Retailers fined over analog TV sales

WASHINGTON - Sears Holdings Corp. and Wal-Mart Stores Inc. face federal fines for failing to warn TV buyers that some sets may not work after next year's switch to digital broadcasts.

The proposed fines against Wal-Mart and Sears were among more than $6 million in penalties sought by the Federal Communications Commission in an order on its website.

The retailers failed to place warning labels on or near analog televisions they continue to sell even though the sets won't work without cable, satellite, or converter boxes after next February, the agency said. The FCC has required the labels since May so consumers are aware of the switch to digital. The companies may appeal.

"We are surprised at today's announcement as we have been working closely with the FCC to facilitate the transition from analog to digital TVs," Sears spokeswoman Kimberly Freely said. The stores stopped selling analog sets last fall, she said.

The FCC set fines of $1.1 million for Sears; $992,000 for Wal-Mart; $712,000 for Circuit City Stores Inc.; $384,000 for Fry's Electronics Inc.; $296,000 for Target Corp.; $280,000 for Best Buy Co.; and $168,000 for CompUSA Inc.

Companies have "made every effort" to comply with the analog labeling rule, Robert Schwartz, an attorney for the Consumer Electronics Retail Coalition, said. The trade group's members include Best Buy, Circuit City, and Sears.

The FCC inspected 2,716 stores and 36 websites in its search for violations, chairman Kevin Martin said in testimony submitted to the Senate Commerce Committee on April 8.

The FCC yesterday also proposed fines of $1.6 million against manufacturers for violating a rule that has banned the production and sale of new TVs with only analog tuners since March 1, 2007.

Major television stations will stop transmitting traditional analog signals and switch to digital in February. The move will free spectrum for use by wireless communications.