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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of File Number EB-07-RC-005
)
Rent-A-Center, Inc. Acct. No. 200832200003
)
Plano, TX FRN: 0012261228
)
)
ORDER
Adopted: June 11, 2008 Released: June 13, 2008
By the Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Rent-A-Center, Inc.
("Rent-A-Center"). The Consent Decree terminates an investigation by
the Bureau against Rent-A-Center for possible violations of Section
15.117(k) of the Commission's Rules regarding the labeling of
television receiving equipment that contains an analog broadcast
television tuner but does not contain a digital broadcast television
tuner.
2. The Bureau and Rent-A-Center have negotiated the terms of the Consent
Decree that resolve this matter. A copy of the Consent Decree is
attached hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether Rent-A-Center possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the
Communications Act of 1934, as amended, and Sections 0.111 and 0.311
of the Commission's Rules, the Consent Decree attached to this Order
IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that Rent-A-Center, Inc. shall make its
voluntary contribution to the United States Treasury, as specified in
the Consent Decree, by mailing a check or similar instrument payable
to the order of the Federal Communications Commission, to Federal
Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
Payment by overnight mail may be sent to U.S. Bank - Government
Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101. Payment by wire transfer may be made to ABA Number 021030004,
receiving bank TREAS/NYC, and account number 27000001. For payment by
credit card, an FCC Form 159 (Remittance Advice) must be submitted.
When completing the FCC Form 159, enter the NAL/Account number in
block number 23A (call sign/other ID), and enter the letters "FORF" in
block number 24A (payment type code). Rent-A-Center shall also send
electronic notification on the date said payment is made to
NER-Response@fcc.gov.
8. IT IS FURTHER ORDERED that Rent-A-Center, Inc. will file reports with
the Commission ninety days after the Effective Date and on July 9,
2009. Each report shall include a compliance certificate from an
officer, as an agent of Rent-A-Center, stating that the officer has
personal knowledge that Rent-A-Center has established operating
procedures intended to ensure compliance with this Consent Decree,
together with an accompanying statement explaining the basis for the
officer's compliance certification. All reports shall be submitted to
Kathryn S. Berthot, Chief, Spectrum Enforcement Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street, S.W.,
Washington, D.C. 20554 and by e-mail at Kathy.Berthot@fcc.gov.
9. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class mail and certified mail, return receipt
requested, to Rent-A-Center, Inc., at its address of record.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
In the Matter of ) File Number EB-07-RC-005
Rent-A-Center, Inc. ) Acct. No. 200832200003
Plano, TX ) FRN 0012261228
)
CONSENT DECREE
1. The Enforcement Bureau ("Bureau") of the Federal Communications
Commission (the "Commission" or "FCC") and Rent-A-Center, Inc.,
including its wholly owned subsidiaries (collectively
"Rent-A-Center"), by their respective authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating
the Bureau's Investigation into Rent-A-Center's compliance with the
Commission's regulations in 47 C.F.R. S: 15.117(k) regarding the
labeling of television receiving equipment that contains an analog
broadcast television tuner but does not contain a digital broadcast
television tuner.
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
S:S: 151 et seq.
b. "Adopting Order" means an Order of the Commission adopting the terms
of this Consent Decree without change, addition, deletion, or
modification.
c. "Analog-only television receiving equipment" means television
receiving equipment that contains an analog broadcast television tuner
but does not contain a digital broadcast television tuner.
d. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
e. "Citation" means the citations issued by the Bureau or the Commission
between May 29, 2007, and the Effective Date alleging violations by
Rent-A-Center of Section 15.117(k) of the Commission's Rules.
f. "Commission" or "FCC" means the Federal Communications Commission and
all its bureaus and offices.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "Investigation" means the investigation initiated by the Bureau
regarding Rent-A-Center's compliance through the Effective Date with
Section 15.117(k) of the Commission's Rules regarding the labeling of
television receiving equipment that contains an analog broadcast
television tuner but does not contain a digital broadcast television
("DTV") tuner.
