Re: Payola

[Dib9@aol.com]

In a message dated 97-04-22 01:08:31 EDT, you write:

<< n Mon, 21 Apr 1997 Dib9@aol.com wrote:
 
 > Preferential treatment for the big guys is not payola, illegal or even
 > unethical.  It goes on in every business.  You are going to try to help
 > people who can most help you.  It's only illegal if the station is
required
 > to do something in exchange for the treatment.  
 
 I think it's a little more complicated than that.  Here are some examples
 from my experience.
 
 An owner of a local restaurant called me about her daughter's problems
 with a tenant.  I spent some time on the phone answering general questions
 and refused to send a bill (as is my usual practice for short telephone
 advice).  The restaurant owner sent me a gift certificate for dinner for
 two at her restaurant.  Seems OK.
 
 But how about this one.  A client told me that she wanted to look for a
 home to buy, and I referred her to a local real estate broker that I know.
 I did so because I know that broker and have confidence that she will be
 able to help my client.  My client goes to that broker, finds something to
 buy, and I handle the closing.  The broker then sends me a letter thanking
 me for the referral and enclosing a gift certificate for a local
 restaurant.
 
 After consultation with Bar Counsel's office, I returned the gift
 certificate.  I felt that it was my obligation, when advising clients, to
 refer them to someone who will best serve their needs, and not even have
 it appear that I might be swayed by such a gift.  But if that broker were
 to refer a client to me, that would be fine.
 
 And, just to round out the discussion, Sherman Adams, who was chief
 assistant to President Eisenhower, had to resign because he had accepted
 some expensive gifts from a Boston industrialist.  There was no evidence
 whatsoever of any favors being done in return for said industrialist. >>

I think the radio/record company situation is similiar to your first
scenario.  In the second scenario you have a conflict of interest.  I think
there is only a conflict of interest in the radio/record company situation if
the radio station lets the promotional benefits influence what records they
play.

As for Sherman Adams, that was a political problem, that is why he resigned.

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