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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                             )                           
                                                                         
     In the Matter of                        )                           
                                                                         
     DealExtreme                             )   File No.: EB-07-SE-300  
                                                                         
     Hong Kong, People's Republic of China   )                           
                                                                         
                                             )                           


                                    CITATION

    ILLEGAL MARKETING OF CELL PHONE AND GPS JAMMERS IN THE UNITED STATES AND
                  FAILURE TO RESPOND TO FCC LETTERS OF INQUIRY

   Adopted: February 9, 2011 Released: February 9, 2011

   By the Acting Chief, Spectrum Enforcement Division, Enforcement Bureau:

   I. INTRODUCTION

    1. This is an official CITATION, issued pursuant to section 503(b)(5) of
       the Communications Act of 1934, as amended ("Communications Act"), to
       DealExtreme for marketing in the United States unauthorized radio
       frequency devices in violation of section 302(b) of the Communications
       Act, and sections 2.803 and 15.205(a) of the Commission's rules
       ("Rules"), and for failing to respond to Enforcement Bureau Letters of
       Inquiry ("LOIs") directing DealExtreme to provide certain information
       and documents.

    2. DealExtreme should take immediate steps to come into compliance and to
       avoid any recurrence of this misconduct. In addition, you must to
       respond to the Enforcement Bureau's June 12, 2009 LOI within thirty
       (30) days of the date of this Citation. As explained below and as
       provided in the Communications Act, future violations of the
       Communications Act and the Rules in this regard may subject your
       company to substantial monetary penalties, seizure of equipment and
       criminal sanctions.

   II. Background

    3. The Spectrum Enforcement Division ("Division") of the Enforcement
       Bureau ("Bureau") of the Federal Communications Commission has
       received numerous complaints indicating that DealExtreme is marketing
       in the United States cell phone signal blocker devices on its web
       site, www.dealextreme.com. The Division has also received
       documentation demonstrating that DealExtreme sold and shipped a jammer
       device to a Brooklyn, New York resident in May 2009, and to a school
       in Kentucky in 2010. Additionally, the Bureau received a jamming
       device through the mail from DealExtreme as a result of an on-line
       purchase in June 2010. On numerous occasions, the Division has visited
       DealExtreme's web site and observed that it was marketing both cell
       phone signal blocker devices and GPS blocker devices (collectively,
       "jammer devices").

    4. On February 21, 2008, the Division sent an LOI to DealExtreme via
       certified mail initiating an investigation into DealExtreme's
       marketing of jammer devices in the United States. The Division sent a
       second LOI to DealExtreme via Federal Express on June 12, 2009.
       Federal Express tracking records show that the second LOI was
       delivered to DealExtreme on June 15, 2009, at the address referenced
       below. To date, the Division has not received a response from
       DealExtreme to either letter.

   III. Applicable Law and Violations

    5. Federal law prohibits the marketing and operation of cell phone
       jammers in the United States. Section 333 of the Communications Act
       states that "[n]o person shall willfully or maliciously interfere with
       or cause interference to any radio communications of any station
       licensed or authorized by or under this Act or operated by the United
       States Government." In addition, section 302(b) of the Communications
       Act provides that "[n]o 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."

    6. The applicable implementing regulations for section 302(b) are set
       forth in sections 2.803, 15.201 and 15.3(o) of the Rules. 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 ... [i]n 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 as required by S: 2.925 and other relevant sections in this
   chapter.

   Additionally, section 2.803(g) of the Rules provides in pertinent part
   that:

   [R]adio frequency devices that could not be authorized or legally operated
   under the current rules ... shall not be operated, advertised, displayed,
   offered for sale or lease, sold or leased, or otherwise marketed absent a
   license issued under part 5 of this chapter or a special temporary
   authorization issued by the Commission.

    7. Pursuant to section 15.201(b) of the Rules, before intentional
       radiators like cell phone jammers can be marketed in the United
       States, they must be authorized in accordance with the Commission's
       certification procedures. Section 2.803(e)(4) of the Rules defines
       "marketing" as the "sale or lease, or offering for sale or lease,
       including advertising for sale or lease, or importation, shipment, or
       distribution for the purpose of selling or leasing or offering for
       sale or lease."

    8. Jamming devices, however, cannot be certified or authorized because
       the main purpose of the jammer device is to block or interfere with
       radio communications. As noted above, such use is clearly prohibited
       by section 333 of the Communications Act. Moreover, GPS signal
       blockers operate within restricted frequency bands listed in section
       15.205(a) of the Rules. Thus, these devices cannot comply with the
       FCC's technical standards and therefore cannot be marketed in the
       United States.

