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Retailers fined millions for non-labeled television sales

The Federal Communications Commission (FCC) last Thursday handed down $3.9 million worth of fines to retailers which failed to properly label its analog televisions for sale.

As per the FCC mandate, all television broadcast signals must be digital by February 17, 2009, which will render televisions that rely on analog over-the-air signals obsolete without additional tuner hardware. To help inform the consumer of this change, the FCC required that retailers selling analog televisions to clearly mark its product that it will not receive televisions signals after the switchover date without the addition of a specialized tuner box.

Retailers Sears, Kmart, Wal-Mart, Circuit City, Target, Best Buy, Fry’s and CompUSA were hit by the FCC with fines ranging from $168,000 to nearly $1.1 million. Sears Holding Corp., which owns Sears and Kmart, was the largest offender with 35 locations failing the FCC’s requirements.

Best Buy took particular exception, saying in a statement that it was “extremely disappointed that the FCC has chosen this course of action around an issue that is no longer even relevant to our stores.”

“We believe the FCC’s decision to seek fines in lieu of this dialogue represents a step backward from our mutual goal of fully preparing consumers for the DTV transition,” Best Buy said in statement.

Interestingly, Best Buy in October 2007 said that it removed all analog TVs from its stores and will only sell models with digital tuners included.

All retailers targeted by the FCC have 30 days to appeal the fines.

Besides retailers, the FCC said that it has reached “consent decrees” with electronics manufacturers LG, Philips, Sanyo, Vizio, Panasonic, Westinghouse and Audiovox to pay “voluntary contributions” for possible violations of new V-Chip requirements in newly sold televisions.

LG Electronics is set to offer the largest contribution with $1.7 million, with the remaining six other companies to give between $20,000 and $450,000.

LG spokesman John I. Taylor explained, “There was confusion in the industry about how it should be implemented. As soon as we learned about how we had misread the rules, we worked closely with the commission for a solution.”

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Why do people make such a big deal out of this?
By drebo on 4/14/2008 10:23:28 AM , Rating: 1
I don't know anyone anymore who actually uses OTA broadcasts as their source of signal. Virtually everyone has cable/satellite/FIOS/IP TV which makes it a non-issue.

I see these commercials sponsored by Charter all the time, and even on cable-only networks, and I think to myself...you guys are assholes for preying on customer ingorance and fears. I hate cable companies.




RE: Why do people make such a big deal out of this?
By darkpaw on 4/14/2008 10:30:11 AM , Rating: 5
I also find it rather amusing they are running the ads on cable only networks (various cable/sat companies, retailers, and the free coupon ads).

I've had to explain to so many family members that it does not affect them it's not even funny. Places like BestBuy want to "educate" their customers into buying a new TV, even when it isn't necessary at all. Cable and satalite companies want to upsell to "digital" service, even though their analog service isn't going anywhere. Everyone is trying to cash in on this, and make it out to be a big thing even though it really isn't.

Out of all the people I've talked to about it, only a single one was using any OTA tv's and that was a second TV in their bedroom.


By goatbear on 4/14/2008 10:53:58 AM , Rating: 2
I'm not sure what you mean when you say the analog signal isn't going anywhere. I have RCN cable in Chicago and they switched my neighborhood to a digital broadcast at the beginning of April ...it had nothing to do with OTA.


RE: Why do people make such a big deal out of this?
By darkpaw on 4/14/2008 11:14:12 AM , Rating: 2
Well specifically that it isn't going to magically disappear in Feb. 09 like OTA analog channels. If the cable companies want to upgrade to only digital, thats their choice, it has absolutely nothing to do with the national digitial transition though.

I also could have been clearer about satalite companies. Obviously, that is already a digital signal. I do think their advertising is trying to make people on analog cable think they will be losing their signal as well.

Ethier way, it seems everyone is out to scare the consumers into buying stuff they don't need.


RE: Why do people make such a big deal out of this?
By fic2 on 4/14/2008 3:17:59 PM , Rating: 2
Comcast has been running commercials telling their customers that the OTA analog things doesn't effect them. I saw another post saying that Time Warner has been, also.

