U.S. ban on political ads on public TV struck down

By Jonathan Stempel, Terry Baynes and Jasmin Melvin
Reuters

APRIL 12, 2012

http://www.reuters.com/article/2012/04/12/fcc-advertising-ban-idUSL2E8FCCZY20120412


(Reuters) - A divided U.S. appeals court struck down a federal ban on 
political advertising on public TV and radio stations, a decision that 
could open the public airwaves to a heavy dose of campaign ads leading 
up to the November elections.

By a 2-1 vote, a panel of the 9th U.S. Circuit Court of Appeals in San 
Francisco said the Federal Communications Commission violated the First 
Amendment's free speech clause by blocking public broadcasters from 
running political and public issue ads.

The court said the ban was over broad and that lifting it would not 
threaten to undermine the educational nature of public broadcast 
stations. It upheld a ban on ads for goods and services on behalf of 
for-profit companies.

"Public issue and political speech in particular is at the very core of 
the First Amendment's protection," Judge Carlos Bea wrote in the main 
opinion.

"Public issue and political advertisements pose no threat of 
'commercialization,'" he continued. "By definition, such advertisements 
do not encourage viewers to buy commercial goods and services. A ban on 
such advertising therefore cannot be narrowly tailored to serve the 
interest of preventing the 'commercialization' of broadcasting."

Minority Television Project, a non-profit that runs KMPT-TV in San 
Francisco, had challenged the FCC after being fined $10,000 for running 
paid ads from companies such as insurer State Farm and General Motors 
Co's Chevrolet division.

The FCC countered that the government has a significant interest in 
ensuring the airing of educational programming, many of which run on 
Public Broadcasting Service stations.

It said if public broadcasters became more dependent on ads, they might 
end up replacing "Sesame Street" with programming that may appeal to a 
wider range of viewers or listeners.

Walter Diercks, a lawyer representing the Minority Television Project, 
declined immediate comment. The FCC did not immediately respond to 
requests for comment. A PBS spokeswoman declined to comment.

"IT SCARES ME TO DEATH"

Norman Ornstein, resident scholar at the American Enterprise Institute, 
said the decision could "fundamentally change the character of public 
television and radio" by allowing deep-pocketed political and other 
organizations to begin "swooping" onto the public airwaves to air their 
messages.

"I served on the board of PBS for six years and I know how much we 
struggled to get adequate funding," he said. "This is just going to move 
us further away from what remains of a public square. ... To be 
truthful, it scares me to death."

The AEI is a conservative Washington think tank.

A federal judge in San Francisco upheld the FCC restrictions in August 
2009. Thursday's decision left the $10,000 fine intact. The 9th Circuit 
oversees cases in several western U.S. states.

FUTURE AT STAKE

Concurring in Thursday's result, 9th Circuit Judge John Noonan said the 
rise of newer technologies for transmitting TV programs - such as cable, 
satellite, cell phones, the Internet and Apple Inc's iPad - required a 
closer look at how the government regulates speech on broadcast television.

He also suggested that regulations may be inconsistent, referring to 
notices on behalf of financial services company Charles Schwab Corp on 
the show "PBS NewsHour."

"I have seen announcements that to my mind are ads," he wrote. "I have 
viewed Charles Schwab's message, 'Talk to Chuck' - it is not about 
Chuck's golf game."

Judge Richard Paez dissented.

"For almost 60 years, commercial public broadcasters have been 
effectively insulated from the lure of paid advertising," he wrote. "The 
court's judgment will disrupt this policy and could jeopardize the 
future of public broadcasting. I am not persuaded that the First 
Amendment mandates such an outcome."

Bea was appointed to the 9th Circuit by President George W. Bush; Noonan 
by President Ronald Reagan; and Paez by President Bill Clinton.

The case is Minority Television Project Inc v. FCC, 9th U.S. Circuit 
Court of Appeals, No. 09-17311.

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