Another internet seller gets "noticed".



Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of )

)

Palco Electronics, Inc. ) File No. EB-04-DT-062

)

Southgate, Michigan ) Citation No. C20043236003 )

CITATION

Released: February 20, 2004

By the Enforcement Bureau, Detroit Office:

1.

This is an official Citation issued pursuant to Section 503(b)(5) of the
Communications Act of 1934, as amended ("Act"), to Palco Electronics, Inc.
("Palco") for violation of Section 302(b) of the Act, and Section
2.803(a)(1) of the Commission's Rules ("Rules").

2..

On February 10, 2004, Palco offered for sale at their store located at 18676
Eureka Road, Southgate, Michigan, the following non-certified Citizens Band
("CB") transceivers:

NAME MODEL COST

President Lincoln $269.99

Ranger Communications American Spirit (SS-3900 EGHPA) $199.99

Ranger RCI 2950 DX $269.99

Ranger RCI 2970 DX $399.99

Ranger RCI 6900F Turbo $454.99

Ranger RCI 2985 DX $439.99

Ranger RCI 2995 DX $589.99

According to the Commission's records, these devices have not received an
FCC equipment authorization which is required for Citizens Band transmitters
marketed in the United States.

3.

Section 302(b) of the Act provides "No 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." Section 2.803(a)(1) of the Rules provides that ".
no person shall sell or lease, or offer for sale or lease (including
advertising for sale or lease), or import, ship or distribute for the
purpose of selling or leasing or offering for sale or lease, any radio
frequency device unless: (1) In the case of a device subject to
certification, such device has been authorized by the Commission in
accordance with the rules in this chapter and is properly identified and
labeled.." Palco's offer for sale of these devices violates both sections.

4.

Palco marketed these devices as amateur transceivers. The Commission has
evaluated radiofrequency devices similar to those listed in paragraph 2 and
concluded that the devices at issue are not only amateur radios but can
easily be altered for use as CB devices as well. A CB transmitter is a
transmitter that operates or is intended to operate at a station authorized
for the CB service, and it must be certificated by the FCC prior to
marketing or importation. The Commission has further concluded that these
devices fall within the definition of a CB transmitter and therefore cannot
legally be imported or marketed in the United States. See Response from the
Commission's General Counsel to U.S. Customs Service dated May 17, 1999, 14
FCC Rcd 7797 (1999).

5.

Additionally, dual use CB and amateur radios of the kind at issue here may
not be certificated under the Commission's rules. Section 95.655(a) of the
Rules states "..([CB] Transmitters with frequency capability for the Amateur
Radio Services..will not be certificated." See also FCC 88-256, 1988
WL488084 (August 17, 198 . This clarification was added to explicitly
foreclose the possibility of certification of dual use CB and amateur
radios, see id., and thereby deter use by CB operators of frequencies
allocated for amateur radio use.

6.

Furthermore, the Commission has revised Section 2.1204(a)(5) of its Rules to
prohibit all marketing and/or offering for sale in the United States of such
devices even when the purchaser(s) had provided assurances that the
transceivers are being bought solely for export. ALL DOMESTIC MARKETING OF
SUCH DEVICES VIOLATES THE COMMUNICATIONS ACT OF 1934, AS AMENDED, AND THE
COMMISSION'S RULES.

7.

In addition to the marketing of the non-certified transceivers addressed
above, Palco is hereby warned that Section 302(b) of the Act and Section
2.815(c) of the Rules requires FCC Type Acceptance (or Certification) of
External Radio Frequency Power Amplifiers (or amplifier kits) capable of
operation on any frequency or frequencies below 144 MHz. Furthermore,
Section 2.815(b) of the Rules prohibits the marketing of External Radio
Frequency Power Amplifiers (or amplifier kits) capable of operation on any
frequency or frequencies between 24 and 35 MHz.

8.

Subsequent violations of the Communications Act and/or the Commission's
Rules may subject the violator to substantial monetary forfeitures not to
exceed $11,000 for each such violation or each day of a continuing
violation, seizure of equipment through in rem forfeiture action, and
criminal sanctions including imprisonment.

9.

Palco may request a personal interview at the Commission's Field Office
nearest your place of business. The nearest office is the Detroit Office,
24897 Hathaway Street, Farmington Hills, Michigan 48335-1552 , which you may
contact by telephone at (24 471-5661. You must schedule this interview to
take place within fourteen (14) days of the date of this Citation.
Alternatively, you may submit a written statement to the above address
within fourteen (14) days of the date of this Citation. Any written
statement should specify what actions have been taken to correct the
violations outlined above. Please reference case number EB-04-DT-062 when
corresponding with the Detroit Office.

10.

This Citation shall be sent First Class U.S. Mail and, Certified Mail,
Return Receipt Requested, to Palco Electronics, Inc., 18676 Eureka Road,
Southgate, Michigan 48195.

11.

The Privacy Act of 1974 requires that we advise you that the Commission will
use all relevant material information before it, including any information
disclosed in your reply, to determine what, if any, enforcement action is
required to ensure compliance. Any false statement made knowingly and
willfully in reply to this Citation is punishable by fine or imprisonment
under Title 18 of the U.S. Code. Please be advised that if you choose not to
respond to this Citation and a forfeiture is issued, your unresponsiveness
will be considered in our assessment of a forfeiture amount.

FEDERAL COMMUNICATIONS COMMISSION

James A. Bridgewater

District Director

Detroit Office

47 U.S.C. § 503(b)(5)

47 U.S.C. § 302(b)

47 C.F.R. § §2.803(a)(1)

See 47 C.F.R, §§ 95.603(c), 2.803

47 C.F.R. § 95.655(a)

47 C.F.R. § 2.1204(a)(5) revised effective February 28, 2000

47 C.F.R. § 2.815(c)

47 C.F.R. § 2.815(b)

See 47 C.F.R. § 1.80(b)(3)

See 47 U.S.C. §§ 401, 501, 503, 510

P.L. 93-579, 5 U.S.C. § 552a(e)(3)

18 U.S.C. § 1001 et seq.

Federal Communications Commission

1

3

Federal Communications Commission