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Federal Communications Commission
Washington, D.C. 20554
In the Matter of
) File No.: EB-09-SE-227
Hobby Lobby International, Inc.
ILLEGAL MARKETING OF UNAUTHORIZED FREQUENCY DEVICES
Adopted: November 22, 2010 Released: November 23, 2010
By the Chief, Spectrum Enforcement Division, Enforcement Bureau:
1. This is an official CITATION issued pursuant to section 503(b)(5) of
the Communications Act of 1934, as amended ("Communications Act"), to
Hobby Lobby International, Inc. ("HLI") for marketing unauthorized
radio frequency devices in the United States in violation of section
302(b) of the Communications Act, and section 2.803(a)(1) of the
Commission's rules ("Rules").
2. HLI should take immediate steps to come into compliance and to avoid
any recurrence of this misconduct. As explained below and as provided
in the Communications Act, future violations of the Rules in this
regard may subject your company to substantial monetary penalties,
seizure of equipment, and criminal sanctions.
3. The Office of Engineering and Technology ("OET") of the Federal
Communications Commission referred to the Enforcement Bureau for
investigation a complaint alleging that HLI was marketing in the
United States an unauthorized radio frequency device, specifically,
the JETI Duplex 2.4 GHz System for radio-controlled models ("JETI
System"). On March 1, 2010, the Spectrum Enforcement Division
("Division") of the Enforcement Bureau issued a letter of inquiry
("LOI") to HLI. HLI responded to the LOI on April 7, 2010.
4. In its LOI Response, HLI stated that the JETI System is manufactured
by JETI Model, a Czech Republic company for which HLI has distributed
products in the United States for many years. HLI further stated that
it imported the JETI System into the United States in late 2008 and
sold the device into early 2009. Specifically, HLI indicated that it
sold 25 units in the United States prior to discontinuing sale of the
device immediately following the initial communication from OET in
5. Additionally, in a Declaration from HLI's Chief Operating Officer,
David R. Carley, submitted as an attachment to the LOI Response, Mr.
Carley stated that HLI began selling the JETI Duplex transmitter
module on March 31, 2009 and that it sold 27 of these modules in the
United States. Mr. Carley further stated that he "was informed that
the manufacturer of the module, Jeti Model ... represented to HLI that
they were in the process of getting FCC approval at the time [HLI]
started to carry the product." Mr. Carley also indicated that the
modules in question were imported by HLI and the only date a shipment
was received was February 20, 2009. Mr. Carley stated that the last
date on which a module was shipped to a customer was May 8, 2009.
According to Mr. Carley, when HLI became aware in May 2009 that these
modules did not have approval from the FCC, HLI took them off its
website and stopped selling them.
III. applicable law and violations
6. Federal law requires that radio frequency devices be certified in
accordance with the FCC's technical standards before they can be
marketed in the United States. Section 302(b) of the Communications
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
pursuant to this section." Section 2.803(a)(1) of the Commission's
implementing regulations provides that:
no person shall sell or lease, or offer for sale or lease (including
advertising for sale or lease), or import, ship, or distribute for the
purpose of selling or leasing or offering for sale or lease, any radio
frequency device unless ... [i]n the case of a device subject to
certification, such device has been authorized by the Commission in
accordance with the rules in this chapter and is properly identified and
labeled as required by S: 2.925 and other relevant sections in this
Pursuant to section 15.201(b) of the Rules, intentional radiators, such as
the JETI System, must be authorized in accordance with the Commission's
certification procedures prior to the initiation of marketing in the
United States. Section 2.803(e)(4) of the Rules defines "marketing" as the
"sale or lease, or offering for sale or lease, including advertising for
sale or lease, or importation, shipment or distribution for the purpose of
selling or leasing or offering for sale or lease."
7. HLI admits that it marketed the JETI System in the United States and
that this device was not certified. Accordingly, we find that HLI
violated section 302(b) of the Communications Act and section
2.803(a)(1) of the Rules by marketing in the United States an
unauthorized radio frequency device. We therefore issue this Citation
to HLI for violating the Communications Act and the Commission's rules
as discussed above.
IV. FUTURE COMPLIANCE
8. If, after receipt of this Citation, HLI violates the Communications
Act or the Rules by engaging in conduct of the type described herein,
the Commission may impose monetary forfeitures of up to $16,000 for
each such violation or each day of a continuing violation and up to
$112,500 for any single act or failure to act. In addition, violations
of the Communications Act or the Rules can result in seizure of
equipment through in rem forfeiture actions, as well as criminal
sanctions, including imprisonment.
9. HLI may respond to this Citation within thirty (30) days after the
release date of this Citation either through (1) a personal interview
at the closest FCC office, or (2) a written statement. Any written
statements should specify what actions have been taken by HLI to
ensure that it does not violate the Rules governing the marketing of
radio frequency devices in the future. Please reference file number
EB-09-SE-227 when corresponding with the Commission.
