**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+---------------------------------+
| In the Matter of                 | ) | File Number EB-07-SE-232        |
|                                  |   |                                 |
| Toys "R" Us, Inc.                | ) | NAL/Acct. No. 200832100044      |
|                                  |   |                                 |
| Wayne, NJ                        | ) | FRN \# 0004496568               |
|                                  |   |                                 |
|                                  | ) |                                 |
|                                  |   |                                 |
|                                  | ) |                                 |
|                                  |   |                                 |
|                                  | ) |                                 |
+----------------------------------+---+---------------------------------+

## NOTICE OF APPARENT LIABILITY FOR FORFEITURE {#notice-of-apparent-liability-for-forfeiture .unnumbered}

**Adopted: May 6, 2008 Released: May 9, 2008**

By the Commission:

# INTRODUCTION

1.  In this *Notice of Apparent Liability for Forfeiture* ("*NAL*"), we
    find that Toys "R" Us, Inc. ("Toys "R" Us"), apparently willfully
    and repeatedly violated Section 15.117(k) of the Commission\'s Rules
    ("Rules")[^1] by failing to place the required Consumer Alert label
    immediately adjacent to and clearly associated with television
    receiving equipment that contains an analog broadcast television
    tuner but does not contain a digital broadcast television tuner
    (hereinafter "analog-only tuner") that it displayed or offered for
    sale or rent.[^2] We conclude, pursuant to Section 503(b) of the
    Communications Act of 1934, as amended ("Act"),[^3] that Toys "R" Us
    is apparently liable for a forfeiture in the amount of **two hundred
    forty-eight thousand dollars (\$248,000)**.

# BACKGROUND

2.  Congress has established February 17, 2009, as the deadline for the
    end of analog transmissions for full power television stations. The
    Commission is statutorily obligated to promote the orderly
    transition to digital television, "a critical step in the evolution
    of broadcast television."[^4] As we stated previously, "\[w\]e are
    committed to ensuring the rapid completion of that transition in a
    way that delivers the greatest possible benefits to the viewing
    public."[^5] As part of that commitment and in light of the upcoming
    deadline, we recently announced that "it is necessary and
    appropriate to require retailers to provide consumers with
    information regarding this transition date at the point of
    sale."[^6] We reached this conclusion after determining that
    consumer electronics industry efforts had not adequately informed
    consumers how analog-only television equipment purchased now will
    function when the transition to digital broadcasting ends.[^7]

3.  To ensure that consumers do not inadvertently buy analog-only
    television equipment without understanding that such devices will
    not be capable of receiving off-the-air television reception of
    digital signals after analog broadcasting ends unless connected to a
    digital-to-analog converter or a digital subscription service, we
    adopted rules requiring anyone that sells, offers for sale, or rents
    television receiving equipment that does not contain a digital
    television ("DTV") tuner to display a Consumer Alert at the point of
    sale.[^8] This requirement also applies to the sale or rent of
    analog-only television receiving equipment via direct mail, catalog,
    or electronic means (*e.g.*, the Internet). These requirements are
    contained in Section 15.117(k) of the Rules, which became effective
    on May 25, 2007.[^9]

4.  Section 15.117(k)(3) of the Rules requires that the Consumer Alert
    contain the following language:

+-----------------------------------------------------------------------+
| **[CONSUMER ALERT]{.underline}**                                      |
|                                                                       |
| 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/).    |
+-----------------------------------------------------------------------+

The Consumer Alert must 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 alert either must be printed on a
transparent material and affixed to the screen, in a manner that is
removable by the consumer and does not obscure the picture when
displayed for sale, or displayed separately immediately adjacent to each
television receiver offered for sale and clearly associated with the
analog-only model to which it pertains.[^10] In the case of other
analog-only video devices that do not include a display (*e.g*., VCRs,
DVD players), the Consumer Alert must be in a prominent location on the
device, such as on the top or front, or displayed separately immediately
adjacent to and clearly associated with the analog-only model to which
it pertains.[^11] To the extent that any persons display or offer for
sale or rent via direct mail, catalog, or electronic means analog-only
television receiving equipment, they must prominently display the
Consumer Alert as part of all advertisements or descriptions of such
television receiving equipment, in clear and conspicuous print, and in
close proximity to any images or descriptions of such equipment.[^12]

