Jackson exposed her right breast, apparently due to a "wardrobe malfunction", during a dance routine with Justin Timberlake at the Super Bowl, one of the most watched TV events of the year in the States.
The incident sparked outrage among US viewers, generating more than 500,000 complaints.
CBS was quick to apologise and heap the blame on Jackson, but US regulator the Federal Communications Commission announced yesterday that it was fining the 20 CBS-owned TV stations $27,500 each -- the biggest fine ever levied on US broadcaster.
Timberlake claimed after the event that it was caused by a problem with Jackson's outfit -- Jackson simply described the breast-baring faux pas as an "accident".
"Nipplegate" has sparked a new crackdown on indecent content and comments on US TV and radio, as conservative-leaning groups took up the baton.
The episode earlier this year was followed by the sacking of controversial radio host Howard Stern by employer Clear Channel after the group adopted a zero-tolerance approach to indecent comments.
Stern, famed for his smutty humour, was seen by Clear Channel to have overstepped the line during one of his shows when he was interviewing Rick Salomon, now infamous for releasing a movie of himself having sex with heiress Paris Hilton.
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