26554 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 

§ 372.85 Toxic chemical release reporting 

form and instructions. 

(a) Availability of reporting form and 

instructions. The most current version 

of Form R and Form R Schedule 1 may 

be found on the following EPA Program 

Web site, http://www.epa.gov/tri. Any 

subsequent changes to the Form R or 

Form R Schedule 1 will be posted on 

this Web site. Submitters may also 

contact the TRI Program at (202) 564–

9554 to obtain this information. 

(b) Form elements. Information 

elements reportable on EPA Form R and 

Form R Schedule 1, or equivalent 

magnetic media format include the 

following: 

* * * * * 

(14) * * * 

(ii) Additional Reporting for the 

dioxin and dioxin-like compounds 

category. 

(A) For reports pertaining to a 

reporting year ending on or before 

December 31, 2007, report a distribution 

of the chemicals included in the dioxin 

and dioxin-like compounds category. 

Such distribution shall either represent 

the distribution of the total quantity of 

dioxin and dioxin-like compounds 

released to all media from the facility; 

or its one best media-specific 

distribution. 

(B) For reports pertaining to a 

reporting year ending after December 

31, 2007, report the quantity of each 

member of the dioxin and dioxin-like 

compounds category in units of grams 

per year on Form R Schedule 1. 

* * * * * 

(15)(i) * * * 

(B) An estimate of the amount of the 

chemical transferred in pounds (except 

for dioxin and dioxin-like compounds, 

which shall be reported in grams) per 

year (transfers of less than 1,000 pounds 

per year may be indicated as a range, 

except for chemicals set forth in 

§ 372.28) and an indication of the basis 

of the estimate. In addition, for reports 

pertaining to a reporting year ending 

after December 31, 2007, report the 

quantity of each member of the dioxin 

and dioxin-like compounds category in 

units of grams per year on Form R 

Schedule 1. 

* * * * * 

(15)(ii) * * * 

(B) An estimate of the amount of the 

chemical transferred in pounds (except 

for dioxin and dioxin-like compounds, 

which shall be reported in grams) per 

year (transfers of less than 1,000 pounds 

per year may be indicated as a range, 

except for chemicals set forth in 

§ 372.28) and an indication of the basis 

of the estimate. In addition, for reports 

pertaining to a reporting year ending 

after December 31, 2007, report the 

quantity of each member of the dioxin 

and dioxin-like compounds category in 

units of grams per year on Form R 

Schedule 1. 

* * * * * 

[FR Doc. E7–9015 Filed 5–9–07; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 15 

[MB Docket No. 03–15; RM–9832; FCC 07–

69] 

Second Periodic Review of the 

Commission’s Rules and Policies 

Affecting the Conversion To Digital 

Television 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the 

Commission adopts rules requiring 

sellers of analog-only TV equipment to 

label or post signs at point of sale 

disclosing limitations after the February 

17, 2009 deadline for the transition from 

analog to digital television service. The 

Commission states that sellers must 

advise consumers at point of sale if the 

television equipment includes only an 

analog tuner that will require a 

converter box to receive over-the-airbroadcast-television after the deadline. 

DATES: The rules in 47 CFR 15.117(k) 

contains information collection 

requirements that have not been 

approved by the Office of Management 

and Budget (OMB). The FCC will 

publish a document announcing the 

effective date. 

ADDRESSES: You may submit comments, 

identified by MB Docket No. 03–15, by 

any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Federal Communications 

Commission’s Web Site: http:// 

www.fcc.gov/cgb/ecfs/. Follow the 

instructions for submitting comments. 

• People with Disabilities: Contact the 

FCC to request reasonable 

accommodations (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov 

or phone: 202–418–0530 or TTY: 202–

418–0432. 

For additional information on the 

rulemaking process, see the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Eloise Gore, Eloise.Gore@fcc.gov of the 

Media Bureau, Policy Division, (202) 

418–2120. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Second 

Report and Order (Order), FCC 07–69, 

adopted on, April 25, 2007, and released 

on May 3, 2007. The full text of this 

document is available for public 

inspection and copying during regular 

business hours in the FCC Reference 

Center, Federal Communications 

Commission, 445 12th Street, SW., CY–

A257, Washington, DC 20554. These 

documents will also be available via 

ECFS (http://www.fcc.gov/cgb/ecfs/). 

(Documents will be available 

electronically in ASCII, Word 97, and/ 

or Adobe Acrobat.) The complete text 

may be purchased from the 

Commission’s copy contractor, 445 12th 

Street, SW., Room CY–B402, 

Washington, DC 20554. To request this 

document in accessible formats 

(computer diskettes, large print, audio 

recording, and Braille), send an e-mail 

to fcc504@fcc.gov or call the 

Commission’s Consumer and 

Governmental Affairs Bureau at (202) 

418–0530 (voice), (202) 418–0432 

(TTY). 