It is interesting though how many people are misinformed about the issue. I live in a building and we have comcast. At our annual HOA meeting one of the owners said that the FCC was mandating that everyone go digital. I tried to correct him by telling him that it was only OTA that was going all digital. He insisted that he was right. I said, well, I have been working in the cable industry for over 3 years as an engineer including working at CableLabs and it would suprised all the people that I work with/for that the FCC mandate effects them. But, of course, he still thought he was right.


By Samus on 4/15/2008 4:51:02 AM , Rating: 2
I called Comcast because my box is like 10 years old and is clearly not digital, and they provided me 2 new upgraded digital boxes free. Still paying $40/month for basic cable, but hey at least its fully digital now, albeit only 10 stations are HD ;)


By amanojaku on 4/14/2008 11:17:10 AM , Rating: 4
quote:
Everyone is trying to cash in on this, and make it out to be a big thing even though it really isn't.


OTA TV is still required in places that don't have cable or comparable services, like mountains. Plenty of people will be stuck with broadcasts for years, if not decades. The number of OTA viewers is something like 30%, which is pretty significant!

U.S. Cable subscribers - ~57%
U.S. Satellite subscribers - ~10%
U.S. OTA viewers - ~30%

quote:
I also find it rather amusing they are running the ads on cable only networks


The ads for the digital switchover could be better, but the most recent one I saw was excellent. Time Warner (my cable provider) explained clearly that cable users don't need to do anything. So why bother placing these ads on cable stations? Education. Maybe an OTA viewer will see the ads at a friend's house. Maybe the friend will circulate the information at work. The more people who know means the more people who will understand.

quote:
Places like BestBuy want to "educate" their customers into buying a new TV, even when it isn't necessary at all.


If you buy a brand new T.V. on the advice of a salesman clearly you don't understand the nature of salesmen. "Hey, Eskimos! I got an ice maker for ya!" Consumers must do their research or be prepared to take it up the @$$.


By rudolphna on 4/14/2008 11:58:59 AM , Rating: 2
you know, it really irritates me when people diss salepeople. you forget that it is their JOB to try to sell stuff to you. If they dont sell enough, they get the boot. one of my friends was working at Best buy, and actually tried to be helpful, and because he told the customers they didnt need something,he was fired. It happens all the time. You talk like they do it for their health. I have always found best buy salespeople to be very helpful. I was buying a new pair of headphones for my flight to hawaii for vacation, and i had no idea what i was looking for. I didnt know if i wanted over the ear headphones or noise cancelling or what. I didnt want to pay too much (as im paying out the butt for airfare via Continental Anyway) and the saleswoman was very polite and helpful. I ended up buying (on her recommendation) a $30 pair of Skullcandy earbuds. I couldnt be happier with them too. So stop dissing them for doing their jobs. thanks. BTW, my grandfather has OTA, as does both my grandmothers. so yes people still get OTA broadcast.


By omnicronx on 4/14/2008 12:28:59 PM , Rating: 2
Please do not defend Best Buy workers, while there are a few I have found helpful, most of the time I would rather them not talk to me at all. Not because they are trying to pitch a sale(they don't work on commision), but because their the information they are giving is a lot of the time totally incorrect.

Next time you go into bestbuy try asking a simple question like 'what is contrast ratio', while I am sure most of the workers would reply, the higher the better, most will not know what it actually means. (essentially brightest white compared to darkest black). This is one of the most important things when buying a new TV, and most workers do not even know what it is. I have even over heard a worker telling a customer that dynamic CR is the 'same thing' as normal CR, which is obviously not the case.


RE: Why do people make such a big deal out of this?
By Parhel on 4/14/2008 5:45:32 PM , Rating: 2
Why keep shopping at Best Buy if that's how you feel? There's nothing there you can't buy cheaper online, and you can't do much worse than Best Buy as far as customer service.


By omnicronx on 4/14/2008 6:15:20 PM , Rating: 2
quote:
Why keep shopping at Best Buy if that's how you feel?
Just because I don't want service does not mean I do not want to shop there.. I merely do all the research I need to before I ever enter the store. Anyone who is serious about buying electronics should be doing the same anyways.


By Ashrac on 4/15/2008 12:40:54 PM , Rating: 2
This is a big pet peeve for me. I really hate when Im in a store to buy something, and I hear a salesperson down the aisle, completly lying to unknowing customers about some product. This older couple was trying to buy a pc so they could email their son in the military, and the salesman was trying to convince them that they needed a top of the line quad core that could be overclocked in 4 years to be top of the line again.

