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June 12, 2007

**[VIA CERTIFIED MAIL]{.underline}**

**[RETURN RECEIPT REQUESTED]{.underline}**

Kmart Store #3077

1817 Mount Holly Road

Burlington, NJ 08016

Kmart

c/o Sears Holding Corporation

3333 Beverly Road

Hoffman Estates, IL 60179

Attn.: William R. Harker

Senior Vice President and General Counsel

> Re: File No. EB-07-PA-171
>
> Citation No.: C20073240028

Dear Retailer:

This is an official **CITATION**, issued pursuant to Section 503(b)(5)
of the Communications Act of 1934, as amended ("Act"), 47 U.S.C. §
503(b)(5), to Kmart Store #3077 and Kmart c/o Sears Holding Corporation
(collectively "Kmart") for failure to provide appropriate Consumer Alert
disclosures on analog tuner only television receiving equipment in
violation of Section 15.117(k) of the Commission's Rules ("Rules"), 47
C.F.R. § 15.117(k). As explained below, future violations of the
Commission's rules in this regard may subject your company to monetary
forfeitures.

On June 6, 2007, agents from the Enforcement Bureau's Philadelphia
Office visited Kmart Store #3077 and observed that Kmart did not have
the proper Consumer Alert label displayed on equipment that contained an
analog tuner but not a digital tuner at the point of sale.

Section 15.117(k) of the Commission's Rules states:

+-----------------------------------------------------------------------+
| \(k\) The following requirements apply to all responsible parties, as |
| defined in §2.909 of this chapter, and any person that displays or    |
| offers for sale or rent television receiving equipment that is not    |
| capable of receiving, decoding and tuning digital signals.            |
|                                                                       |
| > \(1\) Such parties and persons shall place conspicuously and in     |
| > close proximity to such television broadcast receivers a sign       |
| > containing, in clear and conspicuous print, the Consumer Alert      |
| > disclosure text required by subparagraph (3). The text should be in |
| > a size of type large enough to be clear, conspicuous and readily    |
| > legible, consistent with the dimensions of the equipment and the    |
| > label. The information may be printed on a transparent material and |
| > affixed to the screen, if the receiver includes a display, in a     |
| > manner that is removable by the consumer and does not obscure the   |
| > picture, or, if the receiver does not include a display, in a       |
| > prominent location on the device, such as on the top or front of    |
| > the device, when displayed for sale, or the information in this     |
| > format may be displayed separately immediately adjacent to each     |
| > television broadcast receiver offered for sale and clearly          |
| > associated with the analog-only model to which it pertains.         |
| >                                                                     |
| > \(2\) If such parties and persons display or offer for sale or rent |
| > such television broadcast receivers via direct mail, catalog, or    |
| > electronic means, they shall prominently display in close proximity |
| > to the images or descriptions of such television broadcast          |
| > receivers, in clear and conspicuous print, the Consumer Alert       |
| > disclosure text required by subparagraph (3). The text should be in |
| > a size large enough to be clear, conspicuous, and readily legible,  |
| > consistent with the dimensions of the advertisement or description. |
|                                                                       |
| \(3\) "CONSUMER ALERT                                                 |
|                                                                       |
| > This television receiver has only an analog broadcast tuner and     |
| > will require a converter box after February 17, 2009, to receive    |
| > over-the-air broadcasts with an antenna because of the Nation's     |
| > transition to digital broadcasting. Analog-only TVs should continue |
| > to work as before with cable and satellite TV services, gaming      |
| > consoles, VCRs, DVD players, and similar products. For more         |
| > information, call the Federal Communications Commission at          |
| > 1-888-225-5322 (TTY: 1-888-835-5322) or visit the Commission's      |
| > digital television website at: [www.dtv.gov](http://www.dtv.gov/)." |
+-----------------------------------------------------------------------+

Accordingly, it appears that Kmart has violated Section 15.117(k) of the
Rules by failing to place conspicuously and in close proximity to the
following equipment, in clear and conspicuous print, the required
Consumer Alert label:

  -------------------- -------------------- --------------- ---------------
  **Manufacturer**     **Device**           **Model \#**    **Number of
                                                            Units**

