Payola, also known as pay-for-play, is the illegal practice of paying commercial radio stations to broadcast particular recordings without disclosure to listeners of the pay-for-play, at the time of the broadcast. The Communications Act of 1934, as amended, prohibits payola.
What’s wrong with payola?
Payola is banned in radio because the airwaves are publicly licensed, which makes them subject to government regulation in a way supermarket shelves are not. After the 1950s payola scandals, government decided that radio stations should be as independent as possible from their suppliers (the music industry).
Why did payola become a scandal?
During the thirties Harry Richman and Paul Whiteman both received financial tribute from ASCAP to pay certain songs. in 1938, the Federal Trade Commission notified ASCAP that payola was a form of bribery and was unethical. the FCC pressured ASCAP to come out publicly against payola and advise its members to stop.