i. "Parties" means Rent-A-Center and the Bureau.
j. "Rent-A-Center" means Rent-A-Center, Inc. and its predecessors in
interest and its successors in interest.
k. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
I. BACKGROUND
3. To ensure that consumers do not inadvertently buy analog-only
television receiving equipment without understanding that such devices
will not be capable of receiving off-the-air television reception of
digital signals after analog broadcasting ends unless connected to a
digital-to-analog converter or a digital subscription service, the
Commission adopted rules requiring anyone that sells, offers for
sale, or rents television receiving equipment that does not contain a
DTV tuner to display a Consumer Alert at the point of sale. This
requirement also applies to the sale or rent of analog-only television
receiving equipment via direct mail, catalog, or electronic means
(e.g., the Internet). These requirements are contained in Section
15.117(k) of the Rules, which became effective on May 25, 2007.
4. Section 15.117(k)(3) of the Rules requires that the Consumer Alert
contain the following language:
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.
The Consumer Alert must 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 alert either must be printed on a
transparent material and affixed to the screen, in a manner that is
removable by the consumer and does not obscure the picture when
displayed for sale, or displayed separately immediately adjacent to
each television receiver offered for sale and clearly associated with
the analog-only model to which it pertains. In the case of other
analog-only video devices that do not include a display (e.g., VCRs,
DVD players), the Consumer Alert must be in a prominent location on
the device, such as on the top or front, or displayed separately
immediately adjacent to and clearly associated with the analog-only
model to which it pertains. To the extent that any persons display or
offer for sale or rent via direct mail, catalog, or electronic means
analog-only television receiving equipment, they must prominently
display the Consumer Alert as part of all advertisements or
descriptions of such television receiving equipment, in clear and
conspicuous print, and in close proximity to any images or
descriptions of such equipment.
5. Immediately after the rule became effective, the Bureau began
inspecting stores throughout the country, as well as popular
retailer websites, and observed many models of analog-only
television receiving equipment on display without the required
Consumer Alert labels. Beginning on or about May 29, 2007, the
Bureau conducted inspections at multiple retailer locations.
Based on those inspections, and relying on publicly available
information, the Bureau issued a Citation to Rent-A-Center on
June 21, 2007 for alleged violations of Section 15.117(k) at its
stores.
6. Immediately after receiving the Citation, Rent-A-Center
instructed all of its stores on June 22, 2007 to post "Analog
Only" price toppers on top of the price tag for each displayed
analog product and the Consumer Alert in two different places on
Rent-A-Center's electronics wall where all electronics products
are displayed. In addition, on August 8, 2007, Rent-A-Center
began using a form -- in both English and Spanish -- that a
consumer would sign when renting an analog product to provide the
consumer with actual notice of the impending change from analog
signal to digital. This form was printed out every time an analog
product's code was input into Rent-A-Center's computer system to
be rented. Since that date, anyone who has rented an analog-only
television receiver has received actual notice of the FCC's
Consumer Alert.
7. After affording Rent-A-Center a reasonable opportunity to respond
to the first Citation, agents and investigators from the
Enforcement Bureau inspected Rent-A-Center stores in various
states and observed television receiving equipment with
analog-only tuners on display apparently without the required
Consumer Alert labels.
II. TERMS OF AGREEMENT
8. The Parties agree that the provisions of this Consent Decree
shall be subject to final approval by the Commission by
incorporation of such provisions by reference in the Adopting
Order.
9. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties of the
Investigation. In express reliance on the covenants and
representations in this Consent Decree, the Commission agrees to
terminate the Investigation without any finding of liability on
the part of Rent-A-Center. In consideration for the termination
of the Investigation and in accordance with the terms of this
Consent Decree, Rent-A-Center agrees to the terms, conditions,
and procedures contained herein.
