FCC to Seek Fines Against Seven Chains For Label Law Violations

“We issued over 262 citations notifying retailers of violations,” Martin said. “As an outgrowth of our investigations, I recently presented my colleagues with Notices of Apparent Liability (NALs) against seven large retailers for apparently violating the Commission’s television labeling requirements,” Martin said. The proposed fines total over $3 million, he said. Enforcement Bureau officials couldn’t be reached for comment.

An NAL is tantamount to the FCC’s written indictment listing the violations alleged and the fines or forfeitures being proposed. Through such NALs filed against Syntax- Brillian and Regent USA, the Commission alleged violations of the DTV tuner mandate order. But the NALs that Martin mentioned in his House testimony would be the first allegations sought against retailers on the May 25 analog- only labeling order.

The FCC recently approved a rulemaking notice on several DTV education efforts, Martin told the subcommittee. The proposal incorporated ideas that Commerce Committee Chairman John Dingell, D-Mich., and Subcommittee Chairman Ed Markey, D-Mass., had suggested, Martin said. It sets out how broadcasters, multichannel video programming distributors, retailers and manufacturers must publicize the digital transition.

“I intend for the commission to complete this proceeding expeditiously,” Martin said during the oversight hearing. The education proposal is one of several commission efforts to ensure that viewers are ready the DTV transition. The additional $2 million that the agency is slated to get for FY 2008 will help the agency target direct mailings to seniors and households in underserved communities, Martin said. The Commission hopes to translate its education materials into languages besides Spanish, including possibly French and Mandarin, and distribute the materials through government and community organizations, Martin said.

The DTV transition “should keep us up at night,” Commissioner Michael Copps told lawmakers at the hearing, noting a survey that showed 61 percent of consumers have no idea the transition is coming or what’s in it for them. “The first message consumers hear cannot be about how to get a converter box for a transition they've never heard of,” Copps said. “We first need to explain to them why the transition is happening and how it benefits them.” Otherwise, Copps said, the government could face “a very messy backlash.” He urged the commission to act quickly on Dingell’s and Markey’s suggestion of mandatory public service announcements. Web sites and pamphlets are “fine, but they're not going to get the job done,” he said.

The Commission needs a “unified, coherent message among federal, state, local and tribal governmental entities,” Commissioner Jonathan Adelstein said. Delivery of the DTV preparedness message should be coordinated with efforts of broadcast, cable satellite and consumer electronics industries, he said. “I have recommended establishing a… Federal DTV Transition Task Force,” Adelstein said. Although NTIA is in charge of the converter box program, the FCC can handle consumer outreach better, he said. A task force would let the two agencies dedicate employees to developing a unified message about the DTV transition and inform consumers about their options.

The Senate Commerce Committee is scheduled to discuss DTV transition issues at a hearing Thursday that will include as witnesses Nelda Barnett, an AARP board member; Alex Nogales, the president of the National Hispanic Media Coalition; Nancy Zirkin, vice president of the Leadership Conference on Civil Rights; NTIA Administrator John Kneuer; and Cathy Seidel, chief of the FCC’s Consumer and Governmental Affairs Bureau.