The Radio Act of 1927, which superseded the Radio Act of 1912, was signed by President Calvin Coolidge on February 23, 1927.

New 1927 commission would license broadcasters

The act created the Federal Radio Commission (FRC), which was primarily directed to license broadcasters and reduce radio interference, a benefit to both broadcasters and the public in the chaos that developed in the aftermath of the breakdown of earlier wireless radio acts. One assumption underlying the act was that the First Amendment protected radio as a form of expression.

Several other underlying assumptions were that:

  1. Transmission facilities, reception, and service would be equal;
  2. Although the “Public” at large owned the radio spectrum, individuals would be licensed to use it;
  3. Licenses would be granted based on the public interest, convenience, and necessity; and
  4. Broadcasters were responsible for their operations, and the government would not interfere unless operators failed to meet the public interest standard.

Section 18 of the Radio Act of 1927 was a forerunner of the equal time rule by ordering stations to give equal opportunities to political candidates.

The act did not authorize the Federal Radio Commission to make any rules about advertising. However, it forbade programming that used “obscene, indecent, or profane language.” Otherwise, anything could be programmed. The act did vest in the Federal Radio Commission the power to revoke licenses and give fines for violations.

1927 Radio Act provided that commission could not censor programs

Because the broadcast industry was concerned that the government’s licensing power might degenerate into censorship, Section 29 of the act, while prohibiting obscene, indecent, or profane language, provided that the commission would not otherwise have the power to censor the content of programs.

The concept that broadcasting was a privilege was not considered a violation of broadcasters’ First Amendment rights. The radio industry generally accepted the premise that “free speech” did not mean the right for anyone to say anything on the air. Free speech issues in 1927 were secondary to ending the airwaves chaos.

In 1934 Congress replaced the Federal Radio Commission with the Federal Communications Commission (FCC) and the Radio Act of 1927 with the Communications Act of 1934.

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