More Tuner Mandate Violators to Be Charged, Martin Tells House Democrats

On May 24, the House members wrote Martin seeking details on FCC efforts to educate the public on the February 2009 DTV transition. Martin answered in a 14-page analysis explaining that agency investigators “immediately” began enforcing the order after it took effect May 25. “Additional violations could result in further enforcement actions, including monetary forfeitures,” Martin said. All citations issued so far threatened fines up to $97,500 for each “single continuing violation.” According to Martin, “several major retailers,” reacting to the citations, “have altered their processes and are now appropriately alerting consumers about the television equipment.”

Despite a March 1 ban on import or interstate shipment of analog-only tuners, “some companies continue to import analog-only television receivers and equipment after the deadlines,” Martin said. It was the first known public FCC acknowledgment DTV tuner mandate violations persist. Acting on complaints and import data, the FCC “is tracking down these companies,” Martin said. On May 30, the commission issued Notices of Apparent Liability to Syntax-Brillian and Regent USA, alleging past violations (CD June 6 p10). Syntax-Brillian could face $2.9 million in fines; Regent, $63,650. Syntax-Brillian vowed to appeal. Regent has not commented. “We anticipate take additional enforcement actions against other companies for similar violations over the next few months,” Martin said.

Noting that Dingell and Markey suggested ways to use existing FCC authority to educate consumers on the analog cutoff, “and we will endeavor to implement them,” Martin said. He already has circulated a new rulemaking at the FCC that will seek comment whether the agency should require CE makers to package information about the transition with TV sets and related devices, “with civil penalties for noncompliance,” he added. For years, the commission resisted labeling mandates for TV set makers, preferring voluntary labeling of sets by CE companies. But few CE makers took that option, the commission said recently, explaining its issuance of an emergency labeling order on retailers.

The rulemaking also will ask whether the FCC should work with the National Telecom and Information Administration (NTIA) to require retailers participating in the DTV coupon program “to detail their employee training and consumer education plans,” Martin said. The Commission would be free to run “spot inspections to ascertain whether such objections are being met at stores.”

Retailers are free to join the coupon program or not. Under NTIA rules, retailers certified for it agree to train employees on the coupon program’s goals and operation. But NTIA, in its final rules, agreed with Best Buy and other major retailers not to “specify how retailers are to market or promote” coupon-eligible converter boxes. The FCC role in the coupon program is only to work with NTIA certifying boxes as coupon-eligible. In his letter, Martin made no mention of fining retailers found laggard in training sales staffs on the coupon program. But the rulemaking would seem to authorize Enforcement Bureau agents to do spot inspections on retail training as they do for adherence to the analog-only labeling order.

According to Martin, the new rulemaking also will ask if the FCC should require cable or satellite providers to insert “periodic notices” in invoices warning customers of the DTV transition. Notices would be required as a license condition or through public interest obligations, with civil penalties for non-compliance stipulated, he said. The rulemaking will ask whether broadcasters should be required every 90 days to report on the public service announcements they have run about the transition, Martin said.