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Federal Communications Commission DA 18-482
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Digital Outdoor, LLC d/b/a Lightking Outdoor
)
)
)
)
)
File No.: EB-SED-17-00024680
Acct. No.: 201832100014
FRN: 0027515089
ORDER
Adopted: May 18, 2018 Released: May 18, 2018
By the 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 Digital Outdoor, LLC d/b/a
Lightking Outdoor (Lightking) marketed LED signs used in digital billboards and other commercial and
industrial applications, without the required labeling and user manual disclosures in violation of the
Commission’s rules. These rules ensure that radio-frequency devices are properly labeled, and that the
user manual for the devices inform consumers that such devices have been tested for compliance under
the Commission’s technical rules because those devices could easily cause interference if they do not
conform to the Commission’s rules. To settle this matter, Lightking admits that it marketed LED signs
without the required 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 Ligktking’s compliance with the 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, 15.19, 15.21, 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 Lightking’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, 15.19, 15.21, 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 18-482
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 Timur Colak, Managing Member
and President, Digital Outdoor, LLC d/b/a Lightking Outdoor, 1551 NW 93
rd
Avenue, Doral, Florida
33172, and to Edward A. Maldonado, Esq., Maldonado Law Group, 2850 Douglas Road, Suite 303, Coral
Gables, FL 33134.
FEDERAL COMMUNICATIONS COMMISSION
Christopher L. Killion
Deputy Chief
Enforcement Bureau
Federal Communications Commission DA 18-482
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Digital Outdoor, LLC d/b/a Lightking Outdoor
)
)
)
)
)
File No.: EB-SED-17-00024680
Acct. No.: 201832100014
FRN: 0027515089
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Digital
Outdoor, LLC d/b/a Lightking Outdoor (Lightking), by their authorized representatives, hereby enter into
this Consent Decree for the purpose of terminating the Enforcement Bureau’s investigation into whether
Lightking violated Section 302(b) of the Communications Act of 1934, as amended (Act),
1
and Sections
2.803, 15.19, 15.21, 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 Lightking is
subject by virtue of its business activities, including but not limited to the
Equipment 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 Lightking who perform,
or supervise, oversee, or manage the performance of, duties that relate to
Lightking’s responsibilities under the Communications Laws, including the
Equipment Marketing Rules.
(h) “Effective Date” means the date by which both the Bureau and Lightking have
signed the Consent Decree.
1
47 U.S.C. § 302a(b).
2
47 CFR §§ 2.803, 15.19, 15.21, 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 the rule violations listed in para. 1 of
this Consent Decree and sets forth obligations for compliance with the current rules.
3
47 U.S.C. § 151 et seq.
Federal Communications Commission DA 18-482
2
(i) “Equipment Marketing Rules” means Section 302(b) of the Act;
4
Sections 2.803,
2.1077, 15.19, 15.21, 15.105 of the Commission’s rules;
5
and other provisions of the
Act, the Rules, and Commission orders related to the marketing of radio frequency
devices.
(j) “Investigation” means the investigation commenced by the Bureau’s July 17, 2017
Letter of Inquiry regarding whether Lightking violated the Equipment Marketing
Rules.
6
(k) “Lightking” or “Company” means “Digital Outdoor, LLC d/b/a Lightking Outdoor”
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 Lightking to implement the Compliance Plan.
(m) “Parties” means Lightking 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.
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,
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
4
Id. § 302a(b).
5
47 CFR §§ 2.803, 2.1077, 15.19 (2018); id. §§ 2.803, 15.19, 15.21, 15.105 (2017).
6
See Letter from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Timur
Colak, Managing Member and President, Digital Outdoor, LLC d/b/a Lightking Outdoor (July 17, 2017); Letter
from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Timur Colak,
Managing Member and President, Digital Outdoor, LLC d/b/a Lightking Outdoor (July 21, 2017) (LOI) (both on file
in EB-SED-17-00024680).
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).
10
See id. §§ 2.803(b), (c).
Federal Communications Commission DA 18-482
3
5. Lightking is a privately-held limited liability company that advertises, imports, and sells
LED display signs. On July 17, 2017, after reviewing a complaint, the Bureau’s Spectrum Enforcement
Division issued a Letter of Inquiry (LOI) to Lightking, 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 Lightking violated the Equipment Marketing Rules by marketing LED signs without the
required equipment labeling and user manual disclosures.
12
After receiving the LOI, Lightking brought
its LED signs into compliance with the Commission’s Equipment Marketing Rules and began marketing
the equipment with the proper labels and user manual disclosures. The Company achieved compliance
with the relevant Equipment Marketing Rules in March 2018 for the LED signs at issue.
13
6. The Bureau and Lightking 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. Lightking 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, Lightking 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 Lightking 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 Lightking’s basic qualifications to be a Commission licensee or hold Commission licenses
or authorizations.
14
11
See supra note 6.
12
See Letter and attachments from Timur Colak, Managing Member and President, Digital Outdoor, LLC d/b/a
Lightking Outdoor, to Aspasia Paroutsas, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau (Aug.
