CBS Radio, a unit of CBS Corp (CBS) and NY Attorney General Elliot Spitzer reached a settlement involving the broadcasting of certain songs in return for rewards.
Under terms of the agreement, CBS Radio will make up to a $2 million payment to New York non-profit entities to fund music education and appreciation programs.
CBS Radio also agreed to stop receiving payments and other inducements from record labels in exchange for airplay; to discontinue using independent promoters as a pass-through for securing airplay; to hire a compliance officer to monitor promotion practices; and to implement a system to detect future abuses.
According to Spitzer, certain stations owned by CBS Radio, formerly Infinity Broadcasting, openly solicited illegal financial benefits, expensive vacation packages, gift cards and other valuable items from record labels in exchange for playing the labels’ songs.
Spitzer said his payola investigation resulted in a lawsuit filed last March, against Entercom Communications Corp., (ETM) which was upheld by a judge earlier this week.
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