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Federal Communications Commission DA 17-936
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
ABC Fulfillment Services LLC d/b/a HobbyKing
USA LLC and HobbyKing.com; and Indubitably,
Inc. d/b/a HobbyKing Corp., HobbyKing USA
LLC, HobbyKing, and HobbyKing.com
)
)
)
)
)
)
File No.: EB-SED-17-000223762
CITATION AND ORDER
FAILURE TO COMPLY WITH AN FCC ORDER
Adopted: September 27, 2017 Released: September 27, 2017
By the Chief, Spectrum Enforcement Division, Enforcement Bureau:
I. NOTICE OF CITATION
1. This CITATION AND ORDER (Citation), notifies ABC Fulfillment Services LLC
d/b/a HobbyKing USA LLC and HobbyKing.com; and Indubitably, Inc. d/b/a HobbyKing Corp.,
HobbyKing USA LLC, HobbyKing, and HobbyKing.com (collectively, HobbyKing or Company) that the
Company has violated federal law by failing to comply with an order to produce documents and answers
to a Federal Communications Commission (Commission or FCC) Letter of Inquiry. We therefore direct
HobbyKing to take immediate steps to comply by submitting all outstanding responses and responsive
documents as required by the Letter of Inquiry sent to the Company on April 17, 2017 (LOI). If
HobbyKing fails to comply with these laws, it may be liable for significant fines, and other sanctions.
2. Notice of Duty to Comply with the Law: We issue this Citation pursuant to
Section 503(b)(5) of the Communications Act of 1934, as amended (Act), which states that the
Commission may not impose monetary forfeitures against non-regulatees who violate Commission rules
or the Act unless and until: (a) the Commission issues a citation to the violator; (b) the Commission
provides the violator a reasonable opportunity to respond; and (c) the violator subsequently engages in
conduct described in the citation.1 Accordingly, HobbyKing is hereby on notice that it must comply with
the FCC’s order to produce responses and documents as required by the terms of the Letter of Inquiry sent
to the Company on April 17, 2017.2 If HobbyKing subsequently engages in any conduct of the type this
Citation describes—failing to comply with FCC orders, including Letters of Inquiry—HobbyKing may be
subject to civil penalties, including but not limited to, substantial monetary forfeitures or other penalties.
In assessing such forfeitures, the Commission may consider both the conduct that led to this Citation and
the conduct following it.3
1 See 47 U.S.C § 503(b)(5).
2 47 U.S.C. §§ 154(i), 154(j), 403; Letter from Aspa A. Paroutsas, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, to Mr. Anthony Hand, Owner, ABC Fulfillment Services LLC d/b/a HobbyKing USA LLC
and HobbyKing.com; and HobbyKing Corp. d/b/a HobbyKing and HobbyKing.com (Apr. 17, 2017) (LOI) (on file
in EB-SED-17-000223762).
3 See S. Rep. No. 95-580, 95th Cong., 1st Sess. at 9 (1977) (If a person or entity that has been issued a citation by
the Commission thereafter engages in the conduct for which the citation of violation was sent, the subsequent notice
of apparent liability “would attach not only for the conduct occurring subsequently but also for the conduct for
which the citation was originally sent.”) (emphasis added); see also Dialing Servs., LLC, Forfeiture Order, 32 FCC
Rcd 6192, 6205, para. 35 (2017) (“There is no question that the Commission may take into account violations that
(continued….)
Federal Communications Commission DA 17-936
2
3. Notice of Duty to Provide Information: Pursuant to Sections 4(i), 4(j), and 403 of the
Act,4 we direct HobbyKing to respond in writing, within 30 calendar days after the release date of this
Citation, to the questions and requests for documents set out in paragraph 9, below.
