Payola vs. Promotion: What’s Legal on U.S. Radio?


Is it illegal to pay radio for spins? Here’s what FCC rules actually say about payola, sponsorship disclosures, and what stations can—and can’t—do.

The Law in One Minute

  • Paying a station or DJ to play a song without telling listeners is illegal “payola.”
  • U.S. law (47 U.S.C. §317) and FCC rules (47 C.F.R. §73.1212) require on-air sponsorship identification whenever money, services, or valuable consideration influenced the broadcast.
  • In Feb 2025, the FCC again warned broadcasters: undisclosed paid airplay can lead to fines and enforcement.

What’s Allowed (and Common) When Disclosed

  • Sponsored segments (e.g., “This hour is brought to you by ___”)
  • Promotional tie-ins and contests supplied by labels/teams, if the station identifies the sponsor on-air
  • Interviews/appearances connected to a paid campaign, with clear sponsorship disclosure

What’s Not Allowed

  • Paying a programmer/DJ under the table for spins
  • Gifts/trips/equipment in exchange for airplay with no disclosure
  • Third-party middlemen hiding the source of payment

History & Enforcement

  • Mid-2000s: state and federal actions against labels and radio groups, resulting in settlements and compliance plans.  
  • 2025: FCC enforcement advisory reminded stations that sponsorship ID rules still apply to modern promotions.

 For Artists & Managers: Safe Ways to Promote

  • Buy properly labeled ads (e.g., :30 spots) with the station reading “sponsored by ___.”
  • Pitch editorial content separately from paid campaigns.
  • Keep contracts/invoices that show who paid whom and for what.
  • Ask stations to air the sponsorship line exactly as required.

About the “Recall/Money-Laundering” Rumor

We found no credible reporting of a nationwide “recall” or a new money-laundering crackdown aimed at radio spins. If you see a claim, check if it cites the FCC advisory about sponsorship rules—that’s real—but it’s not a “recall.”

Bottom Line

  • Undisclosed pay-for-play = illegal.
  • Disclosed sponsorships = legal.
  • If you’re paying, make sure the audience is told—every time.

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