Federal Communications Commission DA 08-1377
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Variety Wholesalers, Inc.
Henderson, NC
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File No. EB-07-RK-005
Acct. No. 0832460004
FRN 0005489679
ORDER
Adopted: June 10, 2008 Released: June 12, 2008
By the Enforcement Bureau: 
1. In this Order, we adopt the attached Consent Decree entered into between the 
Enforcement Bureau (“Bureau”) and Variety Wholesalers, Inc. (“Variety”).  The Consent Decree 
terminates an investigation by the Bureau against Variety for possible violations of Section 15.117(k) of 
the Commission’s Rules regarding the labeling of television receiving equipment that contains an analog 
broadcast television tuner but does not contain a digital broadcast television tuner. 
2. The Bureau and Variety have negotiated the terms of the Consent Decree that resolve this 
matter.  A copy of the Consent Decree is attached hereto and incorporated by reference.  
3. 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 
investigation.
4. In the absence of material new evidence relating to this matter, we conclude that our 
investigation raises no substantial or material questions of fact as to whether Variety possesses the basic 
qualifications, including those related to character, to hold or obtain any Commission license or 
authorization.    
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Communications Act 
of 1934, as amended,1 and Sections 0.111 and 0.311 of the Commission’s Rules,2 the Consent Decree 
attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that Variety Wholesalers, Inc. shall make its voluntary 
contribution to the United States Treasury, as specified in the Consent Decree, by mailing a check or 
similar instrument payable to the order of the Federal Communications Commission, to Federal 
Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.  Payment by overnight mail 
  
1 47 U.S.C. § 154(i).
2 47 C.F.R. §§ 0.111, 0.311.
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may be sent to U.S. Bank – Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. 
Louis, MO 63101.  Payment by wire transfer may be made to ABA Number 021030004, receiving bank 
TREAS/NYC, and account number 27000001.  For payment by credit card, an FCC Form 159 
(Remittance Advice) must be submitted. When completing the FCC Form 159, enter the NAL/Account 
number in block number 23A (call sign/other ID), and enter the letters “FORF” in block number 24A 
(payment type code).  Variety shall also send electronic notification on the date said payment is made to 
SCR-Response@fcc.gov.
8. IT IS FURTHER ORDERED that Variety Wholesalers, Inc. will file reports with the 
Commission ninety days after the Effective Date and on July 9, 2009.  Each report shall include a 
compliance certificate from an officer, as an agent of Variety, stating that the officer has personal 
knowledge that Variety has established operating procedures intended to ensure compliance with this 
Consent Decree, together with an accompanying statement explaining the basis for the officer’s 
compliance certification.  All reports shall be submitted to Kathryn S. Berthot, Chief, Spectrum 
Enforcement Division, Enforcement Bureau, Federal Communications Commission, 445 12th Street, 
S.W., Washington, D.C. 20554 and by e-mail at Kathy.Berthot@fcc.gov.
9. 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 Variety Wholesalers, Inc., G. 
Templeton Blackburn, II, Sr. Vice President and General Counsel, 218 S. Garnett Street, Post Office 
Drawer 947, Henderson, NC 27536. 
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Federal Communications Commission DA 08-1377
3
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Variety Wholesalers, Inc.
Henderson, NC
)
)
)
)
)
)
)
File No. EB-07-RK-005
Acct. No. 0832460004
FRN 0005489679
CONSENT DECREE
The Enforcement Bureau (“Bureau”) and Variety Wholesalers, Inc. (“Variety”), by their authorized 
representatives, hereby enter into this Consent Decree for the purpose of terminating the Enforcement 
Bureau’s investigation into whether Variety violated the labeling requirements of television receiving 
equipment containing an analog broadcast television tuner but without a digital broadcast television tuner, 
as set forth in Section 15.117(k) of the Commission’s Rules (“Rules”).
I.         DEFINITIONS
1. For the purposes of this Consent Decree, the following definitions shall apply:
(a) “Act” means the Communications Act of 1934, as amended, 47 U.S.C. § 151 et seq.
(b) “Adopting Order” means an Order of the Bureau adopting the terms of this Consent 
Decree without change, addition, deletion, or modification.
(c) “Analog-only television receiving equipment” means television receiving equipment that 
contains an analog broadcast television tuner but does not contain a digital broadcast 
television (“DTV”) tuner.
