iHeartMedia Settles FCC ‘Payola’ Investigation Without Any Fine or Determination of Wrongdoing
iHeartMedia has agreed to strengthen its anti-payola compliance policies to resolve a Federal Communications Commission (FCC) investigation into whether the radio company offered artists extra airplay in return for free performances at its events. The consent decree, announced on Thursday 9 July, carries no financial penalty and makes no finding that iHeart engaged in payola — the illegal practice of trading radio plays for undisclosed payments. The company maintains that artists choose to perform free or low-cost gigs for exposure, and that such concerts have no bearing on airplay, making the outcome a relatively favourable one for the broadcaster.
Under the agreement, iHeart will create a new internal compliance plan, including staff training and a whistleblower hotline, and appoint a senior manager as compliance officer reporting to the board. For three years, it must file regular reports to the FCC disclosing all artists who perform at company events, the compensation involved and airplay figures before and after each concert. The probe began in early 2025 after Senator Marsha Blackburn raised concerns that "free radio shows" had become a new form of payola; FCC chair Brendan Carr later singled out the May 2025 iHeartCountry Festival in Austin as an example, and said the deal adds new protections and transparency for artists.
- iHeartMedia settles FCC payola probe with no fine or wrongdoing finding.
- It must boost compliance and report artist airplay data for three years.
- Investigation followed concerns that free festival gigs amounted to payola.