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WASHINGTON (AP) - Federal regulators are taking a closer look at the payola scandal that led to a $10 million settlement by Sony BMG Music Entertainment with the state of New York.
Federal Communications Commission Chairman Kevin Martin announced late Monday that his agency will review the settlement for any disclosures of payola rule violations. He promised swift action against anyone violating rules against "pay-for-play" in the music industry.
The FCC "will not tolerate non-compliance," Martin said in a statement. "While payola may not be a widespread practice in the broadcasting industry, to the extent it is going on, it must stop."
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