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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                             )                               
                                                                             
     In the Matter of                        )                               
                                                 File Number EB-07-SE-203    
     Wal-Mart Stores, Inc. and Sam's West,   )                               
     Inc.                                        NAL/Acct. No. 200832100036  
                                             )                               
     Bentonville, AR                             FRN #0008627473             
                                             )                               
                                                                             
                                             )                               


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: April 9, 2008 Released: April 10, 2008

   By the Commission:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
       that Wal-Mart Stores, Inc. and Sam's West, Inc.  (collectively
       "Wal-Mart"), apparently willfully and repeatedly  violated Section
       15.117(k)  of the Commission's Rules ("Rules") by failing to place the
       required Consumer Alert label immediately adjacent to and clearly
       associated with television receiving equipment that contains an analog
       broadcast television tuner but does not contain a digital broadcast
       television tuner (hereinafter "analog-only tuner") that it displayed
       or offered for sale or rent. We conclude, pursuant to Section 503(b)
       of the Communications Act of 1934, as amended ("Act"), that Wal-Mart 
       is apparently liable for a forfeiture in the amount of nine hundred
       ninety-two thousand dollars ($992,000).

   II. BACKGROUND

    2. Congress has established February 17, 2009, as the deadline for the
       end of analog transmissions for full power television stations. The
       Commission is statutorily obligated to promote the orderly transition
       to digital television, "a critical step in the evolution of broadcast
       television." As we stated previously, "[w]e are committed to ensuring
       the rapid completion of that transition in a way that delivers the
       greatest possible benefits to the viewing public." As part of that
       commitment and in light of the upcoming deadline, we recently
       announced that "it is necessary and appropriate to require retailers
       to provide consumers with information regarding this transition date
       at the point of sale." We reached this conclusion after determining
       that consumer electronics industry efforts had not adequately informed
       consumers how analog-only television equipment purchased now will
       function when the transition to digital broadcasting ends.

    3. To ensure that consumers do not inadvertently buy analog-only
       television 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, we
       adopted rules requiring anyone that sells, offers for sale, or rents
       television receiving equipment that does not contain a digital
       television ("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 Commission's
            Enforcement Bureau began inspecting hundreds of stores throughout
            the country, as well as dozens of popular retailer websites, and
            observed many models of analog-only television receiving
            equipment on display without the required Consumer Alert labels.
            On May 30 2007, the Enforcement Bureau issued a Citation to
            Wal-Mart for offering for sale television receiving equipment
            having an analog-only tuner without displaying the required
            Consumer Alert in close proximity. Between May 30, 2007, and June
            13, 2007, the Enforcement Bureau conducted inspections at
            numerous stores and, based on those inspections, issued
            additional  Citations to  Wal-Mart for violations at its stores.
            After affording Wal-Mart a reasonable opportunity to respond to
            the first Citation, agents and investigators from the Enforcement
            Bureau began inspecting numerous additional Wal-Mart  stores on
            June 14, 2007,  in various states and once again observed in
            fifty-one (51) stores and the Sam's Club website, television
            receiving equipment with analog-only tuners on display without
            the required Consumer Alert labels.

         6. Under Section 503(b)(1) of the Act, any person who is determined
            by the Commission to have willfully or repeatedly failed to
            comply with any provision of the Act or any rule, regulation, or
            order issued by the Commission shall be liable to the United
            States for a forfeiture penalty. Section 312(f)(1) of the Act
            defines willful as "the conscious and deliberate commission or
            omission of [any] act, irrespective of any intent to violate" the
            law. The legislative history to Section 312(f)(1) of the Act
            clarifies that this definition of willful applies to both
            Sections 312 and 503(b) of the Act and the Commission has so
            interpreted the term in imposing forfeitures pursuant to Section
            503(b). The Commission may also assess a forfeiture for
            violations that are merely repeated, and not willful.  "Repeated"
            means that the act was committed or omitted more than once, or
            lasts more than one day. To impose such a forfeiture penalty, the
            Commission must issue a notice of apparent liability and the
            person against whom the notice has been issued must have an
            opportunity to show, in writing, why no such forfeiture penalty
            should be imposed. The Commission will then issue a forfeiture if
            it finds by a preponderance of the evidence that the person has
            violated the Act or a Commission rule. As we set forth below, we
            conclude under this standard that Wal-Mart  is apparently liable
            for forfeiture for its apparent willful and repeated violations
            of Section 15.117(k) of the Commission's rules.

        III. DISCUSSION

         7. Based on the evidence before us, we find that Wal-Mart 
            apparently willfully and repeatedly violated Section 15.117(k) of
            the Rules by failing to display conspicuously and in close
            proximity to equipment with an analog-only tuner, in clear and
            conspicuous print, the required Consumer Alert label.
            Specifically, as detailed in Attachment B,  agents and
            investigators from the Enforcement Bureau observed a number of
            different models of television receiving equipment having only an
            analog-only tuner on display in fifty-one (51) Wal-Mart stores
            and on the Sam's club website without the required Consumer Alert
            labels. Wal-Mart  previously received sixty-three (63) Citations
            for this same type of conduct prior to the agents' inspections.

         8. Under Section 503(b)(2)(D) of the Act, we may assess an entity
            that is neither a common carrier, broadcast licensee or cable
            operator a forfeiture of up to $11,000 for each violation or each
            day of a continuing violation, up to a statutory maximum
            forfeiture of $97,500 for any single continuing violation. In
            exercising such authority, we must take into account "the nature,
            circumstances, extent, and gravity of the violation and, with
            respect to the violator, the degree of culpability, any history
            of prior offenses, ability to pay, and such other matters as
            justice may require."