(d) “Bureau” means the Enforcement Bureau of the Federal Communications Commission.
(e) “Commission” and “FCC” mean the Federal Communications Commission and all of its 
bureaus and offices.  
(f) “Citations” means the citations issued by Bureau or the Commission between May 29, 
2007, and the Effective Date alleging violations by Variety of Section 15.117(k) of the 
Commission’s Rules.
(g) “Effective Date” means the date on which the Commission releases the Adopting Order.
(h) “Investigation” means the investigation initiated by the Bureau regarding Variety’s
compliance through the Effective Date with Section 15.117(k) of the Commission’s 
Rules regarding the labeling of television receiving equipment that contains an analog 
Federal Communications Commission DA 08-1377
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broadcast television tuner but does not contain a digital broadcast television (“DTV”) 
tuner.1  
(i) “Parties” means Variety and the Commission.
(j) “Rules” means the Commission’s regulations found in Title 47 of the Code of Federal 
Regulations.
(k) “Variety” means Variety Wholesalers, Inc. and its predecessors-in-interest and 
successors-in-interest.
II. BACKGROUND
2. To ensure that consumers do not inadvertently buy analog-only television receiving 
equipment without understanding that such devices will not be capable of receiving over-the-air 
television reception of digital signals after analog broadcasting ends unless connected to a digital-to-
analog converter or a digital subscription service, the Commission adopted rules requiring anyone that 
sells, offers for sale, or rents television receiving equipment that does not contain a DTV tuner to display 
a Consumer Alert at the point of sale.2 This requirement also applies to the sale or rent of analog-only 
television receiving equipment via direct mail, catalog, or electronic means (e.g., the Internet).  These 
requirements are contained in Section 15.117(k) of the Rules, which became effective on May 25, 2007.3
3. Section 15.117(k)(3) of the Rules requires that the Consumer Alert contain the following 
language:
The Consumer Alert must be in a size of type large enough to be clear, conspicuous and readily legible, 
consistent with the dimensions of the equipment and the label.  The alert either must be printed on a 
transparent material and affixed to the screen, in a manner that is removable by the consumer and does 
not obscure the picture when displayed for sale, or displayed separately immediately adjacent to each 
television receiver offered for sale and clearly associated with the analog-only model to which it pertains.  
In the case of other analog-only video devices that do not include a display (e.g., VCRs, DVD players), 
the Consumer Alert must be in a prominent location on the device, such as on the top or front, or 
  
1 47 C.F.R. 15.117(k).
2 Second Periodic Review of the Commission’s Rules and Policies Affecting the Conversion To Digital Television, 
Second Report and Order, 22 FCC Rcd 8776 (2007) (“Second DTV Periodic Report and Order”).
3 Second Periodic Review in the Commission’s Rules and Policies Affecting the Conversion to Digital Television, 72 
Fed. Reg. 28894-01 (May 23, 2007).
CONSUMER ALERT
This television receiver has only an analog broadcast tuner and will require a converter box after 
February 17, 2009, to receive over-the-air broadcasts with an antenna because of the Nation’s 
transition to digital broadcasting.  Analog-only TVs should continue to work as before with cable 
and satellite TV services, gaming consoles, VCRs, DVD players, and similar products.  For more 
information, call the Federal Communications Commission at 1-888-225-5322 (TTY: 1-888-835-
5322) or visit the Commission’s digital television website at: www.dtv.gov.
Federal Communications Commission DA 08-1377
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displayed separately immediately adjacent to and clearly associated with the analog-only model to which 
it pertains. To the extent that any persons display or offer for sale or rent via direct mail, catalog, or 
electronic means analog-only television receiving equipment, they must prominently display the 
Consumer Alert as part of all advertisements or descriptions of such television receiving equipment, in 
clear and conspicuous print, and in close proximity to any images or descriptions of such equipment.  