Paperwork Reduction Act of 1995 

Analysis 

This document contains new 

information collection requirements 

subject to the Paperwork Reduction Act 

of 1995 (PRA), Public Law 104–13. It 

will be submitted to the Office of 

Management and Budget (OMB) for 

review under Section 3507(d) of the 

PRA. OMB, the general public, and 

other Federal agencies will be invited to 

comment on the new information 

collection requirements contained in 

this proceeding. The Commission will 

publish a separate document in the 

Federal Register at a later date seeking 

these comments. In addition, we note 

that pursuant to the Small Business 

Paperwork Relief Act of 2002, Public 

Law 107–198, see 44 U.S.C. 3506(c)(4), 

we previously sought specific comment 

on how the Commission might ‘‘further 

reduce the information collection 

burden for small business concerns with 

fewer than 25 employees.’’

Summary of the Report and Order 

I. Introduction 

1. In this Second Report and Order in 

the Second DTV Periodic Review, we 

take up the issue of labeling of 

television receiving equipment, which 

was raised in the Second DTV Periodic 

NPRM, 68 FR 7737–01. This Order 

applies to televisions, television 

receivers, and other television receiving 

equipment, which includes television 


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Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 26555 

sets and other video devices, such as 

video-cassette recorders and digital 

video recorders, that are covered by the 

Commission’s digital television 

reception capability implementation 

schedule. In light of the fixed 

deadline—February 17, 2009—

established for the end of analog 

television broadcasting, we now 

conclude that it is necessary and 

appropriate to require retailers to 

provide consumers with information 

regarding this transition date at the 

point of sale. Specifically, we will 

require sellers of television receiving 

equipment that does not include a 

digital tuner to disclose at the point-ofsale that such devices include only an 

analog tuner and therefore will require 

a converter box to receive over-the-air 

broadcast television after February 17, 

2009. Consumers expect that equipment 

for sale today that is capable of 

receiving ‘‘television’’ is and will 

continue to be able to receive over-theair broadcast signals, and, if not, then 

such material information should be 

disclosed prior to purchase. The 

successful completion of the digital 

television (‘‘DTV’’) transition depends 

upon satisfaction of this basic consumer 

expectation. For these reasons, in this 

Order we adopt disclosure requirements 

to ensure that consumers receive this 

important information regarding the 

limitations of analog-only television 

receivers at the point of sale. 

II. Background 

2. The Second DTV Periodic NPRM 

asked whether we should require a 

mandatory label on analog-only sets to 

inform consumers at the point of sale 

that a converter or external DTV tuner 

will be needed to ensure reception of 

television broadcast signals after 

stations complete the conversion to 

digital-only broadcasting. In the First 

Report and Order in the Second DTV 

Periodic Review, we deferred 

determination of the need to require 

labeling to this Second Report and 

Order. With the establishment by 

Congress of a hard and certain deadline 

for the end of analog transmissions by 

full power television stations, we now 

conclude that it is necessary to ensure 

that consumers are aware at the point of 

purchase of that deadline and the 

impact that it will have on analog-only 

television receivers. 

Second DTV Periodic Review 

3. The Second DTV Periodic NPRM 

invited comment on the need for a point 

of sale disclosure label on analog-only 

devices or a digital transition fact sheet 

to inform consumers that a converter or 

external DTV tuner will be needed to 

ensure reception of television broadcast 

signals after stations complete 

conversion to digital-only broadcasting. 

The NPRM also asked about plans to 

manufacture ‘‘pure monitors’’ (without 

any tuner) that can receive digital 

format transmissions via cable or 

satellite but not from signals broadcast 

over-the-air and requested information 

on the plans to label such monitors to 

describe reception limitations. 

4. When the Commission issued the 

NPRM for the Second DTV Periodic 

Review in 2003, concerns about 

consumer understanding had been 

heightened by a General Accounting 

Office (‘‘GAO’’) Report to Congress in 

November 2002 that found that at least 

40 percent of the public was unfamiliar 

with the digital transition. This 2002 

GAO Report also found that 68 percent 

of those surveyed did not know that 

when the transition ends, consumers 

with analog-only devices will be unable 

to continue receiving over-the-air 

broadcast television without use of an 

external digital tuner or converter. Only 

14 percent of those surveyed by the 

GAO were ‘‘very familiar’’ with the 

difference between analog and digital 

televisions. GAO speculates that even 

this number may be high because 

consumers may be confusing current 

digital television services provided by 

cable or satellite with DTV. Over 80 

percent of consumers were unaware or 

only somewhat aware of the ongoing 

transition to digital television. In 

addition, it concluded that retail sales 

personnel often provide inaccurate 

information about both digital 

programming availability and 

equipment needed to receive and 

display digital programming, 

particularly over-the-air. Another study 

in 2003 found that 25 percent of 

Americans thought they owned a high 

definition television set, while HDTV 

sales showed that only a small fraction 

of these consumers could possibly have 

been correct in their understanding of 

the capabilities of their televisions. 