         9. The Commission's Forfeiture Policy Statement and Section 1.80 of
            the Rules do not establish a specific base forfeiture for
            violation of the analog-only tuner labeling requirements. In
            adopting the Consumer Alert labeling requirements, the Commission
            stated that "[a]ccurate communication of this impending change is
            a highly material disclosure for consumers contemplating the
            purchase of a television."  We also noted that it is a matter of
            public safety for consumers who rely on analog-only televisions
            to obtain critical emergency information.

        10. Similar issues arose regarding labeling requirements for wireless
            hearing aid-compatible handsets. In those cases, the Enforcement
            Bureau established a base forfeiture amount of $8,000 per handset
            model that failed to comply with the labeling requirements. The
            labeling requirements for wireless hearing aid-compatible
            handsets and the analog-only tuner labeling requirements both
            serve the important goal of ensuring that consumers have access
            to necessary information. In light of the similarities in these
            labeling requirements, we conclude that an $8,000 base forfeiture
            amount per unlabeled model or device in each store where Bureau
            agents and investigators observed a violation is appropriate for
            apparent violations of Section 15.117(k).

        11. We find that, beginning on June 14, 2007, as detailed in
            attachment B, even after receiving the Citations warning of
            violations in its stores across the country,  Wal-Mart displayed
            numerous  different  models of equipment with an analog-only
            tuner in fifty-one (51) stores and the Sam's Club website without
            the required Consumer Alert label. As a result, Wal-Mart 
            continued to market television receiving equipment to consumers
            without adequately warning that the equipment contained an
            analog-only television receiver. Those consumers may not learn of
            their equipment's limitations until the analog-only devices cease
            to receive over-the-air television signals, long after any period
            for returning the equipment has expired. This scenario is
            precisely the outcome that our rule was intended to prevent.
            Applying the analysis set forth above to the facts of this case,
            we conclude that Wal-Mart  is apparently liable for a  $992,000
            base forfeiture.

        IV. ORDERING CLAUSES

        12. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of
            the Communications Act of 1934, as amended, and Section 1.80 of
            the Commission's Rules, Wal-Mart Stores, Inc., and Sam's West,
            Inc., are hereby NOTIFIED of this APPARENT LIABILITY FOR A
            FORFEITURE in the amount of nine hundred ninety-two thousand
            dollars ($992,000) for violations of Section 15.117(k) of the
            Rules.

        13. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the
            Commission's Rules within thirty days of the release date of this
            Notice of Apparent Liability for Forfeiture, Wal-Mart Stores,
            Inc., and Sam's West, Inc., SHALL PAY the full amount of the
            proposed forfeiture or SHALL FILE a written statement seeking
            reduction or cancellation of the proposed forfeiture.

        14. Payment of the forfeiture must be made by check or similar
            instrument, payable to the order of the Federal Communications
            Commission. The payment must include the NAL/Account Number and
            FRN Number referenced above. Payment by check or money order may
            be mailed 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). Requests for full payment under
            an installment plan should be sent to: Chief Financial Officer --
            Financial Operations, 445 12th Street, S.W., Room 1-A625,
            Washington, D.C.  20554. Please contact the Financial Operations
            Group Help Desk at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov
            with any questions regarding payment procedures.

        15. The response, if any, must be mailed to Federal Communications
            Commission, Enforcement Bureau, and must include the NAL/Acct.
            No. referenced in the caption.

        16. The Commission will not consider reducing or canceling a
            forfeiture in response to a claim of inability to pay unless the
            petitioner submits: (1) federal tax returns for the most recent
            three-year period; (2) financial statements prepared according to
            generally accepted accounting practices ("GAAP"); or (3) some
            other reliable and objective documentation that accurately
            reflects the petitioner's current financial status. Any claim of
            inability to pay must specifically identify the basis for the
            claim by reference to the financial documentation submitted.

        17. Requests for payment of the full amount of this Notice of
            Apparent Liability for Forfeiture under an installment plan
            should be sent to: Associate Managing Director, Financial
            Operations, 445 12th Street, S.W., Room 1A625, Washington, D.C.
            20554.

        18. IT IS FURTHER ORDERED that a copy of this Notice of Apparent
            Liability for Forfeiture shall be sent by Certified Mail, Return
            Receipt Requested, and regular mail, to Kyle Holifield, Director,
            Product Compliance & Safety, Wal-Mart Stores, Inc., 702 SW 8th
            Street, Bentonville, AR 72716 and Gregory Kunkle, Esq., Keller &
            Heckman, LLP, at 1001 G Street, NW, Washington, DC 20005.

