Inquiry into Online Marketplaces Over Unauthorized IoT Sales
On March 8, 2024, Federal Communications Commission (FCC) Commissioner Geoffrey Starks issued letters of inquiry to the chief executive officers of five major e-commerce platforms: Amazon, Sears (Transform SR Holding Management LLC), Shein, Temu (WhaleCo, Inc.), and Walmart. The letters seek detailed information on the processes these platforms use to prevent the sale and promotion of radio frequency (RF) devices that violate FCC equipment authorization rules.
The inquiry follows investigative reporting published on February 29, 2024, by Consumer Reports and The Washington Post, which documented the widespread availability of insecure connected video doorbells on major retail platforms. The reports highlighted smart doorbells manufactured by the Eken Group—sold under brand names including Eken, Tuck, Fishbot, Rakeblue, Andoe, Gemee, and Luckwolf—that lacked basic cybersecurity safeguards and, in some cases, were sold without a visible FCC ID.
Statutory Authority and RF Equipment Compliance
In his letters, Commissioner Starks emphasized that unauthorized RF devices present serious risks to wireless supply chain integrity and create potential harmful interference for authorized radio spectrum operations. Section 302(b) of the Communications Act of 1934, as amended (47 U.S.C. § 302(b)), prohibits the manufacturing, importation, marketing, sale, offer for sale, shipment, or use of devices that fail to conform with Commission regulations.
Additionally, Section 2.803(b)(1) of the Commission's rules (47 C.F.R. § 2.803(b)(1)) provides that no person may market an RF device subject to certification unless it has received proper authorization, identification, and labeling. Commissioner Starks also noted the equipment authorization process serves as an essential barrier to prevent equipment from entering the U.S. communications supply chain if it poses an unacceptable risk to national security or public safety.
Specific Information Requested from Retailers
Each platform received specific sets of questions regarding their seller compliance verification systems, fulfillment services, and advertising programs. Commissioner Starks directed all five companies to submit written responses by Friday, March 22, 2024.
The inquiry specifically requested clarification on several operational areas:
- Verification procedures used to ensure that RF-emitting products offered on each platform possess a valid FCC authorization prior to listing.
- Utilization of the FCC Certified Equipment Database and public search functions to verify applicant names, grantee codes, and product codes.
- Vetting protocols applied to sponsored product listings and whether the platforms collected advertising revenue from non-compliant video doorbell listings.
- Due diligence practices tied to fulfillment, warehousing, shipping, distribution, and payment processing services provided to third-party merchants.
- Platform-specific promotional mechanisms, such as Amazon's vetting and assignment of the 'Amazon’s Choice: Overall Pick' badge to listed doorbells.
- Historical compliance actions, including steps taken by Walmart following Spectrum Enforcement Division citations issued in 2005 (DA 05-1029) and 2009 (DA 09-1824) for marketing non-compliant RF devices.
- Future plans to integrate the forthcoming U.S. Cyber Trust Mark IoT labeling program into marketplace product displays.