Legal Definitions - payola

Definition: Payola is an illegal practice where someone pays money or gives gifts to someone else in exchange for a favor, especially in business. It is a form of bribery.

• A music promoter pays a radio DJ to play a certain song more often than others.
• A company gives a gift to a government official in exchange for a contract.
• A restaurant owner pays a food critic to write a positive review.

These examples illustrate how payola works. In each case, someone is offering money or gifts to someone else in exchange for a favor. This is illegal because it undermines fair competition and can lead to dishonest practices.