    9. Accordingly, we find that DealExtreme has violated section 302(b) of
       the Communications Act and sections 2.803 and 15.205(a) of the Rules
       by marketing in the United States radio frequency devices that are not
       eligible for certification.

   10. Sections 4(i), 4(j), and 403 of the Communications Act afford the
       Commission broad authority to investigate the entities it regulates.
       Section 4(i) authorizes the Commission to "issue such orders, not
       inconsistent with this Act, as may be necessary in the execution of
       its functions." Section 4(j) states that "[t]he Commission may conduct
       its proceedings in such manner as will best conduce to the proper
       dispatch of business and to the ends of justice." Section 403 grants
       the Commission "full authority and power at any time to institute an
       inquiry, on its own motion, in any case and as to any matter or thing
       concerning which complaint is authorized to be made, to or before the
       Commission by any provision of this Act, or concerning which any
       question may arise under any of the provisions of this Act."

   11. Pursuant to this authority, we sent LOIs to DealExtreme in February of
       2008 and again in June of 2009, directing you to provide certain
       information and documents. Federal Express tracking records confirm
       that DealExtreme received the second LOI on June 15, 2009. To date,
       however, we have received no response to either LOI. A party may not
       ignore the directives in a Bureau LOI. Accordingly, we find that
       DealExtreme has also violated Commission orders by failing to respond
       to Enforcement Bureau directives to provide certain information and
       documents. You are again ordered, pursuant to sections 4(i), 4(j), and
       403 of the Communications Act, to provide the information requested in
       our June12, 2009, LOI (copy enclosed). You must provide this
       information in the manner indicated therein within thirty (30) days of
       the date of this Citation.

   12. We therefore issue this Citation to DealExtreme for violating the
       Communications Act and the Rules as discussed above. DealExtreme
       should take immediate steps to ensure that it does not continue to
       violate the Communications Act and the Rules.

   IV. Future Compliance

   13. If, after receipt of this Citation, DealExtreme violates the
       Communications Act or the Rules by engaging in conduct of the type
       described herein, the Commission may impose monetary forfeitures of up
       to $16,000 for each such violation or each day of a continuing
       violation and up to $112,500 for any single act or failure to act. In
       addition, violations of the Communications Act or the Rules can result
       in seizure of equipment through in rem forfeiture actions, as well as
       criminal sanctions, including imprisonment.

   14. Deal Extreme may respond to this Citation within thirty (30) days
       after the release of this Citation through (1) a personal interview at
       the closest FCC office, or (2) a written statement. Any written
       statement should specify what actions have been taken by DealExtreme
       to ensure that it does not violate the Communications Act and the
       Rules prohibiting the marketing of radio frequency jamming devices in
       the future. Please reference the EB file number EB-07-SE-300 when
       corresponding with the Commission.

   15. Under the Privacy Act of 1974, any statement or information provided
       by you may be used by the Commission to determine if further
       enforcement action is required. Any knowingly or willfully false
       statement or concealment of any material fact, made in reply to this
       Citation is punishable by fine or imprisonment. Please also note that
       section 1.17 of the Rules requires that you provide truthful and
       accurate statements to the Commission.

   V. Contact Information

   16. The closest FCC Office is the Seattle District Office, in Kirkland,
       Washington. Please call Katherine Power at 202-418-0919 if you wish to
       schedule a personal interview, which must take place within thirty
       (30) days after the release of this Citation. You should send any
       written statement within thirty (30) days after the release date of
       this Citation to:

   Ricardo M. Durham

   Acting Chief, Spectrum Enforcement Division

   Enforcement Bureau

   Federal Communications Commission

   445 12th Street, S.W., Rm. 3-C460

   Washington, D.C. 20554

   Re: EB File No. EB-07-SE-300

   17. Reasonable accommodations for people with disabilities are available
       upon request. Include a description of the accommodation you will need
       including as much detail as you can. Also include a way we can contact
       you if we need more information. Please allow at least five (5) days
       advance notice; last minute requests will be accepted, but may be
       impossible to fill. Send an e-mail to fcc504@fcc.gov or call the
       Consumer & Governmental Affairs Bureau:

   For sign language interpreters, CART, and other reasonable accommodations:

   202-418-0530 (voice), 202-418-0432 (tty);

   For accessible format materials (braille, large print, electronic files,
   and audio format):

   202-418-0531 (voice), 202-418-7365 (tty).

   VI. ORDERING CLAUSES

   18. IT IS ORDERED, that pursuant to sections 4(i), 4(j), and 403 of the
       Communications Act, DealExtreme must provide the information requested
       in our June12, 2009 Letter of Inquiry as indicated above within thirty
       (30) days of the release of this Citation in the manner indicated by
       our June 12, 2009 Letter of Inquiry.

