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Federal Communications Commission DA 18-336
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Media Resources, Inc.
)
)
)
)
)
File No.: EB-SED-17-00024681
Acct. No.: 201832100009
FRN: 0027389295
ORDER
Adopted: April 20, 2018 Released: April 20, 2018
By the Acting Deputy Chief, Enforcement Bureau:
1. The Enforcement Bureau (Bureau) of the Federal Communications Commission has
entered into a Consent Decree to resolve its investigation into whether Media Resources, Inc. (Media
Resources) marketed LED signs used in digital billboards and other commercial and industrial
applications, without the required equipment authorization, labeling, and user manual disclosures in
violation of the Commission’s rules. These rules ensure that radio-frequency devices marketed in the
United States do not interfere with authorized communications, thereby maintaining network integrity and
security and protecting consumers. To settle this matter, Media Resources admits that it marketed LED
signs without the required equipment authorization, labeling, and user manual disclosures, will implement
a compliance plan, and will pay a $19,500 civil penalty.
2. 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
referenced investigation regarding Media Resources’ compliance with equipment authorization, labeling
and user manual disclosure rules in effect at the time of the violation, Section 302(b) of the
Communications Act of 1934, as amended (Act)
1
, and Sections 2.803, 2.955, 15.19, 15.21, 15.101, and
15.105 of the Commission’s rules.
2
3. In the absence of material new evidence relating to this matter, we do not set for hearing
the question of Media Resources’ basic qualifications to hold or obtain any Commission license or
authorization.
3
4. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Act
4
and the
authority delegated by Sections 0.111 and 0.311 of the Rules,
5
the attached Consent Decree IS
ADOPTED and its terms incorporated by reference.
5. IT IS FURTHER ORDERED that the above-captioned matter IS TERMINATED.
1
47 U.S.C. § 302a(b).
2
47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, and 15.105 (2017). Some of the rules in effect at the time the
violations occurred were subsequently amended. The new rules became effective on November 2, 2017. See
Amendment of Parts 0, 1, 2, 15, and 18 of the Commission’s Rules regarding Authorization of Radiofrequency
Equipment, Report and Order, 32 FCC Rcd 8746 (July 2017).
3
See 47 CFR § 1.93(b).
4
47 U.S.C. § 154(i).
5
47 CFR §§ 0.111, 0.311.
Federal Communications Commission DA 18-336
2
6. 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 Jeff Rushton, President and Chief
Executive Officer, Media Resources, Inc., 1387 Cornwall Road, Oakville, ON Canada L6J7T5.
FEDERAL COMMUNICATIONS COMMISSION
Christopher L. Killion
Acting Deputy Chief
Enforcement Bureau
Federal Communications Commission DA 18-336
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Media Resources, Inc.
)
)
)
)
)
)
)
File No.: EB-SED-17-00024681
Acct. No.: 201832100009
FRN: 0027389295
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Media
Resources, Inc. (Media Resources), by their authorized representatives, hereby enter into this Consent
Decree for the purpose of terminating the Enforcement Bureau’s investigation into whether Media
Resources violated Section 302(b) of the Communications Act of 1934, as amended (Act),
6
and Sections
2.803, 2.955, 15.19, 15.21, 15.101, and 15.105 of the Commission’s rules.
7
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions shall apply:
(a) “Act” means the Communications Act of 1934, as amended.
8
(b) “Adopting Order” means an order of the Bureau adopting the terms of this Consent
Decree without change, addition, deletion, or modification.
(c) “Bureau” means the Enforcement Bureau of the Federal Communications
Commission.
(d) “Commission” and “FCC” mean the Federal Communications Commission and all
of its bureaus and offices.
(e) “Communications Laws” means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Media Resources
is subject by virtue of its business activities, including but not limited to the
Equipment Authorization and Marketing Rules.
(f) “Compliance Plan” means the compliance obligations, program, and procedures
described in this Consent Decree at paragraph 13.
(g) “Covered Employees” means all employees and agents of Media Resources who
perform, or supervise, oversee, or manage the performance of, duties that relate to
Media Resources’ responsibilities under the Communications Laws, including the
Equipment Authorization and Marketing Rules.
