FCC fines retailers for not reporting digital TV switch
Sears, Wal-Mart and Circuit City are among those levied for not alerting customers that analog sets won't be able to pick up broadcast signals after the transition next year.
WASHINGTON — Federal regulators today said that they planned to levy more than $3.9 million in fines against seven major retailers, including Sears Holdings Corp., Wal-Mart Stores Inc. and Circuit City Stores Inc., for not alerting customers that analog TVs wouldn't receive over-the-air stations after next year's nationwide switch to all-digital broadcasting.
The Federal Communications Commission proposed another $2.7 million in fines against manufacturers for violating other rules designed to protect consumers as the government prepares for the long-planned switch to digital TV on Feb. 17, 2009.
The government is offering two $40 coupons to every U.S. household to help purchase converter boxes that can translate the digital signal for analog TVs. It also is trying to ease the transition by requiring stores to put warnings signs on TVs without tuners.
FCC inspectors visited more than 2,100 stores and monitored 36 websites to make sure consumers were not being duped into buying sets that would be incapable of picking up broadcast signals after the transition. Sets must have new digital tuners to receive the signals.
The FCC said today that seven retailers had sometimes failed to include the required warning labels.
Sears was hit with $1.1 million in proposed fines, Wal-Mart $992,000, Circuit City $712,000, Fry's Electronics $384,000, Target Corp. $296,000, Best Buy Co. Inc. $280,000, and CompUSA, Inc. $168,000.
"The orders demonstrate the commission's commitment to strong enforcement in promoting the successful transition to digital television," the FCC said in announcing the fines.
The agency's rules give the companies chance to appeal before the fines are assessed.
"We are surprised at today's announcement as we have been working closely with the FCC to facilitate the transition from analog to digital TVs and educate the American public," Kimberly Freely, a Sears spokeswoman, said in a written statement. "We eliminated analog inventory from our stores last fall and we'll soon be offering customers digital converter boxes. We are exploring our options."
The other companies facing fines couldn't immediately be reached for comment.
In addition, the FCC proposed fines of $1.3 million against Syntax-Brillian Corp., and $358,000 against Precor Inc., for violating rules about the import and interstate shipment of analog TVs. And the FCC proposed $775,000 in fines against Polaroid Corp., and $300,000 against Proview Technology, Inc., for shipping TVs that did not include the digital V-Chip, which allows viewers to block programs based on ratings to protect children from offensive material.
jim.puzzanghera@latimes.com