5. This concern has not been 

diminished by more recent findings. A 

study in June 2004 reported that 37 

percent of adults were at least somewhat 

familiar with HDTV and 87 percent 

expressed vague awareness but lacked 

clear understanding. In addition, a more 

recent GAO study in 2005 noted that 

consumers are still confused about the 

transition. This 2005 GAO study 

reported that consumers may be 

reluctant to buy digital equipment, 

which is generally more expensive than 

analog-only devices, because they lack 

accurate knowledge about the transition 

and believe they will always have a 

choice between analog and digital 

signals over-the-air. Moreover, a very 

recent survey by the Association of 

Public Television Stations (‘‘APTS’’) 

found that 61 percent of those surveyed 

said that they had ‘‘No Idea’’ that the 

DTV transition was taking place, 10 

percent said they had ‘‘Limited 

Awareness,’’ while 17 percent said they 

were ‘‘Somewhat Aware’’ and less than 

8 percent said they were ‘‘Very Much 

Aware.’’ The results from that survey 

also indicate that awareness of the 

forthcoming transition—even after 

enactment of a statutory deadline—

remains low. The need for labeling of 

analog-only televisions also has been 

mentioned in Congressional hearings, 

both in testimony and from members on 

both sides of the aisle. For example, on 

February 17, 2005, the House 

Subcommittee on Telecommunications 

and the Internet held a hearing on ‘‘The 

Role of Technology In Achieving A 

Hard Deadline for the DTV Transition.’’

Rep. Bobby Rush (D–IL) and K. James 

Yager, CEO, Barrington Broadcasting, 

testifying on behalf of the NAB and 

MSTV, expressed belief in requiring 

warning labels on analog-only sets to 

alert consumers to the limited useful life 

of their television sets. Both House and 

Senate Committees have proposed 

legislation to require labeling of analogonly televisions to address these 

concerns. 

6. In the Second DTV Periodic NPRM, 

most parties who commented on 

labeling supported the need for 

Commission action to address consumer 

expectations, particularly with regard to 

analog-only television equipment. 

MSTV and NAB were concerned that a 

label describing a receiver’s 

functionality may not go far enough to 

adequately notify consumers of the 

transition from analog to digital service. 

NBC and Telemundo expressed concern 

that consumers will waste money 

buying equipment that will soon be 

obsolete and proposed a labeling 

requirement to notify consumers that 

after the transition, analog equipment 

will not deliver television signals 

without a converter. By contrast, parties 

opposing any labeling requirement 

contended that marketplace incentives 

will ensure that consumers are wellinformed, and that there is no evidence 

that manufacturers would not inform 

consumers of product limitations. The 

Consumer Electronics Association 

(‘‘CEA’’) offered to consider voluntary 

labeling if manufacturers determined 

there is consumer confusion. The 

Consumer Electronics Retailers Council 

(‘‘CERC’’) expressed concern that labels 

describing what equipment does not do 

will be harmful and interfere with 


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26556 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 

merchandising efforts. CERC contended 

that negative formulations are 

misleading because there is inadequate 

room to list all the positive formulations 

on a label. 

DTV Tuner Orders 

7. In 2002, the Commission adopted a 

schedule for the phase-in of television 

receivers to be equipped with digital 

tuners. The DTV Tuner Order initially 

required that all TV receivers with 

screen sizes greater than 13 inches 

manufactured in the United States or 

shipped in interstate commerce after 

July 1, 2007 be capable of receiving DTV 

signals over-the-air. The DTV Tuner 

Order did not require television 

receivers that cannot receive over-theair digital broadcast signals to carry a 

label informing consumers of this 

limitation, but the Commission 

committed to monitoring the 

marketplace and taking steps if 

necessary to protect consumers’

interests. 

8. In 2005, the Commission revised 

the timing and scope of the DTV tuner 

phase-in to ensure that all television 

receivers, including televisions with 

screens smaller than 13 inches and 

television reception devices such as 

VCRs, that are manufactured in the 

United States or shipped in interstate 

commerce after March 1, 2007, have the 

capability to tune and decode digital 

signals as broadcast over-the-air. The 

Commission found that consumer 

awareness of whether television 

equipment can receive over-the-air DTV 

signals or only over-the-air analog 

signals is critical to ensuring that 

consumer expectations are met. The 

Commission was hopeful that 

manufacturers and retailers would 

educate consumers about the digital 

transition by providing point-of-sale and 

other marketing information to 

consumers or clearly label new 

television equipment. We also note that 

in the past, the Commission has 

expressed concern about adequate 

disclosures in the analogous Plug-andPlay Order, which concluded that the 

public understanding of ‘‘cable ready’’

in the analog context includes the 

capability to receive signals over-the-air 

as well as from a cable system. The 

Plug-and-Play Order implemented a 

voluntary labeling regime jointly 

proposed by the consumer electronics 

(‘‘CE’’) and cable industries to provide 

consumers with information pertaining 

to ‘‘digital cable ready’’ equipment. 

III. Discussion 

Labeling is Needed for Analog-Only 

Televisions 

9. The NPRM solicited comment on 

proposals for requiring disclosure of 

information to consumers concerning 

analog and digital television equipment. 

We conclude that it is necessary for us 

to require disclosure of the limitations 

of analog-only television receiving 

equipment at the point of sale. By 

‘‘point of sale’’ we mean the place 

where televisions are displayed for 

consumers prior to purchase. The 

required label language should be 

prominently displayed in a manner that 

is clearly visible to the consumer and 

associated with the analog-only 

television model(s) to which it pertains. 

