NAB opposes new foreign-ownership rule.

The National Association of Broadcasters (NAB) is challenging the FCC’s updated foreign sponsorship identification rules, arguing that they violate federal law and impose undue burdens on broadcasters. These rules, effective since August 15, mandate broadcasters to verify that airtime lessees are not affiliated with foreign governments. The NAB’s recent filing claims the rules exceed the FCC’s authority under the Communications Act of 1934, particularly by targeting political issue ads and public service announcements (PSAs) while exempting commercial ads, which the NAB argues is discriminatory and violates the First Amendment. The NAB also highlights that the FCC underestimates the rule’s impact, especially on smaller broadcasters who might struggle with compliance due to added legal and operational costs. They contend that the FCC’s compliance time estimates are unrealistic. Additionally, the NAB warns that the requirements could discourage small organizations from using broadcast media. They suggest reverting to a simpler 2021 rule, with exemptions for smaller stations and automated compliance options.

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