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                                 April 15, 2008

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED

   Audio Shack

   944 Flatbush Avenue

   Brooklyn, NY 11226

   Re: File No. EB-08-NY-0137

   Citation No.: C200832380034

   Dear Retailer:

   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
   Audio Shack for failure to provide appropriate Consumer Alert disclosures
   on analog tuner only television receiving equipment in violation of
   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 April 9, 2008, an agent from the Enforcement Bureau's  New York Office 
   visited Audio Shack at 944 Flatbush Avenue, Brooklyn, NY 11226, and
   observed that Audio Shack 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 15.117(k) of the Commission's Rules states:


     (k) The following requirements apply to all  responsible parties, as    
     defined in S: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 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: www.dtv.gov."                                                       


   Accordingly, it appears that Audio Shack has violated 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 required Consumer
   Alert label:


     Manufacturer   Device    Model #     Number of Units  

     Hannspree      LCD TV    T093        1                

     Sony           TV        KV-13FM13   1                

     Sony           TV        KV32XBR50   1                

     Go Video       DVD/VCR   VR2940      1                

     Sanyo          DVD/VCR   DVW-7000    1                

     Zenith         DVD/VCR   XBV613      1                


   We caution you that failure to display an 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 15.117(k) of the Rules.

   If, after receipt of this citation, Audio Shack  engages in conduct of the
   type described herein, in violation  of the Communications Act or the
   Commission's rules, 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 Audio
   Shack is taking to ensure that it does not violate Section 15.117(k) of
   the Commission's rules in the future.

   If you choose to request a personal interview, the closest FCC Office is
   Federal Communications Commission, New York Office, 201 Varick Street,
   Suite 1151, New York, NY 10014. You should contact this office by
   telephone, (XXX) XXXX-XXXX to schedule this interview, which must take
   place within 10 days of this Citation. Alternatively, as noted above,
   Audio Shack may 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-08- NY-0137  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

   Daniel W. Noel

   District Director, New York Office]

   Northeast Region

   Enforcement Bureau

   Analog tuner only television receiving equipment includes televisions,
   television receivers, and other television receiving equipment, such as
   video-cassette recorders and digital video recorders, that are covered by
   the Commission's digital television reception capability implementation
   schedule. See 47 C.F.R. S: 15.117(i)(1)(iv). 

   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