       FEDERAL COMMUNICATIONS COMMISSION

       Marlene H. Dortch

       Secretary

                                  Attachment A


                      Store #-                                               
                                               Citation No.    Release Date  
                      Location                                               

         Wal-Mart Store # 573, Lee's Summit,   C20073256002    May 30, 2007  
                         MO                                                  

          Wal-Mart Store # 5338, San Diego,    C20073294006    May 31, 2007  
                         CA                                                  

         Wal-Mart Store # 2082, Cerritos, CA   C20073290016    May31, 2007   

         Wal-Mart Store # 789, Mesquite, TX    C20073250006    May 31, 2007  

          Wal-Mart Store # 3725, Niles, IL     C20073232004    May 31, 2007  

          Wal-Mart Store # 2550, Vancouver,    C20073292004    May 31, 2007  
                         WA                                                  

         Wal-Mart Store # 3420, Westbury, NY   C20073238011    May 31, 2007  

               Wal-Mart Store # 2091,                                        
                                               C20073260001    May 31, 2007  
                      Miami, FL                                              

         Wal-Mart Store # 3831, Portsmouth,    C20073264005    June 1, 2007  
                         VA                                                  

              Sam's Club Store # 6676,                                       
                                               C20073240006    June 1, 2007  
                  Willow Grove, PA                                           

               Wal-Mart Store # 1960,                                        
                                               C200073270004   June 1, 2007  
                      Tampa, FL                                              

               Wal-Mart Store # 0989,                                        
                                               C20073262001    June 1, 2007  
                    Metairie, LA                                             

          Wal-Mart Store # 0591, Covington,    C20073262002    June 1, 2007  
                         LA                                                  

         Wal-Mart Store # 5131, Trevose, PA    C20073240003    June 4, 2007  

         Wal-Mart Store # 2904, Brockton, MA   C20073226004    June 4, 2007  

         Wal-Mart Store # 2088, Batavia, NY    C20073228002    June 4, 2007  

               Wal-Mart Store # 5130,          C20073240008    June 4, 2007  
                  Philadelphia, PA                                           

               Wal-Mart Store # 2007,                                        
                                               C20073278001    June 4, 2007  
                    Anchorage, AK                                            

         Wal-Mart Store # 3297, Houston, TX    C20073254005    June 4, 2007  

          Sam's Club Store # 6346, Houston,    C20073254007    June 5, 2007  
                         TX                                                  

          Sam's Club Store # 8274, Houston,    C20073254006    June5, 2007   
                         TX                                                  

         Wal-Mart Store # 2204, Des Plaines,   C20073232007    June 5, 2007  
                         IL                                                  

         Wal-Mart Store # 2248, Catonsville,   C20073234003    June 5, 2007  
                         MD                                                  



         Wal-Mart Store # 2341, Quincy, MA    C20073226001    June 5, 2007   

              Sam's Club Store # 4735,                                       
                                              C20073290023    June 5, 2007   
                    La Habra, CA                                             

               Wal-Mart Store # 2242,                                        
                                              C20073290024    June 5, 2007   
                    Anaheim, CA                                              

                 Sam's Club # 4743,                                          
                                              C20073250008    June 6, 2007   
                     Plano, TX                                               

         Wal-Mart Store # 3564, Horsham, PA   C20073240012    June 6, 2007   

         Wal-Mart Store # 1985, Laurel, MD    C200732340005   June 6, 2007   

         Wal-Mart Store # 1103, Houston, TX   C200732540008   June 6, 2007   

         Wal-Mart Store # 1373, Lilburn, GA   C20073248007    June 6, 2007   

         Wal-Mart Store # 428, Lakewood, CO   C20073280008    June 6, 2007   

          Wal-Mart Store # 1117, Plano, TX    C20073250010    June 6, 2007   

              Sam's Club Store # 4735,                                       
                                              C20073290023    June 6, 2007   
                     Forney, CA                                              

               Wal-Mart Store # 1985                                         
                                              C20073234005    June 6, 2007   
                     Laurel, MD                                              

         Wal-Mart Store # 2151, Sunrise, FL   C20073260007    June 7, 2007   

         Wal-Mart Store # 5091, Cypress, TX   C20073254010    June 7, 2007   

            Wal-Mart Store # 1184, Stone      C20073248008    June 7, 2007   
                    Mountain, GA                                             

         Wal-Mart Store # 2406, Hamburg, NY   C20073228003    June 7, 2007   

         Wal-Mart Store # 1040, Houston, TX   C20073254011    June 7, 2007   

         Sam's Store # 6635, Littleton, CO    C20073280011    June 11, 2007  

         Wal-Mart Store # 2559, Warren, MI    C20073236007    June 11, 2007  

         Wal-Mart Store #2445, Hatfield PA    C20073240021    June 11, 2007  

         Wal-Mart Store # 2040, Burlington,   C20073240023    June 11, 2007  
                         NJ                                                  

         Wal-Mart Store # 1837, Humble, TX    C20073254014    June 11, 2007  

         Wal-Mart Store # 3476, Canton, MI    C20073236008    June 11, 2007  

          Wal-Mart Store # 2412?, Ellicott    C20073234008    June 12, 2007  
                      City, MD                                               

           Wal-Mart Store # 768, Katy, TX     C20073254016    June 12, 2007  

         Wal-Mart Store # 5177, Bristol, PA   C20073240027    June 12, 2007  

          Wal-Mart Store # 2068, Fairless     C20073240024    June 12, 2007  
                     Hills, PA                                               

         Wal-Mart Store # 1811, Norfolk, VA   C20073264010    June 12, 2007  

         Sam's Club Store # 4764, Katy, TX    C20073254015    June 12, 2007  

               Wal-Mart Store # 2412,                                        
                                              C20073234008    June 12, 2007  
                 Ellicott City, MD                                           

            Wal-Mart Store # 2022, North      C20073226006    June 12, 2007  
                    Windham, CT                                              

               Wal-Mart Store # 5296,         C20073234010    June 13, 2007  
                 Barboursville, WV                                           

         Wal-Mart Store # 3520, Seacaucus,    C20073238018    June 14, 2007  
                         NJ                                                  

         Wal-Mart Store # 2031, Union City,   C200732960016   June 14, 2007  
                         CA                                                  

