The Australian Communications and Media Authority confirmed today that it has decided to open an investigation into compliance with the commercial radio standards by Radio 2UE Sydney Pty Ltd, the licensee of commercial radio service 2UE Sydney.

ACMA's decision follows the notification of a breach of the Commercial Radio Disclosure Standard by 2UE. 2UE wrote to ACMA indicating it had breached the standard as a result of one if its presenters, Mr John Laws, failing to disclose a commercial agreement with Telstra during an interview with the Prime Minister on Mr Laws program on 28 August 2006.

"ACMA acknowledges the action of 2UE in bringing this specific breach to its attention," said Chris Chapman, ACMA Chairman. "However, ACMA has decided to commence an investigation into 2UE's compliance with the standards."

The terms of reference for the investigation are included below.

In connection with the investigation, ACMA makes it clear that it has formed no firm view on the issues to date but is seeking documents to inform itself.

'At this stage, ACMA has begun collecting documents that are relevant to the matters noted in the terms of reference,' said Mr Chapman. 'Once the documents are examined, ACMA will consider what steps, if any, will need to be taken.'