Click here for Adobe Acrobat version
Click here for Microsoft Word version
********************************************************
NOTICE
********************************************************
This document was converted from Microsoft Word.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.
*****************************************************************
Federal Communications Commission DA 18-383
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Tradenet Enterprise Inc.,
d/b/a Vantage LED
)
)
)
)
)
File No.: EB-SED-17-00024600
Acct. No.: 201832100012
FRN: 0027433598
ORDER
Adopted: May 2, 2018 Released: May 2, 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 Tradenet Enterprise Inc. d/b/a
Vantage LED (Vantage) 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, Vantage 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 $15,000 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 Vantage’s 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 Vantage’s 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 Commission’s 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 18-383
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 Mr. Nathan W. Heyde, Counsel for
Tradenet Enterprise Inc., d/b/a Vantage LED, 3237 Guasti Rd., Ste. 220, Ontario, CA 91761.
FEDERAL COMMUNICATIONS COMMISSION
Christopher L. Killion
Acting Deputy Chief
Enforcement Bureau
Federal Communications Commission DA 18-383
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Tradenet Enterprise Inc.,
d/b/a Vantage LED
)
)
)
)
)
File No.: EB-SED-17-00024600
Acct. No.: 201832100012
FRN: 0027433598
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Vantage LED
(Vantage), by their authorized representatives, hereby enter into this Consent Decree for the purpose of
terminating the Enforcement Bureau’s investigation into whether Vantage violated 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
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.
3
(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 Vantage 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 Vantage who perform, or
supervise, oversee, or manage the performance of, duties that relate to Vantage’s
responsibilities under the Communications Laws, including the Equipment
Authorization and Marketing Rules.
(h) “Effective Date” means the date by which both the Bureau and Vantage have signed
the Consent Decree
1
47 U.S.C. § 302a(b).
2
47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, and 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.
3
47 U.S.C. § 151 et seq.
Federal Communications Commission DA 18-383
2
(i) “Equipment Authorization and Marketing Rules” means Section 302(b) of the Act;
4
Sections 2.803, 2.938 or 2.955, 2.1077, 15.19, 15.21, 15.101, and 15.105 of the
Commission’s rules;
5
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 June 27, 2017,
Letter of Inquiry regarding whether Vantage violated the Equipment Authorization
and Marketing Rules.
6
(k) “Operating Procedures” means the standard internal operating procedures and
compliance policies established by Vantage to implement the Compliance Plan.
(l) “Parties” means Vantage and the Bureau, each of which is a “Party.”
(m) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.
(n) “Vantage” or “Company” means Vantage LED and its affiliates, subsidiaries,
predecessors-in-interest, and successors-in-interest.
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.
7
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.”
8
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.
9
In that regard,
4
Id. § 302a(b).
5
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).
6
See Letter from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Mr.
Chris Ma, Chief Executive Officer, Vantage LED (June 27, 2017) (LOI); see also E-mail from Jonathan Garvin,
Attorney Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau, to Nathan W. Heyde, Counsel for
Tradenet Enterprise Inc. d/b/a Vantage LED (Nov. 28, 2017, 10:06 EST) (Second Supplemental LOI); Letter from
Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Nathan W. Heyde,
Counsel for Tradenet Enterprise d/b/a Vantage LED (August 18, 2017) (Supplemental LOI) (all on file in EB-SED-
17-00024600).
7
47 U.S.C. § 302a.
8
Id. § 302a(b).
9
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 18-383
3
Section 2.803(b) of the Rules prohibits the marketing of radio frequency devices unless the device has
first been properly authorized, identified, and labeled in accordance with the Rules, with limited
exceptions.
10
5. Vantage is a privately held corporation that assembles, advertises, and sells fully-
assembled LED signs. On June 27, 2017, after reviewing a complaint, the Bureau’s Spectrum
Enforcement Division issued a Letter of Inquiry (LOI) to Vantage, directing it to submit a sworn written
response to a series of questions relating to its marketing of LED signs in the United States.
11
The
investigation revealed that Vantage violated the Equipment Marketing and Authorization Rules by
marketing LED signs without the required equipment authorization, labeling, and user manual
disclosures, and by failing to retain required test records.