There is selling a product, and then there is being a lying a-hole.


By AlphaVirus on 4/14/2008 2:11:00 PM , Rating: 2
quote:
U.S. OTA viewers - ~30%

300mil US population
45mil (15%) OTA viewers
=
6.6% US OTA viewers

http://hraunfoss.fcc.gov/edocs_public/attachmatch/...
quote:
Making sure the almost 35 million households that subscribe to analog cable will be able to continue to watch broadcast television after the transition as they did before allows us to focus our energies on assisting the nearly 15 million households that rely exclusively on over-the-air signals .


By AlphaVirus on 4/14/2008 2:18:39 PM , Rating: 3
quote:
300mil US population
45mil (15%) OTA viewers
=
6.6% US OTA viewers

Lol my bad, rushed the math, it is:
300mil US pop.
15mil OTA viewers
=
20%


By KingViper on 4/14/2008 2:51:38 PM , Rating: 2
Where did you learn to do math?

300 Million People, With 15 Million using OTA.

15 Divided By 300 = 5%

Thats 5% of the population, not 5% of people who actually receive some sort of TV broadcast.


By ali 09 on 4/14/2008 7:24:06 PM , Rating: 2
Where did you learn to do maths? Again, you are wrong. The maths skills in america are appalling. 300 Mil people in the US and 15 Million households . I don't know how many people are in each household as I live in Australia but I will assume it is approximately 3, so 45 Million viewers is 15% of the population using OTA. There. That is the maths done properly. 15%


By omnicronx on 4/14/2008 3:27:05 PM , Rating: 2
quote:
exclusively on over-the-air signals
I have 3 TV's in my house that are not attached to cable, yet we are cable customers, and we would be including in that 35 million (if i was american of course), not the 15 exclusive.
I am sure if that number included homes with both cable and analogue OTA, that number would jump significantly. I would even argue it could be close to 40 million.

Also, how exactly is the use of Free television counted? As you must subscribe to cable, you can get an exact number, but for analogue TV there is no way of knowing. That 15 million is probably no more than an estimate based on a poll of a small group of people.


By Oregonian2 on 4/14/2008 4:57:19 PM , Rating: 2
Yes, we're in a similar situation. We've three direcTV HD DVR's but also three additional sets, two of which I bought (w/coupon) converters and a third that'll be DVD/VHS "only" next February. These non-DVR'd ones aren't used much (guest room TV, tv that's in front of the treadmill). So half of our TV's are OTA only (and the most used half are DVR'd).


By soydios on 4/14/2008 11:12:17 AM , Rating: 2
I'm currently a student at college, and it costs $40/month for not-so-great quality or selection standard definition cable in the dorms. So buying a small OTA antenna makes good sense if you only need the local channels.


By Screwballl on 4/14/2008 11:22:44 AM , Rating: 2
For people who have cable, satellite or IPTV, this is not an issue... but there are roughly 20-40 million Americans and 70 million TVs that still get their TV via rabbit ears or OTA (over the air) signals. Just because you don't know anyone does not mean that they are not there. It is actually more likely that there will be more people in the city that do use OTA signals just by pure probability.

From www.dtvanswers.org

quote:
Consumers who receive over-the-air television signals through antennas on television sets that are equipped with analog tuners – and who do not subscribe to cable, satellite or a telephone company television service provider – will be affected by the transition.
At least 19.6 million households receive over-the-air signals exclusively in their homes, and 14.9 million households have secondary over-the-air television sets in their bedrooms or kitchens.
Overall, nearly 70 million television sets are at risk of losing their signals on February 17, 2009, if consumers do not make the easy transition to DTV.


I see ads all over the place on local and cable channels plus a news ticker at the bottom during each news broadcast about this every day.

Also there will be some low power local access stations that are not required to make the switch to a digital signal which further compounds the problem, but most converter boxes or TVs with the built in analog + digital tuner should not have a problem.


By omnicronx on 4/14/2008 11:26:48 AM , Rating: 2
quote:
I don't know anyone anymore who actually uses OTA broadcasts as their source of signal. Virtually everyone has cable/satellite/FIOS/IP TV which makes it a non-issue.

