Retailers Fined Over Labels for Analog TVs

Federal regulators yesterday fined Wal-Mart Stores, Best Buy and other retailers a combined $3.9 million for not properly using labels indicating that analog-only televisions will need to be retrofitted after the switch to digital-TV broadcasts next year.

The Federal Communications Commission also handed down $2.7 million in fines to companies violating other digital-TV rules that involve shipping analog equipment and blocking such technologies as the V-chip.

An FCC rule, adopted last May, requires retailers to display or affix to analog-only TV equipment a "consumer alert" label that says it will not receive signals after the nationwide transition to digital broadcasts without a special converter box.

The rule is meant to keep consumers from buying equipment that will not work after the digital switch on Feb. 17 next year. After that, if the TV doesn't get cable or satellite service or isn't hooked up to the box that converts over-the-air broadcasts, it won't work.

The FCC, which conducted numerous inspections last June, said it initially issued warnings to companies whose Web sites and stores across the country were in violation of the rule. The agency said it gave each company "a reasonable opportunity" to respond.

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 and that it had eliminated analog inventory from its stores last fall and will soon offer converter boxes. The company said it hasn't decided whether to appeal or pay the fine.

Best Buy, which was fined for 18 stores selling various models of analog-only equipment, said it was "extremely disappointed" by the FCC's action over what it called a "relatively small number of instances."

Wal-Mart spokeswoman E.R. Anderson said in a statement that all the products it sells comply with FCC regulations. Wal-Mart has "voluntarily invested millions of dollars in new technology, training, new product and consumer education" for the transition, she said.

The FCC also fined two companies -- Syntax-Brillian and Precor -- a combined $1.6 million for violating a digital-TV rule on manufacturing, importing or shipping any device that contains only an analog tuner.

Additionally, the agency fined Polaroid and Proview Technology nearly $1.1 million, combined, for not ensuring that their equipment containing V-chip technology can "respond to changes in the content advisory rating system."

All the companies have 30 days to appeal the fines.