NEWSReport No. CI 97-2   COMPLIANCE AND INFORMATION ACTION     February 5, 1997

          BUREAU ISSUES NOTICE OF MONETARY FORFEITURE OF $20,000
                 TO ACE COMMUNICATIONS IN FISHERS, INDIANA

     The FCC's Compliance and Information Bureau (CIB), by delegated authority, issued a Notice
of Monetary Forfeiture to Ace Communications for the wilful and repeated violation of the
Communications Act of 1932, as amended, and the Commission's rules.  The violation resulted from
Ace's actions in marketing scanning receivers, or "scanners," without first obtaining an equipment
authorization from the Commission.  

     At issue in this case were two types of scanners that tune into the cellular telephone frequencies. 
The Communications Act of 1934, as amended, prohibits the Commission from issuing equipment
authorizations for this type of scanner.  The Commission's rules prohibit the marketing of these scanners
for which it will not issue an equipment authorization.  

     On June 22, 1994, the Field Operations Bureau (now Compliance and Information Bureau) issued
a Notice of Apparent Liability (NAL) for Forfeiture against Ace Communications for the amount of
$20,000.  In response to the NAL, Ace did not deny that the equipment was unauthorized, but asserted
that it had made good faith efforts to comply.  Ace further argued that, because the Communications Act
and the Commission's rules do not contain the term "marketing," the Commission could not issue a
forfeiture based on such a violation.  Ace also contended that, because the NAL was issued pursuant to
the Commission's Forfeiture Policy Statement that was vacated by the Court in USTA v. FCC, 28 F.3d
1232 (D.C. Cir. 1994), the forfeiture should be cancelled.

     The Bureau rejected these arguments, stating that the record in this case did not support a finding
that Ace had made good efforts to comply with the Commission's rules and that the Commission's rules
address the actions that are considered marketing activities by the Commission.  The Bureau evaluated
the record in this case under the forfeiture statutory guidelines contained in Section 503 of the
Communications Act.  Accordingly, it considered ACE's disregard of the Commission's warning, prior
to the NAL, that the marketing of the devices at issue was illegal.  The Bureau also note that one of the
scanner models at issue bore an FCC identification number that could mislead the public into thinking
that the Commission had authorized the device.  Disavowing any reliance on the vacated Forfeiture Policy
Statement, the Bureau issued a Notice of Forfeiture for the amount of $20,000.  Ace Communications
must pay the full amount of the monetary forfeiture within thirty (30) days.  

     Action by the Chief, Compliance Division, Compliance and Information Bureau, February 4,
1997, by Notice of Forfeiture (DA 97-264).

                                  - FCC -   

     CIB contact:  Douglas Cooper at (202)  418-1160