Amann v. Clear Channel Communications, 2006-Ohio-713 – Broadcaster generally not responsible for veracity of advertisements due to protections afforded commercial speech

Defendant, owner of a large number of radio stations in the Cincinnati area, ran advertisements voiced by one of its local personalities which offered a “guaranteed 100% income plus plan.”  The plan was later discovered to be a fraudulent investment scheme.  Plaintiff lost his investment in the plan and sued Defendant, arguing that Defendant negligently breached its duty to investigate the veracity and authenticity of the advertisement.

Appellate court affirmed the summary judgment in favor of Defendant, holding that broadcast media firms have substantial protection for commercial speech under the First Amendment, and that they have no duty to investigate the veracity of claims in the advertisements they air.  Broadcasters may be liable, however, for the tort of negligent misrepresentation when an advertisement is intended for a specific person or limited group of people, and other civil liability may attach when broadcasters air an advertisement which they know to be false, or which is so improbable on its face that they must know that it is probably false.