           Wal-Mart Store # 5293, Valley      C20073238025    June 14, 2007  
                     Stream, NY                                              

              Sam's Club Store # 4774,        C20073238019    June 14, 2007  
                   Seacaucus, NJ                                             

         Wal-Mart Store # 1697, Elk Grove,    C20073296024    June 18, 2007  
                         CA                                                  

         Wal-Mart Store # 5192, Sacramento,   C20073296022    June 18, 2007  
                         CA                                                  

               Wal-Mart Store # 2269,                                        
                                              C20073298020    June 18, 2007  
                     Yakima, WA                                              

         Wal-Mart Store # 2277, Clovis, CA    C20073296026    June 20, 2007  


                                  Attachment B

       1. June 14, 2007, Wal-Mart, Store # 2074, Wasilla, AK.


         Manufacturer   Device    Model #      Forfeiture Amount  

         Magnavox       DVD       MWR10D6                 $8,000  

         Magnavox       DVD/VCR   MWR20V6                 $8,000  

         Panasonic      DVD       DMR-ES15                $8,000  

         Panasonic      DVD/VCR   DMR-ES35VS              $8,000  

         Samsung        DVD       DVD-R129                $8,000  

         Sony           DVD       RDR-GX330               $8,000  

         Sony           DVD/VCR   SLV-D370P               $8,000  

         SV2000         DVD       WV10D6                  $8,000  

                                    Subtotal             $64,000  


       2. June 14, 2007, Wal-Mart  Store # 1291, Tucson, AZ.


         Manufacturer   Device    Model #    Forfeiture Amount  

         Funai          DVD/VCR   WV10D6                $8,000  

         Magnavox       DVD/VCR   MWR20V6               $8,000  

                                  Subtotal             $16,000  


       3. June 14, 2007, Wal-Mart  Store # 5435, San Jose, CA.


         Manufacturer   Device    Model #       Forfeiture Amount  

         Philips        TV        20PT6245/37              $8,000  

         Sony           DVD/VCR   SLV-D370P                $8,000  

                                     Subtotal             $16,000  


       4. June 14, 2007, Wal-Mart  Store # 3762, West Des Moines, IA.


         Manufacturer   Device   Model #       Forfeiture Amount  

         Philips        TV       20PT6245/37              $8,000  

                                    Subtotal              $8,000  


       5. June 14, 2007, Wal-Mart  Store # 5380, Hanover, MA.


         Manufacturer   Device   Model #    Forfeiture Amount  

         Magnavox       DVD      MWR20V6               $8,000  

                                 Subtotal              $8,000  


       6. June 14, 2007, Wal-Mart  Store # 2522, Escanaba, MI.


         Manufacturer   Device       Model #       Forfeiture Amount  

         Durabrand      SDTV         DWT1304A                 $8,000  

         Magnavox       TV/VHS/DVD   MWC20T6                  $8,000  

         Magnavox       SDTV         20MS233S                 $8,000  

         Magnavox       TV/DVD/VCR   MWC20T6                  $8,000  

         Philips        TV           20PT6245/37              $8,000  

                                        Subtotal             $40,000  


       7. .June 14, 2007, Wal-Mart  Store # 2434, Iron Mountain, MI.


