Underwriting Fundamentals

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Underwriting Fundamentals

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Underwriting

• Used to thank companies and individuals for
  in-kind support of a non-commercial broadcast
  entity.
  
• Examples of non-commercials include
• National Public Radio (NPR)
• Public Broadcast Stations (PBS)
• Corporation for Public Broadcasting

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Underwriting

• Companies donate money to support a noncommercial
  station or network
  
• The station then thanks them for their donation.
• This thank you is called an underwriting
  credit.
  
• Not referred to as advertising.
• More of an incentive to donate or support
  non-commercial station.
  

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Underwriting

• 1984. FCC relaxed rules
• Now may use
• Logograms or established slogans.
• OK if descriptive only.
• If contains sales information (The Best a Man
  Can Get.) must have been using for at least 2
  months.
  
• Location Information
• Value neutral descriptions of a product line
• Brand names and trade names
• FCC rules do not apply to non-profit
  organizations or, by extension, PSAs.

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Underwriting

• Specifications for On-Air Credits
• Credits are 10 seconds long.
• Almost always voiced by an announcer.
• Contain no produced music bed.
• Contain no sound effects.

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Underwriting

• Credits may include
• the organization or company name
• the name of a subsidiary, operating division or
  parent company
  
• any additional language which further clarifies
  the identity of the underwriter.
  

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Underwriting

• This language may contain
• A neutral description of products or services
• A recognized corporate slogan that identifies the
  company or products
  
• A statement of business locations
• A World Wide Web address
• A toll-free phone number
• The organization's mission
• A mention of the particular programming being
  supported (ex "for coverage of Eastern
  Europe...")
  
• The duration of the business or service (ex
  "providing services to businesses for over 50
  years...")

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Example of Acceptable Underwriting Spot

• Programming is brought to you by New York Long
  Term Care Brokers. Long-term care insurance and
  retirement planning. Our policy is taking care
  of you. New York Long Term Care Brokers.

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Example of Acceptable Underwriting Spot

• Programming support of financial news on NPR is
  provided by Rosner Soap of Sugar Loaf, New York.
  Creating traditional soap since 1745.

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Underwriting Language MAY NOT contain

• Reference to price
• Cant give the price of an item or items or
  category of items.
  
• Cant discuss promotional pricing.
• Cannot give a ballpark figure
• Cannot use comparative terms less than other
  stores prices, reduced, special.
  
• Cannot list interest rates.

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Underwriting Language MAY NOT contain

• Reference to Price
• Cannot imply a discount or imply comparative
  pricing.
  
• Cant use the term free
• This is true in English or in another language.
• Cant say that you accept credit cards.
• Cant say that you accept campus cash.

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Underwriting Language MAY NOT contain

• Comparative inducement to buy
• Cannot compare your product, service or company
  to the competition
  
• Includes implied comparison
• Seafood buffet this Friday. (OK to say Seafood
  buffet every Friday.)
  
• The cars with the best fuel economy.
• We specialize in foreign auto repair.
• With a specially trained sales staff
• .specializes in.

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Underwriting Language MAY NOT contain

• Value Statements
• Amazing!
• Great!
• The best!
• Fine
• Award-winning (or name awards won)
• Or the name of any product, if that means that
  this product is certifiably better than the
  competition (USDA prime, board-certified,
  Fender, Angus Beef).

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Underwriting Language MAY NOT contain

• Call to action
• Visit our showroom.
• Call today.
• Dont miss out on this special offer.
• Check us out.
• Come see our new line of Buicks.

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• What if you violate one of these rules
• FCC cannot seek you out.
• Must receive complaint.
• Who would complain?
• Levels of fines
• From warning in a file
• To 20,000 fine per occurrence.

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Legal or Illegal?

• Jones Toyota. Are you tired of big gas bills?
  The 2006 gas/electric Toyota Prius offers amazing
  fuel efficiency. Stop by for a test drive today
  at Jones Toyota, 955 South Main Street.

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Problems?

• Amazing
• Stop by
• Fuel-efficient
• Grey area how much can you say about the
  hybrid?
  