Last time I checked only around 85 million people in the united states have cable or sattelite. So please people for the love of god lift your head from under that rock and realize, cable/sat users are almost a minority making the analogue shutdown much more than a 'non-issue'.

You would not believe how many people in big cities do not want to pay for cable, because they already get a good 20 channels for free. And then there are those that live just outside the city where only expensive sattelite is available, and for some its just not worth it to watch a few shows a week. For the avid TV watcher, sure you probably can not live without cable, but for most, analogue TV is more than enough.


RE: Why do people make such a big deal out of this?
By Wolfpup on 4/14/2008 11:42:36 AM , Rating: 2
A large percent of people use over the air, and presumably even more use it for at least some of their TVs. I've got basic cable on one of mine now, but only because my cable modem was going to go up in price UNLESS I subscribed to basic cable-basically I'm getting it free now with internet service.

Just because YOU don't know anyone who uses over the air doesn't mean millions of people don't.


By johnsonx on 4/14/2008 1:04:47 PM , Rating: 3
quote:
Just because YOU don't know anyone who uses over the air doesn't mean millions of people don't.


No, that's wrong. I don't know anyone who uses OTA, so therefore NOBODY does. I know EVERYONE. People I don't know don't really exist anyway. I'm the original (and only) solipsist.


By The Irish Patient on 4/14/2008 3:26:52 PM , Rating: 3
quote:
Virtually everyone has cable/satellite/FIOS/IP TV which makes it a non-issue.


You must not know anyone with Comcast cable, at least not in Western Massachusetts.

Only local network affiliates are available in OTA HD, and those are exactly the stations that are being cut by Comcast.

Comcast is substituting dinky cable affiliates in place of the old line network stations. Apparently, Comcast is all pi$$ed off that they don't get enough of the local advertising revenue. I've lost the local ABC (WTHN), CBS (WFSB) and Fox (WTIC) affiliates to the Comcast studio. Comcast never picked up the dtv broadcast of the NBC (WVIT) affiliate.

I work in Connecticut and live about two miles over the border. Yet I can't get a Connecticut local news program in HD. OK, local news in HD is no big deal, but I paid for a 50 inch plasma and I expect HD wherever it's available. The outdoor antenna goes up this Summer. Not to replace the cable, but to supplement it.

Of course, anyone stupid enough to have bought a television in the last two years that doesn't support dtv probably has bigger problems. But that doesn't excuse the big box stores from ignoring the disclosure rules.


By cmdrdredd on 4/14/2008 4:59:53 PM , Rating: 2
I use OVA for local channels because I don't pay comcast for compressed (i.e. crappy) HD.


OTA Resurgence!
By darthwhit on 4/14/2008 11:46:22 AM , Rating: 4
More people are using OTA because of the digital transition. With the purchase of a $35 antenna I get every major network in HD. I have no monthly bill. Sounds good to me. While I don't get Discovery HD Theater I decided it wasn't worth the money.

Netflix + OTA HD FTW!!!




RE: OTA Resurgence!
By Screwballl on 4/14/2008 11:52:42 AM , Rating: 2
Sad part is in area like mine, there is 90-100K population in this county yet not a single OTA station available... there is one OTA station an hours drive west, 2 hours west, an hour east and 1.5 hours northeast...


RE: OTA Resurgence!
By darkpaw on 4/14/2008 11:56:24 AM , Rating: 2
I live in a major metro area and still could only pickup one OTA HD channel due to location of my apartment. Theres 20 or so around, but only 1 I could actually receive and that was due to it being about a mile away.


RE: OTA Resurgence!
By Screwballl on 4/14/2008 12:15:04 PM , Rating: 2
right... but my point was NO channels available locally, HD or analog. Would be nice if they placed a relay tower in the middle of the county to make the digital signal accessible.


RE: OTA Resurgence!
By Mitch101 on 4/14/2008 1:02:56 PM , Rating: 2
A lot of people are confusing DTV with HDTV. I see a lot of HDTV used when they should be using DTV instead.

DTV vs HDTV
http://www.keohi.com/keohihdtv/learnabout/definiti...

While both can be received the same way they are different in terms of quality and required equipment.


RE: OTA Resurgence!
By darthwhit on 4/14/2008 11:58:53 AM , Rating: 2
I am lucky in that all of the stations are broadcast from one location and it is about an hours drive north. I didn't even need to mount the antenna. Just using an indoor amplified one. I thought the whole point of OTA was to make it available to everyone possible in rural areas.