Therefore, we are adopting a rule to 

alert consumers that after February 17, 

2009, analog-only television equipment 

will not be able to receive over-the-air 

television signals unless it is connected 

to a digital-to-analog converter or a 

digital subscription service. This will 

ensure that consumers have the 

necessary information at the point of 

purchase to decide if they wish to buy 

a television that has only an analog 

tuner. We also conclude that it is not 

necessary for us to mandate labeling for 

digital television equipment at this time 

in light of recent voluntary actions and 

the increasing availability of 

information about DTV features and 

terminology. For example, CEA and 

several members of CERC co-sponsored 

a consumer ‘‘tip sheet,’’ ‘‘Buying a 

Digital Television’’ with the 

Commission. This tip sheet is available 

on several Web sites and has been 

distributed at consumer events and 

industry conventions. 

10. In contrast to the information 

available concerning digital televisions, 

the record evidence indicates that the 

consumer electronics industry efforts do 

not adequately inform consumers how 

analog-only television equipment 

purchased now will function when the 

transition ends. CEA submitted an ex 

parte filing in October 2006, listing the 

steps it or its members have taken to 

improve consumer awareness of the 

transition in general and to provide 

information related to the purchase of 

television equipment in particular. The 

letter describes the efforts of CEA and 

its manufacturing and retail members to 

provide comprehensive information 

about the digital transition via the 

Internet. The letter also describes a 

voluntary labeling program announced 

in March 2006, intended to begin in July 

2006. Unfortunately, it appears that 

neither manufacturers nor retailers have 

implemented this voluntary program on 

a widespread basis. 

11. Therefore, we remain concerned 

that the continued sale of analog-only 

television equipment without 

appropriate disclosure is likely to 

mislead consumers who are unaware of 

the upcoming transition. Such 

consumer confusion is inconsistent with 

a smooth transition to digital 

broadcasting. Further, we do not believe 

we can rely solely on consumer 

assistance voluntarily given at the retail 

outlet to address such confusion. There 

have been reports that retail sales clerks 

are often confused or unaware of the 

limitations of analog-only televisions. In 

addition, many consumers will want to 

shop for television equipment at 

discount stores or online, where sales 

help is less likely to be available to 

explain analog-only limitations. Thus, 

confused consumers are often unable to 

obtain reliable and accurate information 

about the basic capabilities of television 

equipment at the point of sale. 

12. The government has a strong 

interest in ensuring a timely conclusion 

of the digital transition, reducing 

consumer disruption and confusion, 

and limiting the number of consumers 

who are left without over-the-air 

television service on some or all of their 

television equipment when the analog 

broadcast service ends in less than two 

years. Accurate communication of this 

impending change is a highly material 

disclosure for consumers contemplating 

the purchase of a television. It is also a 

matter of public safety for consumers 

who rely on analog-only televisions to 

obtain critical information in an 

emergency. Analog-only televisions are 

currently sold as part of emergency 

equipment to provide information in a 

disaster without disclosure that in two 

years, they will not be able to receive 

television broadcasts. 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 a disaster, service disruption or for 

non-payment of their bills. 

13. Although the DTV Tuner 

requirement prohibits manufacture, 

import or interstate shipment of analogonly television equipment after March 

1, 2007, it does not extend to retail sales 

of analog-only television equipment 

from inventory. Thus, the passing of this 

date does not eliminate the need for 

disclosure by retailers who choose to 

continue to sell analog-only television 

equipment after March 1, 2007. In fact, 


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Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 26557 

we are concerned that there is a greater 

likelihood of confusion if consumers 

assume that all televisions must have a 

digital tuner after this date. Without 

point of sale disclosure, consumers may 

inadvertently buy analog-only television 

equipment without understanding that 

such devices will require some 

additional equipment for use after 

analog broadcasting ends. We also 

believe that the presence of a label or 

sign concerning the sale of analog-only 

television equipment will serve an 

educational function by informing and 

reminding consumers of the upcoming 

transition from analog to digital 

broadcasting. 

14. We had been reluctant to require 

specific labeling in the expectation that 

manufacturers and retailers would 

develop clear and uniform terminology 

to convey to consumers prior to 

purchase the features as well as the 

limitations of television products. 

However, we now conclude that 

adequate pre-sale information 

concerning analog-only television 

equipment will not be provided 

voluntarily, and the establishment of a 

date certainly raises the stakes for this 

continuing failure to disclose. We also 

recognize that it is currently illegal for 

any manufacturer to make, import or 

ship an analog-only television set or 

other video device with only an analog 

receiver. The focus now shifts to 

retailers that are selling such analogonly equipment from pre-March 1, 2007 

inventory. We, therefore, require that 

anyone that sells or offers for sale or 

rent television receiving equipment that 

does not contain a DTV tuner after 

March 1, 2007 must display the 

following consumer alert, in a size of 

type large enough to be clear, 

conspicuous and readily legible, 

consistent with the dimensions of the 

equipment and the label, at the point of 

sale. This consumer 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 

offered for sale and clearly associated 

with the analog-only television model to 

which it pertains. In the case of other 

analog-only video devices that do not 

include a display (e.g., a VCR), 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. In addition, to the 

extent that any persons display or offer 

for sale or rent via direct mail, catalog, 

or electronic means (e.g., the Internet) 

analog-only television receiving 

equipment after March 1, 2007, they 

must prominently display 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, the following text. 

