FCC Cites California Company for Importing Improperly Labeled Counterfeit Smartphones
The Federal Communications Commission cited a California company for importing and marketing counterfeit smartphones marked with unauthorized or invalid labels falsely indicating that the phones were certified by the FCC. The FCC ordered Panasystem Corp., an online electronics retailer, to immediately stop importing and marketing the uncertified devise or else face monetary penalties.
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The FCC says its investigation identified the smartphones imported by Panasystem as counterfeit Samsung “Galaxy S Duos” and “Galaxy Ace.” Although the devices were labeled with seemingly-valid Samsung FCC Identifiers, the investigation showed that Samsung neither manufactured the devices nor authorized the FCC Identifier labels, said the FCC. The investigation also revealed that Panasystem imported counterfeit BlackBerry model 9790 devices labeled with invalid FCC Identifiers, which rendered them illegal for sale in the United States, according to the FCC.
By law, smartphones have to be certified in accordance with FCC technical standards before they can be marketed in the U.S. Certified smartphones are labeled with a unique FCC Identifier that can’t be placed on devices without FCC authorization. Smartphones labeled with invalid or unauthorized Identifiers are illegal to import into the U.S., said the FCC.
The FCC’s citation told Panasystem that it has to “take immediate steps to come into compliance and discontinue the importation and marketing of uncertified radio frequency devices, such as smartphones.” If Panasystem continues to import and market uncertified devices, it may be subject to penalties of up to $16,000 for each model per day for each violation, up to $122,500 for any single act or failure to act, and eventually even seizures and criminal charges, said the FCC.