During the mid fifties concerns were raised that independant recording companies were dominating radio airplay in the USA. ASCAP (American Society of Composers, Authors and Publishers) were convinced that this was purely because record companies were paying DJs and nothing to do with the fact that teenagers preferred the music. This perceived threat was dubbed 'Payola' from the words 'pay' and 'Victrola¹'. ASCAP looked on Rock and Roll as a passing fad and possibly harmful and convinced the US government, in the person of Oren Harris, to prosecute the smaller record manufacturers and distributors. Complaints were filed in early 1960 and companies given 30 days to agree to a Consent Order. Many did and subsequently folded.

Attention then turned to the DJs. The record companies supplied the names of 25 DJs suspected of taking money. Of these the two most well-known were Dick Clark and Alan Freed. Clark was ordered to give up his musical interests by ABC-TV. He claimed that he only got involved in the first place as a means of gaining tax advantage. He admitted to investing $125 in Jamie Records but denied the claim they made that he had received $15,000 in payola. He was admonished but seemed to escape unharmed.

Freed, on the other hand, was indicted for accepting $2,500 which he denied. He was found guilty and sentenced to pay a small fine and received a six months suspended sentence. Because of his stance he had lost all his contracts and never recovered from the blow. After his trial the anti-payola statute was passed under which payola became a misdemeanor subject to a penalty of up to $10,000 in fines and one year in prison.