Consumer electronics retailer Best Buy, Inc. (NYSE: BBY) didn't really like the FCC's idea that it label all analog TV sets with a warning label -- something I posted on a month ago. In fact, the retailer is now challenging the FCC's authority to require retailers to slap those "Warning: Analog TV" stickers on those retail shelf boxes. The FCC seems to believe it will be Y2K all over again when the analog television frequencies are vacated next February for all those who receive TV signals via antenna. Standard issue for the federal government, I suppose. Best Buy not only doesn't want to have even more labels and customer communication littering up its stores, but it argues that the fines levied by the FCC for the non-use of these stickers are invalid as well.
Best Buy was fined $280,000 and Wal-Mart Stores, Inc. (NYSE: WMT) was fined $992,000 for failing to include these analog TV stickers on the appropriate products. Wal-Mart had not decided what its plans were yet, but my guess if that it will unite with Best Buy to present a huge challenge to the FCC's authority. Best Buy's biggest argument was that retailers are not commission licensees by the FCC --- so how can the FCC impose fines? There are quite a few more arguments being made by Best Buy that should hold up in a court of law easily if it gets to that.
One would think that the recent FCC auctions of the about-to-be-abandoned analog TV airwaves would give enough cash back to the FCC's coffers than stupid fines like this. Apparently not.
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Reader Comments (Page 1 of 1)
5-15-2008 @ 2:45PM
Jeff said...
If the FCC was implementing these fines as a fundraiser, they would have been quite a bit higher. In fact, surprisingly, the FCC is mandating these labels happen for the benefit of the consumer.
Best Buy is fighting the loosing end of a public relations battle. They truly stopped being the best buy about the time they starting selling HDMI cables.
5-15-2008 @ 3:13PM
Lawrence Phoenix said...
Less see, a Government agency doing it's job and at least warning the customer about soon to be antiqutated product...can't have that in GW Bush's reign...