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Internet Political Ad Guidelines While broadcast stations are subject to a wide variety of FCC political rules, websites accepting Internet-only political advertisements are not. However, there are some rules, particularly those set forth by the Federal Election Commission (“FEC”), of which webcasters need to be aware. Below is a brief summary of the main issues that website operators need to be aware of when accepting paid political ads on their websites. Lowest Unit Rate The lowest unit rate (“LUR”) requirement does not apply to Internet-only advertising time. However, broadcasters operating websites should be careful to distinguish sales of Internet-only advertising time from sales of over-the-air advertising time, especially if a broadcast advertising package includes ancillary Internet-only advertising (e.g., providing banner ads to over-the-air advertisers who purchase a certain advertising package), which may impose obligations on a station with respect to political advertising sales, and which may impact the station’s LUR to the extent of the value of the Internet component. If a station offers a mixed broadcast/Internet advertising package, LUR rules and equal opportunity rules will apply (see “Equal Opportunities paragraph below). Disclosure Requirements The Federal Election Commission (“FEC”) extended disclosure requirements to paid political advertisements on the Internet as follows: A paid Internet ad must contain specific disclaimers if it: o Is placed by a FEC registered political committee; or o Advocates the election or defeat of a federal candidate; or o Solicits political contributions If ad is produced or authorized by a federal candidate or the candidate’s authorized committee, a text ad must: o Include a written statement in readable sized type in a separate box as part of the display ad that clearly discloses the name of the candidate. If we are using the Mixpo X-spot video ads (300x250), then this disclaimer should appear in the text overlays. o Disclose who paid for the ad; and o State that the candidate approved the ad. If ad is not produced or authorized by federal candidate or the candidate’s authorized committee, the ad must include a written statement in a separate box as part of the display ad stating that no federal candidate authorized the advertisement, and the statement “__________ is responsible for the advertisement; and also the name of any connected organization of the payor, and the permanent street address, phone number, or web address of the person who paid for the ad. If we are using the Mixpo X-spot video ads (300x250), then this disclaimer should appear in the text overlays. Streaming audio (:30 or :60 spots) commercials are not subject to the Lowest Unit Rate requirement; however, all disclaimers listed above should be included in both the audio commercial and any associated sync banners on the audio player. The broadcaster is responsible for the disclosures. If the candidate does not include them, the broadcaster can insert them, and charge the candidate for the production costs. Equal Opportunities If the website is sold to one candidate as part of a package with broadcast spot time, then the same offer should be made to competitors of the candidate. This comports with long-standing FCC policy that, if one advertiser gets extra benefits that come with the purchase of ad time, and those benefits would be of value to a candidate, they should also be offered to the candidate, and that “equal opportunities” demands that all candidates for the same office be treated alike. Censorship The “no censorship rule,” which forbids a station from editing the content of a candidate’s on-air spot or rejecting that spot based on its content (unless that spot violates a Federal felony statute), does not apply to Internet spots. Because candidate spots broadcast on a station cannot be censored, the station has no liability for the content of those spots, and the station is immune for libel and slander, or copyright violations, or other sources of potential civil liability for the content of a candidate’s broadcast spots. However, since these spots can be censored or rejected on the station’s website, a station could have liability for the content of the Internet spot even though the broadcaster could run the exact same spot on the air without fear of any liability. Liability concerns arise in connection with Internet attack ads run by third-party groups not “authorized” by the candidates. A station has potential liability for defamation or other civil liabilities that arise from the content of an Internet ad that airs.