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Entercom Asks For Spitzer Suit Dismissal
April 13, 2006

Entercom Communications has moved for dismissal of Eliot Spitzer's lawsuit filed against the company last month over payola allegations, making them the first radio ownership group to fight back against the New York Attorney General's war on alleged impropriety in the music industry.

Entercom has filed a motion stating that, by basing his suit on New York's state laws of consumer protection, Spitzer has not gone about his investigation properly, according to The Wall Street Journal. The company's lawyers argue that for the suit to have merit, Spitzer must prove that consumers were harmed by deception on Entercom's behalf. The lawyers say that no one was harmed, because terrestrial radio is a free medium. Spitzer's argument is based on radio airplay affecting chart position, which can ultimately affect consumer's purchasing choices.

Entercom's lawyers also say that New York law says that if they are complying with federal laws, that trumps the state's consumer protection laws. The company claims it was in full compliance with U.S. laws by disclosing when payments were given for airplay.

A spokeswoman for Spitzer told the WSJ, "We've made our arguments about how consumers are affected by this conduct. We'll let the court decide this case on its merits."

Spizer reportedly had asked for $20 million to settle with Entercom.

 




 
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