FCC targets digital TV rule-breakers

Federal regulators on Thursday fined Wal-Mart Stores Inc., Best Buy Co. Inc., and other retailers $3.9 million combined for failing to properly label that analog-only televisions will need to be retrofitted after the switch to digital TV next year.

The Federal Communications Commission also handed down $2.7 million in fines to other companies for violating other digital TV rules that involve shipping analog equipment and blocking technologies such as the V-chip.

The FCC, which conducted numerous inspections last June, said it initially issued warnings to companies, whose stores and Web sites across the country were in violation of the rule. The agency said it gave each company “a reasonable opportunity” to respond.

Sears Holding Corp., which operates Sears and Kmart retail stores, was fined nearly $1.1 million for the labeling violation, while Wal-Mart was given a $992,000 fine and Circuit City Stores Inc. was handed a $712,000 fine. Target, Best Buy, Fry’s Electronics Inc. and CompUSA Inc., which has since been acquired by Systemax Inc., were assessed fines between $168,000 to $384,000.

•Xerox Corp. and representatives of current and former black sales representatives have settled a class action lawsuit accusing the office equipment manufacturer of race discrimination, the company said Thursday.

The settlement, which includes payment of $12 million to 1,100 former and current employees, in addition to legal fees, received preliminary approval from a federal judge, said Diane Bradley, a lawyer who represented the employees.

Xerox denied it engaged in policies or practices of unlawful discrimination or retaliation or other unlawful conduct.

“However, Xerox believes it is in the best interest of its shareholders and employees to settle the lawsuit, bringing to an end the protracted and costly litigation,” the company said in a statement.

•The chairman of Sharper Image Corp. has resigned, a departure triggered by his notice that he wants to buy all or part of the specialty retailer, the company said Thursday.

Jerry Levin’s exit comes just two months after the beleaguered San Francisco-based company named a new chief executive – its third in a year and a half – and filed for bankruptcy protection as it tries to survive a worsening sales slump.

Sharper Image said in a statement that Levin agreed to resign from the board of directors after notifying top executives that he’s interested in teaming with other investors in an attempt to buy the company.