II. BACKGROUND
4. The Enforcement Bureau’s (Bureau) Spectrum Enforcement Division (Division) is
investigating the Company for potential violations of Section 302(b) of the Communications Act of 1934,
as amended (Act), and Parts 2, 15, and 97 of the Commission’s rules related to audio/visual transmitters
for sale on HobbyKing’s website that are apparently intended for use with unmanned aircraft and other
devices and operate on a number of different restricted frequencies and at higher power levels than
allowed (AV transmitters).5 On April 17, 2017, the Bureau sent a LOI by certified mail and e-mail to
HobbyKing initiating its investigation.6 On April 18, 2017, the Division received an e-mail “read receipt”
indicating that Mr. Anthony Hand of HobbyKing read the LOI e-mail.7 On May 16, 2017, Rachel Larson,
attorney for HobbyKing, acknowledged receipt of the LOI and requested an extension of time of one
week to respond to the LOI.8 The Division granted the extension.
5. On May 24, 2017, HobbyKing filed its purported response to the LOI (LOI Response).9
The next day, HobbyKing sent an additional declaration in support of its LOI Response.10 The LOI
(Continued from previous page)
occurred before a citation was issued when the cited person or entity thereafter engages in the same unlawful
conduct.”).
4 47 U.S.C. §§ 154(i), 154(j), 403.
5 See e.g., 47 U.S.C. § 302a(b); 47 CFR §§ 2.803, 2.925, 15.5, 15.19, 15.21, 15.201, 15.205, 15.247, 97.215(c).
Although HobbyKing identifies the AV transmitters as operating on amateur frequencies, the equipment is also
apparently able to operate outside of the amateur frequencies and, in some cases, at higher power levels than
allowed, making the equipment non-compliant under the Act and Commission’s rules. See e.g., HobbyKing,
1.2GHz MG-500mW 8ch A/V Wireless Transmitter Module, https://hobbyking.com/en_us/1-2ghz-mg-500mw-8ch-
a-v-wireless-transmitter-module.html (last visited September 15, 2017) (advertised as operating on 1080, 1120,
1160, 1200, 1010, and 1040 MHz); see also New Generation Hobbies, Citation, 26 FCC Rcd 9468, 9471 n.23 (EB
SED 2011) (“while amateur radio service equipment is exempt from the FCC’s equipment certification requirement,
it is a violation of the Commission’s regulations to market in the United States a transmitter that is designed or
intended to operate on frequencies outside of the authorized amateur radio service bands if such equipment has not
been issued a grant of equipment certification”); 47 CFR § 97.215. No one should purchase or use such equipment
if it can operate outside of the amateur bands, and anyone using compliant amateur equipment must have an amateur
license. See 97 CFR § 97.5. HobbyKing was previously issued a citation for violations of Section 302 of the Act
and Sections 2.803 and 2.925 of the Commission’s rules for illegally marketing two noncompliant AV Transmitters.
See HobbyKing USA LLC, Citation and Order, 31 FCC Rcd 12581 (EB SED 2016). HobbyKing’s continued
marketing of noncompliant devices is subject to a monetary forfeiture. See e.g., Presidential Who’s Who, Inc.,
Forfeiture Order, 29 FCC Rcd 3451 (2014) (monetary forfeiture is appropriate after a target engages in similar
violative conduct after receiving a Citation).
6 See supra note 2.
7 E-mail from Anthony Hand, to Linda Nagel, Attorney Advisor, Spectrum Enforcement Division, FCC
Enforcement Bureau (April 18, 2017, 2:06 EDT) (on file in EB-SED-17-000223762). The Division also received
return receipts from the U.S. Postal Service indicating the LOI had been delivered via certified mail to HobbyKing.
8 E-mail from Rebecca Larson, Esq., Davies Pearson, P.C., attorney for HobbyKing, to Jason Koslofsky and Leslie
Barnes, Spectrum Enforcement Division, FCC Enforcement Bureau (May 16, 2017, 20:26 EDT) (on file in EB-
SED-17-000223762).
9 Letter and attachments from Rebecca Larson, Esq., Davies Pearson, P.C., attorney for HobbyKing, to Jason
Koslofsky, Spectrum Enforcement Division, FCC Enforcement Bureau (May 24, 2017) (LOI Response) (on file in
EB-SED-17-000223762).
