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FCC Votes Against Inquiry Into Liquor Ads

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(Reuters)

Rebuffing President Clinton, a divided Federal Communications Commission blocked taking a first step toward regulating hard-liquor advertisements on radio and television. The commission voted 2 to 2 on opening a proposed inquiry into the controversial issue of hard-liquor broadcast advertising. A proposal needs three votes to pass the five-member commission, which currently has one vacancy. The vote halts, at least for now, a move toward regulating a potential multimillion-dollar annual windfall for the broadcast industry, which, for the most part, has imposed its own restrictions on accepting hard-liquor ads. Backers of the inquiry refused to accept defeat, saying it could be brought before the FCC again in the future. Agency Chairman Reed Hundt, who voted in favor of the inquiry, said he would offer “friendly advice” to the hard-liquor industry not to interpret the vote as a green light to start a major advertising push.

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