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Legal or Illegal?

• Tims Dancefloor. Where every night is Ladies
  Night. Live music every Friday and Saturday with
  a 5.00 cover charge. This months performers
  are on the web at tims.com.

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Problems?

• Ladies Night is promotional pricing. Implies a
  price discount.
  
• Cant list prices.
• Live music is O.K. as long as they are not the
  only ones with live music on Fridays.
  
• OK to direct to web site for more information.

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Legal or Illegal?

• Bonanza Buffet. Make that Freshman 15 count
  this weekend with an all-you-can-eat buffet from
  6 10 pm. Bonanza Buffet. In the Thomas Road
  Mall.

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• Promotional Pricing
• Cant use phrases like all-you- can-eat.
• Events like Freshman Fridays are questionable

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Legal or Illegal?

• Body Canvas with the only two certified tattoo
  artists in the city. No design is too
  complicated. If you can imagine it, we can draw
  it. Open daily from 10 a.m. to 10 p.m.

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Problems?

• Comparative Pricing
• Only two board-certified
• Grey area
• No design too complicated
• If you can imagine it
• Do these imply that other tattoo parlor cannot do
  this?

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Legal or Illegal?

• Dont miss Prestige Cinemas Holiday Film Bonanza.
  Come see some of the greatest Christmas films
  ever made, including Academy Award winner
  Miracle on 34th, plus family classics such as
  Its a Wonderful Life, A Christmas Story and
  Holiday Inn.

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Problems?

• Dont miss.
• Come see.
• Holiday Film Bonanza
• Holiday Film Celebration iffy
• Holiday Film Festival -- OK
• Greatest
• Classic
• Academy Award winner

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• Todays programming is sponsored by Prestige
  Cinemas Holiday Film Festival. Offering 5
  holiday films throughout December. Films
  include Miracle on 34th Street, Its a
  Wonderful Life, A Christmas Story and Holiday
  Inn. For more information call 330-555-1212.

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Legal or Illegal?

• Enchanted Woods Apartments. With a wide range of
  amenities including free cable, high-speed
  internet access, dishwashers, self-cleaning ovens
  and ceramic tile. For more information, dial
  313-788-0984.

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Problems?

• Free cable
• High-speed internet?
• Is this value neutral?
• It is a label, but the language is value-added.
• Internet access would be OK
• Best bet broadband
• Cant say dial.

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Legal or Illegal?

• Federal Express. Now accepting applications for
  delivery personnel. Applicants must possess a
  valid drivers license, be able to pass a
  substance abuse test and be able to lift heavy
  loads. More information online at fedex dot com.

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Problems?

• Cant recruit.
• May only use underwriting to promote your
  business.
  
• It is not the job of Federal Express to recruit
  employees.
  
• If your sponsor were Callas Personnel Services,
  they could promote the jobs for which they were
  hiring, but Kauffmans could not.

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Legal or Illegal?

• First Church is the only way to eternal salvation
  and those who follow His teachings will be
  blessed. First Church is holding a seminar on
  same sex marriage this Friday at 730 explaining
  why God intends marriage to be between one man
  and one woman. More information available at
  399-555-1111.

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Problems?

• In terms of the FCC it is fine.
• Assuming First Church is non-profit, none of the
  rules would apply.
  
• Also, language is appropriate based on FCC rules
  even if not a non-profit.
  
• However, would create an inconsistent sound.

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Problems?

• May accept account but require them to adhere to
  the rules that commercial organizations face.
  
• A station may refuse to accept religious
  underwriting as matter of policy.
  
• Or they may accept it, but under the condition
  that spot does not include proselytizing .
  
• If they accept underwriting from one religious
  entity, they must accept from all.

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Legal or Illegal?

• Anheuser Busch, makers of Bacardi Silver
  Watermelon, the newest member of the Bacardi
  family. Drink Responsibly. Read more about
  alcohol and substance abuse at college talk dot
  com.

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Problems?

• Alcohol is OK
• New is OK as long as adhere to the FTC
  regulations.