Federal Communications Commission DA 17-936
3
Response, however, did not fully answer every question, including Inquiries 13, 14, and 15.11 Division
staff spoke with Ms. Larson on June 12, 2017, and requested a complete response to the LOI by June 23,
2017. On June 23, 2017, Ms. Larson submitted a letter to the Division that stated HobbyKing refused to
provide a further response.12 The Division e-mailed Ms. Larson on June 27, 2017, and requested a
complete response by June 30, 2017,13 but received no further communications from Ms. Larson or
HobbyKing. As of the release of this Citation, the Company has not provided all of the documents and
responses required by the LOI.
III. APPLICABLE LAW AND VIOLATIONS
6. Sections 4(i), 4(j), and 403 of the Communications Act14 afford the Commission broad
authority to investigate potential violations of the Act. Section 4(i) authorizes the Commission to “issue
such orders, not inconsistent with this [Act], as may be necessary in the execution of its functions.”15
Section 4(j) states that “[t]he Commission may conduct its proceedings in such manner as will best
conduce to the proper dispatch of business and to the ends of justice.”16 Section 403 grants the
Commission “full authority and power at any time to institute an inquiry, on its own motion, in any case
and as to any matter or thing concerning which complaint is authorized to be made, to or before the
Commission by any provision of this [Act], or concerning which any question may arise under any of the
provisions of this [Act], or relating to the enforcement of any of the provisions of this [Act].”17 Further,
Section 403 gives “[t]he Commission ... the power to make and enforce any order or orders” relating to its
inquiries into compliance with the Act.18 An LOI issued by the Bureau constitutes an order of the
Commission.19 Section 503(b)(1)(B) of the Act authorizes the Commission to impose a forfeiture against
any entity that “willfully or repeatedly fail[s] to comply with any of the provisions of [the Act] or of any
rule, regulation, or order issued by the Commission.”20
7. As described above, the Bureau issued an LOI to HobbyKing pursuant to its delegated
authority. The LOI directed the Company to provide certain information and documents in connection
with the Division’s investigation into the Company’s compliance with Section 302(b) of the Act, and
Parts 2, 15, and 97 of the Commission’s rules.21 The Company has failed to produce all information and
(Continued from previous page)
10 E-mail and attachment from Rebecca Larson, Esq., Davies Pearson, P.C., attorney for HobbyKing, to Jason
Koslofsky, Spectrum Enforcement Division, FCC Enforcement Bureau (May 25, 2017, 12:10 EDT) (on file in EB-
SED-17-000223762).
11 Inquiries 13, 14, and 15 required HobbyKing to produce various spreadsheets containing information pertinent to
the investigation concerning various AV transmitter models that it markets in the United States.
12 Letter and attachments from Rebecca Larson, Esq., Davies Pearson, P.C., attorney for HobbyKing, to Jason
Koslofsky, Spectrum Enforcement Division, FCC Enforcement Bureau (June 23, 2017) (on file in EB-SED-17-
000223762).
13 E-mail from Jason Koslofsky, Spectrum Enforcement Division, FCC Enforcement Bureau, to Rebecca Larson,
Esq., Davies Pearson, P.C., attorney for HobbyKing (June 27, 2017, 13:18 EDT) (on file in EB-SED-17-
000223762).
14 47 U.S.C. §§ 154(i), 154(j), 403.
15 47 U.S.C. § 154(i).
16 47 U.S.C. § 154(j).
17 47 U.S.C. § 403.
18 Id.
19 47 U.S.C. § 155(c)(3).
20 47 U.S.C. § 503(b)(1)(B).
21 See e.g., 47 U.S.C. § 302a(b); 47 CFR §§ 2.803, 2.925, 15.5, 15.19, 15.21, 15.201, 15.205, 15.247, 97.215(c).
Federal Communications Commission DA 17-936
4
documents required under the LOI. A party may not ignore the directives in a Commission order issued
by the Bureau pursuant to delegated authority in an LOI.22 HobbyKing’s violation is particularly
egregious for two reasons. First, because “[m]isconduct of this type exhibits contempt for the
Commission’s authority and threatens to compromise the Commission’s ability to adequately investigate
violations of its rules.”23 Second, because of the multiple extensions of time the Division gave the
Company to respond.24
8. Accordingly, we find that HobbyKing has violated a Commission order by failing to
provide the information and documents required by the LOI by the extended filing date of June 30, 2017.