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 

Web site at: www.dtv.gov. 

Authority To Require Labeling 

15. We conclude that we have 

ancillary authority to adopt point of sale 

disclosure requirements for analog-only 

television equipment under Titles I and 

III of the Communications Act of 1934, 

as amended (‘‘Act’’). Courts have long 

recognized that, even in the absence of 

explicit statutory authority, the 

Commission has authority to 

promulgate regulations to effectuate the 

goals and provisions of the Act if the 

regulations are ‘‘reasonably ancillary to 

the effective performance of the 

Commission’s various responsibilities’’

under the Act. The Supreme Court has 

established a two-part ancillary 

jurisdiction test: (1) The subject of the 

regulation must be covered by the 

Commission’s general grant of 

jurisdiction under Title I of the 

Communications Act; and (2) the 

regulation must be reasonably ancillary 

to the Commission’s statutory 

responsibilities. The requirements we 

adopt here regulate devices that fall 

within the Commission’s Title I 

jurisdiction, advance our statutory 

obligation to promote the accessibility 

and universality of radio 

communication, and serve the public 

interest. We conclude, therefore, that we 

have ancillary jurisdiction to adopt 

point of sale disclosure requirements in 

this proceeding. 

16. Title I authorizes the Commission 

to regulate devices that receive 

broadcast communications. Sections 1 

and 2(a) of the Act confer on the 

Commission regulatory jurisdiction over 

all interstate radio and wire 

communication. Broadcasting is 

interstate in nature, and television 

receivers are covered by the Act’s 

definition of ‘‘radio communication,’’

which includes not only the 

‘‘transmission of * * * writing, signs, 

signals, pictures, and sounds’’ by aid of 

radio, but also ‘‘all instrumentalities, 

facilities, apparatus, and services 

(among other things, the receipt, 

forwarding, and delivery of 

communications) incidental to such 

transmission.’’ Television receivers are 

‘‘apparatus’’ ‘‘incidental to * * * 

transmission’’ of television broadcasts 

and, therefore, are within the scope of 

our Title I subject matter jurisdiction. 

17. The recent decision of the U.S. 

Court of Appeals for the District of 

Columbia Circuit in American Library 

Ass’n v. FCC is not to the contrary. The 

D.C. Circuit held in that case that the 

Commission lacked jurisdiction over 

devices that can be used for receipt of 

wire or radio communications when 

those devices are not engaged in the 

process of radio or wire transmission. 

Thus, the D.C. Circuit held that the 

Commission lacked jurisdiction to 

regulate the post-transmission copying 

of program content. The requirement we 

adopt here, by contrast, does not involve 

post-transmission conduct. Rather, it 

directly concerns the ability (or 

inability) of television equipment to 

receive broadcast transmissions. As a 

result, the subject of the regulation is 

covered by Title I of the Act. 

18. In addition, we conclude that 

imposing point of sale disclosure 

requirements for analog-only television 

equipment is reasonably ancillary to our 

statutory obligations under the Act. The 

Commission was established to regulate 

interstate and foreign communications 

for the purposes of promoting the 

accessibility and universality of wire 

and radio communication, as well as 

promoting public safety through the use 

of wire and radio communication. The 

Commission also is statutorily obligated 

to promote the orderly transition to 

digital television, ‘‘a critical step in the 

evolution of broadcast television.’’ The 

Commission has carried out this 

mandate, among other things, through 

implementation of the All Channel 

Receiver Act, which authorizes it ‘‘to 

require that apparatus designed to 

receive television pictures broadcast 

simultaneously with sound be capable 

of adequately receiving all frequencies 

allocated by the Commission to 

television broadcasting.’’ Further, the 

Commission is authorized to ‘‘make 

such rules and regulations * * * as may 

be necessary in the execution of its 

functions,’’ and to ‘‘[m]ake such rules 

and regulations * * * not inconsistent 


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26558 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 

with law, as may be necessary to carry 

out the provisions of this Act * * *.’’

19. The rules we adopt today advance 

these statutory mandates and serve the 

public interest. Accurate and timely 

communication of the impending 

change from analog to digital 

transmission is a critical disclosure for 

consumers contemplating the purchase 

of television equipment. As discussed 

above, voluntary industry efforts to date 

have not been sufficient to ensure 

consumer awareness of the upcoming 

transition to digital television or of the 

limitations of analog-only televisions. 

Such consumer awareness is critical to 

our missions of promoting the 

accessibility and universality of radio 

communication, public safety, and an 

orderly digital transition. Without such 

disclosure, many American consumers 

may purchase analog-only television 

equipment without knowing that these 

devices will be unable to receive overthe-air signals in fewer than two years 

without the purchase of additional 

equipment, may be unprepared for the 

digital transition when it arrives, and 

may be unable to obtain critical 

information in emergencies after the 

transition. Consumer awareness also is 

necessary to fulfill the Commission’s 

mandate under the ACRA, for analogonly television equipment will be 

incapable of receiving all television 

broadcast frequencies after the digital 

transition. By requiring that consumers 

be informed at the point of sale that 

analog-only television equipment will 

not be able to receive over-the-air 

signals in 2009, the requirement we 

adopt today will ensure that consumers 

who purchase such analog-only 

equipment are aware of the transition, 

are able to prepare for it in advance, and 

are not cut off from broadcast 

communications in 2009. 