4. After the rule became effective, the Bureau began inspecting stores throughout the country, 
as well as popular retailer websites, and observed many models of analog-only television receiving 
equipment on display without the required Consumer Alert labels.  Beginning on or about May 29, 2007, 
the Bureau conducted inspections at multiple Variety stores.  Based on those inspections, and relying on 
publicly available information, the Bureau issued Citations to Variety for alleged violations of Section 
15.117(k) at its stores.  After affording Variety a reasonable opportunity to respond to the first Citation, 
agents and investigators from the Enforcement Bureau inspected Variety stores in various states and 
observed, in stores, what appeared to them to be television receiving equipment with analog-only tuners on 
display apparently without the required Consumer Alert labels.
III. TERMS OF AGREEMENT
5. Adopting Order.  The Parties agree that the provisions of this Consent Decree shall be 
subject to final approval by the Bureau by incorporation of such provisions by reference in the Adopting 
Order without change, addition, modification, or deletion.
6. Jurisdiction. Variety 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.
7. Effective Date;  Violations.  The Parties agree that this Consent Decree shall become 
effective on the date on which the Bureau releases the Adopting Order.  Upon release, the Adopting 
Order and this Consent Decree shall have the same force and effect as any other Order of the Bureau.  
Any violation of the Adopting Order or of the terms of this Consent Decree shall constitute a separate 
violation of a Bureau Order, entitling the Bureau to exercise any rights and remedies attendant to the 
enforcement of a Commission Order.
8. 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 said Investigation, Variety agrees to 
the terms, conditions, and procedures contained herein.  The Bureau further agrees that in the absence of 
new material evidence, the Bureau will not use the facts developed in this Investigation through the 
Effective Date of the Consent Decree, 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 Variety 
concerning the matters that were the subject of the Investigation.  The Bureau also agrees that it will not 
use the facts developed in this investigation through the Effective Date of this Consent Decree, or the 
existence of this Consent Decree, to institute on its own motion any proceeding, formal or informal, or 
take any action on its own motion against Variety with respect to Variety’s basic qualifications, 
including its character qualifications, to hold Commission authorizations.  
9. Consumer Education Regarding the DTV Transition:  Variety agrees to implement 
the following measures to educate the public about the upcoming digital transition:
A. Within sixty (60) days of the Effective Date, Variety will place an adhesive label 
on every box containing an analog-only television containing the FCC approved 
Federal Communications Commission DA 08-1377
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text of the Consumer Alert together with a statement that information on the 
digital transition is available at www.dtv.gov and www.dtv2009.gov. 
B. In fifty (50) percent of all print advertising featuring televisions between the 
Effective Date and February 17, 2009, Variety will include a reference to the 
February 17, 2009 DTV transition end date and refer to the FCC’s DTV 
transition website (www.dtv.gov).  
C. For Rose’s stores, a tradename of stores operated by Variety, within sixty (60) 
days of either the Effective Date or the date it receives a sample video from the 
Bureau, whichever is later, Variety will display a video announcement on the 
DTV transition and the National Telecommunications and Infrastructure 
Administration’s Digital-to-Analog Converter Box Coupon Program on a 
continuous loop in stores with such video capabilities.  [The Bureau shall provide 
100 copies of the video to Variety for its stores.]
D. Within sixty (60) days of either the Effective Date or the date it receives an 
electronic copy of a sample tipsheet on the DTV transition from the Bureau, 
whichever is later, Variety shall print and stock such tipsheets adjacent to 
television displays in stores.  In the event that the Commission or its designee 
notifies Variety that the tipsheet has been updated, Variety will use the revised 
tipsheet within 30 days of receipt  
10. Termination of Sales of Analog-Only Televisions.  Variety has not placed any orders 
for analog only televisions after February 5, 2008.  Variety’s stock of unsold analog-only televisions as 
of the Effective Date is less than 5,000 units and consists solely of refurbished televisions.  Variety shall 
terminate all domestic retail sales of analog-only televisions no later than December 31, 2008.  
Beginning August 29, 2008, and on the last business day of each successive month, Variety shall notify 
Diane Law-Hsu, Regional Counsel, South Central Region, Enforcement Bureau, Federal 
Communications Commission, at SCR-Response@fcc.gov whether Variety continues to sell analog-only 
televisions.  Beginning September 1, 2008, and continuing on the first business day of each successive 
month, Variety shall make a voluntary contribution to the United States Treasury in the amount of 
$1,500 until Variety no longer sells analog-only televisions.  Payment shall be made as described in 
Paragraph 13.  Variety’s audit staff will confirm compliance with this paragraph.  