5.  Immediately after the rule became effective, the Commission's
    Enforcement Bureau began inspecting hundreds of stores throughout
    the country, as well as dozens of popular retailer websites, and
    observed many models of analog-only television receiving equipment
    on display without the required Consumer Alert labels. On June 6,
    2007, the Enforcement Bureau issued a Citation to Toys "R" Us for
    offering for sale television receiving equipment having an
    analog-only tuner without displaying the required Consumer Alert in
    close proximity.[^13] Between June 7 and 14, 2007, the Enforcement
    Bureau conducted inspections at numerous stores and, based on those
    inspections, issued additional Citations to Toys "R" Us for
    violations at its stores.[^14] After affording Toys "R" Us a
    reasonable opportunity to respond to the first Citation,[^15] agents
    and investigators from the Enforcement Bureau began inspecting
    numerous additional Toys "R" Us stores on July 16, 2007, in various
    states and once again observed in twenty-four (24) stores,
    television receiving equipment with analog-only tuners on display
    without the required Consumer Alert labels.[^16]

6.  Under Section 503(b)(1) of the Act, any person who is determined by
    the Commission to have willfully or repeatedly failed to comply with
    any provision of the Act or any rule, regulation, or order issued by
    the Commission shall be liable to the United States for a forfeiture
    penalty.[^17] Section 312(f)(1) of the Act defines willful as "the
    conscious and deliberate commission or omission of \[any\] act,
    irrespective of any intent to violate" the law.[^18] The legislative
    history to Section 312(f)(1) of the Act clarifies that this
    definition of willful applies to both Sections 312 and 503(b) of the
    Act[^19] and the Commission has so interpreted the term in imposing
    forfeitures pursuant to Section 503(b).[^20] The Commission may also
    assess a forfeiture for violations that are merely repeated, and not
    willful.[^21] "Repeated" means that the act was committed or omitted
    more than once, or lasts more than one day.[^22] To impose such a
    forfeiture penalty, the Commission must issue a notice of apparent
    liability and the person against whom the notice has been issued
    must have an opportunity to show, in writing, why no such forfeiture
    penalty should be imposed.[^23] The Commission will then issue a
    forfeiture if it finds by a preponderance of the evidence that the
    person has violated the Act or a Commission rule.[^24] As we set
    forth below, we conclude under this standard that Toys "R" Us is
    apparently liable for forfeiture for its apparent willful and
    repeated violations of Section 15.117(k) of the Commission's rules.

# DISCUSSION

7.  Based on the evidence before us, we find that Toys "R" Us apparently
    willfully and repeatedly violated Section 15.117(k) of the Rules by
    failing to display conspicuously and in close proximity to equipment
    with an analog-only tuner, in clear and conspicuous print, the
    required Consumer Alert label. Specifically, as detailed in
    Attachment B, agents and investigators from the Enforcement Bureau
    observed a model of television receiving equipment having only an
    analog-only tuner on display in twenty-four (24) Toys "R" Us stores
    without the required Consumer Alert labels.[^25] Toys "R" Us
    previously received eight (8) Citations for this same type of
    conduct prior to the agents' inspections.[^26]

8.  Under Section 503(b)(2)(D) of the Act,[^27] we may assess an entity
    that is neither a common carrier, broadcast licensee or cable
    operator a forfeiture of up to \$11,000 for each violation or each
    day of a continuing violation, up to a statutory maximum forfeiture
    of \$97,500 for any single continuing violation. In exercising such
    authority, we must take into account "the nature, circumstances,
    extent, and gravity of the violation and, with respect to the
    violator, the degree of culpability, any history of prior offenses,
    ability to pay, and such other matters as justice may require."[^28]

9.  The Commission's *Forfeiture Policy Statement*[^29] and Section 1.80
    of the Rules do not establish a specific base forfeiture for
    violation of the analog-only tuner labeling requirements. In
    adopting the Consumer Alert labeling requirements, the Commission
    stated that "\[a\]ccurate communication of this impending change is
    a highly material disclosure for consumers contemplating the
    purchase of a television." [^30] We also noted that it is a matter
    of public safety for consumers who rely on analog-only televisions
    to obtain critical emergency information.[^31]

10. Similar issues arose regarding labeling requirements for wireless
    hearing aid-compatible handsets. In those cases, the Enforcement
    Bureau established a base forfeiture amount of \$8,000 per handset
    model that failed to comply with the labeling requirements.[^32] The
    labeling requirements for wireless hearing aid-compatible handsets
    and the analog-only tuner labeling requirements both serve the
    important goal of ensuring that consumers have access to necessary
    information. In light of the similarities in these labeling
    requirements, we conclude that an \$8,000 base forfeiture amount per
    unlabeled model or device in each store where Bureau agents and
    investigators observed a violation is appropriate for apparent
    violations of Section 15.117(k).[^33]

