Paul Loveday and Californians for Smoking and No Smoking Sections v. Federal Communications Commission and United States of America

707 F.2d 1443, 228 U.S. App. D.C. 38, 9 Media L. Rep. (BNA) 1673, 53 Rad. Reg. 2d (P & F) 1452, 1983 U.S. App. LEXIS 28128
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 10, 1983
Docket81-2061
StatusPublished
Cited by16 cases

This text of 707 F.2d 1443 (Paul Loveday and Californians for Smoking and No Smoking Sections v. Federal Communications Commission and United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul Loveday and Californians for Smoking and No Smoking Sections v. Federal Communications Commission and United States of America, 707 F.2d 1443, 228 U.S. App. D.C. 38, 9 Media L. Rep. (BNA) 1673, 53 Rad. Reg. 2d (P & F) 1452, 1983 U.S. App. LEXIS 28128 (D.C. Cir. 1983).

Opinion

Opinion for the Court filed by Circuit Judge BORK.

BORK, Circuit Judge:

The Communications Act of 1934, 47 U.S.C. § 317 (1976 & Supp. V 1981), and the regulations of the Federal Communications Commission, 47 C.F.R. § 73.1212 (1981), require licensed broadcast stations to identify the sponsors of paid political advertisements at the time those advertisements are broadcast. The licensee is under a duty, moreover, to make a reasonably diligent inquiry to learn, in order to identify, the true sponsor of the advertisements when the licensee has reason to think that it is someone other than the apparent sponsor. 47 U.S.C. § 317(c) (1976). This case concerns the scope of the licensees’ duty to investigate.

*1445 Petitioners challenge the Commission’s conclusion that California radio and television stations adequately discharged their obligation to investigate and to identify the true sponsor of political advertisements opposing an initiative before the voters of California on a 1980 referendum. Had the electorate approved that initiative, Proposition 10, the resulting law would have required separate smoking and no smoking areas in most enclosed public places, places of employment, and educational or health facilities. California voters rejected the proposition.

The advertisements in question were paid for by a political action committee called Californians Against Regulatory Excess (“Regulatory Excess” or “CARE”). Stations broadcasting the advertisements identified that committee as the sponsor. Petitioners, Paul Loveday and a political action committee that supported the initiative, Californians for Smoking and No Smoking Sections (or “Yes on 10”), claim that they furnished the stations with sufficient information to require them either to identify the tobacco industry as the true sponsor or, at a minimum, to investigate more diligently. This court has jurisdiction to review the Commission’s contrary decision under 47 U.S.C. § 402(a) (1976) and’ 28 U.S.C. §§ 2342, 2344 (1976).

We affirm because we conclude that, on these facts, the licensees were not required to inquire further into the actual sponsorship of the political advertisements. Indeed, we have substantial doubt that the Commission could require licensees to do more.

I.

A.

. On September 26,1980, Richard Kalish, a representative of Yes on 10 and an associate of petitioner Loveday, wrote to all California radio and television stations asserting that the tobacco industry was sponsoring Regulatory Excess’ advertising campaign and was supplying Regulatory Excess with almost all of its funds. He pointed out that Regulatory Excess had, according to its recent campaign finance disclosure statement, been purchasing more radio and television time than its stated resources would permit. He also stated that the tobacco industry had provided almost all of the $6.5 million expended to defeat a similar proposition in 1978. These considerations, Kalish wrote, made it “apparent” that the tobacco industry was virtually the sole source of funds for Regulatory Excess’ efforts. The letter directed the licensees’ attention to Commission sponsorship identification provisions, which, according to Kalish, required the California licensees “both to discover and to disclose the fact of the Tobacco Industry’s sponsorship of the advertising so the public can know ‘by whom it is being persuaded.’ ” Kalish argued that there was “affirmative deception” involved in identifying Regulatory Excess as a California entity when it received virtually all its funds from sources outside California. Kalish expressed the hope that the licensees would satisfy their sponsorship identification obligations without further prodding, but he also threatened to file a complaint with the Federal Communications Commission or to take other action should the stations fail to satisfy their sponsorship identification obligations. The letter did not document Kalish’s allegations.

Receiving no response from any of the California stations, Kalish wrote to them again on October 3. His three-page letter reiterated and amplified both his claim that Regulatory Excess was an agent for the tobacco industry and his analysis of the sponsorship identification requirements. 1 *1446 These additional allegations were also undocumented. Kalish asked the stations to identify Regulatory Excess’ advertisements as “Paid for by the Tobacco Industry” and warned that Yes on 10 would bring legal action against any stations that did not comply by October 8.

Regulatory Excess responded to Kalish’s first letter by sending each licensee a letter from its chairman, David Bergland, outlining the committee’s purpose, structure, and campaign efforts to date, as well as a legal memorandum concerning the sponsorship identification rules. In addition, some stations specifically requested an answer to Kalish’s allegations from Regulatory Excess. Vigo Nielsen, counsel for Regulatory Excess, replied to at least some of these requests. Nielsen indicated that Regulatory Excess was not an agent for the tobacco industry. He declined to comment upon the tobacco industry’s political motives or policies but acknowledged that various tobacco companies, after concluding that a “hands-off” approach might be interpreted as support for Proposition 10, had contributed to Regulatory Excess’ campaign. Nielsen also noted that Regulatory Excess was just beginning the process of soliciting contributions from California voters. He dismissed Kalish’s threatened legal actions as “diversionary tactics.” Finally, he referred to the previously-provided memorandum giving his interpretation of the sponsorship identification requirements, and he appended a copy of the contribution section of Regulatory Excess’ state campaign finance report.

According to petitioners, 58 of the 155 California stations that had broadcast commercials for Regulatory Excess replied to Kalish’s letters, though only 11 of these stations addressed the sponsorship identification question. No licensee, apparently, stopped identifying the advertisements as paid for by Californians Against Regulatory Excess.

B.

On October 16, 1980, Loveday and Yes on 10 requested a declaratory ruling from the Federal Communications Commission. They alleged that the tobacco industry was the principal behind Regulatory Excess’ campaign against Proposition 10 and claimed that the California licensees had failed to satisfy their sponsorship identification obligations. They asked the Commission to declare that the tagline “Paid for by Californians Against Regulatory Excess” violated these obligations and must be replaced by the words, “Paid for by the Tobacco Industry.” Because the California vote was to occur only several weeks later, petitioners asked the Commission to give their petition expedited consideration.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

National Association of Broadcasters v. FCC
39 F.4th 817 (D.C. Circuit, 2022)
Weinberg v. Barry
604 F. Supp. 390 (District of Columbia, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
707 F.2d 1443, 228 U.S. App. D.C. 38, 9 Media L. Rep. (BNA) 1673, 53 Rad. Reg. 2d (P & F) 1452, 1983 U.S. App. LEXIS 28128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-loveday-and-californians-for-smoking-and-no-smoking-sections-v-cadc-1983.