20. Exercising ancillary jurisdiction to 

adopt point of sale disclosure 

requirements for analog-only television 

equipment is consistent with prior 

exercises of the Commission’s authority. 

As noted above, the Commission 

previously relied on its authority under 

the ACRA to impose a phased-in digital 

tuner mandate in order to promote the 

orderly transition to digital television. 

In addition, the Commission recently 

relied on its ancillary jurisdiction in 

requiring interconnected Voice over 

Internet Protocol (VoIP) service 

providers to distribute to their 

subscribers stickers or labels warning if 

E911 service may be limited or 

unavailable, and to instruct subscribers 

to place them on or near the equipment 

used in conjunction with the 

interconnected VoIP service. The 

Commission also has numerous other 

labeling and disclosure requirements 

designed to further its statutory 

objectives and to protect consumers. In 

sum, therefore, we conclude that we 

have ancillary authority to adopt point 

of sale disclosure requirements for 

analog-only television equipment. 

IV. Procedural Matters 

21. Accessibility Information. 

Accessible formats of this Second 

Report and Order (computer diskettes, 

large print, audio recording and Braille) 

are available to persons with disabilities 

by contacting Brian Millin, of the 

Consumer & Governmental Affairs 

Bureau, at (202) 418–7426, TTY (202) 

418–7365, or at bmillin@fcc.gov. 

22. Congressional Review Act. The 

Commission will send a copy of this 

Second Report and Order in a report to 

be sent to Congress and the Government 

Accountability Office pursuant to the 

Congressional Review Act, see 5 U.S.C. 

801(a)(1)(A). 

Final Regulatory Flexibility Analysis 

23. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(‘‘RFA’’), an Initial Regulatory 

Flexibility Analysis (‘‘IRFA’’) was 

incorporated in the Notice of Proposed 

Rule Making (‘‘NPRM’’). The 

Commission sought written public 

comment on the proposals in the NPRM, 

including comment on the IRFA. This 

Final Regulatory Flexibility Analysis 

(FRFA) conforms to the RFA. 

Need for, and Objectives of, the Second 

Report and Order 

24. The rule adopted in this Second 

Report and Order is required to ensure 

a smooth transition of the nation’s 

television system from analog to digital 

format. In an earlier proceeding in MM 

Docket No. 87–268, the Commission 

stated its intention to hold periodic 

reviews of the progress of the digital 

conversion and to make any 

adjustments necessary to our rules and 

policies to ensure that the introduction 

of digital television broadcasting, the 

end of analog broadcasting, and the 

recovery of spectrum at the end of the 

analog-to-digital transition would fully 

serve the public interest. 

25. This Second Report and Order 

focuses on whether labeling on digital 

television equipment is needed at the 

point of sale to provide consumers with 

information they need. The Commission 

rejects proposals to require that digital 

television equipment bear labels 

concerning performance standards or 

antenna capabilities and limitations. We 

require that consumers be informed that 

analog television sets will, after analog 

broadcasting ends, require additional 

equipment (such as a digital-to-analog 

converter) if they are to continue to 

receive television service. Accordingly, 

we require that retailers post a label or 

sign prior to purchase to inform 

consumers that analog television 

receivers will need additional 

equipment or attachment to a 

subscription service to continue to 

receive over-the-air television after 

analog broadcasting ends. 

Summary of Significant Issues Raised by 

Public Comments in Response to the 

IRFA 

26. One comment was received on the 

IRFA. That comment did not concern 

any subject addressed in this Second 

Report and Order. The comment was 

discussed in the Final Regulatory 

Flexibility Analysis (‘‘FRFA’’) issued as 

part of the Commission’s Report and 

Order (‘‘First Report and Order’’) in this 

proceeding (FCC 04–192, released 

September 7, 2004) and was discussed 

in paragraphs 12–13 of the Final 

Regulatory Flexibility Analysis 

(‘‘FRFA’’) issued as part of the First 

Report and Order. 

Description and Estimate of the Number 

of Small Entities to Which the Proposed 

Rules Will Apply 

27. The RFA directs the Commission 

to provide a description of and, where 

feasible, an estimate of the number of 

small entities that will be affected by the 

proposed rules. The RFA generally 

defines the term ‘‘small entity’’ as 

having the same meaning as the terms 

‘‘small business,’’ ‘‘small organization,’’

and ‘‘small government entity.’’ In 

addition, the term ‘‘small business’’ has 

the same meaning as the term ‘‘small 

business concern’’ under the Small 

Business Act. A small business concern 

is one which: (1) Is independently 

owned and operated; (2) is not 

dominant in its field of operation; and 

(3) satisfies any additional criteria 

established by the Small Business 

Administration (‘‘SBA’’). 

28. The only entities directly affected 

by the decisions made and rules 

adopted in this Second Report and 

Order are retailers and other sellers of 

television equipment, and electronics 

equipment manufacturers. 

