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Financial Management: Routine Disclosure of Broadcaster Financial Records

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Report Type Reports and Testimonies
Report Date March 4, 1980
Report No. 111721
Subject
Summary:

A bill has been proposed which would amend the Communications Act of 1934 to require the Federal Communications Commission (FCC) to collect certain financial information from commercial broadcast station licensees and to make such information available for public inspection. A GAO report issued in August 1979 recommended that a public inquiry be made to evaluate the arguments for and against financial disclosure of stations, and to determine whether disclosure would cause competitive harm. As of February 1980, the FCC proposal for such an inquiry had not been finalized. The present financial report form is inadequate because it does not disclose certain expenditures, and even if the expenditures data were reported and disclosed, some evaluation criteria would be needed for broadcasters and the public. Whether the arguments of the broadcasters against disclosure on the basis that it would cause competitive harm are valid and outweigh the public's right to know is a matter which should be explored.

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