Retailers fined for breaking DTV transition rules

by Grant Gross

April 11, 2008 —

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.

IDG News Service