29. Radio and Television 

Broadcasting and Wireless 

Communications Equipment 

Manufacturing. The Census Bureau 

defines this category as follows: ‘‘This 

industry comprises establishments 

primarily engaged in manufacturing 

radio and television broadcast and 

wireless communications equipment. 

Examples of products made by these 

establishments are: transmitting and 


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Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 26559 

receiving antennas, cable television 

equipment, GPS equipment, pagers, 

cellular phones, mobile 

communications equipment, and radio 

and television studio and broadcasting 

equipment.’’ The SBA has developed a 

small business size standard for Radio 

and Television Broadcasting and 

Wireless Communications Equipment 

Manufacturing, which is: all such firms 

having 750 or fewer employees. 

According to Census Bureau data for 

2002, there were a total of 1,041 

establishments in this category that 

operated for the entire year. Of this 

total, 1,010 had employment of under 

500, and an additional 13 had 

employment of 500 to 999. Thus, under 

this size standard, the majority of firms 

can be considered small. 

30. Radio, Television, and Other 

Electronics Stores. The Census Bureau 

defines this economic census category 

as follows: ‘‘This U.S. industry 

comprises: (1) Establishments known as 

consumer electronics stores primarily 

engaged in retailing a general line of 

new consumer-type electronic products; 

(2) establishments specializing in 

retailing a single line of consumer-type 

electronic products (except computers); 

or (3) establishments primarily engaged 

in retailing these new electronic 

products in combination with repair 

services.’’ The SBA has developed a 

small business size standard for Radio, 

Television, and Other Electronics 

Stores, which is: all such firms having 

$8 million or less in annual receipts. 

According to Census Bureau data for 

2002, there were 10,380 firms in this 

category that operated for the entire 

year. Of this total, 10,080 firms had 

annual sales of under $5 million, and 

177 firms had sales of $5 million or 

more but less than $10 million. Thus, 

the majority of firms in this category can 

be considered small. 

31. Electronic Shopping. According to 

the Census Bureau, this economic 

census category ‘‘comprises 

establishments engaged in retailing all 

types of merchandise using the 

Internet.’’ The SBA has developed a 

small business size standard for 

Electronic Shopping, which is: all such 

entities having $23 million or less in 

annual receipts. According to Census 

Bureau data for 2002, there were 4,959 

firms in this category that operated for 

the entire year. Of this total, 4,742 firms 

had annual sales of under $10 million, 

and an additional 133 had sales of $10 

million to $24,999,999. Thus, the 

majority of firms in this category can be 

considered small. 

Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements 

32. The Second Report and Order 

requires anyone who sells or offers for 

sale television receiving equipment that 

has an analog tuner but not a digital 

tuner to disclose at the point of sale that 

the television will not receive over-theair television broadcast signals after 

February 17, 2009 unless it is attached 

to a digital-to-analog converter box or a 

cable or satellite subscription service 

receiver. 

Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

33. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching its 

proposed approach, which may include 

the following four alternatives (among 

others): (1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance or reporting requirements 

under the rule for small entities; (3) the 

use of performance, rather than design, 

standards; and (4) an exemption from 

coverage of the rule, or any part thereof, 

for small entities. 

34. The final decision made in the 

Second Report and Order is to require 

retailers to place a label or display a 

sign on or near analog-only television 

receiving devices (television sets, VCRs, 

etc.) that discloses the limitations for 

such equipment in the near future. This 

requirement applies alike to large and 

small sellers of television equipment 

who choose to sell analog-only 

televisions after March 1, 2007. Due to 

the phase-in of the DTV tuner 

requirement cited above, after March 1, 

2007, manufacturers and distributors are 

prohibited from making, importing or 

shipping in interstate commerce a 

television set that has an analog tuner 

but not a digital tuner. This point of sale 

disclosure requirement ensures that if 

sellers want to sell analog-only 

television equipment from existing 

inventory, they must be sure consumers 

understand the limitations that will 

apply when full power analog 

broadcasting ceases on February 17, 

2009. The Commission also considered, 

and rejected, proposals to require many 

more disclosures with respect to digital 

television equipment. The Commission 

rejected these proposals because, in its 

opinion, adequate information is being 

made available to consumers from their 

own activities, industry efforts, 

disclosures encouraged by the 

Commission, and actions by consumer 

protection authorities. 

35. In conclusion, whatever burdens 

small entities may incur in complying 

with the decision made in the Second 

Report and Order are mitigated by the 

factors discussed in the foregoing 

paragraphs. They are also warranted by 

the overall benefit to the public from 

accomplishing the transition from 

analog to digital television and reducing 

the consumer disruption related thereto. 

These benefits include better television; 

job creation; economic growth; 

stimulation of new technology in this 

country; and the shift of spectrum from 

television broadcasting to other uses 

such as new wireless services and 

public safety and homeland security 

applications. 

Report to Congress 

36. The Commission will send a copy 

of the Second Report and Order, 

including this FRFA, in a report to be 

sent to Congress and the Government 

Accountability Office pursuant to the 

Congressional Review Act. In addition, 

the Commission will send a copy of the 

Second Report and Order, including 

this FRFA, to the Chief Counsel for 

Advocacy of the SBA. A copy of the 

Second Report and Order and FRFA (or 

summaries thereof) will also be 

published in the Federal Register. 

