FCC Proposes $734,872 Fine Against RF Equipment Supplier for Violating Rule Requiring Companies to Designate an Agent for Service Located in the United States
The Federal Communications Commission (“FCC” or “Commission”) today proposed a $734,872 forfeiture against Eken, a Hong Kong-based smart device manufacturer, for providing a false address for its U.S.-based agent on three of its radiofrequency (“RF”) equipment certification applications. The Commission sent a Letter of Inquiry (“LOI”) concerning an ongoing investigation to a P.O. Box in Colorado Springs, CO that Eken listed as the address of its U.S. agent. The mailbox Eken listed in its applications has been inactive since 2019, and further attempts to reach the listed agent were unsuccessful. The FCC’s total proposed fine is a combination of three maximum penalties for providing false information, plus an initial fine for failing to respond to the LOI.
The ongoing investigation against Eken concerns allegations that Eken’s video doorbells violated privacy laws by enabling access to users’ home IP addresses and Wi-Fi network names, as well as photos and videos from household cameras by outside parties.
The proposed forfeiture reflects the FCC’s determination to strictly enforce its RF equipment authorization rules. In the proposed forfeiture notice, FCC Chairwoman Jessica Rosenworcel also announced that the Commission will conduct an audit of hundreds of RF equipment certifications that contain the same agent information as Eken. Consequently, it is nearly certain that several more steep fines will soon be proposed.
The Commission previously made it clear that more substantial fines and other sanctions may be forthcoming for rule violators:
[I]n future equipment marketing cases we may calculat[e] forfeitures in a way that better aligns forfeitures with the harms caused by the underlying violations, including, where appropriate, increased forfeitures. Doing so would provide stronger incentives to electronic equipment manufacturers and marketers to comply with the Act and the Commission’s equipment marketing rules.
To avoid the risk of substantial FCC sanctions, it is critical for all companies in the RF equipment supply chain to ensure not only that all information provided on applications is accurate, but also that their RF devices comply the FCC rules including privacy, RF emissions limits, power levels, labeling, marketing, modification, and importation. Regular reviews and audits of equipment authorization and marketing processes are essential to prevent violations. Staying informed about FCC rules and obtaining proper authorization for any device modifications is necessary to avoid legal and financial repercussions which, in addition to steep fines, could include banning the sale of non-compliant RF equipment.
Maintaining thorough documentation of compliance efforts can prepare companies for potential FCC investigations. It is also advisable to evaluate and mitigate the financial and operational risks associated with noncompliance through robust compliance management systems.
For more detailed information or assistance, clients are encouraged to refer to contact our office for personalized guidance.
NEED HELP WITH RF EQUIPMENT COMPLIANCE?
The CommLaw Group Can Help!
Given the complexity and evolving nature of the FCC’s rules, regulations and policies & procedures around RF equipment authorization, marketing, importation, testing, and FCC enforcement actions, it is important to ensure that your equipment is fully compliant with all applicable requirements. The CommLaw Group has attorneys with many years of experience in all aspects of RF equipment compliance, as well as successfully representing suppliers accused of rule violations in FCC enforcement proceedings.
CONTACT US NOW, WE ARE STANDING BY TO GUIDE YOUR COMPANY’S COMPLIANCE EFFORTS
Jonathan S. Marashlian — Tel: 703-714-1313 / E-mail: jsm@CommLawGroup.com
Ronald E. Quirk – Tel: 703-714-1305/ E-Mail: req@CommLawGroup.com