IV. REQUEST FOR INFORMATION
9. We direct HobbyKing to respond to the following inquiries and provide the requested
documents within 30 days from the release date of this Citation:
i. Provide all information and documents requested in the Bureau’s April 17, 2017 LOI that
have not already been produced, including complete responses to Inquiries 13, 14, and
15.
ii. Provide an affidavit or declaration under penalty of perjury, signed and dated by an
authorized officer of the Company with personal knowledge of the representations
verifying the truth and accuracy of the information therein and that all of the information
and documents requested by the LOI that are in the Company’s possession, custody,
control or knowledge have been produced.
V. OPPORTUNITY TO RESPOND TO THIS CITATION
10. HobbyKing may respond to this Citation within 30 calendar days from the release date of
this Citation by any of the following methods: (1) a written statement, (2) a teleconference interview, or
(3) a personal interview at the Commission Headquarters or Field Office nearest to HobbyKing’s place of
business. The Commission Field Office nearest HobbyKing is located in Portland, Oregon.
11. If HobbyKing requests a teleconference or personal interview, contact Jason Koslofsky at
(202) 418-0640. We note that such teleconference or interview must take place within 30 calendar days
of the release date of this Citation. If HobbyKing prefers to submit a written response with supporting
documentation, it must send the response within 30 calendar days of the release date of this Citation to the
contact and address provided in paragraph below.
12. All written communications should be sent to the address below.
Jason Koslofsky, Attorney Advisor
Spectrum Enforcement Division
Federal Communications Commission
445 12th Street, SW, Rm. 4-C220
Washington, DC 20554
Re: EB-SED-17-000223762
22 See 47 U.S.C. § 503(b)(1)(B); see also Net One Int’l, Net One, LLC, Farrahtel Int’l, LLC, Forfeiture Order, 29
FCC Rcd. 264, 267, para. 9 (EB 2014); Conexions, LLC d/b/a Conexion Wireless, Notice of Apparent Liability for
Forfeiture and Order, 28 FCC Rcd 15318, 15325, para. 22 (2013); Technical Commc’n Network, LLC, Notice of
Apparent Liability for Forfeiture and Order, 28 FCC Rcd 1018, 1020, para. 8 (EB 2013) (TCN NAL); SBC
Commc’ns, Inc., Forfeiture Order, 17 FCC Rcd 7589, 7600, para. 28 (2002).
23 See TCN NAL, 28 FCC Rcd at 1020, para. 7 (quoting Fox Television Stations, Inc., Notice of Apparent Liability
for Forfeiture, 25 FCC Rcd 7074, 7081, para. 15 (EB 2010) (Fox Television Stations)).
24 See supra paras. 4-5; see also Fox Television Stations, 25 FCC Rcd at 7081, para. 15 (“Prompt and full responses
to Bureau inquiry letters are essential to the Commission’s enforcement function.”).
Federal Communications Commission DA 17-936
5
13. Upon request, the Commission will make reasonable accommodations for persons with
disabilities. If applicable, HobbyKing should provide a description of the accommodation required, and
include as much detail as possible, and also provide a telephone number and other contact information.
HobbyKing should allow at least five business days advance notice; last minute requests will be accepted,
but may be impossible to fill. HobbyKing should send an e-mail to fcc504@fcc.gov or call the FCC’s
Consumer & Governmental Affairs Bureau:
For sign language interpreters, CART, and other reasonable accommodations:
202-418-0530 (voice), 202-418-0432 (tty);
For accessible format materials (braille, large print, electronic files, and audio format):
202-418-0531 (voice), 202-418-7365 (tty).
14. We advise HobbyKing that it is a violation of Section 1.17 of the Rules25 for any person
to make any false or misleading written or oral statement of fact to the Commission. Specifically, no
person shall:
(1) In any written or oral statement of fact, intentionally provide material factual
information that is incorrect or intentionally omit material information that is
necessary to prevent any material factual statement that is made from being
incorrect or misleading; and
(2) In any written statement of fact, provide material factual information that is
incorrect or omit material information that is necessary to prevent any material
factual statement that is made from being incorrect or misleading without a
reasonable basis for believing that any such material factual statement is correct
and not misleading.
