Best Buy Challenges FCC's Analog-TV-Labeling Authority
Consumer-Electronics Retailer Joins Circuit City Stores in Taking On Federal Communications Commission
By John Eggerton -- Broadcasting & Cable, 5/14/2008 1:57:00 PM
Best Buy has challenged the Federal Communications Commission's authority to require it to label analog-only TV sets, suggesting that major retailers are beginning to present a united front on the issue.
Circuit City also challenged the commission on the issue. The two companies' filings were essentially identical in the arguments they made, saying that the FCC didn't have the authority to impose the labeling requirement in the first place, much less to impose the fines it did last month -- $280,000 against Best Buy, $712,000 against Circuit City.
Wal-Mart Stores, which was fined $992,000, had not returned a call about what its plans were.
The FCC imposed the labeling requirement so that consumers would know that sets with only analog tuners would need to be hooked up to converter boxes or multichannel-video service to continue to receive full-power TV signals after the Feb. 17, 2009, switch to digital broadcasting.
While the FCC and retailers presented a united DTV front at a Feb. 7 rollout event for the DTV-converter-box coupon program, both Best Buy and Circuit City said the agency was out of line to fine them last month.
Best Buy said in its filing that the FCC was also off base not to provide a period for comment on the labeling requirement, adding that this was a violation of the Administrative Procedure Act and, thus, that it was "invalid an unenforceable," even if the FCC did have the authority to impose it, which they said it doesn't.
Best Buy also said that since it is not a commission licensee, the FCC was not authorized to fine it.
Best Buy also took aim at FCC personnel monitoring the stores sales, saying that they issued citations for sets that actually did have DTV tuners or had no tuners at all.
"Neither Best Buy nor the commission inspectors had accurate and complete information concerning the products to be labeled before (or after) the regulation took effect," Best Buy said.
And like Circuit City, Best Buy argued that even if the FCC does conclude that it has the authority, it should reduce the fine to zero. The retailer added that it already spent money to scrap "tens of thousands" of labels after the FCC changed the required message.
And like Circuit City, it said it spent more than the fine to pull the analog sets from its product line, even though they were still legal to sell out of inventory, but not to ship. In fact, Best Buy said that move alone cost it $6 million, more than 20 times the fine.
And those actions were taken while Best Buy was negotiating a settlement with the FCC that its actions were meant to facilitate.
Best Buy also pointed to the Feb. 7 converter-box event, saying that the commission paid it a "high compliment" by holding it at a Best Buy in Washington, D.C.
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Why shouldn't consumers know which TVs are analog or digital? If the
analogs need a convertor after February the buyer should know. I
purchased a converter box for my older TV and it is a nuisance.
I still use an antenna and hope to not have to change.
Palmer Holden - 5/28/2008 10:43:00 AM EDT -
Although the FCC actions appear on the surface to be "high-handed",
this Commission action was actually required by Congressional
mandate. What the targeted stores conveniently leave out is how many
times they were "warned" (and not fined). This retail store disclosure
requirement was enacted years in advance of any action being taken.
Store personnel were "advised" repeatedly by FCC agents who visited
the largest retail facilities and attempted to politely explain why point-
of-sale retailers must ensure that certain FCC-regulated products such
as TV sets are not "misrepresented" to those unaware that the national
OTA service was changing. This is especially important as retailers try
frantically to clear inventory and offer what appear to be conventional
TVs at "dumping" prices - knowingly targeting low income and elderly
buyers.
The FCC inspectors later returned to these same retail stores and found
that nothing had changed and that an analog TV could be purchased
without a word of advice being spoken by sales personnel. Only after
numerous further "warnings" (not fines) were issued and only after the
worst offenders "thumbed their noses" did inspectors return again with
"notices of potential liability" (still not fines). This process occurred
time and time again with virtually zero compliance.
Some retailers received more than 20 written notices! Risking the
charge of "no enforcement" from Congress, the FCC finally moved to
aggressively enforce federal law and ensure that the rapidly
approaching digital transition did not leave recent TV buyers (the ones
most likely to rely on OTA TV)" out of luck" and in need of spending
more money to buy a DTV converter. Which of course the retailers
would be more than pleased to sell them.
There is no need to cry croc tears for retailers. Just walk into a major
TV store and try to find a DTV set hooked to an outdoor antenna so
buyers can see some 30 to 60 channels of free digital OTA TV as well
as free HD. Instead what buyers are routinely told is: "there''s no free
TV
available in this area". Then they pick up a fat commission (kick back)
from "pay TV" providers when they "sign you up" to an overpriced HD
tier service.
Wake up and live in the real world, the one where money rules.
Günter Marksteiner - 5/15/2008 4:51:00 PM EDT -
This FCC clearly believes itself to be a lawmaking and enforcement panel for all things in our society even vaguely related to media. Probably spending too much time with members of Congress who think that they have been anointed as Royalty by virtue of being elected, and that they must make laws to save us all from ourselves. Like some in Congress, The FCC commissioners seem to think that we all should conduct our lives by their decree. If Congress wants to (try to) pass laws that require such labeling, they may be able to do so -- but it is clear that the FCC has nothing to do with this. Maybe the FTC would have SOME authority (depending on the language of the law). This FCC is "fine-crazy" -- with help from Congress, largely reacting to special interest groups who also believe that they can tell all Americans how to live, what to watch, and likely (in their minds) what to do and say.
Bruce Wilson - 5/15/2008 2:40:00 PM EDT -
You actually say that about your fellow wingnuts on the FCC, moron?
And if you already have cable or satellite, YOU AREN'T GOING TO BE AFFECTED, IDIOT LIBERTARIAN BOORTZ LOVER.
Mark Jeffries - 5/15/2008 10:22:00 AM EDT -
Too bad we can't ship this FCC board to communist China where they think they are ruling anyway!
Matt Headley - 5/15/2008 10:15:00 AM EDT
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