• by Wendy Davis  @wendyndavis, January 24, 2012

The Federal Communications Commission has fined Clear Channel $22,000 for failing to adequately disclose the terms of an online contest that invited users to create video ads promoting Chevrolet.

The decision, issued last week by the Enforcement Bureau, stemmed from a 2008 Clear Channel contest that promised a Chevy to the user who designed the best ad for the car. The promotion prompted a complaint to the FCC alleging that some Clear Channel radio stations didn't clearly state when contest submissions were due.

The official contest rules, which were posted online, said that the contest ran from Feb. 11, 2008 to March 21 2008, but also said that judges would select finalists on March 10, according to the ruling. That discrepancy “may have confused listeners and contest participants,” the FCC Enforcement Bureau said in its ruling.

The FCC also faulted Clear Channel for promoting the contest on-air, but only disclosing the terms online. “Licensees cannot avail themselves of alternative non-broadcast announcements to satisfy the requirement that they accurately announce a contest’s material terms,” the FCC wrote.

Clear Channel argued that the FCC's rules about contests don't apply because the contest was conducted online, and not over-the-air. But the FCC said in its ruling that Clear Channel promoted the contest on the radio, which subjected it to the FCC's jurisdiction. The decision dealt specifically with six Los Angeles area radio stations owned by Clear Channel.

The original complaint also alleged that the contest was rigged, but the FCC said it didn't find any proof that was the case. “The ultimate winner was selected by audience and website viewer vote, not by the licensee’s selection, which undermines the complainant’s charges of manipulation,” the FCC wrote.

The ruling marks the second time that the FCC Enforcement Bureau has fined Clear Channel for advertising a contest on the radio, but only disclosing the terms online. The prior occasion occurred in 2009, when a Clear Channel station in Los Angeles ran a contest offering the winner tickets to the musical "Les Miserables." Clear Channel was fined $6,000 in that instance.

Clear Channel did not respond to Online Media Daily's request for comment.