6
47 U.S.C. § 302a(b).
7
47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105. Some of the rules in effect at the time the violations
occurred were subsequently amended and became effective on November 2, 2017. See Amendment of Parts 0, 1, 2,
15, and 18 of the Commission’s Rules regarding Authorization of Radiofrequency Equipment, Report and Order, 32
FCC Rcd 8746 (July 2017) (Equipment Authorization Order). This settlement resolves violations prior to the
effective date of the amended rules and sets forth obligations for compliance with the current rules.
8
47 U.S.C. § 151 et seq.
Federal Communications Commission DA 18-336
2
(h) “Effective Date” means the date by which both the Bureau and Media Resources
have signed the Consent Decree.
(i) “Equipment Authorization and Marketing Rules” means Section 302(b) of the Act;
9
Sections 2.803, 2.938 or 2.955, 2.1077, 15.19, 15.21, 15.101, and 15.105 of the
Commission’s rules;
10
and other provisions of the Act, the Rules, and Commission
orders related to the authorization of radio frequency devices and the marketing of
such devices.
(j) “Investigation” means the investigation commenced by the Bureau’s July 17, 2017
Letter of Inquiry regarding whether Media Resources violated the Equipment
Authorization and Marketing Rules.
11
(k) “Media Resources” or “Company” means Media Resources, Inc. and its affiliates,
subsidiaries, predecessors-in-interest, and successors-in-interest.
(l) “Operating Procedures” means the standard internal operating procedures and
compliance policies established by Media Resources to implement the Compliance
Plan.
(m) “Parties” means Media Resources and the Bureau, each of which is a “Party.”
(n) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.
II. BACKGROUND
3. Section 302 of the Act authorizes the Commission to promulgate reasonable regulations
to minimize harmful interference by equipment that emits radio frequency energy.
12
Specifically, Section
302(b) of the Act provides that “[n]o person shall manufacture, import, sell, offer for sale, or ship devices
or home electronic equipment and systems, or use devices, which fail to comply with regulations
promulgated pursuant to this section.”
13
The purpose of Section 302 of the Act is to ensure that radio
transmitters and other electronic devices meet certain standards to control interference before they reach
the market.
4. The Commission carries out its responsibilities under Section 302 of the Act in two ways.
First, the Commission establishes technical requirements for transmitters and other equipment to
minimize their potential for causing interference to authorized radio services. Second, the Commission
administers an equipment authorization program to ensure that equipment reaching the market in the
United States complies with the technical and administrative requirements set forth in the Rules. The
equipment authorization program requires, among other things, that radio frequency devices must be
tested for compliance with the applicable technical requirements prior to marketing.
14
In that regard,
Section 2.803(b) of the Rules prohibits the marketing of radio frequency devices unless the device has
9
Id. § 302a(b).
10
47 CFR §§ 2.803, 2.938, 2.1077, 15.19, 15.101 (2018); id. §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105 (2017).
11
See Letter from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Jeff
Rushton, President, Media Resources, Inc. (Jul. 21, 2017) (Amended LOI); Letter from Aspasia A. Paroutsas, Chief,
Spectrum Enforcement Division, FCC Enforcement Bureau, to Jeff Rushton, President, Media Resources, Inc. (Jul.
17, 2017) (LOI) (on file in EB-SED-17-00024681).
12
47 U.S.C. § 302a.
13
Id. § 302a(b).
14
The term “marketing” is defined in the Rules and includes the “sale or lease, or offering for sale or lease,
including advertising for sale or lease, or importation, shipment, or distribution for the purpose of selling or leasing
or offering for sale or lease.” 47 CFR § 2.803(a).
Federal Communications Commission DA 18-336
3
first been properly authorized, identified, and labeled in accordance with the Rules, with limited
exceptions.
15
5. Media Resources is a privately held Canadian corporation that markets, designs,
fabricates, installs, and services LED display signs in the United States. On July 21, 2017, after
reviewing a complaint, the Bureau’s Spectrum Enforcement Division (Division) issued a Letter of Inquiry
(LOI) to Media Resources, directing it to submit a sworn written response to a series of questions relating
to its marketing of LED signs within the United States.
16
The investigation revealed that Media
Resources violated the Equipment Authorization and Marketing Rules by marketing LED signs without
the required equipment authorization, labeling, and user manual disclosures and by failing to retain
required test records.
17
Prior to receiving the LOI, Media Resources had engaged an accredited testing
laboratory. Upon receiving the LOI, Media Resources immediately submitted test reports to the Division
demonstrating that the Company’s products, as marketed, fully complied with the applicable technical
standards. Media Resources submitted additional records and information demonstrating that the
equipment at issue is now compliant with the Equipment Authorization and Marketing Rules.
