Company, Inc., licensee of full-power television station KMTW, Hutchinson, Kan.
• MPS Media of Tennessee License, LLC, licensee of full-power television station WFLI-TV, Cleveland, Tenn.
• Second Generation of Iowa, LTD, licensee of full-power television station KFXA, Cedar Rapids, Iowa.
• Waitt Broadcasting, Inc., licensee of full-power television station KMEG, Sioux City, Iowa.
• GoCom Media of Illinois, LLC, licensee of full-power television stationn WBUI, Decatur, Ill.
• Deerfield Media’s KBTV-TV in Port Arthur, Texas; KMYS in Kerrville, Texas; WHAM-TV in Rochester, N.Y.; WSTR-TV in Cincinnati; and Manhan Media’s WWHO, Chillicothe, Ohio.
• New Age Media’s WGFL in High Springs, Fla.; WOLF-TV in Hazleton, Pa.,;WQMY in Williamsport, Pa.; and W24DB-D, a Class A station operating as a translator of WOLF-TV.

WASHINGTON, D.C.—The FCC has released a Forfeiture Order against 19 station groups covering 113 TV stations for a total $3,334,000 in fines for violations of rules regarding children’s programming. 

The Forfeiture Order, which rejected broadcasters arguments seeking to reduce penalties originally proposed in 2022, ordered that 19 different station groups pay fines ranging from $20,000 to $2.6 million.  That includes a $2,652,000 fine on Sinclair and $182,000 from Nexstar.  

The Order follows a lengthy investigation and a Notice of Apparent Liability for Forfeiture (NAL) released on September 20, 2022,  in which the Commission found that the broadcasters’ multiple airings of a commercial for a Hot Wheels-themed toy during a Hot Wheels-themed television show fit within the Commission definition of a program-length commercial.

“After considering the responses to the NAL filed by the Respondent Broadcasters,  we find no reason to cancel, withdraw, or reduce the penalties proposed, and we hereby affirm the NAL and its proposed forfeitures for all the broadcasters subject to this Forfeiture Order,” the FCC noted in the Forfeiture Order that was adopted on August 14 and released Sept. 5. 

In a statement FCC chairwoman Jessica Rosenworcel argued that “the Children’s Television Act puts strict limits on advertising during kids’ programming.  There is no question these limits were crossed here, where broadcasters mixed toy commercials with programming and violated our rules.  This is laid out clearly in the underlying unanimous Notice of Apparent Liability that preceded this action. Here we follow through on that earlier effort with a virtually identical Forfeiture Order that involves 19 different station groups and 113 stations. This approach is consistent with our precedent and the principle that failure to follow the law must have consequences.”

Both Republican-appointed commissioners dissented. 

Commissioner Brendan Carr noted that “the forfeiture assessed in this Order may not seem large in the grand scheme. But it illustrates broader problems with the FCC’s approach to enforcement. If we do not fix them, the courts will.”  

Carr noted that “in this case, Sinclair aired a 30-minute children’s program titled Team Hot Wheels. As the name suggests, this is a children’s TV show based around Mattel’s Hot Wheels line of toys. Standing alone, Team Hot Wheels constitutes qualifying children’s programming under federal law and, as a general matter, broadcasting that program does not constitute a violation of any rules. Sinclair also aired a commercial advertisement for Hot Wheels toys.  Again, standing alone, there is no general FCC prohibition on broadcasting those types of commercials. The problem—and the violation in this case—arose because Sinclair combined the two.”

“At bottom, there is no question in this case that Sinclair exceeded the FCC’s limits on commercial material in children’s programming," Carr explained. " A technical error at its central facility caused the broadcaster to insert those ads for Hot Wheels toys during the kids’ show Team Hot Wheels. This happened 11 times over a single month in 2018.  After discovering this, Sinclair fixed the error and disclosed it to the Media Bureau. Ordinarily, the parties would have entered a consent decree and the licensee would have agreed to a penalty. After all, nobody disputes that a violation took place. But that is not what happened here.  Rather than settle what everyone understood to be a short-lived error, the FCC decided to throw the book and impose a forfeiture of $2,652,000.”

“Today’s $2.652 million penalty is not how any of this should work under the law,” Carr concluded. “Our enforcement practices are at a fork in the road after the Supreme Court’s latest string of administrative law decisions. As I’ve said before, it is time for the FCC to start the process of fundamentally reforming our enforcement practices—lest the courts step in, including in cases where bad actors deserve accountability. I think the days are numbered for FCC enforcement decisions that rest on stacked penalties, creative math, surprise standards, and extraneous behavioral conditions.”