11. We find that, beginning on July 16, 2007, as detailed in Attachment
    B, even after receiving the *Citations* warning of violations in its
    stores across the country, Toys "R" Us displayed a model of
    equipment with an analog-only tuner in twenty-four (24) stores
    without the required Consumer Alert label. As a result, Toys "R" Us
    continued to market television receiving equipment to consumers
    without adequately warning that the equipment contained an
    analog-only television receiver. Those consumers may not learn of
    their equipment's limitations until the analog-only devices cease to
    receive over-the-air television signals, long after any period for
    returning the equipment has expired. This scenario is precisely the
    outcome that our rule was intended to prevent.[^34] Applying the
    analysis set forth above to the facts of this case, we conclude that
    Toys "R" Us is apparently liable for a **\$248,000**
    forfeiture.[^35]

# ORDERING CLAUSES

12. Accordingly**, IT IS ORDERED** that, pursuant to Section 503(b) of
    the Communications Act of 1934, as amended, and Section 1.80 of the
    Commission\'s Rules, Toys "R" Us, Inc., is hereby **NOTIFIED** of
    this **APPARENT LIABILITY FOR A FORFEITURE** in the amount of **two
    hundred forty-eight thousand dollars (\$248,000)** for violations of
    Section 15.117(k) of the Rules.[^36]

13. **IT IS FURTHER ORDERED** that, pursuant to Section 1.80 of the
    Commission\'s Rules within thirty days of the release date of this
    Notice of Apparent Liability for Forfeiture, Toys "R" Us, Inc.,
    **SHALL PAY** the full amount of the proposed forfeiture or **SHALL
    FILE** a written statement seeking reduction or cancellation of the
    proposed forfeiture.

14. Payment of the forfeiture must be made by check or similar
    instrument, payable to the order of the Federal Communications
    Commission. The payment must include the NAL/Account Number and FRN
    Number referenced above. Payment by check or money order may be
    mailed to Federal Communications Commission, P.O. Box 979088, St.
    Louis, MO 63197-9000. Payment by overnight mail may be sent to U.S.
    Bank -- Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention
    Plaza, St. Louis, MO 63101. Payment by wire transfer may be made to
    ABA Number 021030004, receiving bank TREAS/NYC, and account
    number 27000001. For payment by credit card, an FCC Form 159
    (Remittance Advice) must be submitted. When completing the FCC Form
    159, enter the NAL/Account number in block number 23A (call
    sign/other ID), and enter the letters "FORF" in block number 24A
    (payment type code). Requests for full payment under an installment
    plan should be sent to: Chief Financial Officer \-- Financial
    Operations, 445 12th Street, S.W., Room 1-A625, Washington,
    D.C.  20554. Please contact the Financial Operations Group Help Desk
    at 1-877-480-3201 or Email: <ARINQUIRIES@fcc.gov> with any questions
    regarding payment procedures. Toys "R" Us will also send electronic
    notification on the date said payment is made to
    Thomas.Fitz-Gibbon@fcc.gov.

15. The response, if any, must be mailed to Federal Communications
    Commission, Enforcement Bureau, and must include the NAL/Acct. No.
    referenced in the caption.

16. The Commission will not consider reducing or canceling a forfeiture
    in response to a claim of inability to pay unless the petitioner
    submits: (1) federal tax returns for the most recent three-year
    period; (2) financial statements prepared according to generally
    accepted accounting practices (\"GAAP\"); or (3) some other reliable
    and objective documentation that accurately reflects the
    petitioner's current financial status. Any claim of inability to pay
    must specifically identify the basis for the claim by reference to
    the financial documentation submitted.

17. Requests for payment of the full amount of this Notice of Apparent
    Liability for Forfeiture under an installment plan should be sent
    to: Associate Managing Director, Financial Operations, 445 12th
    Street, S.W., Room 1A625, Washington, D.C. 20554.[^37]

18. **IT IS FURTHER ORDERED** that a copy of this *Notice of Apparent
    Liability for Forfeiture* shall be sent by Certified Mail, Return
    Receipt Requested, and regular mail, to Peter Rohrbach, Esq., Hogan
    & Hartson LLP, 555 13^th^ Street, NW, Washington, DC 20004-1109, and
    to Joel S. Tenenberg, Litigation and Regulatory Counsel, Toys "R"
    Us, Inc., One Geoffrey Way, Wayne, NJ 07470-2030.

