FCC fines major retailers over TV transition rules

By Peter Kaplan

WASHINGTON (Reuters) - U.S. regulators said on Thursday they imposed fines on retailers such as Wal-Mart and Sears along with two television suppliers for violating curbs on selling TVs that will not work easily after next year's transition to digital television.

The Federal Communications Commission said the fines against Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), Sears Holdings Corp (SHLD.O: Quote, Profile, Research), Target Corp (TGT.N: Quote, Profile, Research) and eight other companies were for violating rules designed to prevent consumers from unknowingly buying TVs that cannot receive digital signals when broadcasters make the switch on February 17, 2009.

The actions included a fine of $992,000 against Wal-Mart; about $1.1 million against Sears; $712,000 against Circuit City Stores (CC.N: Quote, Profile, Research); $296,000 against Target and $280,000 against Best Buy Co (BBY.N: Quote, Profile, Research), the FCC said.

FCC rules require retailers to have a label on or near television sets for sale that are unable to get over-the-air digital signals without an additional converter box.

Wal-Mart said the fines were for past violations and all the products it currently sells comply with FCC regulations.

"...we have already voluntarily invested millions of dollars in new technology, training, new product and consumer education for the FCC's DTV transition program," Wal-Mart said in a statement.

Representatives of the other companies could not immediately be reached for comment.

The FCC said it had also fined two other companies, including Syntax-Brillian Corp BRLC.O, for violating a related rule that set deadlines for companies to stop importing and shipping television receivers that could not receive over-the-air digital signals.