The New York I State Fair Practices statute is bc- ; licved to provide a tighter snare j for commercial bribery violation, and some Hill attorneys feel it may I even serve as an example for im- ; provcmeni of the Federal Trado slaliilc. Oversight Subcommittee's chief counsel, Robert Lishman, said in- vestigators will look beyond simple deejay payola fo' all angles of deals and kickbacks in music - broadcast tie-ins. The suit could become a signifi- cant test of a time-honored trade practice.
ommmee public heat'ings, starting December if'^ •» closely watching J * . developments m New York district iatlnrncv's invcstii Fation into pay- ola, which reccnils (191 resulted in subpoena of office records of a sirinc of labels. Also, a resounding bellow was heard from Senator Magnuson at failure of Federal Communications Commis- sion and Federal Trade Commis- sion to stem the tide of skulduggery in the airwaves. A separate suit against AGVA filed personally by the Sto- lars will ask for a large sum to pay for the "humiliation and ridicule" allegedly suffered by the pro- moters. ; reviving a Smathers-type bill to FTC Act Applies ^compel all broadcast personnel to The Federal Trade Commission ; divest themselves of music pub Committee staffers under hard- hitting counsel Robert Lishman are known to be stud ing efficacy of the Communications Act and Fed- eral Trade statutes against deejay payola, kickbacks and tie-ins be- tween broadcast personnel, music and talent interests. These encompass such items as T-shirts, wallpaper and stuffed toys. While numerous tradesters poked thru the debris of the ill-fated affair last week, hardly any two observers •ecm to arrive at the same account of just what happened, except that all agree it was an incomparable mess. The Federal Communications Act requires that sponsorship be made public when mone\ or any- thing of value is exchanged in pro- gramming. All point - of - sale promo- tional material and advertising pushing this merchandise will plug Liberty's "Let's All Sing With the Chipmunks" album. Even the two most wounded booking agents find themselves on opposite sides. Wichita Pmt H, Taxee FREE PLAN CATALOG l Ofl pac M tllustrated Plana tor building Rldef. — finding ou* in quick surveys, that a lot of potential phono customers with big monaural collections, have laid off buying new stereo equipment with the thought that their oli* monaural LP's might then be made obsolete. He will divide his time between the Great Harrington and New York City offices of the publication but will headquarter in New Yo'k. Extreme Case CHed Lishman, when interviewed by a Billboard reporter, said: "As an extreme case, suppose John Smith owns a record company, then buys a broadcast station. | I HODGES HAND CAR-IF SO, BE SURE TO VISIT | i BOOTH -161 AT THE N. The idea in the back of the mindi of these manufacturers is a campaign buili around the theme "Your Monaural Records Will Sound Better Than Ever on a . Freas was Associate Editor of The Billboard, developing and headinc up the Audio News . For more than 10 years, he has held edi- torial positions on various publica- (Continued on page 5i) filmed interview with newsman Lou Lomax, which was shown here Cohn freely admitted gifts in the form of cash, checks and house- hold articles and baby items made to deejays. Asked about "certain parties for disk jockeys where various unusual things o'-cur and where orgies took place," Cohn said he believed such parties did occur. Suppose he dumps its personnel and its good music format to push his own labels, programs only rock and roll, cuts Ihc news to a few seg- ments — and maybe has the dee- jays broadcast ' between plugs for his label. that's not in the public interest, in my opinion." The Billboard reported asked "Suppose the label owner and the deejays duly acknowledge sponsor- ship of all the records they plug, as required under Ihc Communica- tions Act. " "In thai case, they could still be cited for failing to operate in the public interest as required by the statute.
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