V. Ordering Clauses 

37. It is ordered that, pursuant to the 

authority contained in Sections 1, 2(a), 

3(33), 4(i), 303(r) and (s), and 336 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151, 152(a), 153(33), 

154(i), 303(r) and (s), and 336, this 

Second Report and Order Is Adopted 

and the Commission’s rules Are Hereby 

Amended as set forth in Appendix B. 

Rule section 47 CFR 15.117(k) contains 

information collection requirements 

subject to the PRA and is not effective 

until approved by the Office of 

Management and Budget. The 

Commission shall publish an 

announcement of OMB approval in the 

Federal Register. We find good cause 

for the rule to be effective by this date 

because the Order is necessary to 

minimize harm to consumers. As 

described in this Order, the Commission 

has found that retailers are continuing 

to sell analog-only television receivers 

without disclosure of the limitations of 

this equipment after the digital 

television transition on February 17, 

2009. Consumers buying these 

television receivers may not realize 

until after the end of the transition that 

they will no longer receive over-the-air 

signals without attachment to a 


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26560 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Rules and Regulations 

converter or subscription service, may 

be unprepared for the digital transition 

when it arrives, and may be unable to 

obtain critical information in 

emergencies after the transition. In such 

instances, consumers would be 

financially harmed and deprived of 

service at a critical time. We are 

concerned that delay in the effective 

date of the disclosure requirement will 

result in additional analog-only 

equipment being sold to uninformed 

consumers due to the absence of 

appropriate disclosure, thereby harming 

consumers and undermining the goal of 

the rule. Parties subject to the rule will 

have a reasonable opportunity to 

comply with it, particularly in light of 

the fact that it will not be effective until 

OMB approval. Because delay can result 

in such harms to consumers and 

because affected parties will be afforded 

a reasonable opportunity to comply 

with the rule, we find that there is good 

cause to expedite the effective date of 

this rule. We are also requesting 

emergency PRA approval from OMB. 

38. It is further ordered that the 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Second Report and Order, including 

the Final Regulatory Flexibility 

Analysis, to the Chief Counsel for 

Advocacy of the Small Business 

Administration. 

39. It is further ordered that the 

Commission shall send a copy of this 

Second Report and Order in a report to 

be sent to Congress and the Government 

Accountability Office pursuant to the 

Congressional Review Act, see 5 U.S.C. 

801(a)(1)(A). 

List of Subjects in 47 CFR Part 15 

Radio frequency devices. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

Rule Changes 

■ For the reasons discussed in the 

preamble, the FCC amends 47 CFR part 

15 as follows: 

PART 15—RADIO FREQUENCY 

DEVICES 

■ 1. The authority citation for part 15 

continues to read as follows: 

Authority: 47 U.S.C. 154, 302, 303, 304, 

307, 336, and 544A. 

■ 2. Section 15.117 is amended by 

adding paragraph (k) to read as follows: 

§ 15.117 TV broadcast receivers. 

* * * * * 

(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 paragraph 

(k)(3) of this section. 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 

paragraph (k)(3) of this section. 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 overthe-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 Web site 

at: http://www.dtv.gov. 

[FR Doc. 07–2318 Filed 5–9–07; 8:45 am] 

BILLING CODE 6712–01–P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1804 and 1852 

RIN 2700–AD26 

Security Requirements for Unclassified 

Information Technology (IT) Resources 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Final rule. 

SUMMARY: NASA is amending the clause 

at NASA FAR Supplement (NFS) 

1852.204–76, Security Requirements for 

Unclassified Information Technology 

Resources, to reflect the updated 

requirements of NASA Procedural 

Requirements (NPR) 2810, ‘‘Security of 

Information Technology’’. The NPR was 

recently revised to address increasing 

cyber threats and to ensure consistency 

with the Federal Information Security 

Management Act (FISMA), which 

requires agencies to protect information 

and information systems in a manner 

that is commensurate with the 

sensitivity of the information processed, 

transmitted, or stored. 

EFFECTIVE DATE: This final rule is 

effective May 10, 2007. 

FOR FURTHER INFORMATION CONTACT: Ken 

Stepka, Office of Procurement, Analysis 

Division, (202) 358–0492, e-mail: 

ken.stepka@nasa.gov. 

SUPPLEMENTARY INFORMATION: 

A. Background 

NASA published a proposed rule in 

the Federal Register (71 FR 43408–

43410) on August 1, 2006. The sixty day 

comment period expired October 2, 

2006. Four comments were received 

from two respondents. A summary of 

the comments and NASA responses 

follows. 

Comment: The clause is ‘‘* * * not 

appropriate in situations where 

university contractors develop data and 

software to which NASA has access and 

the right to use, but is owned by the 

university under normal FAR and NFS 

provisions for university research 

contracts’’ and should not ‘‘* * * be 

included when the contractor will 

simply be delivering software or data in 

electronic format to the government, 

unless the government will be the sole 

and exclusive owner of such delivered 

software or data * * *. ’’

NASA Response: FISMA requires 

agencies to protect their information 

and information systems used or 

operated by an agency or by a contractor 

of an agency or other organization on 

behalf of an agency. This is a data 

protection, and not an ownership, issue. 


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