Before the

Federal Communications Commission

Washington, D.C. 20554

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| In the Matter of                 | * | File No. EB-00-IH-0149, GS   |
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| **TELEMUNDO OF PUERTO RICO       | ) | Station ID No. 64983         |
| LICENSE CORP.**                  | * |                              |
|                                  | * | NAL/Acct. No. 200132080009   |
| Licensee of Station WKAQ-TV, San |   |                              |
| Juan, Puerto Rico                | * |                              |
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[NOTICE OF APPARENT LIABILITY FOR FORFEITURE]{.underline}

**Adopted:** December 18, 2000 **Released:** December 19, 2000

By the Chief, Enforcement Bureau:

**I. Introduction**

1.  In this Notice of Apparent Liability for Forfeiture, we find that
    Telemundo of Puerto Rico License Corp. ("Telemundo"), licensee of
    Station WKAQ-TV, San Juan, Puerto Rico, broadcast an excessive
    number of minutes of commercial matter during children's programming
    on two occasions, in apparent willful and repeated violation of
    Section 73.670 of the Commission's rules, 47 C.F.R. § 73.670. For
    the reasons below, we conclude that Telemundo is apparently liable
    for a forfeiture in the amount of \$16,000.

**II. Background**

2.  For more than 10 years, Station WKAQ-TV has produced the two-hour
    *Telecomicas* children's program. The *Telecomicas* program is
    intended for youngsters ages five through nine and consists of
    in-studio segments wrapped around children's cartoons and commercial
    matter. From time to time, the in-studio segments include contests
    in which participants are awarded prizes. Currently, the program is
    broadcast by WKAQ-TV on Saturday mornings from 8:00am to 10:00am.

3.  In March 2000, personnel from the FCC's Enforcement Bureau conducted
    a nationwide investigation to determine commercial television
    stations' compliance with Section 73.670 of the Commission's rules.
    Section 73.670 states:

> No commercial television broadcast station licensee shall broadcast
> more than 10.5 minutes of commercial matter per hour during children's
> programming on weekends, or more than 12 minutes of commercial matter
> per hour during weekdays.

4.  Our investigation of Station WKAQ-TV revealed that between 9:00am
    and 10:00am on March 11, 2000, and again between 9:00am and 10:00am
    on March 18, 2000, Station WKAQ-TV broadcast two in-studio contest
    segments during its *Telecomicas* program. The segments consisted of
    a clown-dunk contest and a remote-controlled toy car race. They were
    sponsored, respectively, by Carmela Sausages ("Carmela") and
    Kentucky Fried Chicken ("KFC"). Each segment was preceded by a
    sponsorship identification and contained images of the company's
    logo and product lines (in the case of the KFC-sponsored contest
    segments, there also appeared images of the KFC Chicken) during the
    competition and prize-presentation portions of the segment. The
    combined duration of the two contest segments that were broadcast
    each hour was approximately four minutes. The combined duration of
    the routine commercial matter that was broadcast each hour was
    approximately nine minutes.

5.  By letter, dated July 7, 2000, the Enforcement Bureau's
    Investigations & Hearings Division requested Telemundo to provide
    information about the contest segments. The letter informed
    Telemundo that if the contests were added to the routine commercial
    matter broadcast during each of the hours in question, the total
    amount of commercial matter broadcast by Station WKAQ-TV during its
    children's programming might exceed 10.5 minutes, and thereby
    apparently violate Section 73.670 of the Commission's rules. On
    August 3, 2000, Telemundo responded to the letter of inquiry.
    Telemundo confirmed that the contest segments were sponsored by
    Carmela and KFC, but denied that they constituted commercial matter
    for purposes of the Commission's commercial limits because they did
    not promote the sponsors' products.

6.  On September 15, 2000, the Investigations & Hearings Division
    directed a follow-up letter of inquiry to Telemundo requesting
    additional information about the contests. By letter, dated October
    6, 2000, Telemundo stated, among other things, that, following an
    extensive review of its *Telecomicas* episodes, it had discovered
    that the Carmela-sponsored contest segment broadcast on March 11,
    2000, did in fact display Carmela products and showed the contest
    hostess wearing an apron bearing the Carmela company logo during the
    competition. Telemundo acknowledged that these displays effectively
    rendered the entire segment commercial matter. Telemundo continued
    to deny that the KFC-sponsored contest segments constituted
    commercial matter.

7.  Thereafter, on November 6, 2000, Telemundo supplemented its two
    previous responses. Telemundo stated that, while the prize
    presentation portions of the Carmela and KFC-sponsored contests may
    have violated the Commission's "host-selling" policy, they did not
    render the *Telecomicas* program a program-length commercial because
    none of the contest segments promoted, directly or indirectly, any
    products related to *Telecomicas*. Telemundo also indicated that
    Station WKAQ-TV has suspended the practice of broadcasting game
    segments during *Telecomicas*.

III\. Discussion

8.  Section 73.670, the text of which appears above, became effective on
    January 1, 1992. The Commission adopted it in response to the
    Children's Television Act of 1990, Pub. L. No. 101-437, 104 Stat.
    996-1000 ("CTA"), *codified at* 47 U.S.C. §§ 303a, 303b, and 394.
    Under the CTA and Section 73.670, the amount of commercial matter
    that a television station may broadcast during children's
    programming is unambiguous.

