The FCC cited Panasystem for allegedly importing and marketing...

The FCC cited Panasystem for allegedly importing and marketing counterfeit smartphones marked with unauthorized or invalid labels falsely indicating they were certified by the agency. The Enforcement Bureau ordered the online electronics retailer to immediately stop importing and marketing the uncertified devices or face monetary penalties, said an agency news release Tuesday (http://fcc.us/1k2C22g). It said an 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 allegedly showed Samsung neither manufactured the devices nor authorized the FCC identifier labels. The investigation allegedly found Panasystem imported counterfeit BlackBerry model 9790 devices labeled with invalid FCC identifiers, which rendered them illegal for sale in the U.S. By law, smartphones must 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 commission authorization. Panasystem must “take immediate steps to come into compliance and discontinue the importation and marketing of uncertified radio frequency devices,” said a bureau citation (http://fcc.us/1obuuKO). It said 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 seizures and criminal charges. The company declined to comment.