NAD Victory -- FCC Rules on Shop at Home Network

The NAD filed a complaint with the Federal Communications Commission (FCC) in June, 2001, alleging that the Shop at Home Network was not captioning its programs in accordance with FCC rules. The Network filed a response saying that they were exempt from captioning rules because they were a "new network." The FCC found that they while they officially evolved into a new network in 1996; they were functionally a network by 1995 for the purposes of the FCC rules, and should have been complying with captioning provisions by the first quarter of 2000. The FCC Order states that the Network must comply with the rules or may face penalties. This is a major victory for the NAD.

Pamela Holmes, chair of the NAD Telecommunications Advocacy Network, an ad hoc NAD Board Committee, said: "This is a worthwhile precedent which clarifies, in part, the 'new network exemption' that applies to closed captioning requirements."

The Opinion and Order was released January 29, 2002. The complaint was written June 2001 for the NAD by Sarah S. Geer, former attorney in the NAD Law Center.

Although Shop At Home asserts it "evolved into a network" in 1996, its corporate web page indicates that in 1996 net sales for Shop At Home were approximately $41 million. Indeed, Shop At Home has been in operation, producing programming, garnering revenue, and employing staff for approximately 15 years. In any event, it is clear that by 1995 Shop At Home was providing 24 hours of television programming, 7 days a week, simultaneously to more than one interconnected broadcast station. Given this fact, Shop At Home attained network status as of that time, if not before, for purposes of Section 79.1(d)(9) of the FCC rules.

The FCC found that Shop At Home should have begun complying with the captioning provisions beginning in the first quarter of the year 2000. They noted that even if they were to agree that Shop At Home qualified for the new network exemption, captioning of its programming already should have been included in its operation plans and provided to the public. Shop At Home must be captioning at the level required each quarter during the new benchmark period. Between January 1, 2002, and December 31, 2003, video programming distributors will be required to provide at least 900 hours of captioned video programming per quarter. If it fails to comply with these requirements, Shop At Homes violation of its captioning obligations may result in penalties, as provided in Section 79.1(g)(8).

A copy of the FCC Order may be downloaded from their website, http://www.fcc.gov: [2]

Word document:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-212A1.doc [3]

PDF document:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-212A1.pdf [4]

Text document:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-212A1.txt [5]