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July 7, 2008

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

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

Lisa Jones

Store Manager

Fred's Store \# 2465

1801 Wilson Rd

Newberry, SC 29108

Fred\'s Inc.

4300 New Getwell Road\
Memphis, TN 38118

Attn.: Charles S. Vail, Vice President and General Counsel

> Re: File No. EB-08-AT-0175
>
> Citation No.: C200832480001

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 Fred's Store \# 2465 and Fred's Inc. (collectively
"Fred's") 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).[^1] As explained below, future violations of the Commission's
rules in this regard may subject your company to monetary forfeitures.

On July 3, 2008, an agent from the Commission's Atlanta Office of the
Enforcement Bureau visited Fred's Store #2465 at 1801 Wilson Rd,
Newberry, SC 29108 and observed that Fred's 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 Fred's 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**

  BROOK SONIC          19" COLOR TV         CTGV-5463TCT    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, any Fred's retail outlet or any
other retail outlets under common ownership 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}**[^2]

If you choose to do so, you may respond to this citation within 30 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
Fred's 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, 3575 Koger Blvd Suite 320, Duluth, GA
30096.[^3] 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, Fred's 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 violation outlined above. Please reference file
number EB-08-AT-0175 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**
>
> Douglas Miller
>
> District Director, Atlanta Office
>
> South Central Region
>
> Enforcement Bureau

[^1]: Analog tuner only television receiving equipment includes
    televisions, television receivers, and other television receiving
    equipment, such as video-cassette recorders and digital video
    recorders, that are covered by the Commission\'s digital television
    reception capability implementation schedule. *See* 47 C.F.R. §
    15.117(i)(1)(iv). 

[^2]: *See* 47 C.F.R. § 1.80(b)(3).

[^3]: ^?^ 47 U.S.C. § 503(b)(5).