FCC Votes Against Inquiry Into Broadcast Liquor Ads

Rebuffing President Clinton, a divided Federal Communications Commission on Wednesday 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.

FCC 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.

The two commissioners who voted to kill the inquiry, James Quello and Rachelle Chong, said the FCC should cede the issue to the Federal Trade Commission, which is investigating alleged unfair and misleading advertisements by the distilled spirits industry.

Quello said he might reconsider his position, depending on what action the FTC might take.

The major television networks have agreed not to broadcast hard-liquor ads even though the National Assn. of Broadcasters dropped its self-imposed ban in 1983. It had been in effect since 1948. The Distilled Liquor Council dropped its opposition to broadcast advertising in 1996.