ACMA and Laws clash again

The Australian Communications and Media Authority has accepted an enforceable undertaking from 2UE following its finding that they breached the Commercial Radio Disclosure Standard and the Commercial Radio Compliance Program Standard. The breaches were reported to ACMA in August 2006 by 2UE’s parent company, Southern Cross Broadcasting.

The breaches of the Disclosure Standard arose in August 2006 during discussion of the Telstra T3 share offer by John Laws on his program The John Laws Morning Show. Disclosure announcements were not broadcast during this program at the time Laws mentioned Telstra, one of his sponsors. The issue of Telstra privatisation was discussed in detail on six occasions during the three hour program, including an interview on the subject and a discussion with a caller. During the program Laws made mention of the name ‘Telstra’ on 20 occasions, none of which included a disclosure announcement.

While 2UE informed ACMA that the required details of the commercial agreement between Laws and Telstra Corporation Limited were disclosed on the 2UE website, their was a breach of the disclosure standard by failing to provide ACMA with written notification of that commercial agreement within 14 days of the licensee being notified of the agreement.

ACMA has accepted an enforceable undertaking that requires that 2UE have its compliance with the Compliance Program Standard and the enforceable undertaking externally audited every six months, and to report the results of these audits to ACMA. 2UE must also report six-monthly on its compliance with the notification provisions in the Disclosure Standard.

In addition, the 2UE have undertaken to monitor each broadcast of The John Laws Morning Show to ensure the required disclosure announcements are made, in addition an external person will be appointed to audit and report to ACMA fortnightly on its compliance with the disclosure announcement provisions in relation to The John Laws Morning Show.