FEDERAL COMMUNICATIONS COMMISSION

Marlene H. Dortch

Secretary

**ATTACHMENT A**

+------------------------------+-------------------+------------------+
| **Store -- Location**        | **Citation No.**  | **Release Date** |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Portland        | C20073292007      | June 6, 2007     |
|                              |                   |                  |
| Portland, OR                 |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Clackamas       | C20073292011      | June 11, 2007    |
|                              |                   |                  |
| Clackamas, OR                |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Culver City     | C20073290029      | June 11, 2007    |
|                              |                   |                  |
| Culver City, CA              |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- National City   | C20073294017      | June 12, 2007    |
|                              |                   |                  |
| National City, CA            |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Willow Grove    | C20073240029      | June 12, 2007    |
|                              |                   |                  |
| Willow Grove, PA             |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Elk Grove       | C20073296025      | June 18, 2007    |
|                              |                   |                  |
| Elk Grove, CA                |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Las Vegas       | C20073290034      | June 21, 2007    |
|                              |                   |                  |
| Las Vegas, NV                |                   |                  |
+------------------------------+-------------------+------------------+
| TOYS"R"US -- Las Vegas       | C20073290035      | June 21, 2007    |
|                              |                   |                  |
| Las Vegas, NV                |                   |                  |
+------------------------------+-------------------+------------------+

**ATTACHMENT B**

.

1\. July 16, 2007, Toys "R" Us Store \# 8727, Tampa, FL

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

2\. July 16, 2007, Toys "R" Us Store \# 7009, Houston, TX

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

3\. July 16, 2007, Toys "R" Us, Store \# 8744 , Brandon, FL

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

4 July 17, 2007, Toys "R" Us Store \# 9529, Colorado Springs, CO

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

5\. July 17, 2007, Toys "R" Us Store \# 6315, Jersey City, NJ

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess " TV      DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

6\. July 17, 2007, Toys "R" Us Store \# 6311, Carle Place, NY

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

7\. July 17, 2007, Toys "R" Us Store \# 8011, Bellevue, WA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

8\. July 18, 2007, Toys "R" Us Store \# 6362, Scranton, PA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

9\. July 18, 2007, Toys "R" Us Store \# 5817, Hayward, CA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

10\. July 19, 2007, Toys "R" Us Store \# 6328, North Bergen, NJ

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

11\. July 19, 2007, Toys "R" Us Store \# 8363, Columbia, MD

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

12\. July 19, 2007, Toys "R" Us Store \# 7039, Woodlands, TX

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

13\. July 20, 2007, Toys "R" Us Store \# 9503, Overland Park, KS

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

14\. July 20, 2007, Toys "R" Us Store \# 9502, Independence, MO

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

15\. July 20, 2007, Toys "R" Us Store \# 8352, Norfolk, VA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

16\. July 23, 2007, Toys "R" Us Store \# 8870, Burford, GA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

17\. July 25, 2007, Toys "R" Us Store \# 7013, Baytown, TX

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

18\. October 4, 2007, Toys "R" Us, Store \# 8744 , Brandon, FL

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

19\. October 5, 2007, Toys "R" Us Store \# 5639, Aiea, HI.

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

20\. November 1, 2007, Toys "R" Us, Store \# 6359 , Whitehall, PA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

21\. November 1, 2007, Toys "R" Us Store \# 7820, Dallas, TX.

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

22\. November 7, 2007, Toys "R" Us Store \# 9215, Pittsburgh, PA.

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$16,000**
  ------------------------------------------------------------------------

23\. December 4 2007, Toys "R" Us, Store \# 6330 , Paramus, NJ

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Spectra               Strawberry s'cake   SS213          \$8,000
                        TV                                 

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

[24. December 6]{.underline}, 2007, Toys "R" Us Store \# 9213,
Monroeville, PA

  ------------------------------------------------------------------------
  Manufacturer          Device              Model \#       Forfeiture
                                                           Amount
  --------------------- ------------------- -------------- ---------------
  Disney                "Princess" TV       DT1350P        \$8,000

                                            **Subtotal**   **\$8,000**
  ------------------------------------------------------------------------

**[TOTAL PROPOSED FORFEITURE]{.underline}: \$248,000**

[^1]: 47 C.F.R. § 15.117(k).

[^2]: The devices subject to this proceeding were offered for sale at
    various Toys "R" Us retail locations.

[^3]: 47 U.S.C. § 503(b).