11. Compliance Report.  Variety will file a compliance report with the Commission within 
90 days of the Effective Date and on February 17, 2009.  The compliance report shall include a 
compliance certificate from an officer, as an agent of Variety, stating that the officer has personal 
knowledge that Variety has established operating procedures intended to ensure compliance with this 
Consent Decree, together with an accompanying statement explaining the basis for the officer’s 
compliance certification.  The compliance reports shall be submitted to Kathryn S. Berthot, Chief, 
Spectrum Enforcement Division, Enforcement Bureau, Federal Communications Commission, 445 12th 
Street, S.W., Washington, D.C. 20554 and by e-mail at Kathy.Berthot@fcc.gov.  
12. Termination Date.  Unless stated otherwise, the requirements of this Consent Decree 
will expire February 17, 2009.
13. Voluntary Contribution.  Variety agrees that it will make a voluntary contribution to the 
United States Treasury in the amount of thirty eight thousand dollars ($38,000).  This payment will be 
made within thirty (30) days after the Effective Date of the Adopting Order.  Each payment must be 
made by check or similar instrument, payable to the order of the Federal Communications Commission.  
The payment must include the NAL/Account Number and FRN Number referenced in the caption to the 
Adopting Order.  Payment by check or money order may be mailed to Federal Communications 
Federal Communications Commission DA 08-1377
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Commission, P.O. Box 979088, St. Louis, MO 63197-9000.  Payment by overnight mail may be sent to 
U.S. Bank – Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 
63101.  Payments by wire transfer may be made to ABA Number 021030004, receiving bank 
TREAS/NYC, and account number 27000001.  For payment by credit card, an FCC Form 159 
(Remittance Advice) must be submitted. When completing the FCC Form 159, enter the NAL/Account 
number in block number 23A (call sign/other ID), and enter the letters “FORF” in block number 24A 
(payment type code).  Variety shall also send electronic notification on the date said payment is made to 
Diane Law-Hsu at SCR-Response@fcc.gov.
14. Waivers.  Variety 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, provided the Bureau issues the Adopting Order without change, 
addition, modification, or deletion.  Variety 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 Adopting Order, neither Variety nor 
the Commission shall contest the validity of the Consent Decree or the Adopting Order, and Variety shall 
waive any statutory right to a trial de novo.  Variety hereby agrees to waive any claims it may otherwise 
have under the Equal Access to Justice Act, 5 U.S.C. § 504 and 47 C.F.R. § 1.1501 et seq., relating to the 
matters addressed in this Consent Decree.
15. Severability. The Parties agree that if any of the provisions of the Adopting Order or the 
Consent Decree shall be invalid or unenforceable, such invalidity or unenforceability shall not invalidate 
or render unenforceable the entire Adopting Order or Consent Decree, but rather the entire Adopting 
Order or Consent Decree shall be construed as if not containing the particular invalid or unenforceable 
provision or provisions, and the rights and obligations of the Parties shall be construed and enforced 
accordingly.  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.
16. 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 Variety does not expressly 
consent) that provision will be superseded by such Commission rule or Order.
17. Successors and Assigns. Variety agrees that the provisions of this Consent Decree shall 
be binding on its successors, assigns, and transferees.  
18. Final Settlement. The Parties agree and acknowledge that this Consent Decree shall 
constitute a final settlement between the Parties.  The Parties further agree that this Consent Decree does 
not constitute either an adjudication on the merits or a factual or legal finding or determination regarding 
any compliance or noncompliance with the requirements of the Act or the Commission’s Rules and 
Orders.  
19. Modifications. This Consent Decree cannot be modified without the advance written 
consent of both Parties.
20. 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.
Federal Communications Commission DA 08-1377
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21. Authorized Representative.  Each party represents and warrants to the other that it has 
full power and authority to enter into this Consent Decree.
22. Counterparts. This Consent Decree may be signed in any number of counterparts 
(including by facsimile), each of which, when executed and delivered, shall be an original, and all of 
which counterparts together shall constitute one and the same fully executed instrument.
________________________________
Kris Anne Monteith
Chief
Enforcement Bureau 
________________________________
Date
________________________________
Peter J. Hayes
Chief Operating Officer
Variety Wholesalers, Inc.  
________________________________
Date