Company Busted for Payola
NEW YORK (Republic Newswire) -- Sony BMG has admitted to engaging in the illegal practice of bribing radio stations and DJs to play certain songs and agreed to pay a $10 million fine.
The artists whose songs were promoted through payola include Good Charlotte, Avril Lavigne, Jennifer Lopez, Maroon 5, and Jessica Simpson. In addition to cash, radio station staff also received items such as flat screen TVs, entertainment systems, laptops, PS2s complete with games, portable CD players, flights, hotel stays and car service.
Sony BMG and others have also been accused of rigging call-in requests for songs in order make a song seem more popular.
Universal Music Group, EMI Group, and Warner Music Group are also under investigation for payola.
New York Attorney General Eliot Spitzer has called the problem "pervasive" and has even asked the FCC to consider revoking the licences of some of the stations involved.
Reuters and MTV were used as sources.
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