[^4]: *2002 Biennial Regulatory Review*, Report and Order and Notice of
    Proposed Rulemaking, 18 FCC Rcd 13620, 13825 ¶ 532 (2003).

[^5]: *Id.*

[^6]: *Second Periodic Review of the Commission's Rules and Policies
    Affecting the Conversion To Digital Television*, Second Report and
    Order, 22 FCC Rcd 8776 ¶ 1 (2007) ("*Second DTV Periodic Report and
    Order*").

[^7]: *Id.* at 8781-2 ¶ 10.

[^8]: *Id.* at 8784 ¶ 14. *See* 47 C.F.R. § 15.117(k). In the *Second
    DTV Periodic Report and* Order, the Commission defined "point of
    sale" as the "place where televisions are displayed for consumers
    prior to purchase." *See Second DTV Periodic Report and Order*, 22
    FCC Rcd at 8781 n.29.

[^9]: *Second Periodic Review in the Commission's Rules and Policies
    Affecting the Conversion to Digital Television,* 72 Fed. Reg.
    28894-01 (May 23, 2007).

[^10]: 47 C.F.R. § 15.117(k)(1).

[^11]: *Id.*

[^12]: 47 C.F.R. § 15.117(k)(2).

[^13]: *Toys "R" Us, Portland OR*, Citation No. C20073292007 (Enf. Bur.,
    Portland, OR, Office, rel. June 6, 2007).

[^14]: *See* Attachment A for a list of the citations issued to Toys "R"
    Us (collectively *"Citations"*). In preparing the *Citations*,
    Enforcement Bureau staff relied on publicly available information,
    including retailer and manufacturer websites, to identify the
    television receiving equipment with analog-only tuners.

[^15]: On June 14, 2007, Toys "R" Us responded to the first *Citation.
    See* Letter from Joel S. Tenenberg, Litigation and Regulatory
    Counsel, Toys "R" Us, Inc., to the Enforcement Bureau, Federal
    Communications Commission, dated June 14, 2007. Toys "R" Us also
    filed responses to the other Citations. We note that following
    issuance of the *Citations*, the Enforcement Bureau, after reviewing
    the devices' technical specifications and user's manuals, determined
    that the following *Citations* referred to erroneously identified
    equipment models: *Citation* Nos. C20073290034 (Starlight Randix
    Corp. PC1310ATV), C20073296025 (Starlight Randix Corp. PC1310ATV)
    and C20073292007 (Barbie Bar322). In light of this evidence, we
    hereby cancel the relevant portions of the above citations with
    respect to those models.

[^16]: *See* Attachment B for a listing of the stores and the models
    observed at each store. Enforcement Bureau staff determined that
    these models had analog-only tuners by consulting the manufacturer's
    product manuals or, if such were unavailable, the models' technical
    specifications from the Toys "R" Us website.

[^17]: 47 U.S.C. § 503(b)(1)(B); 47 C.F.R. § 1.80(a)(2).

[^18]: 47 U.S.C. § 312(f)(1).

[^19]: H.R. Rep. No. 97-765, 97^th^ Cong. 2d Sess. 51 (1982).

[^20]: *See, e.g., Application for Review of Southern California
    Broadcasting Co.*, Memorandum Opinion and Order, 6 FCC Rcd 4387,
    4388 (1991) ("*Southern California Broadcasting Co.*").

[^21]: *See, e.g.,* *Callais Cablevision, Inc., Grand Isle, Louisiana*,
    Notice of Apparent Liability for Monetary Forfeiture, 16 FCC Rcd
    1359, 1362 ¶ 10 (2001) ("*Callais Cablevision*") (issuing a Notice
    of Apparent Liability for, *inter alia*, a cable television
    operator's repeated signal leakage).

[^22]: *Southern California Broadcasting Co.,* 6 FCC Rcd at 4388 ¶ 5;
    *Callais Cablevision, Inc.,* 16 FCC Rcd at 1362 ¶ 9.

[^23]: 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).

[^24]: *See, e.g., SBC Communications, Inc*., Forfeiture Order, 17 FCC
    Rcd 7589, 7591 ¶ 4 (2002) (forfeiture paid).

[^25]: Attachment B lists the dates of the Enforcement Bureau
    inspections, the analog-only models identified in violation of
    Section 15.117(k), as well as the Toys "R" Us stores involved.