         Manufacturer   Device   Model #    Forfeiture Amount  

         Durabrand      TV       DWT1304               $8,000  

                                 Subtotal              $8,000  


       8. June 14, 2007, Wal-Mart  Store # 3565, East Norristown, PA.


         Manufacturer   Device       Model #    Forfeiture Amount  

         Durabrand      TV           DWT1304               $8,000  

         Magnavox       TV/DVD/VCR   MWC20T6               $8,000  

         Magnavox       DVD/VCR      MWR20V6               $8,000  

         Magnavox       DVD          MWR10D6               $8,000  

         Philips        DVD/VCR      DVP3150V              $8,000  

                                     Subtotal             $40,000  


       9. June 14, 2007, Wal-Mart  Store # 1469, Chattanooga, TN.


         Manufacturer   Device   Model #    Forfeiture Amount  

         Philips        DVR      DVP3150V              $8,000  

                                 Subtotal              $8,000  


       10. June 14, 2007, Wal-Mart  Store # 2257, Houston, TX.


         Manufacturer   Device    Model #     Forfeiture Amount  

         Philips        DVR       DVP3050V               $8,000  

         Samsung        DVD/VCR   DVD-V5650              $8,000  

                                   Subtotal             $16,000  


       11. June 14, 2007, Wal-Mart  Store # 1313, San Antonio, TX.


         Manufacturer   Device    Model #     Forfeiture Amount  

         Magnavox       DVDR      MWR10D6                $8,000  

         Magnavox       DVD/VCR   MWR20V6                $8,000  

         Philips        DVDR      DVDR-3390              $8,000  

         SV2000         DVDR      WV10D6                 $8,000  

                                   Subtotal             $32,000  


       12. June 14, 2007, Wal-Mart  Store # 5245, San Antonio, TX.


         Manufacturer   Device   Model #     Forfeiture Amount  


         Philips        DVDR     DVDR-3390              $8,000  

                                  Subtotal              $8,000  


       13. June 15, 2007, Wal-Mart  Store # 1325, Tucson, AZ.


         Manufacturer   Device    Model #       Forfeiture Amount  

         Philips        DVD/DVR   DVP3150V/37              $8,000  

                                     Subtotal              $8,000  


       14. June 15, 2007, Wal-Mart  Store # 771, Merritt Island, FL.


         Manufacturer   Device   Model #       Forfeiture Amount  

         Durabrand      TV       DWT1905                  $8,000  

         Durabrand      TV       DWT1304                  $8,000  

         Philips        TV       20PT6245/37              $8,000  

                                    Subtotal             $24,000  


       15. June 15, 2007, Wal-Mart  Store # 834, Bethany, MO.


         Manufacturer   Device   Model #       Forfeiture Amount  

         Philips        TV       20PT6245/37              $8,000  

                                    Subtotal              $8,000  


       16. June 15, 2007, Wal-Mart  Store # 2404, San Antonio, TX.


         Manufacturer   Device    Model #    Forfeiture Amount  

         Magnavox       DVD/VCR   MWR10D6               $8,000  

                                  Subtotal              $8,000  


       17. June 15, 2007, Sam's Club, samsclub.com.


         Manufacturer   Device   Model #     Forfeiture Amount  

         Panasonic      DVD      DMR-ES15S              $8,000  

                                  Subtotal              $8,000  


       18. June 16, 2007, Sam's Club  Store # 8290, Orlando, FL.


         Manufacturer   Device       Model #    Forfeiture Amount  

         Magnavox       TV/DVD/VCR   MSD724G               $8,000  

                                     Subtotal              $8,000  


       19. June 16, 2007, Wal-Mart Store #2247, Cary, NC.


         Manufacturer   Device   Model #    Forfeiture Amount  

         Duraband       TV       DWT 1905              $8,000  

                                 Subtotal              $8,000  


       20. June 16, 2007, Wal-Mart Store # 1751, Raleigh, NC.


         Manufacturer   Device         Model #       Forfeiture Amount  

         Philips        TV             20PT6245/37              $8,000  

         Panasonic      DVD Recorder   DMR-ES15                 $8,000  

                                          Subtotal             $16,000  


       21. June 18, 2007, Wal-Mart  Store # 3891, Waukeegan, IL.


         Manufacturer   Device       Model #    Forfeiture Amount  

         Magnavox       TV/DVD/VCR   MWC20T6               $8,000  

         Magnavox       TV/DVD/VCR   MWC24T5               $8,000  

         Philips        TV           20PT6245              $8,000  

                                     Subtotal             $24,000  


       22. June 18, 2007, Wal-Mart  Store # 3507, Baltimore/P. Coving, MD.


         Manufacturer   Device   Model #       Forfeiture Amount  

         Durabrand      SDTV     DWT1304                  $8,000  

         Durabrand      SDTV     DWT1905                  $8,000  

         Magnavox       TV/DVD   MWC13D6                  $8,000  

         Philips        TV       20TP6245/37              $8,000  

         RCA            TV       20F420T                  $8,000  

                                    Subtotal             $40,000  


       23. June 18, 2007, Wal-Mart  Store # 2539, Spokane Valley, WA.


         Manufacturer   Device    Model #    Forfeiture Amount  

         Philips        DVD/VCR   DVP3150V              $8,000  

                                  Subtotal              $8,000  


       24. June 19, 2007, Sam's Club Store # 8203, Marietta, GA.


         Manufacturer   Device   Model #    Forfeiture Amount  

         Panasonic      DVD      DMR-ES15              $8,000  

                                 Subtotal              $8,000  


       25. June 19, 2007, Wal-Mart  Store # 2281, West Mifflin, PA.


         Manufacturer     Device    Model #       Forfeiture Amount  

         Durabrand        TV        DWT1304                  $8,000  

         Emerson          DVD/VCR   EWH100F                  $8,000  

         JVC              DVD/VCR   DR-MV7                   $8,000  

         Panasonic        DVD RW    DMR-ES35V                $8,000  

         Panasonic Diga   DVD RW    DMR-ES20                 $8,000  

         Polaroid         DVD       DRM-2001G                $8,000  

         Philips          TV        20PT6245/37              $8,000  

         Philips          TV        20PF5120                 $8,000  

         Philips          DVD RW    DVDR3455H                $8,000  

         Sony             DVD/VCR   SLV-D370P                $8,000  

                                       Subtotal             $80,000  


       26. June 19, 2007, Wal-Mart  Store # 2423, Carolina, PR.


         Manufacturer   Device    Model #    Forfeiture Amount  

         RCA            DVD/VCR   DRC8320N              $8,000  

