FCC Warns Set-Top Box Suppliers and Operators to Comply With RF Equipment Rules or Face Massive Fines
The Federal Communications Commission (“FCC”) today issued yet another Enforcement Advisory, this one targeting video TV set-top box suppliers and users. The FCC confirmed that it has "observed" an increase in the marketing of video TV set-top boxes designed to stream internet content that do not comply with its radio-frequency (“RF”) equipment authorization and marketing rules. In sum, the FCC warned that anyone marketing or even operating non-compliant devices should cease immediately or risk fines of more than $147,000 per violation. The FCC recently issued similar Enforcement Advisories, targeting electronic device retailers and LED sign marketers.
These Advisories illustrate that the FCC is extremely serious about enforcing its RF equipment rules against any manufacturer, importer, vendor, advertiser, refurbisher, or even consumer of non-compliant RF equipment. For example, since March 2018, the FCC has settled with more than 30 recalcitrant LED suppliers, yielding more than $1 million in fines. As The CommLaw Group has emphasized in previous articles and a webinar, the FCC has been brutal in enforcing its rules against RF suppliers.
The FCC spells out the rules that apply to all set-top boxes marketed and used in the U.S.:
Proper FCC Authorization: Video TV Set-Top Boxes that contain a radio frequency transmitter, such as Wi-Fi, must be authorized through the Certification process or the Suppliers Declaration of Conformity (SDoC) procedures.
Labeling: Video TV Set-Top Boxes authorized under the Certification process must display a valid FCC Identifier which consists of the term “FCC ID” followed by a series of numbers, letters, and/or symbols which are unique to the device and can be used to verify the device’s authorization.0 In addition, all devices must include a statement, placed in a conspicuous location on the device, indicating that the device complies with the technical rules, may not cause harmful interference, and must accept any interference received, including interference that may cause undesired operation.
User Manuals: Video TV Set-Top Boxes must contain consumer disclosures in the products’ user manuals warning consumers of the device’s potential for causing interference to other radio communications and providing a list of steps that could possibly eliminate the interference.
The FCC will not hesitate to commence enforcement actions against RF suppliers and operators for any type of rule violation, large or small. While the steepest fines are reserved for responsible parties that do not obtain the applicable equipment authorization, the FCC will levy substantial financial forfeitures on parties that fail to properly label equipment for which they are responsible or include the required information in their user’s manuals. Operators who cause interference or otherwise use RF equipment in violation of the FCC’s rules are also at risk of getting the book thrown at them by the FCC.
Experience has shown that a key reason why RF equipment suppliers get nailed by the FCC is because they have not employed regulatory best practices in their development and sales operations. In the rush to market and extensive web advertising, it is easy to forget that RF components are subject to FCC rules and that the FCC is closely watching all RF suppliers’ sales and marketing campaigns.
If, for example, the FCC sees that an RF equipment supplier does not have the proper compliance information displayed on its website, that supplier will immediately become a target of an enforcement action. That is something to avoid at all costs because being a defendant in an FCC enforcement proceeding will invariably result in the expenditure of an inordinate amount of time and financial resources, as well as public exposure as a careless rule violator. That is not the kind of publicity any company wants.
Consequently, it cannot be emphasized enough that RF equipment suppliers must employ regulatory best practices in order to market their products without fear of being caught in the FCC’s wide dragnet. Considering the sheer number of FCC enforcement proceedings against RF equipment suppliers during the past two years, companies can set themselves apart from the competition by simply complying with FCC rules. This also applies to industrial users of RF equipment.
The CommLaw Group has experts that can work with RF equipment suppliers (including manufacturers, importers, and vendors) to ensure regulatory compliance during product launches, and keep them in compliance with the FCC in their marketing practices. We also advise large-scale operators of RF equipment concerning the proper deployment and utilization of such apparatus.
If you would like additional information about U.S. and international RF equipment rules, as well as best practices in complying with same, please contact IoT attorney Ronald E. Quirk, Jr. at (703) 714-1305 or [email protected]. Further information about The CommLaw Group’s Internet of Things and Connected Devices practice is available here.