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   June 1, 2007

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED

   Mr. James Jehle

   Manager

   KMart

   12350 SW 8^th Street

   Miami, FL 33184

   Kmart

   c/o  Sears Holding Corporation

   3333 Beverly Road
   Hoffman Estates, IL 60179

   Attn.: William R. Harker

   Senior Vice President and General Counsel

   Re: File No. EB-07-MA-023

   Citation No.: C20073260002

   This is an official CITATION, issued pursuant to Section 503(b)(5) of the
   Communications Act of 1934, as amended ("Act"), 47 U.S.C. S 503(b)(5), to
   Kmart  for failure to provide appropriate Consumer Alert disclosures on
   analog tuner only television receiving equipment in violation of Section
   302(b) of the Act, 47 U.S.C. S 302a(b), and Section 15.117(k) of the
   Commission's Rules ("Rules"), 47 C.F.R. S 15.117(k). As explained below,
   future violations of the Commission's rules in this regard may subject
   your company to monetary forfeitures.

   On May 30, 2007, agents from the Commission's Miami Office of the
   Enforcement Bureau  visited the Kmart store located at 12350 SW 8^th
   Street, Miami, FL and observed that Kmart  did not have the proper
   Consumer Alert label displayed on equipment that contained an analog tuner
   but not a digital tuner at the point of sale.

   Section 302(b) of the Act provides that "[n]o person shall manufacture,
   import, sell, offer for sale, or ship devices or home electronic equipment
   and systems, or use devices, which fail to comply with regulations
   promulgated to this section." Section 15.117(k) of the Commission's Rules
   states:


     (k) The following requirements apply to all  responsible parties, as    
     defined in S2.909 of this chapter, and any person that displays or      
     offers for sale or rent television receiving equipment that is not      
     capable of receiving, decoding and tuning digital signals.              
                                                                             
     (1) Such parties and persons shall place conspicuously and in close     
     proximity to such television broadcast receivers a sign containing, in  
     clear and conspicuous print, the Consumer Alert disclosure text         
     required by subparagraph (3). The text should be in a size of type      
     large enough to be clear, conspicuous and readily legible, consistent   
     with the dimensions of the equipment and the label. The information     
     may be printed on a transparent material and affixed to the screen, if  
     the receiver includes a display, in a manner that is removable by the   
     consumer and does not obscure the picture, or, if the receiver does     
     not include a display, in a prominent location on the device, such as   
     on the top or front of the device, when displayed for sale, or the      
     information in this format may be displayed separately immediately      
     adjacent to each television broadcast receiver offered for sale and     
     clearly associated with the analog-only model to which it pertains.     
                                                                             
     (2) If such parties and persons display or offer for sale or rent such  
     television broadcast receivers via direct mail, catalog, or electronic  
     means, they shall prominently display in close proximity to the images  
     or descriptions of such television broadcast receivers, in clear and    
     conspicuous print, the Consumer Alert disclosure text required by       
     subparagraph (3). The text should be in a size large enough to be       
     clear, conspicuous, and readily legible, consistent with the            
     dimensions of the advertisement or description.                         
                                                                             
     (3) "CONSUMER ALERT                                                     
                                                                             
     This television receiver has only an analog broadcast tuner and will    
     require a converter box after February 17, 2009, to receive             
     over-the-air broadcasts with an antenna because of the Nation's         
     transition to digital broadcasting. Analog-only TVs should continue to  
     work as before with cable and satellite TV services, gaming consoles,   
     VCRs, DVD players, and similar products. For more information, call     
     the Federal Communications Commission at 1-888-225-5322 (TTY:           
     1-888-835-5322) or visit the Commission's digital television website    
     at: [1]www.dtv.gov."                                                    


   Accordingly, it appears that Kmart has violated Section 302(b) of the Act,
   and Section 15.117(k) of the Rules by failing to place conspicuously and
   in close proximity to the following equipment, in clear and conspicuous
   print, the Consumer Alert label required under Section 15.117(k):

     * Curtis Mathes 13" TV, model CM13102;

     * Disney TV model DT1350P;

     * Magnavox TV model 14MS2331;

     * Memorex model Memory 14;

     * RCA TV model 13V420T; and

     * Sylvania TV model CT202SL8.

   We caution you that failure to display the appropriate Consumer Alert
   label on any television receiving equipment that is not capable of
   receiving, decoding and tuning digital signals would constitute a further
   violation of Section 302(b) of the Act and Section 15.117(k) of the Rules.

   If, after receipt of this citation, any Kmart retail outlet or any other
   retail outlets under common ownership or control  violates the
   Communications Act or the Commission's rules in any manner described
   herein, the Commission may impose monetary forfeitures not to exceed
   $11,000 for each such violation or each day of a continuing violation up
   to $97,500 for a single continuing violation.

   If you choose to do so, you may respond to this citation within 10 days
   from the date of this letter either through (1) a personal interview at
   the Commission's Field Office nearest to your place of business, or (2) a
   written statement. Your response should specify the actions that Kmart is
   taking to ensure that it does not violate the Commission's rules governing
   the marketing of unauthorized radio frequency devices in the future.

   Kmart may request an interview at the closest FCC Office, which is Federal
   Communications Commission, 2203 N. Lois Ave., Room 1215, Tampa, FL 33607.
   You may contact this office by telephone, (XXX) XXXX-XXXX to schedule this
   interview, which must take place within 10 days of this Citation. Kmart
   may also submit a written statement to the above address within 10 days of
   the date of this Citation. Any written statements should specify what
   actions have been taken to correct the violation outlined above. Please
   reference file number EB-07-MA-023 when corresponding with the Commission.

   Under the Privacy Act of 1974, 5 U.S.C. S 552a(e)(3), we are informing you
   that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment under 18 U.S.C. S 1001.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   FEDERAL COMMUNICATIONS COMMISSION

   Gerardo Daubar

   Resident Agent

   Miami, FL

   Enforcement Bureau

   See 47 C.F.R. S 1.80(b)(3).

   47 U.S.C. S 503(b)(5).

   2

                       FEDERAL COMMUNICATIONS COMMISSION

                             WASHINGTON, D.C. 20554

References

   Visible links
   1. http://www.dtv.gov/