10. The Parties agree that this Consent Decree shall become binding
on the Parties on the date 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 final order of
the Bureau order, entitling the Bureau to exercise any rights and
remedies attendant to the enforcement of a Commission order.
11. The Parties agree that this Consent Decree does not constitute
either an adjudication on the merits or a factual or legal
finding or determination regarding any compliance or
noncompliance with the requirements of the Act or the
Commission's rules and orders. The Parties agree that this
Consent Decree is for settlement purposes only and that by
agreeing to this Consent Decree, Rent-A-Center does not admit or
deny noncompliance, violation or liability for violating the Act
or the Rules in connection with the matters that are the subject
of this Consent Decree.
12. Compliance Plan.
a. Customers who purchased analog-only television receivers
between May 29 and August 7, 2007. Within 30 days of the
Effective Date, Rent-A-Center will write to all customers
by U.S. Mail for whom Rent-A-Center has an address who
purchased an analog-only television receiver device between
May 29, 2007 and August 7, 2007. Upon a customer's request,
Rent-A-Center will provide an analog converter box at no
additional cost or charge to any customer who provides a
receipt establishing proof of purchase of an analog-only
product from Rent-A-Center between May 29, 2007 and August
7, 2007. Rent-A-Center will establish a toll-free phone
number for customers' use for purposes of requesting an
analog converter box.
b. Customers who rented analog-only television receivers
between May 29 and August 7, 2007. On or before December 1,
2008, Rent-A-Center will write to all customers who
rented an analog-only television receiver device between
May 29, 2007 and August 7, 2007 and are still renting that
device, and upon the customer's request, provide them an
analog converter box at no additional cost or charge by
calling Rent-A-Center at a toll-free phone number.
c. Other rental customers. For rental customers who are in
good standing on their rental agreements and do not have
cable or satellite television service, Rent-A-Center will
honor customer requests to switch an analog-only product
for a comparable digital product in stock at the
Rent-A-Center store where the customer's contract is
serviced as part of Rent-a-Center's Worry Free Guarantee
and will apply all payments on the analog-only product to
the digital product. Rent-A-Center will handle such
customer requests upon request, in the ordinary course of
its business.
13. Compliance Reports. Rent-A-Center will file compliance reports
with the Commission ninety days after the Effective Date and on
July 9, 2009. Each compliance report shall include a compliance
certificate from an officer, as an agent of Rent-A-Center,
stating that the officer has personal knowledge that
Rent-A-Center has established operating procedures intended to
ensure compliance with this Consent Decree, together with an
accompanying statement explaining the basis for the officer's
compliance certification. All compliance reports shall be
submitted to Kathryn S. Berthot, Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission,
445 12th Street, S.W., Washington, D.C. 20554 and at
Kathy.Berthot@fcc.gov.
14. Termination Date. Unless stated otherwise, the requirements of
this Consent Decree will expire July 9, 2009.
15. Voluntary Contribution. Rent-A-Center agrees that it will make a
voluntary contribution to the United States Treasury in the
amount of Sixty Thousand Dollars ($60,000) within thirty (30)
calendar days from the Effective Date. Rent-A-Center will make
this contribution without further protest or recourse, by check
or similar instrument, payable to the order of the Federal
Communications Commission. The payment must include the File No.
and FRN No. referenced in the Adopting Order. Payment by check or
money order may be mailed to the Federal Communications
Commission, P.O. Box 979088, St. Louis, MO 63197-9000. Payment by
overnight mail may be sent to U.S. Bank - Government Lockbox #
979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.
Payment by wire transfer may be made to ABA Number 021030004,
receiving bank TREAS/NYC, and account number 27000001. For
payment by credit card, an FCC Form 159 (Remittance Advice) must
be submitted. When completing the FCC Form 159, enter the
NAL/Account number in block number 23A (call sign/other ID), and
enter the letters "FORF" in block number 24A (payment type code).
Rent-A-Center shall also send electronic notification on the date
said payment is made to Sharon.Webber@fcc.gov.
