Why Payola Is Illegal?

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).

What is payola and why is it illegal?

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.

Is payola still a problem?

As it stands today, payola remains illegal, and yet widespread. Unfortunately, when the people involved get away with it, it works. The Sony BMG case shined a fresh light on the issue, however, and a crackdown is in the works.