                                  Subtotal              $8,000  


       27. June 19, 2007, Wal-Mart  Store # 2105, Farmers Branch, TX.


         Manufacturer   Device       Model #     Forfeiture Amount  

         Magnavox       DVD          MWR10D6                $8,000  

         Magnavox       TV/DVD/VCD   MWC20T6                $8,000  

         Magnavox       TV/DVD       MWC13D6                $8,000  

         Philips        DVD/VCR      DVP3150V               $8,000  

         Samsung        DVD/VCR      DVD-V5650              $8,000  

                                      Subtotal             $40,000  


       28 June 19, 2007, Wal-Mart  Store # 1055, Garland, TX.


         Manufacturer   Device    Model #     Forfeiture Amount  

         Samsung        DVD/VCR   DVD-V5650              $8,000  

                                   Subtotal              $8,000  


       29. June 19, 2007, Sam's Club # 4783, Garland, TX.


         Manufacturer   Device       Model #    Forfeiture Amount  

         Magnavox       TV/DVD/VCR   MSD742G               $8,000  

                                     Subtotal              $8,000  


       30. June 20, 2007, Wal-Mart  Store # 2718, San Antonio, TX.


         Manufacturer   Device    Model #       Forfeiture Amount  

         Philips        DVD/VCR   DVP3050V/37              $8,000  

         Magnavox       DVD/VCR   MWR20V6                  $8,000  

                                     Subtotal             $16,000  


       31. June 29, 2007, Wal-Mart  Store # 2871, Cinnaminson, NJ.


         Manufacturer   Device    Model #       Forfeiture Amount  

         Philips        DVD/VCR   DVP3150V/37              $8,000  

         Magnavox       DVD/VCR   MWR10D6                  $8,000  

         Magnavox       DVD/VCR   MWD2205                  $8,000  

         Samsung        DVD/VCR   DVD-V5650                $8,000  

                                     Subtotal             $32,000  


       32. June 29, 2007, Wal-Mart  Store # 2300, Pittsburgh, PA..


         Manufacturer   Device         Model #       Forfeiture Amount  

         Durabrand      TV             DWT1304                  $8,000  

         Magnavox       TV/DVD/VCR     MWC20T6                  $8,000  

         Magnavox       DVD Recorder   MWR10D6                  $8,000  

         Magnavox       DVD/VCR        MWR20V6                  $8,000  

         Philips        DVD Recorder   DVDR3390/37              $8,000  

         Philips        DVD/VCR        DVP3150V/37              $8,000  

         Samsung        DVD/VCR        DVDV5650                 $8,000  

         SV2000         DVD Recorder   WV10D6                   $8,000  

                                          Subtotal             $64,000  


       33. July 2, 2007, Wal-Mart  Store # 905, Longmont, CO


         Manufacturer   Device         Model #     Forfeiture Amount  

         Philips        DVD/VCR        DVP3050V               $8,000  

         Samsung        DVD/VCR        DVD-V5650              $8,000  

         Panasonic      DVD Recorder   DMR-ES15S              $8,000  

         Sanyo          TV             DS24205                $8,000  

                                        Subtotal             $32,000  


       34. July 6, 2007, Wal-Mart  Store # 194, Baytown, TX


         Manufacturer   Device   Model #    Forfeiture Amount  

         Magnavox       DVD      MWR10D6               $8,000  

         SV2000         DVD      WV10D6                $8,000  

                                 Subtotal             $16,000  


       35. July 9, 2007, Sam's Club  Store # 8299, Plano, TX


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MSR90D6               $8,000  

                                       Subtotal              $8,000  


       36. July 11, 2007, Wal-Mart Store # 1875, Glen Burnie, MD


         Manufacturer   Device   Model #    Forfeiture Amount  

         Durabrand      SDTV     DWT1304               $8,000  

                                 Subtotal              $8,000  


       37. July 11, 2007, Wal-Mart Store # 5228, Columbia, MD


         Manufacturer   Device   Model #    Forfeiture Amount  

         Durabrand      SDTV     DWT1304               $8,000  

         Magnavox       TV/DVD   MWC24T5               $8,000  

                                 Subtotal             $16,000  


       38. July 11, 2007, Wal-Mart Store # 2449, Caguas, PR.


         Manufacturer   Device    Model #    Forfeiture Amount  

         JVC            DVD/VCR   DR-MV7SU              $8,000  

         Toshiba        TV        20AS26                $8,000  

         RCA            DVD/VCR   DRC8320N              $8,000  

                                  Subtotal             $24,000  


       39. July 11, 2007, Sam's Club Store # 6350, Sherman, TX


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MSR90D6               $8,000  

                                       Subtotal              $8,000  


       40. July 17, 2007, Wall-Mart Supercenter Store # 24, Jacksonville, AR


         Manufacturer   Device             Model #     Forfeiture Amount  

         Panasonic      DVD Recorder/VCR   DMR-ES35V              $8,000  

         Samsung        DVD Recorder       DVD-R129               $8,000  

                                            Subtotal             $16,000  


       41. July 19, 2007, Wall-Mart Store # 1884, Scranton, PA


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MWR10D6               $8,000  

         Philips        DVD Recorder   DVDR3390              $8,000  

                                       Subtotal             $16,000  


       42. October 9, 2007, Wall-Mart Store # 3475, Norristown, PA


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MWR10D6               $8,000  

         SV2000         DVD Recorder   WV10D6                $8,000  

                                       Subtotal             $16,000  


       43. October 9, 2007, Wall-Mart Store # 5229, Wyncote, PA


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MWR10D6               $8,000  

         Philips        DVD Recorder   WV10D6                $8,000  

                                       Subtotal             $16,000  


       44. October 9, 2007, Sam's Club Store # 6368, Chesapeake, VA


         Manufacturer   Device             Model #     Forfeiture Amount  

         Magnavox       DVD Recorder       MSR90D6                $8,000  

         Panasonic      DVD Recorder/VCR   DMR-ES46V              $8,000  

                                            Subtotal             $16,000  


       45. October 9, 2007, Wal-Mart Store # 5047, Audubon, NJ


         Manufacturer   Device         Model #    Forfeiture Amount  

         SV2000         DVD Recorder   WV10D6                $8,000  

                                       Subtotal              $8,000  


       46. October 9, 2007, Wal-Mart Store # 2096, Warminster, PA


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MWR10D6               $8,000  