9.  Pursuant to the CTA and Section 73.670, Telemundo is required to
    limit the amount of commercial matter that it broadcasts during its
    children's programming on weekends to 10.5 minutes per hour.
    Telemundo concedes that its *Telecomicas* program was intended for
    children and was broadcast between 8:00am and 10:00am on both
    Saturday morning, March 11, 2000, and Saturday morning, March
    18, 2000. Thus, during each of those hours, Telemundo was not
    permitted to broadcast more than 10.5 minutes of commercial matter.

10. We find, based on the information before us, that the repeated
    appearance of Carmela and KFC logos, products, and characters
    throughout the contest segments that were broadcast between 9:00am
    and 10:00am on March 11 and March 18, 2000, appear to have rendered
    those *contest segments* commercial matter. Telemundo has conceded
    as much with respect to one contest segment broadcast on March
    11, 2000. We believe, however, that the same conclusion should
    obtain with respect to the remaining three contest segments
    broadcast during the hours in question. Indeed, given the pervasive
    presence of sponsor-related information during the competition and
    prize-presentation portions of the contest segments, few, if any
    children, 12 years old and under would be able to distinguish the
    commercial messages from the entertainment content within each
    segment. When the *contest segments* are combined with other
    commercial matter broadcast during each of the two hours in
    question, the total amount of commercial matter broadcast by Station
    WKAQ-TV approximates 13 minutes \-- a number that exceeds the 10.5
    minutes per hour limit imposed by Section 73.670 of the Commission's
    rules.

11. The Commission's *Forfeiture Policy Statement,*[^1] which became
    effective for violations occurring after October 14, 1997, sets a
    base forfeiture amount of \$8,000 for each violation of Section
    73.670. In setting the base forfeiture amount at this relatively
    high level, the Commission viewed violations of its children's
    television commercialization requirements as among the more serious
    transgressions that a broadcaster may commit. We affirm our
    commitment to enforcing the requirements embodied in Section 73.670.
    We find that Telemundo apparently twice exceeded the commercial
    limits established in Section 73.670 during the relatively short
    period covered by the Bureau investigation. Under these
    circumstances, we believe a forfeiture in the amount of \$16,000 is
    appropriate.

**IV. Ordering Clauses**

12. ACCORDINGLY, IT IS ORDERED pursuant to Section 503(b) of the
    Communications Act of 1934, as amended, 47 U.S.C. § 503(b), and
    Sections 0.111, 0.311 and 1.80 of the Commission's rules, 47 C.F.R.
    §§ 0.111, 0.311 and 1.80, that TELEMUNDO OF PUERTO RICO LICENSE
    CORP. is hereby NOTIFIED of its APPARENT LIABILITY FOR FORFEITURE in
    the amount of sixteen thousand dollars (\$16,000) for willfully and
    repeatedly violating Section 73.670 of the Commission's rules.

13. IT IS FURTHER ORDERED, pursuant to Section 1.80 of the Commission's
    rules, that within thirty days of the release of this Notice,
    TELEMUNDO OF PUERTO RICO LICENSE CORP. SHALL PAY to the United
    States the full amount of the proposed forfeiture or SHALL FILE a
    written statement seeking reduction or cancellation of the proposed
    forfeiture. Payment of the forfeiture may be made by mailing a check
    or similar instrument, payable to the order of the Federal
    Communications Commission, to the Forfeiture Collection Section,
    Finance Branch, Federal Communications Commission, P.O. Box 73482,
    Chicago, Illinois 60673-7482. The payment should note the NAL/Acct.
    No. referenced above. The response, if any, must be directed to
    Charles W. Kelley, Chief, Investigations and Hearings Division,
    Enforcement Bureau, Federal Communications Commission, 445 12^th^
    Street, S.W, Room 3-B443, Washington DC 20554 and MUST INCLUDE the
    file number listed above.

14. The Commission will not consider reducing or canceling a forfeiture
    in response to a claim of inability to pay unless the petitioner
    submits: (1) federal tax returns for the most recent three-year
    period; (2) financial statements prepared according to generally
    accepted accounting practices ("GAAP"); or (3) some other reliable
    and objective documentation that accurately reflects the
    petitioner's current financial status. Any claim of inability to pay
    must specifically identify the basis for the claim by reference to
    the financial documentation submitted. Requests for payment of the
    full amount of this Notice of Apparent Liability under an
    installment plan should be sent to: Chief, Credit and Debt
    Management Center, 445 12th Street, S.W., Washington, D.C. 20554.
    *See* 47 C.F.R. § 1.1914.

15. IT IS FURTHER ORDERED that a copy of this Notice shall be sent, by
    Certified Mail \-- Return Receipt Requested, to counsel for
    Telemundo of Puerto Rico License Corp.: Kevin P. Latek, Esq., Dow,
    Lohnes & Albertson, 1200 New Hampshire Avenue, N.W., Suite 800,
    Washington, D.C. 20036.

> **FEDERAL COMMUNICATIONS COMMISSION**
>
> David H. Solomon

Chief, Enforcement Bureau

[^1]: *The Commission's Forfeiture Policy Statement and Amendment of
    Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines*,
    12 FCC Rcd 17087 (1997), *recon. denied*, 15 FCC Rcd 303 (1999).