FCC May Fine Sinclair Over Ad Nondisclosure; Seen as Possible Precursor to OK'ing Buy of Tribune
The FCC may fine Sinclair many millions of dollars in what's seen as a precursor to possibly approving Sinclair's pending buy of Tribune, informed sources said Friday. All commissioners have completed voting on a notice of apparent liability with a…
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penalty of about $13.3 million, though not all members necessarily voted yes, said agency and other officials in interviews. Although the NAL apparently doesn't approve or possibly even mention the license transfer, such proposed fines or settlements often occur around the time the regulator approves transactions. Sinclair allegedly showed spots about 1,700 times that some could have mistaken for news segments, and the sponsorship wasn't disclosed to viewers, officials said. Some said the maximum fine for the violations could be $80 million, more than the draft NAL would seek. The penalty would add "to the long list of evidence that the FCC-licensed broadcaster will not act in the public interest" if it buys Tribune, said Sinclair/Tribune foe Coalition to Save Local Media, with members including the American Cable Association, Dish Network, NTCA and Public Knowledge. “Today’s report [here] should prompt more scrutiny by the FCC, Justice Department, and other parties on this proposed mega-merger." Sinclair and the FCC declined to comment.