10. Under the Privacy Act of 1974, any statement or information provided
by you may be used by the Commission to determine if further
enforcement action is required. Any knowingly or willfully false
statement, or concealment of any material fact, made in reply to this
Citation is punishable by fine or imprisonment. Please also note that
Section 1.17 of the Rules requires that you provide truthful and
accurate statements to the Commission.
V. CONTACT INFORMATION
11. The closest FCC Office is the Atlanta Office, in Duluth, Georgia. You
may contact Neal McNeil by telephone, 202-418-1160, to schedule a
personal interview, which must take place within thirty (30) days
after the release date of this Citation.
12. Reasonable accommodations for people with disabilities are available
upon request. Include a description of the accommodation you will need
including as much detail as you can. Also include a way we can contact
you if we need more information. Please allow at least five (5) days
advance notice; last minute requests will be accepted, but may be
impossible to fill. Send an e-mail to firstname.lastname@example.org or call the
Consumer & Governmental Affairs Bureau:
For sign language interpreters, CART, and other reasonable accommodations:
202-418-0530 (voice), 202-418-0432 (tty);
For accessible format materials (braille, large print, electronic files,
and audio format):
202-418-0531 (voice), 202-418-7365 (tty).
VI. ORDERING CLAUSES
13. IT IS ORDERED that a copy of this Citation shall be sent both by First
Class U.S. Mail and Certified Mail, Return Receipt Requested to Mr.
David R. Carley, Chief Operating Officer, Hobby Lobby International,
Inc., 5614 Franklin Pike Cir., Brentwood, TN 37027-4324.
FEDERAL COMMUNICATIONS COMMISSION
Kathryn S. Berthot
Chief, Spectrum Enforcement Division
47 U.S.C. S: 503(b)(5).
47 U.S.C. S: 302a(b).
47 C.F.R. S: 2.803(a)(1).
The JETI Duplex 2.4 GHz System consists of a transmitter and receiver used
for remote control of model aircraft, boats, and cars.
See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau, Federal Communications Commission, to Mark Cleveland,
President, Hobby Lobby International, Inc. (March 1, 2010).
See Letter from David R. Carley, COO, Hobby Lobby International, to
Kathryn S. Berthot, Chief, Spectrum Enforcement Division, Enforcement
Bureau, Federal Communications Commission (April 7, 2010) ("LOI
See id. at 1.
OET sent a letter to HLI inquiring about the JETI System in May 2009. See
Letter from Ray LaForge, Chief, Auditing and Compliance Branch, Office of
Engineering and Technology (May 19, 2009). In its response to the
Enforcement Bureau's LOI, HLI claims that it sent information about the
JETI System to OET in June 2009. HLI stated that the lawyer that it
retained to respond to that letter is no longer available to HLI, and HLI
does not have access to the response he submitted at that time on HLI's
behalf. HLI, nevertheless, included as an attachment to its LOI Response a
Declaration from David R. Carley dated May 31, 2009, which it claims was
submitted along with its response to the inquiry from OET. See LOI
Response, Declaration of David R. Carley (dated May 31, 2009). OET,
however, has no record of receiving a response from HLI to its May 19,
See LOI Response, Declaration of David R. Carley. See also n. 10 supra.
We note that HLI's LOI Response refers to the JETI System (which consists
of a transmitter and receiver), while the Declaration refers just to the
JETI transmitter module.
See LOI Response, Declaration of David R. Carley.
See id. Mr. Carley also indicated in his Declaration that HLI intended to
seek FCC approval for the JETI System. See id. However, based on a review
of the relevant FCC database and by HLI's own admission, the JETI System
has never been authorized. We note that a similarly named device is still
featured on HLI's website, though it does not appear that it is presently
available for purchase. See http://www.hobby-lobby.com/jeti-duplex.htm
(last visited November 22, 2010).
47 U.S.C. S: 302a(b).
47 C.F.R. S: 2.803(a)(1).
47 C.F.R. S: 15.201(b).
Section 15.3(o) of the Rules defines an "intentional radiator" as a
"device that intentionally generates and emits radio frequency energy by
radiation or induction." 47 C.F.R. S: 15.3(o).
47 C.F.R. S: 2.803(e)(4).
See 47 U.S.C. S:S: 401, 501, 503; 47 C.F.R. S: 1.80(b)(3). This amount is
subject to further adjustment for inflation (see id. S: 1.80(b)(5)), and
the forfeiture amount applicable to any violation will be determined based
on the statutory amount designated at the time of the violation.
See 47 U.S.C. S: 510.
See Privacy Act of 1974, 5 U.S.C. S: 552a(e)(3).
See 18 U.S.C. S: 1001 et seq.
47 C.F.R. S: 1.17 ("... no person subject to this rule shall; (1) In any
written or oral statement of fact, intentionally provide material factual
information that is incorrect or intentionally omit material information
that is necessary to prevent any material factual statement that is made
from being incorrect or misleading; and (2) In any written statement of
fact, provide material factual information that is incorrect or omit
material information that is necessary to prevent any material factual
statement that is made from being incorrect or misleading without a
reasonable basis for believing that any such material factual statement is
correct and not misleading.")
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Federal Communications Commission DA 10-2220
Federal Communications Commission DA 10-2220