NAB to OMB: Don’t expand foreign rules.

The NAB is urging the Office of Management and Budget (OMB) to reject the FCC’s expanded foreign sponsorship identification rules, citing numerous legal and procedural flaws. The FCC’s July order requires broadcasters to verify whether advertisers or lessees are foreign governmental entities through a multi-step process, including obtaining certifications and uploading compliance materials to public files. The NAB argues the rules violate the Administrative Procedure Act, the Paperwork Reduction Act, the Communications Act, and the First Amendment. “The Order establishes an impermissible content-based regulation that penalizes the most protected form of speech,” the NAB states, adding that the FCC has not demonstrated evidence of foreign influence in political ads or PSAs. Chairman-designate Brendan Carr and Commissioner Nathan Simington dissented, criticizing the lack of proper notice and the expanded lease definitions. The NAB also challenges the FCC’s compliance cost estimates, arguing they ignore critical factors like legal consultations and staff training, and calls on the OMB to disapprove the rules or demand further review.

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