15, 2017) (LOI Response); Letter from Edward Maldonado, Counsel to Lightking, to Aspasia Paroutsas, Chief,
Spectrum Enforcement Division, FCC Enforcement Bureau, (Aug. 17, 2017) (Supplemental LOI Response); Letter
and attachments from Timur Colak, Managing Member and President, Digital Outdoor, LLC d/b/a Lightking
Outdoor to Kathy Harvey, Spectrum Enforcement Division, FCC Enforcement Bureau (Mar. 16, 2018) (Second
Supplemental LOI Response); E-mail and attachment from Edward Maldonado, Counsel to Lightking, to Kathy
Harvey, Spectrum Enforcement Division, FCC Enforcement Bureau (Mar. 27, 2018, 16:35 ET) (Third Supplemental
LOI Response); E-mail and attachment from Edward Maldonado, Counsel to Lightking, to Kathy Harvey, Spectrum
Enforcement Division, FCC Enforcement Bureau (Apr. 13, 2018, 12:28 ET) (Fourth Supplemental LOI Response);
E-mail and attachment from Edward Maldonado, Counsel to Lightking, to Kathy Harvey, Spectrum Enforcement
Division, FCC Enforcement Bureau (Apr. 13, 2018, 12:28 ET) (Fifth Supplemental LOI Response) (all on file in
EB-SED-17-00024680).
13
47 CFR §§ 2.803, 15.19, 15.21, 15.105.
14
See 47 CFR 1.93(b).
Federal Communications Commission DA 18-482
4
11. Admission of Liability. Lightking 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 Marketing Rules in effect during
the Investigation.
12. Compliance Officer. Within thirty (30) calendar days after the Effective Date,
Lightking 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 Lightking 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 Marketing Rules prior to assuming
his/her duties.
13. Compliance Plan. For purposes of settling the matters set forth herein, Lightking 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 Marketing Rules, Lightking
will implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Lightking shall establish Operating Procedures that all Covered Employees must
follow to help ensure Lightking’s compliance with the Equipment Marketing Rules.
Lightking’s Operating Procedures shall include internal procedures and policies
specifically designed to ensure that all radio frequency devices to be marketed by
Lightking are properly authorized and compliant with the applicable technical and
administrative standards and requirements prior to the initiation of marketing.
15
Lightking shall also develop a Compliance Checklist that describes the steps that a
Covered Employee must follow to ensure compliance with the Equipment
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
Marketing Rules and set forth the Operating Procedures that Covered Employees
shall follow to help ensure Lightking’s compliance with the Equipment Marketing
Rules. Lightking shall periodically review and revise the Compliance Manual as
necessary to ensure that the information set forth therein remains current and
accurate. Lightking shall distribute any revisions to the Compliance Manual
promptly to all Covered Employees.
(c) Compliance Training Program. Lightking shall establish and implement a
Compliance Training Program in compliance with the Equipment Marketing Rules
and the Operating Procedures. As part of the Compliance Training Program,
Covered Employees shall be advised of Lightking’s obligation to report any
noncompliance with the Equipment 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 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
15
See supra note 9 and accompanying text.
Federal Communications Commission DA 18-482
5
days after the date such person becomes a Covered Employee. Lightking 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. Lightking shall report any noncompliance with the
Equipment 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 Lightking 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
Lightking 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 to Kathy Harvey at Kathy.Harvey@fcc.gov.
15. Compliance Reports. Lightking 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 Lightking’s efforts
during the relevant period to comply with the terms and conditions of this Consent
Decree and the Equipment Marketing Rules. In addition, each Compliance Report
shall include a certification by the Compliance Officer, as an agent of and on behalf
of Lightking, stating that the Compliance Officer has personal knowledge that
Lightking: (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.
16
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Lightking, 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 Lightking 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 Lightking 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 Kathy Harvey at Kathy.Harvey@fcc.gov and to Leslie Barnes at
Leslie.Barnes@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.
16
47 CFR § 1.16.
Federal Communications Commission DA 18-482
6
17. Civil Penalty. Lightking 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.
Lightking shall send electronic notification of payment to Kathy Harvey at Kathy.Harvey@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.
17
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, Lightking 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. Lightking 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 Lightking nor the Commission shall contest the validity of the
Consent Decree or the Adopting Order, and Lightking shall waive any statutory right to a trial de novo.
Lightking hereby agrees to waive any claims it may otherwise have under the Equal Access to Justice
Act
18
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.
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.
17
An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
18
See 5 U.S.C. § 504; 47 CFR §§ 1.1501–1.1530.
Federal Communications Commission DA 18-482
7
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 Lightking does not expressly
consent) that provision will be superseded by such Rule or Order.
22. Successors and Assigns. Lightking 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
Deputy Chief
Enforcement Bureau
________________________________
Date
________________________________
Timur Colak
President
Digital Outdoor, LLC d/b/a Lightking
Outdoor
________________________________
Date