Candidates, Ad Buyers Battle Over Radio’s Lowest Political Rates.

The fight over who gets broadcasters’ cheapest political advertising rates is turning into a candidate-vs.-candidate showdown at the Federal Communications Commission, with Democrats pushing to narrow eligibility while Republicans argue changing course now would disrupt political buys already underway.

At issue is the Media Bureau’s March guidance requiring radio and TV stations to provide lowest unit rate not only to candidates and their campaigns but also to qualifying candidate-party coordinated advertising and authorized committees engaged in joint fundraising. The Commission opened the dispute to public comment this month as it considers an Application for Review filed by four Democrats: Sherrod Brown, Jon Ossoff, Roy Cooper and Kristen McDonald Rivet. They argue federal law reserves the discounted rate for candidates and their campaign committees. Their application asks the FCC to set aside the March guidance and make clear that only candidates and their campaign committees are entitled to the discount.

Florida Sen. Tim Scott, who is Chairman of the National Republican Senatorial Committee, is urging the Commission to go the other way. His campaign says candidates and national party committees have already contracted for significant amounts of coordinated political advertising based on the understanding that those spots qualify for discounts, and some have already aired. Reversing the FCC guidance with the election approaching, Scott argues, would raise questions involving existing contracts, and test the terms under which the buys were made.

Scott also argues that the Democrats’ interpretation could create new headaches for stations trying to determine which coordinated advertisements qualify for discounts. It offers the example of a coordinated commercial in which a candidate pays 10% of the cost and a national party committee pays the remaining 90%. If only candidate spending qualifies, it asks whether the entire advertisement receives lowest unit rates, only 10% of it does, or whether some other standard applies.

The debate has potentially significant implications for radio. Expanding the pool of political advertising eligible for that rate potentially means more of a station’s high-demand election inventory must be sold at discounted rates. Narrowing eligibility, however, could require stations and buyers to revisit coordinated buys that were negotiated under the FCC’s current interpretation.

Buyers’ Warning

Two political media buying firms are siding with the FCC and warn changing the rules during the election would add more uncertainty for stations, campaigns and buyers.

Smart Media Group says the litigation has already introduced “confusion and uncertainty” regarding discounted rates. It wants the FCC to dismiss or deny the Democrats’ challenge and issue a decision confirming the guidance. The political media buyer says rate discounts are available on identical terms to candidates and party committees regardless of party and argues the FCC should establish a rule that can be applied consistently during the political window.

Ad buyer Motive Media also says qualifying candidate-party coordinated advertisements and committee advertising are entitled to discounts. The firm says broadcasters historically have treated such advertising as eligible and argues the Commission shouldn’t change course with the election underway.

That argument largely tracks the Media Bureau’s position. When it rejected a reconsideration request earlier, the Bureau pointed to guidance provided to stations by the National Association of Broadcasters.

Media buyers aren’t alone in focusing on what the decision could mean for broadcasters. Campaign Legal Center sides with Brown and the other Democratic candidates, arguing the FCC policy could effectively give some super PAC-funded advertising access to lowest unit rates through joint fundraising committees. It also says expanding eligibility increases the financial burden on broadcasters, particularly smaller stations.

Fair Media Council makes the revenue argument more directly, saying discounted political inventory cuts into election-year revenue that helps support local journalism. “The result? Less news. More spin,” it says.

Longer term, the Center for American Rights argues there is a more fundamental constitutional question surrounding lowest unit rats. It says the law gives candidates a government-mandated price advantage over other political speakers — and argues that preferential treatment raises First Amendment concerns.

“The entire premise of the statute is unconstitutional,” the group tells the FCC.

Station Status Quo

For now, the March guidance remains in effect. That means radio and television stations must continue providing lowest unit rates to qualifying candidate-party coordinated advertising and authorized committees engaged in joint fundraising while the full Commission considers whether to uphold or reverse the Media Bureau’s interpretation.

The FCC proceeding (MB Docket No. 26-253) has reply comments due today (Sept. 30).