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Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
Toyota Motor Sales, U.S.A., Inc.) File No. EB-00-TS-279
) NAL/Acct. No. 200132100013
Adopted: March 2, 2001 Released: March 6, 2001
By the Chief, Enforcement Bureau:
1. In this Order, we adopt a Consent Decree terminating an
inquiry into whether Toyota Motor Sales, U.S.A., Inc. (``TMS'')
apparently violated Section 301 of the Communications Act of
1934, as amended (``Act''),1 by operating a Ku-band Very Small
Aperture Terminal satellite system without Commission
2. After reviewing the facts of record, we negotiated the
terms of a Consent Decree with TMS that will terminate our
inquiry. A copy of the Consent Decree is attached hereto and
incorporated by reference.
3. Following our adoption of this Order, TMS will
institute a compliance plan and will make a voluntary
contribution to the United States Treasury of $15,000.
4. We believe that the public interest would be served by
approving the Consent Decree and terminating our inquiry.
5. Accordingly, IT IS ORDERED, pursuant to Sections 4(i),
4(j) and 503(b) of the Act,2 and Sections 0.111 and 0.311 of the
Commission's Rules,3 that the attached Consent Decree IS ADOPTED.
6. TMS shall make its voluntary contribution to the United
States Treasury by mailing a check or similar instrument, payable
to the order of the Federal Communications Commission, to the
Federal Communications Commission, Forfeiture Collection Section,
Finance Branch, P.O. Box 73482, Chicago, Illinois 60673-7482.
The payment should reference NAL/Acct. No. 200132100013.
7. IT IS FURTHER ORDERED that the Commission staff inquiry
into the matter described herein IS TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
David H. Solomon
Chief, Enforcement Bureau
8. The Enforcement Bureau of the Federal Communications
Commission (``Bureau'') and Toyota Motor Sales, U.S.A., Inc.
(``TMS''), by their attorneys or authorized representatives,
hereby enter into this voluntary Consent Decree regarding
possible violations of the Communications Act and the
Commission's rules concerning unauthorized operation of a Ku-band
Very Small Aperture Terminal (``VSAT'') satellite system.
9. On February 17, 1989, the Federal Communications
Commission authorized TMS to construct and operate a Ku-band VSAT
network designed as an umbrella system connecting Toyota
subsidiaries and affiliates (``the TMS Network''). The TMS
Network was authorized to consist of:
a. up to 2,700 1.8 meter VSAT terminals;
b. up to 300 2.4 meter VSAT terminals; and
c. one 6.1 meter hub station located in Torrance,
10. Since 1989 the TMS Network has been the principal
communications link between TMS headquarters and dealerships
throughout the United States. During this period of operation,
no complaint or enforcement action has been brought against the
TMS Network or Toyota Motor Sales.
11. In October 2000, TMS became aware that the TMS Network
license expired in 1999, without a renewal application having
been filed. TMS immediately informed the Commission and, on
October 23, 2000, sought Special Temporary Authority (``STA'')
nunc pro tunc, to continue to operate the TMS Network as licensed
in 1989. The International Bureau granted the STA request on
November 1, 2000.
12. TMS began preparation of the necessary application to
reinstate the authorization of the TMS Network. In doing so, it
was discovered that an additional four 1.2 meter earth stations
had been deployed as part of the TMS Network. TMS requested
additional nunc pro tunc STA for operation of these earth
stations on November 14, 2000. The International Bureau granted
this STA request on January 3, 2001. On November 27, 2000, TMS
filed the requisite application for authority to construct and
operate the entire TMS Network, including the 1.2, 1.8, 2.4 and
6.1 meter earth stations. The International Bureau granted the
application on January 26, 2001.
13. TMS and the Bureau have met to seek a resolution of the
matters described in the STA requests and the application. In
consideration of the termination by the Bureau of its inquiry
into whether TMS may have violated the Communications Act and the
Commission's rules, and in accordance with the terms of this
Consent Decree, TMS agrees to the following terms, conditions and
14. For the purposes of this Consent Decree, the following
definitions shall apply:
7.1 ``Commission'' or ``FCC'' means the Federal
7.2 ``Bureau'' means the Enforcement Bureau of the Federal
7.3 ``TMS'' means Toyota Motor Sales, U.S.A., Inc.;
7.4 ``Parties'' means TMS and the Bureau;
7.5 ``Adopting Order'' means an order of the Bureau
adopting the terms and conditions of this Consent Decree.