6. The Bureau and Media Resources negotiated the following terms and conditions of
settlement and hereby enter into this Consent Decree as provided herein.
III. TERMS OF AGREEMENT
7. Adopting Order. The provisions of this Consent Decree shall be incorporated by the
Bureau in an Adopting Order.
8. Jurisdiction. Media Resources agrees that the Bureau has jurisdiction over it and the
matters contained in this Consent Decree and has the authority to enter into and adopt this Consent
Decree.
9. Effective Date; Violations. The Parties agree that this Consent Decree shall become
effective on the Effective Date as defined herein. As of the Effective Date, the Parties agree that this
Consent Decree shall have the same force and effect as any other order of the Commission.
10. Termination of Investigation. In express reliance on the covenants and representations
in this Consent Decree and to avoid further expenditure of public resources, the Bureau agrees to
terminate the Investigation. In consideration for the termination of the Investigation, Media Resources
agrees to the terms, conditions, and procedures contained herein. The Bureau further agrees that, in the
absence of new material evidence, it will not use the facts developed in the Investigation through the
Effective Date, or the existence of this Consent Decree, to institute, on its own motion, any new
proceeding, formal or informal, or take any action on its own motion against Media Resources concerning
the matters that were the subject of the Investigation. The Bureau also agrees that, in the absence of new
material evidence, it will not use the facts developed in the Investigation through the Effective Date, or
the existence of this Consent Decree, to institute on its own motion any proceeding, formal or informal, or
to set for hearing the question of Media Resources’ basic qualifications to be a Commission licensee or
hold Commission licenses or authorizations.
18
15
See id. §§ 2.803(b), (c).
16
See supra note 6.
17
See Letter from Jeff Rushton President, Media Resources, Inc. to Aspasia Paroutsas, Division Chief, Spectrum
Enforcement Division, FCC Enforcement Bureau (Oct. 31, 2017); Letter from Jeff Rushton President, Media
Resources, Inc. to Aspasia Paroutsas, Division Chief, Spectrum Enforcement Division, FCC Enforcement Bureau
(Sept. 1, 2017); Letter from Jeff Rushton President, Media Resources, Inc. to Aspasia Paroutsas, Division Chief,
Spectrum Enforcement Division, FCC Enforcement Bureau (Aug. 7, 2017) (on file in EB-SED-17-00024681).
18
See 47 CFR § 1.93(b).
Federal Communications Commission DA 18-336
4
11. Admission of Liability. Media Resources admits for the purpose of this Consent Decree
and for Commission civil enforcement purposes, and in express reliance on the provisions of paragraph
10 herein, that its actions described in paragraph 5, herein, violated the Equipment Authorization and
Marketing Rules in effect during the Investigation.
12. Compliance Officer. Within thirty (30) calendar days after the Effective Date, Media
Resources shall designate a senior corporate manager with the requisite corporate and organizational
authority to serve as a Compliance Officer and to discharge the duties set forth below. The person
designated as the Compliance Officer shall be responsible for developing, implementing, and
administering the Compliance Plan and ensuring that Media Resources complies with the terms and
conditions of the Compliance Plan and this Consent Decree. In addition to the general knowledge of the
Communications Laws necessary to discharge his or her duties under this Consent Decree, the
Compliance Officer shall have specific knowledge of the Equipment Authorization and Marketing Rules
prior to assuming his or her duties.
13. Compliance Plan. For purposes of settling the matters set forth herein, Media Resources
agrees that it shall, within sixty (60) calendar days after the Effective Date, develop and implement a
Compliance Plan designed to ensure future compliance with the Communications Laws and with the
terms and conditions of this Consent Decree. With respect to the Equipment Authorization and
Marketing Rules, Media Resources will implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Media Resources shall establish Operating Procedures that all Covered Employees
must follow to help ensure Media Resources’ compliance with the Equipment
Authorization and Marketing Rules. Media Resources’ Operating Procedures shall
include internal procedures and policies specifically designed to ensure that all radio
frequency devices to be marketed by Media Resources are properly authorized and
compliant with the applicable technical and administrative standards and
requirements prior to the initiation of marketing.
19
Additionally, Media Resources
will establish a procedure for retaining documentation supporting device compliance
prior to the initiation of marketing.