15. Further, 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.26
16. Violations of Section 1.17 of the Rules or the criminal statute referenced above may
result in further legal action, including monetary forfeitures pursuant to Section 503 of the Act.
17. Finally, we warn HobbyKing that, under the Privacy Act of 1974,27 Commission staff
will use all relevant material information before it, including information disclosed in interviews or
written statements, to determine what, if any, enforcement action is required to ensure HobbyKing’s
compliance with the Act and Rules.
VI. FUTURE VIOLATIONS
18. If, after receipt of this Citation, HobbyKing again violates the Act by engaging in conduct
of the type described herein, the Commission may impose sanctions for each such violation. For
example, the Commission may impose monetary forfeitures of up to $19,246 for each such violation or
each day of a continuing violation, up to a statutory maximum of $144,344 for any single continuing
violation.28 The Commission may further adjust the forfeiture reflecting enumerated statutory factors,
which include 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 other such matters as
25 47 CFR § 1.17.
26 18 U.S.C. § 1001.
27 5 U.S.C. § 552a(e)(3).
28 See 47 U.S.C. § 503; 47 CFR § 1.80(b). This amount is subject to further adjustment for inflation. See 47 CFR
§ 1.80(b)(9).
Federal Communications Commission DA 17-936
6
justice may require.29 Further, as discussed above, the Commission may assess forfeitures on both the
conduct that led to this Citation and the conduct following it.30
VII. ORDERING CLAUSES
19. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 4(j), and 403 of the Act,31
ABC Fulfillment Services LLC d/b/a HobbyKing USA LLC and HobbyKing.com, and Indubitably, Inc.
d/b/a HobbyKing Corp., HobbyKing USA LLC, HobbyKing, and HobbyKing.com must comply with
Commission orders to provide information and documents as required by the Commission’s Letters of
Inquiry.
20. IT IS FURTHER ORDERED that, pursuant to Sections 4(i), 4(j), and 403 of the Act,32
ABC Fulfillment Services LLC and Indubitably, Inc. must provide the written information requested in
paragraph 9, above. ABC Fulfillment Services LLC and Indubitably, Inc. must support its responses with
an affidavit or declaration under penalty of perjury, signed and dated by an authorized officer of ABC
Fulfillment Services LLC and Indubitably, Inc. with personal knowledge of the representations provided
in the response, verifying the truth and accuracy of the information therein and that all of the information
requested has been produced. All such declarations provided must comply with Section 1.16 of the Rules
and be substantially in the form set forth therein.33 The FCC must receive the response within 30 calendar
days of the release date of this Citation and Order.
21. IT IS FURTHER ORDERED that a copy of this Citation and Order shall be sent by
first class mail and certified mail, return receipt requested, to Mr. Anthony Hand, Owner and Director,
ABC Fulfillment Services LLC, via registered agent Davies Pearson, P.C., 920 Fawcett Ave, Tacoma,
WA 98401-1657; and Mr. Anthony Hand, Owner and Director, Indubitably, Inc. via Corporation Service
Company, Registered Agent, 2711 Centerville Rd., Suite 400, Wilmington, DE 19808-1645; and Rebecca
Larson, Esq., Davies Pearson, P.C., attorney for ABC Fulfillment Services LLC and Indubitably, Inc.,
920 Fawcett Avenue, P.O. Box 1657, Tacoma, Washington 98401-1657.
FEDERAL COMMUNICATIONS COMMISSION
Aspasia A. Paroutsas
Chief
Spectrum Enforcement Division
Enforcement Bureau
29 See 47 U.S.C. § 503(b)(2)(E); 47 CFR § 1.80(b)(8).
30 See supra para. 2.
31 47 U.S.C. §§ 154(i), 154(j), 403.
32 47 U.S.C. §§ 154(i), 154(j), 403.
33 47 CFR § 1.16.