FCC Probes Discrimination Charges Against Advertisers

Federal officials have begun an investigation into whether advertisers have systematically discriminated against radio and TV stations that are owned by minorities or attract large African American and Latino audiences.

For years, minority broadcasters have complained that advertisers consistently pass over their stations or pay far less for commercial air time than they pay stations reaching primarily white audiences. Although minority broadcasters have offered anecdotal evidence of discrimination, no government agency has previously attempted to study whether a pattern exists.

The Federal Communications Commission is preparing to question advertisers, ad agencies and broadcasters in a broad-ranging inquiry, officials at the agency said. However, it is unclear what the agency could do to curb such practices even if it finds evidence of discrimination. At the very least, some say, the inquiry could publicly expose the alleged bias.

The investigation has the support of FCC Chairman William E. Kennard, the first African American to head the commission, and Gloria Tristani, a commissioner who is of Latino descent.

The issue of discriminatory ad placement flared briefly earlier this year when a draft of a memo from a New York ad-buying firm surfaced. The memo, written by an executive of Katz Media Group Inc., directed sales representatives to dissuade ad agencies from buying time on stations with “urban” music formats, which attract large black audiences. The company has apologized for the memo.

Minority broadcasters say the memo simply highlighted a practice--once overtly referred to by advertising executives as the “no urban” dictate--that has persisted for decades.

“Advertisers simply don’t place the same value on black consumers as on white consumers,” said Robert Johnson, chief executive of BET Holdings Inc., the parent of the Black Entertainment Television cable network. For example, he said BET’s average household ratings are close to those of MTV. Yet, according to Johnson, MTV is able to command advertising rates that are six to 10 times higher than BET.