20
Media Resources shall also develop a
Compliance Checklist that describes the steps that a Covered Employee must follow
to ensure compliance with the Equipment Authorization and Marketing Rules.
(b) Compliance Manual. Within sixty (60) calendar days after the Effective Date, the
Compliance Officer shall develop and distribute a Compliance Manual to all
Covered Employees. The Compliance Manual shall explain the Equipment
Authorization and Marketing Rules and set forth the Operating Procedures that
Covered Employees shall follow to help ensure Media Resources’ compliance with
the Equipment Authorization and Marketing Rules. Media Resources shall
periodically review and revise the Compliance Manual as necessary to ensure that
the information set forth therein remains current and accurate. Media Resources
shall distribute any revisions to the Compliance Manual promptly to all Covered
Employees.
(c) Compliance Training Program. Media Resources shall establish and implement a
Compliance Training Program on compliance with the Equipment Authorization and
Marketing Rules and the Operating Procedures. As part of the Compliance Training
Program, Covered Employees shall be advised of Media Resources’ obligation to
report any noncompliance with the Equipment Authorization and Marketing Rules
19
See supra note 9 and accompanying text.
20
See 47 CFR §§ 2.945; 2.938 (2018); id. § 2.955 (2017); see also Equipment Authorization Order, 32 FCC Rcd
8746.
Federal Communications Commission DA 18-336
5
under paragraph 14 of this Consent Decree and shall be instructed on how to
disclose noncompliance to the Compliance Officer. All Covered Employees shall
be trained pursuant to the Compliance Training Program within sixty (60) calendar
days after the Effective Date, except that any person who becomes a Covered
Employee at any time after the initial Compliance Training Program shall be trained
within thirty (30) calendar days after the date such person becomes a Covered
Employee. Media Resources shall repeat compliance training on an annual basis,
and shall periodically review and revise the Compliance Training Program as
necessary to ensure that it remains current and complete and to enhance its
effectiveness.
14. Reporting Noncompliance. Media Resources shall report any noncompliance with the
Equipment Authorization and Marketing Rules and with the terms and conditions of this Consent Decree
within fifteen (15) calendar days after discovery of such noncompliance. Such reports shall include a
detailed explanation of: (i) each instance of noncompliance; (ii) the steps that Media Resources has taken
or will take to remedy such noncompliance; (iii) the schedule on which such remedial actions will be
taken; and (iv) the steps that Media Resources has taken or will take to prevent the recurrence of any such
noncompliance. All reports of noncompliance shall be submitted to Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, 445 12
th
Street, SW, Rm. 3-C366,
Washington, DC 20554, with a copy submitted electronically to Kevin.Pittman@fcc.gov and EB-SED-
Response@fcc.gov.
15. Compliance Reports. Media Resources shall file compliance reports with the
Commission ninety (90) calendar days after the Effective Date, twelve (12) months after the Effective
Date, twenty-four (24) months after the Effective Date, and thirty-six (36) months after the Effective
Date.
(a) Each Compliance Report shall include a detailed description of Media Resources’
efforts during the relevant period to comply with the terms and conditions of this
Consent Decree and the Equipment Authorization and Marketing Rules. In addition,
each Compliance Report shall include a certification by the Compliance Officer, as
an agent of and on behalf of Media Resources, stating that the Compliance Officer
has personal knowledge that Media Resources: (i) has established and implemented
the Compliance Plan; (ii) has utilized the Operating Procedures since the
implementation of the Compliance Plan; and (iii) is not aware of any instances of
noncompliance with the terms and conditions of this Consent Decree, including the
reporting obligations set forth in paragraph 14 of this Consent Decree.
(b) The Compliance Officer’s certification shall be accompanied by a statement
explaining the basis for such certification and shall comply with Section 1.16 of the
Rules and be subscribed to as true under penalty of perjury in substantially the form
set forth therein.
21
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Media Resources, shall provide the
Commission with a detailed explanation of the reason(s) why and describe fully: (i)
each instance of noncompliance; (ii) the steps that Media Resources has taken or
will take to remedy such noncompliance, including the schedule on which proposed
remedial actions will be taken; and (iii) the steps that Media Resources has taken or
will take to prevent the recurrence of any such noncompliance, including the
schedule on which such preventive action will be taken.