   19. IT IS FURTHER ORDERED that a copy of this Citation shall be sent by
       first class mail and United Parcel Service to DealExtreme, 21 Man Lok
       Street, Focal Industrial Centre, Block B, Room 225-226, Hung Hon, Kow
       Loon, Hong Kong, People's Republic of China and by electronic mail to:
       sales@dealextreme.com.

   FEDERAL COMMUNICATIONS COMMISSION

   Ricardo M. Durham

   Acting Chief

   Spectrum Enforcement Division

   Enforcement Bureau

   47 U.S.C. S: 503(b)(5).

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803, 15.205(a).

   Specifically, the Brooklyn, New York resident provided an email from
   DealExtreme confirming shipment of a jammer device to the resident. The
   school official in Frenchburg, Kentucky relinquished the devices to an FCC
   investigator on August 18, 2010.

   See http://dealextreme.com/details.dx/sku.4355 (offering for sale a
   personal cell phone signal blocker) and
   http://dealextreme.com/details.dx/sku.8758 (offering for sale a GPS signal
   blocker) (visited 4/24/2008, 4/13/2009, 7/13/2009, 7/19/2010, and
   2/3/2011).

   Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, to DealExtreme
   (February 21, 2008).

   Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, to DealExtreme
   (June 12, 2009).

   See Federal Express Tracking No. 832720587585. Federal Express tracking
   records show that the June 12, 2009 LOI was signed for by "Chop Ms
   Cheung."

   47 U.S.C. S: 333.

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803, 15.201, and 15.3(o).

   47 C.F.R. S: 2.803(a)(1).

   47 C.F.R. S: 2.803(g).

   47 C.F.R. S: 15.201(b).

   Section 15.3(o) of the Rules defines an "intentional radiator" as a
   "device that intentionally generates and emits radio frequency energy by
   radiation or induction." 47 C.F.R. S: 15.3(o).

   47 C.F.R. S: 2.803(e)(4).

   47 C.F.R. S: 15.205(a).

   Furthermore, we note that it is not sufficient to merely include a notice
   on your web site indicating that jammer devices may not be allowed in
   certain countries, and stating that it is the purchaser's responsibility
   to comply with local regulations. Such a statement is a misrepresentation
   to consumers as section 2.803(a) is specifically directed at, and
   enforceable against, persons selling, leasing, offering for sale or lease,
   importing, shipping, or distributing for the purpose of sale or lease,
   noncompliant radio frequency devices. Therefore, as a seller of such
   devices, DealExtreme is also responsible for understanding and complying
   with FCC rules. As noted supra, it is a violation of the Communications
   Act and the Rules for DealExtreme to sell or distribute these jammer
   devices to individuals in the United States.

   47 U.S.C. S:S: 154 (i), 154 (j), 403.

   47 U.S.C. S: 154 (i).

   47 U.S.C. S: 154 (j).

   47 U.S.C. S: 403.

   See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC Rcd 7589,
   7591 (2002). In SBC Communications, the Commission assessed a $100,000
   forfeiture against a carrier for its willful refusal to supply a sworn
   declaration in response to an Enforcement Bureau letter of inquiry. The
   Commission stated: "[T]he order at issue here was squarely within the
   Commission's authority and, in any event, parties are required to comply
   with Commission orders even if they believe them to be outside the
   Commission's authority." Id. at 7591.

   See 47 U.S.C. S: 503; 47 C.F.R. S: 1.80(b)(3). These amounts are subject
   to further adjustment for inflation (see id. S: 1.80(b)(5)), and the
   forfeiture amount applicable to any violation will be determined based on
   the statutory amount designated at the time of the violation.

   See 47 U.S.C. S: 510.

   See 47 U.S.C. S:S: 401, 501.

   See Privacy Act of 1974, 5 U.S.C. S: 552a(e)(3).

   See 18 U.S.C. S: 1001.

   47 C.F.R. S: 1.17 ("[N]o person subject to this rule shall; (1) In any
   written or oral statement of fact, intentionally provide material factual
   information that is incorrect or intentionally omit material information
   that is necessary to prevent any material factual statement that is made
   from being incorrect or misleading; and (2) In any written statement of
   fact, provide material factual information that is incorrect or omit
   material information that is necessary to prevent any material factual
   statement that is made from being incorrect or misleading without a
   reasonable basis for believing that any such material factual statement is
   correct and not misleading.")

   Federal Communications Commission DA 11-248

   5

   Federal Communications Commission DA 11-248