On Thursday, July 25, the Federal Communications Commission (FCC) released a Notice of Proposed Rulemaking (NPRM) proposing new requirements for radio and television broadcasters and certain other licensees that air political ads containing content created using artificial intelligence (AI).  The NPRM was approved on a 3-2 party-line vote and comes in the wake of an announcement made by FCC Chairwoman Jessica Rosenworcel earlier this summer about the need for such requirements, which we discussed here

At the core of the NPRM are two proposed requirements.  First, parties subject to the rules would have to announce on-air that a political ad (whether a candidate-sponsored ad or an “issue ad” purchased by a political action committee) was created using AI.  Second, those parties would have to include a note in their online political files for political ads containing AI-generated content disclosing the use of such content.  Additional key features of the NPRM are described below.

  • Definition of “AI-Generated Content.”  The NPRM proposes to adopt a broad definition of AI-generated content to mean “an image, audio, or video that has been generated using computational technology or other machine-based system that depicts an individual’s appearance, speech, or conduct, or an event, circumstance, or situation, including, in particular, AI-generated voices that sound like human voices, and AI-generated actors that appear to be human actors.”  The NPRM expresses particular concern about “deepfakes” given that deepfakes could, according to the NPRM, mislead the public about candidate positions or create distrust among potential voters.
  • Covered Entities.  The NPRM proposes to apply its requirements to radio and television broadcast stations, cable operators, Direct Broadcast Satellite (DBS) providers, and Satellite Digital Audio Radio Service (SDARS) licensees that originate programming.  It also proposes to apply its requirements to permit holders broadcasting programming from foreign stations into the United States under Section 325(c) of the Communications Act.  (We refer to these entities as “Covered Entities” throughout.)
  • Inquiry Requirement for Covered Entities.  The NPRM proposed a rule that would require a Covered Entity to ask a party seeking to air a political ad whether the ad in question contains AI-generated content.  Specifically, “at the time an agreement is reached to air a political ad,” a Covered Entity would have to (a) inform the person or entity requesting airtime that the station is required to make an on-air disclosure for political ads containing AI-generated content, and (b) inquire whether the ad in question includes AI-generated content.  The NPRM also seeks comment on the extent of the Covered Entity’s duty to make inquiries regarding whether an ad includes AI-generated content.  For example, the NPRM asks whether a Covered Entity could meet the new requirement if it merely asks about the content of the ad but does not receive a response.  The NPRM also asks how the FCC should handle circumstances in which a Covered Entity learns from a third party that a political ad contains AI-generated content, which the advertiser failed to disclose.
  • Requirement to Provide an On-Air Disclosure of AI-Generated Content.  Where a Covered Entity is aware that a political ad scheduled to be aired contains AI-generated content, the NPRM would require that the Covered Entity make an on-air announcement preceding or during the ad that the ad contains such content.  For radio ads, the Covered Entity would be required to include an oral announcement that “The following message contains information generated in whole or in part by artificial intelligence.”  For television ads, the Covered Entity would be required to either provide the above message orally or visually in font of a specified size.  (The licensee would be permitted to substitute “This message” for “The following message.”)  As with other on-air disclosures, these announcements would have to be clear and conspicuous – i.e., they would have to be spoken at an understandable speed (radio) and appear in an intelligible size and style font (video).
  • Requirement to Provide a Notice of AI-Generated Content in Political Files.  Covered Entities that air political ads containing AI-generated content would be required to include a notice in their political files for any political ad containing AI-generated content.  The notice would have to include the following language: “This message contains information generated in whole or in part by artificial intelligence.”
  • Network and Syndicated Programming Ads.  The NPRM also seeks comment on whether and how to apply its proposed on-air and political file disclosure obligations to a candidate or issue ad embedded in network or syndicated programming aired by a broadcast station.  Recognizing that a station may not have direct contact with an advertiser in these circumstances, the NPRM asks whether the FCC should require the station to ask the network (or syndicated programmer) about the content of the ad.  To better inform any approach for potentially applying the new requirements to stations airing political ads embedded in network and syndicated programming, the NPRM seeks information about how stations currently comply with their existing political advertising and political file obligations in these contexts.
  • Statutory Authority.  The NPRM premises the FCC’s authority to adopt the new requirements primarily on its authority to adopt rules in the public interest under Section 303(r) of the Communications Act.  However, it notes that cable operators engaged in origination programming are not subject to the FCC’s Section 303(r) rulemaking authority, and seeks comment on other statutory provisions (e.g., Section 315) that could provide a basis for application of the requirements to those licensees.  The NPRM also acknowledges and seeks comment on the potential First Amendment concerns associated with the new requirements, but tentatively concludes that “the proposed on-air disclosure and political file requirements comport with the First Amendment right to free speech, regardless which level of scrutiny applies.”