                                       Subtotal              $8,000  


       47. November 9, 2007, Wal-Mart Store # 546, Richmond, TX


         Manufacturer   Device             Model #    Forfeiture Amount  

         Magnavox       DVD Recorder/VCR   MWR10D6               $8,000  

         SV2000         DVD Recorder       WV10D6                $8,000  

                                           Subtotal             $16,000  


       48. November 19, 2007, Wal-Mart Store # 2242, Anaheim, CA


         Manufacturer   Device             Model #    Forfeiture Amount  

         Magnavox       DVD Recorder/VCR   MWR10D6               $8,000  

         SV2000         DVD Recorder       WV10D6                $8,000  

                                           Subtotal             $16,000  


       49. December 6, 2007, Sam's Club Store # 6677, Monroeville, PA


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MSR900D6              $8,000  

                                       Subtotal              $8,000  


       50. December 11, 2007, Wal-Mart Store # 5045, Tomball, TX


         Manufacturer   Device          Model #    Forfeiture Amount  

         Magnavox       DVD Recorder/   MWR10D6               $8,000  

                                        Subtotal              $8,000  


       51. December 20, 2007, Sam's Club Store # 4783, Garland, TX


         Manufacturer   Device         Model #    Forfeiture Amount  

         Magnavox       DVD Recorder   MSR90D6               $8,000  

                                       Subtotal              $8,000  


       52. December 20, 2007, Wal-Mart Store # 1055, Garland, TX


         Manufacturer   Device            Model #     Forfeiture Amount  

         Philips        HD DVD Recorder   DVDR3455H              $8,000  

         Polaroid       TV                FLM-153B               $8,000  

                                           Subtotal             $16,000  


       53. January 15, 2008, Wal-Mart Store # 1935, Johnstown, PA


         Manufacturer   Device             Model #    Forfeiture Amount  

         Magnavox       DVD Recorder/VCR   MWR10D6               $8,000  

         SV2000         DVD Recorder       WV10D6                $8,000  

                                           Subtotal             $16,000  


       54. February 21, 2008, Wal-Mart Store # 5033, Fort Morgan, CO


         Manufacturer   Device             Model #    Forfeiture Amount  

         Magnavox       DVD Recorder/VCR   MWR10D6               $8,000  

                                           Subtotal              $8,000  


       TOTAL PROPOSED FORFEITURE: $992,000

       Sam's West, Inc. is wholly-owned by Wal-Mart Stores, Inc., and
       operates 582 domestic Sam's Club warehouse merchandise outlets.

       47 C.F.R. S: 15.117(k).

       The devices subject to this proceeding were offered for sale at
       various Wal-Mart and Sam's Club retail locations and electronically at
       the Sam's Club internet site, www.samsclub.com.

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

       2002 Biennial Regulatory Review, Report and Order and Notice of
       Proposed Rulemaking, 18 FCC Rcd 13620, 13825 P: 532 (2003).

       Id.

       Second Periodic Review of the Commission's Rules and Policies
       Affecting the Conversion To Digital Television, Second Report and
       Order, 22 FCC Rcd 8776 P: 1 (2007) ("Second DTV Periodic Report and
       Order").

       Id. at 8781-2 P: 10.

       Id. at 8784 P: 14. See 47 C.F.R. S: 15.117(k). In the Second DTV
       Periodic Report and Order, the Commission defined "point of sale" as
       the "place where televisions are displayed for consumers prior to
       purchase." See Second DTV Periodic Report and Order,  22 FCC Rcd at
       8781 n.29.

       Second Periodic Review in the Commission's Rules and Policies
       Affecting the Conversion to Digital Television, 72 Fed. Reg. 28894-01
       (May 23, 2007).

       47 C.F.R. S: 15.117(k)(1).

       Id.

       47 C.F.R. S: 15.117(k)(2).

       Wal-Mart Supercenter Store #573, Citation No. C20073256002, (Enf.
       Bur., Kansas City, MO Office, rel. May 30, 2007).

       See Attachment A for a list of the citations issued to Wal-Mart
       (collectively "Citations"). In preparing the Citations,  Enforcement
       Bureau staff relied on  publicly available information, including
       retailer and manufacturer websites, to identify the television
       receiving equipment with analog-only tuners.

       On June 11, 2007, Wal-Mart responded to the first Citation. See Letter
       from Gary De Angelis, Co-Manager for Wal-Mart Store #573, to the
       Enforcement Bureau, Federal Communications Commission dated June 1,
       2007  ("Citation Response"). Wal-Mart subsequently filed consolidated
       responses to the first and other Citations. See Letters from Kyle
       Holifield, Director, Product Compliance & Safety for Wal-Mart, to
       William Davenport, Assistant Bureau Chief and George Dillon, Assistant
       Bureau Chief, Enforcement Bureau, Federal Communications Commission
       dated June 13, 21, and 29, 2007. We note that following issuance of
       the citations, the Enforcement Bureau, after reviewing the devices'
       technical specifications and user's manuals, determined that the
       following Citations referred to erroneously identified equipment
       models: Citation Nos. C20073264010 (Toshiba MW27H62) and C20073254008
       (Samsung DVD6700). In light of this evidence, we hereby cancel the
       relevant portions of the above citations with respect to those models.

       See Attachment B for a listing of the stores and the website visited
       and the models observed at each store and website.  Enforcement Bureau
       staff determined that these models had analog-only tuners by
       consulting the manufacturer's product manuals or, if such were
       unavailable, the models' technical specifications from the Wal-Mart
       and Sam's Club websites.

       47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(2).

       47 U.S.C. S: 312(f)(1).

       H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51 (1982).

       See, e.g., Application for Review of Southern California Broadcasting
       Co., Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388 (1991)
       ("Southern California Broadcasting Co.").