12
Shortly before receiving the LOI, Vantage
began the process of bringing its LED signs into compliance with the Commission’s rules. Vantage
achieved compliance with the relevant Equipment Marketing and Authorization Rules in July 2017 for the
LED signs at issue.
13
6. The Bureau and Vantage 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. Vantage 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, Vantage 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 Vantage 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 Vantage’s basic qualifications to be a Commission licensee or hold Commission licenses
or authorizations.
14
10
See id. §§ 2.803(b), (c).
11
See supra note 6.
12
See E-mail and attachment from Nathan W. Heyde, Counsel for Tradenet Enterprise Inc. d/b/a/ Vantage LED, to
Jonathan Garvin, Attorney Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (Dec. 5, 2017,
18:48 EST); Letter from Nathan W. Heyde, Counsel for Tradenet Enterprise Inc. d/b/a/ Vantage LED, to Salomon
Satche, Supervisory Electronics Engineer, Spectrum Enforcement Division, FCC Enforcement Bureau (Sept. 1,
2017); Letter from Nathan W. Heyde, Counsel for Tradenet Enterprise Inc., d/b/a/ Vantage LED, to Christopher
Sova, Attorney Advisor, Investigations and Hearings Division, FCC Enforcement Bureau (July 17, 2017).
13
47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, and 15.105.
14
See 47 CFR § 1.93(b).
Federal Communications Commission DA 18-383
4
11. Admission of Liability. Vantage 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, Vantage
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 Vantage 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, Vantage 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, Vantage will implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Vantage shall establish Operating Procedures that all Covered Employees must
follow to help ensure Vantage’s compliance with the Equipment Authorization and
Marketing Rules. Vantage’s Operating Procedures shall include internal procedures
and policies specifically designed to ensure that all radio frequency devices to be
marketed by Vantage are properly authorized and compliant with the applicable
technical and administrative standards and requirements prior to the initiation of
marketing.
15
Additionally, Vantage will establish a procedure for retaining
documentation supporting device compliance prior to the initiation of marketing.
16
Vantage 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 Vantage’s compliance with the
Equipment Authorization and Marketing Rules. Vantage shall periodically review
and revise the Compliance Manual as necessary to ensure that the information set
forth therein remains current and accurate. Vantage shall distribute any revisions to
the Compliance Manual promptly to all Covered Employees.
(c) Compliance Training Program. Vantage 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 Vantage’s obligation to report any
noncompliance with the Equipment Authorization and Marketing Rules 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
15
See supra note 9 and accompanying text.
16
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 18-383
5
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. Vantage
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. Vantage 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 Vantage 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 the Vantage 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 12th Street, SW, Rm. 3-C366, Washington, DC
20554, with a copy submitted electronically toMaureen.McCarthy@fcc.gov.
15. Compliance Reports. Vantage 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 Vantage’s 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 Vantage, stating that the Compliance Officer has personal
knowledge that Vantage: (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.
17
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Vantage, 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 Vantage 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 Vantage has taken or will take to prevent the recurrence
of any such noncompliance, including the schedule on which such preventive action
will be taken.
(d) All Compliance Reports shall be submitted to Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, 445 12th
Street, SW, Rm. 3-C366, Washington, DC 20554, with a copy submitted
electronically to Maureen.McCarthy@fcc.gov.
17
47 CFR § 1.16.
Federal Communications Commission DA 18-383
6
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. Vantage will pay a civil penalty to the United States Treasury in the
amount of fifteen thousand dollars ($15,000) within thirty (30) calendar days of the Effective Date.
Vantage shall send electronic notification of payment to Maureen McCarthy at
Maureen.McCarthy@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.
18
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, Vantage 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. Vantage 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 Vantage nor the Commission shall contest the validity of the
Consent Decree or the Adopting Order, and Vantage shall waive any statutory right to a trial de novo.
Vantage hereby agrees to waive any claims it may otherwise have under the Equal Access to Justice Act
19
relating to the matters addressed in this Consent Decree.
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.
18
An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
19
See 5 U.S.C. § 504; 47 CFR §§ 1.1501–1.1530.
Federal Communications Commission DA 18-383
7
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 Vantage does not expressly
consent) that provision will be superseded by such Rule or Order.
22. Successors and Assigns. Vantage 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.
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
________________________________
Christopher Ma
Chief Executive Officer
Vantage LED
________________________________
Date