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Emerging Issues in Management (Mgmt 440)

Emerging Issues in Management (Mgmt 440). Professor Charles H. Smith Regulating Business (Chapter 10) – Summer 2009. Annals of Regulation: The FCC Fines CBS (pages 297-300).

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Emerging Issues in Management (Mgmt 440)

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  1. Emerging Issues in Management (Mgmt 440) Professor Charles H. Smith Regulating Business (Chapter 10) – Summer 2009

  2. Annals of Regulation: The FCC Fines CBS (pages 297-300) • Our coverage of Chapter 10 will be limited to the infamous “wardrobe malfunction” case stemming from the 2004 Super Bowl halftime show featuring Justin Timberlake and Janet Jackson. • Timberlake was singing the song called “Rock Your Body” and dancing with Jackson in a rather suggestive manner. • Timberlake tore off a piece of material covering Jackson’s right breast which was exposed for 19/32 of a second on TV.

  3. FCC Fines CBS • The FCC fined CBS $550,000.00, which was the statutory maximum of $27,500.00 multiplied by the 20 Viacom-owned stations in the CBS network (statutory maximum now $325,000.00). • CBS paid the fine but appealed to the Third Circuit Federal Court of Appeals.

  4. Appeal to the Courts • On July 21, 2008, the Third Circuit Court of Appeals vacated the fine because • At the time of the broadcast, long-standing FCC policy exempted fleeting or isolated material from the scope of actionable indecency. • The “fleeting or isolated” rule was not just applicable to words but also to images. • First Amendment did not permit CBS to be held strictly liable. • Find the court of appeals’ decision at CBS Corporation v. FCC, 535 F.3d 167 (3rd Cir. 2008).

  5. Now What? • On May 4, 2009, the United States Supreme Court decided the case of FCC v. Fox Television Stations, Inc., 129 S.Ct. 1800 (2009), which held that actionable indecency did not have to be based on literal or nonliteral use of nor require repetitive use of offensive words. • Also, the Court vacated the judgment of the Third Circuit in the CBS v. FCC case and remanded that case for further consideration pursuant to the decision in FCC v. Fox.

  6. Some Quick Comments About Finding and Reading the Cases • Both cases are available on the LexisNexis Academic Universe through the CSUF website • Start on CSUF homepage. • Click on “Library” link. • Click on “Databases A-Z” link (left side of page). • Scroll down and click on “LexisNexis Academic” link. • Click on “Legal” link (left side at top). • List of topics on left side – click on “Federal & State Cases.” • Provide the case citation in the space indicated; e.g., 535 F.3d 167 for CBS v. FCC. • Read the summaries and headnotes at the beginning of the CBS v. FCC and FCC v. Fox cases – you do not need to read the courts’ entire opinions.

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