FCC Chief Delays Vote on Liquor Ad Inquiry

The nation’s top broadcast regulator agreed Monday to delay until July a vote on whether the Federal Communications Commission should open an inquiry into liquor advertising on radio and television.

FCC Chairman Reed Hundt said he removed the item from Thursday’s agenda at the request of Commissioner Rachelle Chong.

Chong and Commissioner James Quello have argued that the FCC does not have jurisdiction over liquor advertising. They maintain that the Federal Trade Commission is best suited to take up the issue. The FTC regulates advertising.

Hundt said he decided to delay the vote because the FCC has a tradition of allowing a commissioner to strike an item from its agenda. “Although I do not agree with her reasoning, I think the tradition is a sound one,” he said.

His action was a setback for consumer activists seeking to ban liquor ads on TV. More than 200 citizen groups, a dozen state attorneys general and 26 lawmakers have asked the FCC to conduct the inquiry. On Friday, U.S. Atty. Gen. Janet Reno urged the FCC to conduct the inquiry, saying, “I believe that the introduction of hard liquor advertising onto television and radio are matters that require careful study.”

The liquor industry dropped a 48-year-old voluntary ban on broadcast advertising last year.

There is no assurance that the inquiry will move forward in July. Besides Hundt, Susan Ness is the only commissioner who supports opening the inquiry. A 2-2 deadlock will not be enough to open the inquiry. There is one vacancy on the commission.

A month may give Hundt time to break the logjam, but even if he cannot, an immediate flood of liquor ads would be unlikely. People on both sides of the issue say broadcasters would probably move slowly to accept such ads, so long as the public debate continues.

Although several independent broadcasters and several cable stations accept liquor ads, ABC, CBS, NBC and Fox do not.

The FCC could revisit liquor advertising at a later date with changed membership. Hundt, Quello and Chong have announced their intentions to resign. Possible replacements are thought to be open to an inquiry.

Meanwhile, the agency is investigating the placement of ads for Stroh’s malt liquor and Seagram’s spirits on television shows watched by minors.