Commissioner Brendan Carr authored an extensive dissenting statement to the NPRM, arguing that it represents an effort “to fundamentally alter the regulation of political speech” to the advantage of the Democratic candidates.  The dissent argues that the NPRM oversteps the FCC’s statutory authority, is deficient under the Administrative Procedure Act, and would fail to address the problem it identifies.  Commissioner Nathan Simington also dissented, issuing a statement discussing the flaws of seeking to impose additional asymmetric requirements on broadcasters that do not apply to online media and questioning the FCC’s authority to take the proposed actions.  

Comments on the NPRM will be due 30 days after its publication in the Federal Register.

Photo of Gerard J. Waldron Gerard J. Waldron

Gerry Waldron represents communications, media, and technology clients before the Federal Communications Commission and Congress, and in commercial transactions. Gerry served as chair of the firm’s Communications and Media Practice Group from 1998 to 2008. Prior to joining Covington, Gerry served as the…

Gerry Waldron represents communications, media, and technology clients before the Federal Communications Commission and Congress, and in commercial transactions. Gerry served as chair of the firm’s Communications and Media Practice Group from 1998 to 2008. Prior to joining Covington, Gerry served as the senior counsel on the House Subcommittee on Telecommunications. During his work for Congress, he was deeply involved in the drafting of the 1993 Spectrum Auction legislation, the 1992 Cable Act, the Telephone Consumer Protection Act (TCPA), CALEA, and key provisions that became part of the 1996 Telecommunications Act.

Gerry’s practice includes working closely on strategic and regulatory issues with leading IT companies, high-quality content providers in the broadcasting and sports industries, telephone and cable companies on FCC proceedings, spectrum entrepreneurs, purchasers of telecommunications services, and companies across an array of industries facing privacy, TCPA and online content, gaming, and online gambling and sports betting-related issues.

Gerry has testified on communications and Internet issues before the FCC, U.S. House of Representatives Energy & Commerce Committee, the House Judiciary Committee, the Maryland Public Utility Commission, and the Nevada Gaming Commission.

Photo of Yaron Dori Yaron Dori

Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the…

Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the firm’s eight-person Management Committee.

Yaron’s practice advises clients on strategic planning, policy development, transactions, investigations and enforcement, and regulatory compliance.

Early in his career, Yaron advised telecommunications companies and investors on regulatory policy and frameworks that led to the development of broadband networks. When those networks became bidirectional and enabled companies to collect consumer data, he advised those companies on their data privacy and consumer protection obligations. Today, as new technologies such as Artificial Intelligence (AI) are being used to enhance the applications and services offered by such companies, he advises them on associated legal and regulatory obligations and risks. It is this varied background – which tracks the evolution of the technology industry – that enables Yaron to provide clients with a holistic, 360-degree view of technology policy, regulation, compliance, and enforcement.

Yaron represents clients before federal regulatory agencies—including the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the Department of Commerce (DOC)—and the U.S. Congress in connection with a range of issues under the Communications Act, the Federal Trade Commission Act, and similar statutes. He also represents clients on state regulatory and enforcement matters, including those that pertain to telecommunications, data privacy, and consumer protection regulation. His deep experience in each of these areas enables him to advise clients on a wide range of technology regulations and key business issues in which these areas intersect.

With respect to technology and telecommunications matters, Yaron advises clients on a broad range of business, policy and consumer-facing issues, including:

  • Artificial Intelligence and the Internet of Things;
  • Broadband deployment and regulation;
  • IP-enabled applications, services and content;
  • Section 230 and digital safety considerations;
  • Equipment and device authorization procedures;
  • The Communications Assistance for Law Enforcement Act (CALEA);
  • Customer Proprietary Network Information (CPNI) requirements;
  • The Cable Privacy Act
  • Net Neutrality; and
  • Local competition, universal service, and intercarrier compensation.

Yaron also has extensive experience in structuring transactions and securing regulatory approvals at both the federal and state levels for mergers, asset acquisitions and similar transactions involving large and small FCC and state communication licensees.