[^26]: Section 503(b)(5) states that no forfeiture liability shall be
    determined against any person who does not hold a license, permit,
    certificate, or other authorization issued by the Commission unless,
    prior to issuance of any Notice of Apparent Liability, such person
    is "(A) sent a citation of the violation charged; (B) is given a
    reasonable opportunity for a personal interview with an official of
    the Commission at the field office of the Commission which is
    nearest to such person's place of residence; and (C) subsequently
    engages in conduct of the type described in such citation." 47
    U.S.C. § 503(b)(5). The apparent violations discussed in this *NAL*
    are subject to forfeiture because we have afforded Toys "R" Us a
    reasonable opportunity for a personal interview or to submit a
    written response to its first Citation before conducting a second
    round of inspections that would count towards potential forfeiture
    liability. *See supra* para. 5 and notes 15 and 16. To the extent
    that the television receiving models involved in this *NAL* differ
    from those listed in the *Citations*, no additional citations are
    necessary because the more recent apparent violations are "conduct
    of the type described" in the earlier *Citations* -- violations of
    Section 15.117(k). *See HighTech CB Shop,* Forfeiture Order, 20 FCC
    Rcd 12514, 12516 ¶ 9 (Enf. Bur. South Central Region 2005), *recon.
    denied,* 20 FCC Rcd 19269 (Enf. Bur. 2005). In any event, the
    requirements of Section 503(b)(5) do not apply to Toys "R" Us, which
    is a Commission licensee and therefore subject to forfeiture under
    Section 503(b)(2) of the Act without first receiving notice via a
    citation. *See, e.g.,* Stations WPTA233 and WPVX249 licensed to Toys
    "R" Us in the Industrial/Business Pool Private Land Mobile Service.

[^27]: 47 U.S.C. § 503(b)(2)(D). The Commission twice amended Section
    1.80(b)(3) of the Rules, 47 C.F.R. § 1.80(b)(3), to increase the
    maximum forfeiture amounts, in accordance with the inflation
    adjustment requirements contained in the Debt Collection Improvement
    Act of 1996, 28 U.S.C. § 2461. *See Amendment of Section 1.80 of the
    Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
    Inflation,* Order, 15 FCC Rcd 18221 (2000) (adjusting the maximum
    statutory amounts from \$10,000/\$75,000 to \$11,000/\$87,500);
    *Amendment of Section 1.80 of the Commission's Rules and Adjustment
    of Forfeiture Maxima to Reflect Inflation,* Order, 19 FCC Rcd 10945
    (2004) (adjusting the maximum statutory amounts from
    \$11,000/\$87,500 to \$11,000/\$97,500).

[^28]: 47 U.S.C. § 503(b)(2)(E). *See also* 47 C.F.R. § 1.80(b)(4), Note
    to paragraph (b)(4): Section II. Adjustment Criteria for Section 503
    Forfeitures.

[^29]: *See The Commission's Forfeiture Policy Statement and Amendment
    of Section 1.80 of the Rules to Incorporate the Forfeiture
    Guidelines,* Report and Order, 12 FCC Rcd 17087, 17115 (1997),
    *recon. denied*, 15 FCC Rcd 303 (1999) ("*Forfeiture Policy
    Statement*").

[^30]: *Second DTV Periodic Report and Order*, 22 FCC Rcd at 8782-3 ¶
    12.

[^31]: *Id.* at 8783 ¶ 12. *See also* 47 C.F.R. §§ 11.1-11.61, 79.2.

[^32]: *See Pine Telephone Inc.*, Notice of Apparent Liability, 22 FCC
    Rcd 9205, 9210 ¶ 11 (Enf. Bur., Spectrum Enf. Div. 2007); *IT&E
    Overseas, Inc.*, Notice of Apparent Liability, 22 FCC Rcd 7660, 7665
    ¶ 10 (Enf. Bur., Spectrum Enf. Div. 2007).

[^33]: We caution Toys "R" Us and other retailers that future cases
    involving repeat offenders may result in the imposition of
    forfeitures on a continuing violation basis.

[^34]: "After the transition, absent a label requirement, even cable and
    satellite subscribers might be surprised to find that they cannot
    receive television broadcasts over-the-air on an analog-only
    television purchased today if they choose to discontinue
    subscription service or their cable or satellite service is
    terminated by disaster, service disruption, or for non-payment of
    their bills." *Second DTV Periodic Report and Order*, 22 FCC Rcd at
    8783 ¶ 12.

[^35]: *See* Attachment B regarding the calculation of the total
    proposed forfeiture amounts.

[^36]: 47 U.S.C. § 503(b), 47 C.F.R. §§ 1.80, 15.117(k).

[^37]: *See* 47 C.F.R. § 1.1914.