       See, e.g., Callais Cablevision, Inc., Grand Isle, Louisiana, Notice of
       Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359, 1362 P:
       10 (2001) ("Callais Cablevision") (issuing a Notice of Apparent
       Liability for, inter alia, a cable television operator's repeated
       signal leakage).

       Southern California Broadcasting Co., 6 FCC Rcd at 4388 P: 5; Callais
       Cablevision, Inc., 16 FCC Rcd at 1362 P: 9.

       47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

       See, e.g., SBC Communications, Inc.,  Forfeiture Order, 17 FCC Rcd
       7589, 7591 P: 4 (2002) (forfeiture paid).

       Attachment B lists the dates of the Enforcement Bureau inspections,
       the analog-only models identified in violation of Section 15.117(k),
       as well as the Wal-Mart  stores involved.

       Section 503(b)(5) states that no forfeiture liability shall be
       determined against any person who does not hold a license, permit,
       certificate, or other authorization issued by the Commission unless,
       prior to issuance of any Notice of Apparent Liability, such person is
       "(A) sent a citation of the violation charged; (B) is given a
       reasonable opportunity for a personal interview with an official of
       the Commission at the field office of the Commission which is nearest
       to such person's place of residence; and (C) subsequently engages in
       conduct of the type described in such citation." 47 U.S.C. S:
       503(b)(5). The apparent violations discussed in this NAL are subject
       to forfeiture because we have afforded Wal-Mart  a reasonable
       opportunity for a personal interview or to submit a written response
       to its first Citation before conducting a second round of inspections
       that would count towards potential forfeiture liability. See supra
       para. 5 and notes 15 and 16. To the extent that the television
       receiving models involved in this NAL differ from those listed in the
       Citations, no additional citations are necessary because the more
       recent apparent violations are "conduct of the type described" in the
       earlier Citations - violations of Section 15.117(k). See HighTech CB
       Shop, Forfeiture Order, 20 FCC Rcd 12514, 12516 P: 9 (Enf. Bur. South
       Central Region 2005), recon. denied, 20 FCC Rcd 19269 (Enf. Bur.
       2005). In any event, the requirements of Section 503(b)(5) do not
       apply to Wal-Mart  , which is a Commission licensee and therefore
       subject to forfeiture under Section 503(b)(2) of the Act without first
       receiving notice via a citation. See, e.g., Earth station
       authorizations E940457 and E950140 issued to Wal-Mart Stores, Inc. (We
       note further that Wal-Mart also apparently holds numerous wireless
       licenses through the entity Wal-Mart Stores East, LP. See, e.g.,
       Stations KD51835 and KNAD455 licensed to Wal-Mart Stores East, LP, in
       the Industrial/Business Pool Private Land Mobile Service.)

       47 U.S.C. S: 503(b)(2)(D). The Commission twice amended Section
       1.80(b)(3) of the Rules, 47 C.F.R. S: 1.80(b)(3), to increase the
       maximum forfeiture amounts, in accordance with the inflation
       adjustment requirements contained in the Debt Collection Improvement
       Act of 1996, 28 U.S.C. S: 2461. See Amendment of Section 1.80 of the
       Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
       Inflation, Order, 15 FCC Rcd 18221 (2000) (adjusting the maximum
       statutory amounts from $10,000/$75,000 to $11,000/$87,500); Amendment
       of Section 1.80 of the Commission's Rules and Adjustment of Forfeiture
       Maxima to Reflect Inflation, Order, 19 FCC Rcd 10945 (2004) (adjusting
       the maximum statutory amounts from $11,000/$87,500 to
       $11,000/$97,500).

       47 U.S.C. S: 503(b)(2)(E). See also 47 C.F.R. S: 1.80(b)(4), Note to
       paragraph (b)(4): Section II. Adjustment Criteria for Section 503
       Forfeitures.

       See The Commission's Forfeiture Policy Statement and Amendment of
       Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines,
       Report and Order, 12 FCC Rcd 17087, 17115 (1997), recon. denied, 15
       FCC Rcd 303 (1999) ("Forfeiture Policy Statement").

       Second DTV Periodic Report and Order,  22 FCC Rcd at 8782-3 P: 12.

       Id. at 8783  P: 12. See also 47 C.F.R. S:S: 11.1-11.61, 79.2.

       See Pine Telephone Inc., Notice of Apparent Liability, 22 FCC Rcd
       9205, 9210 P: 11 (Enf. Bur., Spectrum Enf. Div. 2007); IT&E Overseas,
       Inc., Notice of Apparent Liability, 22 FCC Rcd 7660, 7665 P: 10 (Enf.
       Bur., Spectrum Enf. Div. 2007).

       We caution Wal-Mart  and other retailers that future cases involving
       repeat offenders may result in the imposition of forfeitures on a
       continuing violation basis.

       "After the transition, absent a label requirement, even cable and
       satellite subscribers might be surprised to find that they cannot
       receive television broadcasts over-the-air on an analog-only
       television purchased today if they choose to discontinue subscription
       service or their cable or satellite service is terminated by disaster,
       service disruption, or for non-payment of their bills." Second DTV
       Periodic Report and Order, 22 FCC Rcd at 8783 P: 12.

       See Attachment B regarding the calculation of the total proposed
       forfeiture amounts.

       47 U.S.C. S: 503(b), 47 C.F.R. S:S: 1.80, 15.117(k).

       See 47 C.F.R. S: 1.1914.

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       Federal Communications Commission FCC 08-106

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       Federal Communications Commission FCC 08-106