21
47 CFR § 1.16.
Federal Communications Commission DA 18-336
6
(d) All Compliance Reports shall be submitted to Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, 445 12
th
Street, SW, Rm. 3-C366, Washington, DC 20554, with a copy submitted
electronically to Kevin.Pittman@fcc.gov and EB-SED-Response@fcc.gov.
16. Termination Date. Unless stated otherwise, the requirements set forth in paragraphs 12
through 15 of this Consent Decree shall expire thirty-six (36) months after the Effective Date.
17. Civil Penalty. Media Resources will pay a civil penalty to the United States Treasury in
the amount of nineteen thousand five hundred dollars ($19,500) within thirty (30) calendar days after the
Effective Date. Media Resources shall send electronic notification of payment to Kevin Pittman at
Kevin.Pittman@fcc.gov and to SED’s mailbox at EB-SED-Response@fcc.gov on the date said payment
is made. The payment must be made by check or similar instrument, wire transfer, or credit card, and
must include the Account Number and FRN referenced above. Regardless of the form of payment, a
completed FCC Form 159 (Remittance Advice) must be submitted.
22
When completing the FCC Form
159, enter the Account Number in block number 23A (call sign/other ID) and enter the letters “FORF” in
block number 24A (payment type code). Below are additional instructions that should be followed based
on the form of payment selected:
? Payment by check or money order must be made payable to the order of the Federal
Communications Commission. Such payments (along with the completed Form 159) must be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-
9000, or sent via overnight mail to U.S. Bank – Government Lockbox #979088,
SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.
? Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S. Bank
at (314) 418-4232 on the same business day the wire transfer is initiated.
? Payment by credit card must be made by providing the required credit card information on
FCC Form 159 and signing and dating the Form 159 to authorize the credit card payment.
The completed Form 159 must then be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank –
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101.
Questions regarding payment procedures should be addressed to the Financial Operations Group
Help Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
18. Waivers. As of the Effective Date, Media Resources 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. Media Resources shall retain the
right to challenge Commission interpretation of the Consent Decree or any terms contained herein. If
either Party (or the United States on behalf of the Commission) brings a judicial action to enforce the
terms of the Consent Decree or the Adopting Order, neither Media Resources nor the Commission shall
contest the validity of the Consent Decree or the Adopting Order, and Media Resources shall waive any
statutory right to a trial de novo. Media Resources hereby agrees to waive any claims it may otherwise
have under the Equal Access to Justice Act
23
relating to the matters addressed in this Consent Decree.
22
An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
23
See 5 U.S.C. § 504; 47 CFR §§ 1.1501–1.1530.
Federal Communications Commission DA 18-336
7
19. Severability. The Parties agree that if any of the provisions of the Consent Decree shall
be held unenforceable by any court of competent jurisdiction, such unenforceability shall not render
unenforceable the entire Consent Decree, but rather the entire Consent Decree shall be construed as if not
containing the particular unenforceable provision or provisions, and the rights and obligations of the
Parties shall be construed and enforced accordingly.
20. Invalidity. In the event that this Consent Decree in its entirety 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.
21. Subsequent Rule or Order. 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 Media Resources does not
expressly consent) that provision will be superseded by such Rule or Order.
22. Successors and Assigns. Media Resources agrees that the provisions of this Consent
Decree shall be binding on its successors, assigns, and transferees.
23. Final Settlement. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation.
24. Modifications. This Consent Decree cannot be modified without the advance written
consent of both Parties.
25. Paragraph Headings. The headings of the paragraphs in this Consent Decree are
inserted for convenience only and are not intended to affect the meaning or interpretation of this Consent
Decree.
26. Authorized Representative. Each Party represents and warrants to the other that it has
full power and authority to enter into this Consent Decree. Each person signing this Consent Decree on
behalf of a Party hereby represents that he or she is fully authorized by the Party to execute this Consent
Decree and to bind the Party to its terms and conditions.
Federal Communications Commission DA 18-336
8
27. Counterparts. This Consent Decree may be signed in counterpart (including
electronically or by facsimile). Each counterpart, when executed and delivered, shall be an original, and
all of the counterparts together shall constitute one and the same fully executed instrument.
________________________________
Christopher L. Killion
Acting Deputy Chief
Enforcement Bureau
________________________________
Date
________________________________
Jeff Rushton
President and Chief Executive Officer
Media Resources, Inc.
________________________________
Date