RE: OTA Resurgence!
By AlphaVirus on 4/14/2008 1:55:01 PM , Rating: 2
quote:
More people are using OTA because of the digital transition.

I dont think more people are choosing OTA because of the switch. Either more are buying HDTV's and thats about it. More people are becoming scared of not being able to watch tv, but not more people are choosing OTA.
quote:
With the purchase of a $35 antenna I get every major network in HD.

The average price is $50 for a DTA box. It depends on what stations you watch, only full-powered stations are mandatory to switch to digital.

In Houston this means 9 out of, perhaps, 20 OTA stations have to switch to digital. This is a good step but like I said, it depends on what stations you watch to benefit from this switch.


I love Best Buy's insane reply
By Wolfpup on 4/14/2008 11:44:56 AM , Rating: 2
It's basically "we committed a crime, but that was in the past, so let's just move forward!"

Wonderful how giant corporations get to do that.




RE: I love Best Buy's insane reply
By Mitch101 on 4/14/2008 1:10:13 PM , Rating: 2
While the big chains are guilty of this the smaller shops are even worse offenders.

I have heard the sales pitch of "Digital Ready" because it has a SVHS connector on it. Not even a component connector and the sale people will use "Digital Ready" that means its compatible for the future even though they don't have digital tuners in them.


You obviously don't know any poor people, then
By OxBow on 4/14/2008 2:29:09 PM , Rating: 2
I know dozens of people who don't have sat or cable because they can't afford it. I also know a few luddites who refuse to get sat or cable on principle. Most of these people have tv's, most of these are older tv's and they are all going to be affected by this.




By cmdrdredd on 4/14/2008 5:06:57 PM , Rating: 2
And as I mentioned above, I use OVA because I don't pay Comcast or the satellite companies for compressed HD. I want the best picture I can get, Cable is NOT it. I get Free HD locally with far less compression. Granted I don't get to watch reruns of seinfeld in HD on TBS, but the things I watch in HD are on the networks (ABC, NBC, CBS)


More than that
By AlphaVirus on 4/14/2008 1:37:35 PM , Rating: 2
quote:
The Federal Communications Commission (FCC) last Thursday handed down $3.9 million worth of fines to retailers which failed to properly label its analog televisions for sale.

Not trying to nitpick, but I was on the FCC website yesterday reading about all of this and it was actually more than $3.9mil worth of fines sent out 4/10/2008.

Here is a quick link to see all of the fine amounts and who they were issued to.
quote:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/...

The retailers listed in your article were fined for not posting proper signs and labels on/near analog tv sets. This includes B&M and online stores. Also for not adhering to early warnings that were handed out.

DTV Labeling NALs
· Sears, Roebuck, K-Mart $1,096,000
· Wal-Mart Stores/Sam’s West $992,000
· Circuit City Stores $712,000
· Fry’s Electronics $384,000
· Target Corporation $296,000
· Best Buy Co. Inc. $280,000
· CompUSA, Inc. $168,000
Total - $3,928,000

DTV Tuner Actions
· Syntax-Brillian $1,266.100
· Precor Inc. $357,900
$1,624,000

DTV V-Chip NALs
· Polaroid Corporation $775,000
· Proview Technology, Inc. $300,000
$1,075,000

NAL - Notices of Apparent Liability for Forfeiture

Along with the fine they will have to attend a meeting this month to be fussed at, basically.




Best Buy?
By HighWing on 4/14/2008 12:57:11 PM , Rating: 1
quote:
Interestingly, Best Buy in October 2007 said that it removed all analog TVs from its stores and will only sell models with digital tuners included.


I have to say I am interested how if Best Buy removed all analog TV's from their store, did they still get hit with this fine?

Makes me wonder if the managers of some stores just ignored the return order OR if the FCC is including TV's that have both an analog AND digital receiver? If the later is the case it's stupid move on their part. Because if a TV has both, is it really necessary to confuse the consumer buying that model by telling them that a feature of the TV will no longer work next year even though they won't see the change at all?




V-Chip?
By Techno Pride on 4/15/2008 5:37:07 AM , Rating: 1
New TVs have a V-Chip? Means it can't say "pissed off"? Can't say "shit"?

NOw why would I buy one?




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