Payola Gets Exposed

New York State Attorney General Eliot Spitzer, announced a settlement with Sony BMG Music Entertainment, which has agreed to cease its "pay for play" policy.

The label group was the subject of a yearlong investigation that revealed it was paying and providing expensive gifts — otherwise known as "payola" — to radio stations and their employees in return for airplay, in a violation of state and federal law. The payola took the form of outright bribes as well as fictitious contest giveaways for listeners, which actually went to station employees.

Radio stations that participated in the payola schemes include WQHT-FM in New York (Hot 97); WWPR-FM in New York (Power 105); KHTS-FM in San Diego (Channel 933); WRHT-FM in Greenville, North Carolina; WFLY-FM in Albany, New York (Fly 92.3), WWHT-FM in Syracuse, New York (Hot 107.9); and WSSP-FM in Milwaukee (The Beat), among others.

The label group agreed to companywide reforms to detect and prevent future abuses and is making a $10 million donation to local charities to fund programs aimed at music education and appreciation. Meanwhile, Spitzer's office said it is still investigating payola practices at other companies.