New York Attorney General suing Arbitron over PPM

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: New York AG Sues Arbitron Over PPM : The Attorney General of the State of New York will file suit against Arbitron to stop the company's rollout of PPM in the Empire State. New York AG Andrew Cuomo alleges that Arbitron has engaged in "unlawful and deceptive acts and practices" in connection with "the marketing and planned commercialization in New York of the Portable People Meter (PPM) methodology." : Arbitron plans to commercialize the PPM in New York and seven other markets, including Los Angeles, Chicago, and San Francisco on Oct. 8. : In a three-page letter sent to Arbitron chairman/president/CEO Stephen Morris and the company’s top lawyer, Timothy Smith, Cuomo accuses Arbitron of creating "the misleading impression" that PPM methodology is "fair, reliable and fully represents the diversity of New York radio markets" among other charges. He also charges that the company has attempted to launch PPM "without addressing methodological flaws which disparately impacts racial and ethnic minorities" a violation of New York Civil Rights Law. : The notice comes nearly three weeks after the N.Y. AG's office subpoenaed Arbitron over what it called "a significant and improper decline in ratings under the PPM methodology" that "could cause minority stations to suffer drastic reductions in advertising revenues." On Sept. 15, New Jersey Attorney General Anne Milgram issued her own subpoena "concerning allegations that [Arbitron's] new method for measuring radio station listenership in New Jersey is flawed, statistically unreliable and undercounts the listening habits of minority consumers." : In Cuomo's letter, dated Oct. 2, he claims Arbitron created "the misleading impression that the PPM methodology is accredited in New York and that it has told Arbitron shareholders "about the reliability and scheduled commercialization of the PPM methodology, thereby inflating the price of Arbitron's common stock, but failed to disclose to shareholders material adverse information about PPM methodology." The notice also cites the Columbia, Md., radio research and data provider with disseminating false and misleading advertising materials that portray PPM as a "valid, reliable, fair and representative" technology for monitoring demographics in New York. : After New Jersey issued its subpoena, Arbitron responded with "Portable People Meter radio ratings services are valid, fair and representative of the diversity of the radio markets measured." Arbitron's Morris said, "Once again, the media industry should be concerned about these continued political encroachments on the valuable role that the Media Rating Council fulfills. The MRC oversees a well-established, widely accepted process that has served television, radio, print, Internet and other ad-supported media for more than four decades. The MRC has also been a driving force behind the important and continuing quality improvements in the ratings services that the media industry counts on." : Responding to Cuomo's suit to stop the rollout of PPM, Arbitron Friday afternoon (Oct. 3) issued this statement: : "Arbitron is disappointed that the State of New York Office of the Attorney General has stated its intent to pursue litigation in an effort to stop the implementation of Portable People Meter -- a measurement tool that is supported by a majority of the radio industry. We intend to vigorously defend the Company and its interests. We also fear that the radio industry will suffer continued harm and be placed at a competitive disadvantage if PPM is delayed further. : "After many years of market trials, and almost two years of commercialization, the PPM is providing more timely and detailed insights into the behavior of radio audiences. These insights have already been used with demonstrated success by radio programmers, including those at urban and Spanish-language stations. : "Radio broadcasters, radio advertisers and Arbitron all have an important stake in the transition to electronic measurement. At Arbitron, we appreciate the role that all segments of the radio industry must play during this transition. We reaffirm our commitment to working with all radio broadcasters, agencies, and advertisers to facilitate industry-wide success in an electronically measured world." : : (Jeffrey Yorke and Mike Boyle, Radio & Records)

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