FCC fines retailers for breaking DTV transition rules

IDG News Service — Fri, 11 Apr 2008 10:48:17 -0400

The U.S. Federal Communications Commission has handed out more than US$6.6 million in fines to 11 retailers and television manufacturers, accusing the companies of violating its rules for the U.S. transition to all-digital broadcasts in early 2009.

Among the companies fined Thursday were Fry's Electronics, Best Buy, Circuit City and Target. The biggest fines went to Sears and subsidiary Kmart, nearly $1.1 million; Wal-Mart, $992,000; and TV manufacturer Syntax-Brillian, nearly $1.3 million.

The FCC accused the retailers of failing to place notices near analog-only TV sets warning customers that the sets did not have digital tuners.

In part, the required notice reads: "This television receiver has only an analog broadcast tuner and will require a converter box after February 17, 2009, to receive over-the-air broadcasts with an antenna because of the Nation's transition to digital broadcasting. Analog-only TVs should continue to work as before with cable and satellite TV services, gaming consoles, VCRs, DVD players, and similar products."

The FCC accused Syntax-Brillian and other manufacturers of shipping TV sets that don't include digital-ready equipment. The FCC in 2002 adopted rules saying all TV sets shipped in the U.S. by March 1, 2007, be capable of receiving digital signals.

The companies fined "willfully and repeatedly violated" the FCC rules, the agency said in a news release.

In February 2009, U.S. TV stations will move to all digital broadcasts, and analog TV sets will need a converter box or a connection to a cable or satellite service to receive the broadcasts. The FCC sold the abandoned spectrum to wireless voice and broadband providers in an auction that ended in March.

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FCC fines retailers for breaking DTV transition rules