NAB tells D.C. Circuit Foreign-Sponsored Content Rules Violate APA
The FCC’s 2024 foreign-sponsored content rules violate the First Amendment and the Administrative Procedure Act and are outside the FCC’s authority over sponsorship ID, NAB said in an initial brief filed Tuesday in the U.S. Court of Appeals for the…
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D.C. Circuit (see 2409160043). NAB successfully challenged the 2021 version of those rules, leading to the additional requirement in 2024 that broadcasters and entities leasing programming time from them certify that foreign governments are sponsoring lessees. The newer rules “dramatically expanded” the requirement by redefining a lease of airtime to include non-candidate political advertising and public service announcements, NAB said. The order violates the First Amendment by imposing content-based restrictions on protected speech, it said. The 2024 rules “radically increase the burdens on lessees, advertisers, and broadcasters by sweeping in hundreds of thousands of new transactions, including advertising spots, under the foreign-sponsor identification regime,” NAB said. That expansion isn’t a logical outgrowth of the FCC’s rulemaking process, which had sought comment only upon a request from broadcasters for a clarification on the length of ads excluded from the 2021 rules, NAB said. “The APA is not satisfied by a rumor mill,” said the brief. The FCC “still has no evidence of any foreign governmental sponsorship of any form of advertising, including political advertising,” NAB said. That is why the 2021 rules excluded “traditional, short-form advertising” from the requirements, “and the Commission never explained why its analysis changed.”