16. From and after the Effective Date, the Bureau agrees that, in the
absence of new material evidence, it will not institute, on its
own motion or in response to third-party objection, any new
proceeding, formal or informal, or take any action on its own
motion against Rent-A-Center for possible past violations of
Section 15.117(k) of the Commission's rules regarding the
labeling of analog-only television receiving equipment prior to
the Effective Date. Absent intentional or negligent
misrepresentation by Rent-A-Center, newly discovered evidence of
violations of Section 15.117(k) prior to the Effective Date shall
not be considered "new material evidence."
17. Except as expressly provided in this Consent Decree, nothing
herein shall prevent the Commission or its delegated authority
from investigating Rent-A-Center's compliance with the Act, the
Commission's rules, or this Consent Decree.
18. Rent-A-Center waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or
stay or to otherwise challenge or contest the validity of this
Consent Decree and the Adopting Order, including challenges based
on the Commission's jurisdiction over the matters considered in
this Consent Decree and the Commission's authority to enter into
or adopt this Consent Decree, provided the Adopting Order adopts
this Consent Decree without change, addition, or modification.
Rent-A-Center shall retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained
herein. Rent-A-Center does not waive any defenses, jurisdictional
or otherwise, to any Commission prosecution of a violation not
covered by this Consent Decree, including but not limited to any
violation of 47 C.F.R. S: 15.117(k) alleged to have occurred
subsequent to the Effective Date.
19. Rent-A-Center's decision to enter this Consent Decree is
expressly contingent upon the Commission's issuance of the
Adopting Order without change, addition, or modification of the
Consent Decree.
20. Nothing in this Consent Decree shall preclude Rent-A-Center from
petitioning the Commission for relief as to future obligations
under Section 15.117(k) of the Commission's Rules.
21. In the event that this Consent Decree is rendered invalid by any
court of competent jurisdiction, it shall become null and void
and may not be used in any manner in any legal proceeding.
22. The Parties agree that if either Party (or the United States on
behalf of the Commission), brings a judicial action to enforce
the terms of the Adopting Order, neither Rent-A-Center nor the
Commission shall contest the validity of the Consent Decree or
the Adopting Order, and Rent-A-Center will waive any statutory
right to a trial de novo regarding the terms or validity of the
Consent Decree. Rent-A-Center, however, may present evidence that
it has not violated the Consent Decree.
23. Rent-A-Center agrees that any violation of any term of this
Consent Decree shall constitute a separate violation of a
Commission order, entitling the Commission to exercise any rights
and remedies attendant to the enforcement of a Commission order.
24. The Parties agree that if any provision of the Consent Decree
conflicts with any subsequent rule or order adopted by the
Commission (except an order specifically intended to revise the
terms of this Consent Decree to which Rent-A-Center does not
consent), that provision will be superseded by such Commission
rule or order.
25. This Consent Decree cannot be modified without the advance
written consent of both Parties.
26. This Consent Decree may be signed in counterparts.
For the Enforcement Bureau:
____________________________
Kris Anne Monteith
Chief, Enforcement Bureau
____________________________
Date
For Rent-A-Center, Inc.:
____________________________
Ron DeMoss
Senior Vice President and General Counsel
____________________________
Date
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
Second Periodic Review of the Commission's Rules and Policies
Affecting the Conversion To Digital Television, Second Report and
Order, 22 FCC Rcd 8776 (2007) ("Second DTV Periodic Report and
Order").
Second Periodic Review in the Commission's Rules and Policies
Affecting the Conversion to Digital Television, 72 Fed. Reg. 28894-01
(May 23, 2007).
A "price topper" is a card that slides behind the price card in a
price card frame so it may be seen from behind the price card; thus,
the "price tag topper" has an additional message that is displayed
above the price card.
Federal Communications Commission DA 08-1390
1
Federal Communications Commission DA 07-
Federal Communications Commission DA #
3
Federal Communications Commission DA 07-