15. The Parties agree that the provisions of this voluntary
Consent Decree shall be subject to final approval by the Bureau
by incorporation of such provisions by reference in the Adopting
Order and that either party may withdraw from this Consent Decree
upon written notice to the other party prior to the issuance of
such Adopting Order.
16. The Parties agree that this Consent Decree shall become
effective on the date on which the Bureau releases the Adopting
Order. Upon release, the Adopting Order and this Consent Decree
shall have the same force and effect as any other order of the
Commission and any violation of the terms of this Consent Decree
shall constitute a violation of a Commission order entitling the
Commission to exercise any and all rights and to seek any and all
remedies authorized by law for an enforcement of a Commission
17. TMS acknowledges the jurisdiction of the Commission to
adopt this Consent Decree.
18. TMS waives any rights it may have to seek judicial
review or otherwise challenge or contest the validity of the
Adopting Order or this Consent Decree.
19. TMS waives any rights it may have under any provision
of the Equal Access to Justice Act, 5 U.S.C. § 504 and 47 C.F.R.
§§ 1.1501 et seq.
20. The Parties agree that this Consent Decree is for
settlement purposes and that TMS does not admit any alleged
violation or liability.
21. TMS shall make a voluntary contribution to the United
States Treasury in the amount of $15,000 within 30 days of the
effective date of this Consent Decree. Such contribution shall
be made, without further protest or recourse, by mailing a check
or similar instrument, payable to the order of the Federal
Communications Commission, Forfeiture Collection Section, Finance
Branch, P.O. Box 73482, Chicago, Illinois 60673-7482. The
payment should reference NAL/Acct. No. 200132100013.
22. TMS will implement a Regulatory Compliance Plan
(``RCP'') that will include the appointment of an employee, the
VSAT Manager, who will be responsible for overseeing compliance
with the Commission's technical rules. This employee will review
Commission rules for specific applicability to the TMS VSAT
system. The VSAT Manager will also review current periodicals
and other information provided by the TMS satellite services
provider. The Project Management Office of the Information
Systems Department at TMS will be responsible for alerting the
VSAT Manager of the impending due date for compliance
certifications, regulatory filing fees and license renewals. The
VSAT Manager is the person responsible for completing the
required compliance certifications, as well as documentation for
annual regulatory fees and/or license renewals, and submitting
these to the Commission. TMS shall provide the Chief of the
Bureau (or the designee of the Chief) within thirty (30) calendar
days of the receipt of a written request from the Bureau, copies
of business records kept in the ordinary course demonstrating
implementation and use of the RCP. TMS may request that such
records be treated as confidential business records and such
records shall be subject to all the protections afforded to
confidential business records under the Commission's rules.
Nothing in this Consent decree shall be deemed to be an
obligation on the part of TMS to disclose to the Bureau
``material inside information'' as that term is defined in
applicable securities laws and regulations, or proprietary
technical or engineering data, techniques or procedures.
23. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement of the inquiry of the
Bureau into the matters described above. The Bureau will not
initiate or entertain any enforcement actions against TMS, nor
will it seek, entertain or impose any administrative or other
penalties or injunctive or other relief from or against TMS based
on any complaint, claim or allegation arising out of the matters
24. The Parties agree that the terms and conditions of this
Consent Decree shall remain in effect for twenty-four (24) months
from the effective date of this Consent Decree, which shall be
the date of the release of the Adopting Order.
25. If this Consent Decree is not signed by both Parties,
is not adopted by the Bureau or is otherwise rendered invalid by
any court of competent jurisdiction, it shall become null and
void and shall not become part of the record in these enforcement
proceedings nor may it be used by any party in a legal
proceeding. The Parties agree, however, that except as otherwise
ordered by any court of competent jurisdiction, the Parties will
comply with, defend and support the validity of this Consent
Decree and the Adopting Order in any proceeding seeking to
nullify, void or otherwise modify the Consent Decree or the
26. This Consent Decree may be signed in counterparts.
For the Federal Communications Commission:
David H. Solomon
Chief, Enforcement Bureau
For Toyota Motor Sales, U.S.A., Inc.
Veronica M. Ahern
1 47 U.S.C. § 301.
2 47 U.S.C. §§ 154(i), 154(j) and 503(b).
3 47 C.F.R. §§ 0.111 and 0.311.