  Disney               TV                   DT1350-RWP      1

  Disney               TV/DVD               DTD1363-CAR     1

  Disney               TV                   DT1350-P        1

  Magnavox             TV                   20MF500T/17     1

  Memorex              TV                   MT0550          10

  Memorex              DVD/VCR              MVD4543         3

  Memorex              TV/DVD               MVD1402         9

  RCA                  DVD/VCR              DRC6300N        1

  RCA                  TV                   E13320          2

  RCA                  TV                   20V500T         1

  Sony                 DVD/VCR              SLVD370P        1

  Sylvania             TV                   6420FF          2

  Sylvania             TV                   6424TF          3

  Sylvania             TV/DVD/VCR           6720FDG         1

  Sylvania             TV                   6424TFS         1

  Sylvania             TV/DVD               6620LDT         1

  Sylvania             DVD/VCR              DVC841G         1

  Sylvania             TV                   6413TD          1

  Sylvania             TV                   6427GFG         1

  Sylvania             TV                   6620LCT         1

  Toshiba              TV                   19A26           1
  -------------------- -------------------- --------------- ---------------

It also appears that Kmart has violated Section 15.117(k)(1) of the
Rules by failing to place a label with the exact language contained in
Section 15.117(k)(3) on or in close proximity to the following
equipment:

  -------------------- -------------------- --------------- ---------------
  **Manufacturer**     **Device**           **Model \#**    **Number of
                                                            Units**

  Magnavox             TV                   14MS2331        1

  Magnavox             TV                   20MS2331        1

  RCA                  TV                   24V511T         1

  RCA                  TV                   13V420T         1

  Sylvania             TV/DVD               6513DG          1
  -------------------- -------------------- --------------- ---------------

We caution you that failure to display an appropriate Consumer Alert
label on any television receiving equipment that is not capable of
receiving, decoding and tuning digital signals would constitute a
further violation of Section 15.117(k) of the Rules.

**[If, after receipt of this citation, Kmart engages in conduct of the
type described herein, in violation of the Communications Act or the
Commission's rules, the Commission may impose monetary forfeitures not
to exceed \$11,000 for each such violation or each day of a continuing
violation up to \$97,500 for a single continuing
violation.]{.underline}**[^1]

If you choose to do so, you may respond to this citation within 10 days
from the date of this letter either through (1) a personal interview at
the Commission's Field Office nearest to your place of business, or (2)
a written statement. Your response should specify the actions that Kmart
is taking to ensure that it does not violate Section 15.117(k) of the
Commission's rules in the future.

If you choose to request a personal interview, the closest FCC Office is
Federal Communications Commission, Philadelphia Office, One Oxford
Valley Building, Suite 404, 2300 East Lincoln Highway, Langhorne,
Pennsylvania 19047.[^2] You should contact this office by telephone,
(XXX) XXXX-XXXX to schedule this interview, which must take place within
10 days of this Citation. Alternatively, as noted above, Kmart may
submit a written statement to the above address within 10 days of the
date of this Citation. Any written statements should specify what
actions have been taken to correct the violations outlined above. Please
reference file number EB-07-PA-171 when corresponding with the
Commission.

Under the Privacy Act of 1974, 5 U.S.C. § 552a(e)(3), we are informing
you that the Commission's staff will use all relevant material
information before it, including information that you disclose in your
interview or written statement, to determine what, if any, enforcement
action is required to ensure your compliance with the Communications Act
and the Commission's rules.

The knowing and willful making of any false statement, or the
concealment of any material fact, in reply to this citation is
punishable by fine or imprisonment under 18 U.S.C. § 1001.

Thank you in advance for your anticipated cooperation.

Sincerely,

> **FEDERAL COMMUNICATIONS COMMISSION**
>
> Gene J. Stanbro
>
> District Director
>
> Philadelphia Office
>
> Northeast Region
>
> Enforcement Bureau

[^1]: *See* 47 C.F.R. § 1.80(b)(3).

[^2]: ^?^ 47 U.S.C. § 503(b)(5).