With respect to privacy and consumer protection matters, Yaron advises clients on a range of business, strategic, policy and compliance issues, including those that pertain to:

  • The FTC Act and related agency guidance and regulations;
  • State privacy laws, such as the California Consumer Privacy Act (CCPA) and California Privacy Rights Act, the Colorado Privacy Act, the Connecticut Data Privacy Act, the Virginia Consumer Data Protection Act, and the Utah Consumer Privacy Act;
  • The Electronic Communications Privacy Act (ECPA);
  • Location-based services that use WiFi, beacons or similar technologies;
  • Digital advertising practices, including native advertising and endorsements and testimonials; and
  • The application of federal and state telemarketing, commercial fax, and other consumer protection laws, such as the Telephone Consumer Protection Act (TCPA), to voice, text, and video transmissions.

Yaron also has experience advising companies on congressional, FCC, FTC and state attorney general investigations into various consumer protection and communications matters, including those pertaining to social media influencers, digital disclosures, product discontinuance, and advertising claims.

Photo of Jennifer Johnson Jennifer Johnson

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors…

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors, television companies, trade associations, and other entities on a wide range of media and technology matters. Jennifer has almost three decades of experience advising clients in the communications, media and technology sectors, and has held leadership roles in these practices for almost twenty years. On technology issues, she collaborates with Covington’s global, multi-disciplinary team to assist companies navigating the complex statutory and regulatory constructs surrounding this evolving area, including product counseling and technology transactions related to connected and autonomous vehicles, internet connected devices, artificial intelligence, smart ecosystems, and other IoT products and services. Jennifer serves on the Board of Editors of The Journal of Robotics, Artificial Intelligence & Law.

Jennifer assists clients in developing and pursuing strategic business and policy objectives before the Federal Communications Commission (FCC) and Congress and through transactions and other business arrangements. She regularly advises clients on FCC regulatory matters and advocates frequently before the FCC. Jennifer has extensive experience negotiating content acquisition and distribution agreements for media and technology companies, including program distribution agreements, network affiliation and other program rights agreements, and agreements providing for the aggregation and distribution of content on over-the-top app-based platforms. She also assists investment clients in structuring, evaluating, and pursuing potential investments in media and technology companies.

Photo of Corey Walker Corey Walker

Corey Walker advises clients on a broad range of regulatory, compliance, and enforcement matters in the media, technology, satellite and space, and telecommunications sectors. Corey also provides strategic counsel to leading media, sports, and technology companies on gaming matters, with a focus on…

Corey Walker advises clients on a broad range of regulatory, compliance, and enforcement matters in the media, technology, satellite and space, and telecommunications sectors. Corey also provides strategic counsel to leading media, sports, and technology companies on gaming matters, with a focus on sports betting, fantasy sports, and online gaming.

Corey represents clients before the Federal Communications Commission in connection with a range of policy and compliance issues, including satellite and earth station operations, radiofrequency (RF) spectrum use and availability, and experimental licensing for new and innovative technologies. He also advises clients on structuring transactions and securing regulatory approvals at the federal, state, and local levels for mergers, asset acquisitions, and similar transactions involving FCC and state telecommunications licensees and companies holding private remote sensing space system licenses issued by the National Oceanic and Atmospheric Administration.

Corey also maintains an active gaming and sports betting practice, and routinely counsels companies on state licensing and compliance matters, including those that pertain to fantasy sports and online gaming.

Photo of Jorge Ortiz Jorge Ortiz

Jorge Ortiz is an associate in the firm’s Washington, DC office and a member of the Data Privacy and Cybersecurity and the Technology and Communications Regulation Practice Groups.

Jorge advises clients on a broad range of privacy and cybersecurity issues, including topics related to…

Jorge Ortiz is an associate in the firm’s Washington, DC office and a member of the Data Privacy and Cybersecurity and the Technology and Communications Regulation Practice Groups.

Jorge advises clients on a broad range of privacy and cybersecurity issues, including topics related to privacy policies and compliance obligations under U.S. state privacy regulations like the California Consumer Privacy Act.

Photo of John Bowers John Bowers

John Bowers is an associate in the firm’s Washington, DC office. He is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

John advises clients on a wide range of privacy and communications issues…

John Bowers is an associate in the firm’s Washington, DC office. He is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

John advises clients on a wide range of privacy and communications issues, including compliance with telecommunications regulations and U.S. state and federal privacy laws.