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The Federal Communications Commission (FCC) has issued fines worth $6 million to 11 retail companies for not properly labeling analog-only television sets. The FCC wants to make sure no retailer will mislead some of its customers into buying televisions that aren’t capable of receiving digital broadcast signals. In its latest raid, the FCC reportedly checked 2,272 retail stores and 36 web sites and issued 349 citations.
"The Commission's DTV-related enforcement efforts have focused on protecting consumers from unknowingly buying televisions that will not allow consumers to enjoy the full benefits of the digital transition," the FCC said in a statement. "The orders demonstrate the Commission's commitment to strong enforcement in promoting the successful transition to digital television."
Retailers which received the highest fines were Sears/K-Mart with $1.09 million, Wal-Mart with $992,000, Syntax-Brillian Corp. which must pay $1.3 million and Precor Inc., fined $358,000 for shipping and importing analog televisions after the deadline. Other names which “made it” to the list of the 11 retailers which get to share the $11 million in fines were Circuit City ($712,000), Fry’s Electronics, Target, Best Buy and CompUSA.
Retailers are required to affix a consumer alert on all analog TVs they sell, which should warn consumers the analog TVs won’t receive signals after Feb. 17, 2009, when television broadcasts are finally switched over to all-digital.
Sears, which was fined for 15 of its stores, its Web site and 20 Kmart stores, said in an e-mail statement that it was "surprised" by the FCC's action, AP reports. Best Buy said it was "extremely disappointed" and that its infringements happened in a "relatively small number of instances." Wal-Mart spokeswoman E.R. Anderson said in a statement that the company "voluntarily invested millions of dollars in new technology, training, new product and consumer education" for the transition.
The FCC said that all the companies have 30 days to appeal the fines. So far, most of them stated they are still pondering whether to take the matter to the court.
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