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KEEPING IT LEGAL a Guide for WV Broadcasters

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KEEPING IT LEGAL a Guide for WV Broadcasters KEEPING IT LEGAL A Guide for WV Broadcasters Published by: COLORADO INDIANA KENTUCKY OHIO PENNSYLVANIA WASHINGTON, D.C. WEST VIRGINIA This is an advertsiement. www.jacksonkelly.com TABLE OF CONTENTS TABLE OF CONTENTS i INTRODUCTION 1 ADVERTISING 3 ADVERTISING OF ALCOHOLIC BEVERAGES 3 What was the effect of Liquormart, Inc. v. Rhode Island? .......................................................3 ADVERTISING OF LOTTERIES 5 What is a lottery? 5 How can the “lottery” designation be avoided? .......................................................................6 Is there an exception for charitable lotteries? ...........................................................................7 Are “snow ads” acceptable forms of advertising? ....................................................................7 Can you advertise lottery games which have been made legal by West Virginia state statute? ..................................................................................................................................................7 ADVERTISING OF TOBACCO 9 May television or radio stations advertise stores that specialize in the sale of tobacco products?...................................................................................................................................9 What may television and radio stations advertise? .................................................................10 What about advertisements for vaping? .................................................................................10 ADVERTISING MEDICAL MARIJUANA AND CBD 12 Regulations on advertising medical marijuana .......................................................................12 Regulations on advertising CBD oils and CBD products ......................................................13 Risks when advertising CBD oils and CBD products ............................................................13 ADVERTISING OF LEASES 14 How do the West Virginia and federal laws act to regulate the advertising of leases? ..........14 What are “triggering terms” and what disclosures do they necessitate? ................................15 What are the simplified disclosure requirements for radio and television advertisements? ..15 How do the federal regulations prevent “bait and switch” tactics in advertisements? ...........16 How must the disclosures appear in the advertisement? ........................................................16 What if a business from another state wants to advertise in West Virginia? .........................17 ADVERTISING OF VIDEO LOTTERY TERMINALS 18 Is advertising of video lottery permitted? ...............................................................................18 Why are the racetracks able to advertise video lottery? .........................................................19 ADVERTISING INTERNET OR OFFSHORE GAMBLING 20 i 4816-6208-8364.v1 Keeping It Legal: A Guide for West Virginia Broadcasters Is advertising Internet or off-shore gambling permitted? .......................................................20 RULES FOR ADVERTISING UNDER THE WEST VIRGINIA LOTTERY SPORTS WAGERING LAWS 22 General requirements for advertisements: ..............................................................................22 Additional requirements specific to phone-app advertisements: ............................................22 Additional requirements specific to radio advertisements: ....................................................22 Additional requirements specific to television advertisements: .............................................23 What do the NFL Guidelines say?..........................................................................................23 ADVERTISING “GOING OUT OF BUSINESS” SALES 24 What types of sales are covered by these laws? .....................................................................24 What conditions are necessary to qualify as a true “going out of business” sale? .................25 How are broadcasters affected by the laws? ...........................................................................26 What disclosures must advertisements of such sales contain? ...............................................26 What are the penalties for violations of the Article? ..............................................................26 ADVERTISING “TAX FREE” SALES 27 Can an advertiser state in an ad that it will assume, absorb, or rebate the state sales tax? ....27 Can an advertiser offer to discount a purchase in the same amount that the customer pays in sales tax? .................................................................................................................................27 ADVERTISING CONTESTS, PRIZES, AND GIFTS 28 What conditions must an advertiser meet to advertise that a person has won something of value or is the winner of a contest? ........................................................................................28 What disclosures are required to advertise that a person is eligible to win a prize? ..............28 Who is covered by the Act?....................................................................................................29 What kind of language in advertisements is specifically covered under the Act? .................29 What recourse is available to consumers under the Act? .......................................................29 What was the effect of the Suarez litigation on advertisers? ..................................................30 What is the importance of contest rules? ................................................................................30 Which contest rules are important? ........................................................................................30 What online contest disclosures are required? .......................................................................31 INTERNET ADVERTISING 33 Are radio and television broadcasters required to collect WV sales tax on Internet advertising?.............................................................................................................................33 Are radio and television broadcasters required to pay the City’s B&O tax on gross income from Internet advertising? ......................................................................................................33 COMPLYING WITH SALES AND USE TAX REQUIREMENTS 34 What are sales and use taxes? .................................................................................................34 How do sales and use taxes apply to broadcasters? ...............................................................34 What if a customer buys broadcasting time for the purpose of advertising goods and services? .................................................................................................................................34 Eighth Edition ii 4816-6208-8364.v1 Keeping It Legal: A Guide for West Virginia Broadcasters What if a customer buys broadcasting time for the purpose of advertising goods and services combined with internet advertising? ......................................................................................34 Do broadcasters have to pay sales and use taxes when they make purchases? ......................35 What if a supplier does not collect sales and use tax when they are supposed to? ................35 ENDORSEMENTS AND TESTIMONIALS IN ADVERTISING 36 May advertisements utilize endorsements and testimonials? .................................................36 What is an endorsement? ........................................................................................................36 What is a testimonial? ............................................................................................................37 May an advertisement utilize consumer endorsements? ........................................................37 May an advertiser utilize expert endorsements? ....................................................................38 May an advertiser utilize endorsements made by an organization? .......................................39 Must material connections between the endorser and the seller of the advertised product be disclosed? ...............................................................................................................................39 Is “natively formatted advertising” considered deceptive? ....................................................40 INTERNET ADVERTISING 41 May advertisers utilize music in television or radio advertisements? ....................................41 May advertisers utilize only the tune of a familiar song in television or radio advertisements? ......................................................................................................................42 AVOIDING PAYOLA AND PLUGOLA LIABILITY 43 What is payola? ......................................................................................................................43 What is plugola? .....................................................................................................................43 What penalties arise from payola and plugola violations? .....................................................43 How does a broadcaster avoid payola and plugola violations and liability? ..........................43 POLITICAL BROADCASTING 46 Who is a “legally qualified candidate” under the FCC? .........................................................46 What is a “use”? .....................................................................................................................47
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