The full Order with the commissioners statements is available here. 

WASHINGTON—The Federal Communications Commission today by a 4-0 vote adopted an order and Notice of Proposed Rulemaking to open C-band downlink spectrum for flexible use, including deployment of 5G services in the mid-band.

The action, taken during the FCC’s monthly Open Meeting, makes available 500 MHz between 3.7 and 4.2 GHz for flexible use to encourage development of advanced wireless services, including 5G.

FCC Commissioner Brendan Carr noted the rapidly growing demand of consumers for mobile data, noting that today’s monthly total exceeds 1 exabyte, and echoed the sentiments of his three fellow commissioners about the urgency of finding more spectrum to meet that demand.

INFORMATION GATHERING

The order requires fixed satellite service earth station operators in the 3.7-4.2 GHz band to certify their existing registration and license information. It also requires collection of information from space station licensees on their use of the band. The FCC will use the information to find the most efficient way to drive use of the band for 5G, IoT and other service, while protecting incumbents.

The NPRM proposes adding a mobile allocation to all 500 MHz identified for C-band flexible use and asks for comments on different proposals, including market-based, auction and other mechanisms, for bringing flexible use to the band.

It also seeks comment on allowing more intensive point-to-multipoint fixed use in a portion of the band on a shared basis as well as on ways to protect incumbents from harmful interference.

[Read: Rep. Cole: Noncoms Must Be Protected In C Band Sharing]

Commissioner Jessica Rosenworcel said the agency must do even more to make spectrum available, including freeing the 3.5GHz band that for years has been “ready to go” but remains “mired in the agency’s bureaucracy.” Rosenworcel called for publication of a spectrum calendar that puts “every band on a schedule for all to see,” and removes the opaqueness regarding when certain bands will become available for more intensive use.

In response, the NAB reminded the commission of the value of C-band services for broadcasting.

“Nearly every American depends on C-band satellite spectrum to receive radio and television programming,” the association said. “The FCC should tread lightly when looking at repurposing even more spectrum for the commercial wireless industry. Slogans and promises are what led the FCC to repurpose spectrum for Dish, and that spectrum still sits fallow. NAB looks forward to working with the Commission to take a close look at widespread existing uses of C-band spectrum, and determining the best path forward.”

TWEAKING EAS

The agency also took steps to enhance the nation’s emergency alerting systems during the meeting. It adopted a Report and Order laying out procedures for authorized state and local officials to conduct “live code” tests of the Emergency Alert System using the codes and processes used during an actual emergency.

Commissioner Michael O’Rielly opposed the use of actual EAS tones for these tests. “Americans should not fear they are in imminent danger,” he said. While voting to approve the item, O’Rielly dissented to this portion of the R&O.

[Read: Missouri The Next State To Conduct A Solo EAS/WEA Test]

However, the other commissioners generally expressed that using the actual codes will increase the proficiency of local alerting officials and educate the public about how to respond to an actual alert. The R&O requires steps to coordinate and plan the tests as well as disclaimers to inform the public that such warnings are only test.

The item also authorizes Public Service Announcements using the two-tone attention signal and the simulated header code of three audible tones that come before the attention signal as long as an appropriate disclaimer is included in the PSA.

The R&O gives EAS participants 24 hours to report any false emergency alert message to the FCC operations center.

KIDVID FOR THE 21ST CENTURY

The agency also adopted a Notice of Proposed Rulemaking aimed at modernizing so-called Kid Vid rules set up in 1996 as directed by the Children’s Television Act.

The genesis of the NPRM is the dramatic transformation in the way children are accessing content. Rather than relying almost exclusively on TV as in 1996, today’s kids can find content on dedicated children’s channels carried by MVPDs, on multicast broadcast channels, and over the top, said O’Rielly, who is spearheading the changes.

NAB applauded the move.

“NAB thanks the FCC for its proposal to update children’s television programming rules and Commissioner O’Rielly for his leadership on this issue,” the association said in a statement. :Broadcasters remain committed to delivering educational programming to kids. But given the seismic changes in how children consume media, it makes perfect sense for the Commission to take a fresh look at these regulations. We will work with the FCC and other stakeholders to craft common-sense, flexible and effective rules that allow local TV stations to continue serving the educational needs of children.”