DTV Settlement Talks Prompt Commissioners to Delay Votes on Fines
Settlement negotiations between the FCC and five retail chains prompted two commissioners to put off completing work on notices of apparent liability totaling hundreds of thousands of dollars, commission officials said. Big Lots, BJ’s, Conns, Rent-A-Center and a company whose name we couldn’t learn are talking with the Enforcement Bureau about consent decrees to end investigations into charges that they broke FCC digital TV rules by selling analog sets not labeled as such, they said.
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Because the talks have been going on quite a while, it’s unclear if they'll lead to a settlement, the officials said. If a deal isn’t struck, they said, the FCC will issue notices of apparent liability proposing fines against the chains. Last month, the commission issued notices proposing $6.6 million in fines against 11 CE companies, including seven retailers for analog labeling violations (CD April 11 p5).
FCC Chairman Kevin Martin and the commission’s two Democrats approved fines against the five chains, commission officials said. They said Commissioners Robert McDowell and Deborah Tate delayed approving the fines while they wait to see whether consent decrees resolve the notices. Under most consent decrees, companies agree to increased FCC oversight of their businesses and make voluntary contributions to the U.S. Treasury to avoid fines. An Enforcement Bureau spokeswoman declined to comment.
If the chains reach consent deals, they'll be the first involving analog labeling, said a person familiar with the process. Best Buy, Circuit City and other nationwide consumer electronics retailers rejected potential settlements on analog set labeling and were fined April 10, an action they've called unwarranted. Many in the industry were concerned that retailers mainly selling electronics would have to agree in a deal to increased FCC oversight of their operations and could face further penalties if they didn’t have fliers on the digital TV transition in their stores or the like, the person said. Big Lots, BJ’s, Conn’s and Rent- A-Center don’t only sell consumer electronics, and so Enforcement Bureau deals might not result in heavy commission oversight. A BJ’s spokeswoman declined to comment, and executives at the other companies didn’t respond to requests for comment.
Martin identified the four companies in March when he publicly disclosed recipients of 25 notices of apparent liability for DTV rule violations. The five chains are alleged to have mislabeled fewer sets than the big chains and face lower fines than those levied April 10, commission officials said. Martin recirculated notices of apparent liability against the five chains in April, they said.