iHeartMedia has settled a US Federal Communications Commission investigation into whether it breached federal payola rules at its live music events, resolving the matter through a consent decree that carries no fine and no admission of liability. The FCC had been examining whether the company gave artists extra airplay on its radio stations in exchange for performing at its concerts and festivals without the disclosure the law requires — a practice the regulator terms "showola". The settlement matters because it establishes new transparency and compliance obligations for the largest owner of radio stations in the US, in an area regulators say is intended to protect artists, particularly emerging ones.

Instead of a monetary penalty, iHeart must develop a compliance plan within 60 days, appointing an internal compliance officer, training staff, running a whistleblower hotline and filing reports with the FCC. The case dates back to 30 January 2025, when Senator Marsha Blackburn alerted the FCC to the alleged practice, prompting an industry-wide advisory and a letter from Chairman Brendan Carr seeking information about the iHeartCountry Festival '25 in Austin. iHeart denied trading airplay for performances, likening festival sets to a "movie trailer"; it must now disclose performers and terms for tentpole events such as the iHeartRadio Music Festival and Jingle Ball Tour and in 10 named markets, filing compliance reports at 120 days and the 12-, 24- and 36-month marks, while the Enforcement Bureau terminates its investigation.