Overview of the Settlement
On May 12, 2014, the Federal Communications Commission's Enforcement Bureau released an Order adopting a Consent Decree with VTech Electronics Limited (VTech). The order terminates an investigation into whether the company marketed and imported its Wi-Fi Learning App Tablet, the InnoTab 2S, prior to securing required FCC equipment authorization.
Under the terms of the Consent Decree, VTech agreed to pay a $19,000 voluntary contribution to the United States Treasury and implement a comprehensive three-year compliance plan to ensure adherence to FCC equipment marketing and importation regulations.
Investigation Background and Technical Details
The Enforcement Bureau's Spectrum Enforcement Division initiated the investigation following a complaint that VTech was marketing the InnoTab 2S in the United States without authorization. On June 6, 2013, the Bureau issued a Letter of Inquiry directing VTech to provide detailed information regarding its manufacturing, testing, and marketing activities.
According to VTech's response, an approved testing facility informed the company on October 10, 2012, that the InnoTab 2S complied with FCC Part 15 requirements. However, official equipment certification was not issued until November 8, 2012. VTech admitted to marketing the device prior to the issuance of the certification.
The Commission's Office of Engineering and Technology initially dismissed VTech's equipment certification application because the testing facility had not properly conducted localized specific absorption rate (SAR) testing under Section 2.1093 of the Commission's rules. Following satisfactory retesting, the FCC granted certification for the device on November 20, 2012, under FCC ID G2R-1568.
Regulatory Marketing Requirements
Under Section 302(b) of the Communications Act of 1934, as amended, and Section 2.803 of the Commission's rules, intentional radiators cannot be marketed in the United States without prior equipment authorization. Marketing includes sale, lease, advertising, importation, and shipment for commercial distribution.
Additionally, Section 2.1204 of the Commission's rules prohibits the importation of radio frequency devices into the United States unless the equipment has received an appropriate FCC authorization or meets specific regulatory exceptions.
Compliance Plan Obligations
To resolve the matter, VTech agreed to carry out several compliance measures over a 36-month period:
The Consent Decree stipulates that failure to comply with the established compliance plan or reporting requirements constitutes a separate violation of an FCC order.
- Designate a senior corporate manager as Compliance Officer within 30 days of the Effective Date.
- Establish written Operating Procedures within 60 days to ensure all radio frequency devices are properly certified and meet labeling and importation rules before marketing.
- Develop and distribute an Equipment Marketing Compliance Manual to all covered employees within 60 days.
- Implement an annual Compliance Training Program covering marketing regulations and internal reporting mechanisms.
- Report any discovered noncompliance to the Spectrum Enforcement Division within 15 calendar days.
- Submit periodic compliance reports to the Commission at intervals of 90 days, 12 months, 24 months, and 36 months.