XM Satellite Radio disclosed in a regulatory filing last Thursday that the Federal Communications Commission found that one of its products, the Delphi XM SKYFi2, wasn't in compliance with applicable transmitter emission limits. XM says it is conducting an internal review, will respond to the letter shortly and is cooperating fully.
XM also said the Federal Trade Commission was investigating whether its marketing practices were in line with rules governing telemarketing, including the Telemarketing Sales Rule and the Truth in Lending Act. The company said in the filing that it received both inquiries on April 25th and was cooperating fully with them.
It's a little early to actually say what the reprocussions of these inquiries entail, but the FCC investigation seems a little late considering how long the unit has been on the market. On a conference call with analysts, XM Satellite Radio's chairman Gary Parsons said the FCC notice on the radio unit was unlikely to result in a product recall, and noted that it was not a health or safety issue.
Also speaking on the call, Hugh Panero, the CEO of XM Satellite Radio, expressed frustration that the notices came so soon before the company's earnings announcement. "I would like to avoid having these kinds of letters show up two days before our earnings call, but that's the journey we're on right now," Panero said. He said he believed the company was already complying with marketing rules.
XM also said the Federal Trade Commission was investigating whether its marketing practices were in line with rules governing telemarketing, including the Telemarketing Sales Rule and the Truth in Lending Act. The company said in the filing that it received both inquiries on April 25th and was cooperating fully with them.
It's a little early to actually say what the reprocussions of these inquiries entail, but the FCC investigation seems a little late considering how long the unit has been on the market. On a conference call with analysts, XM Satellite Radio's chairman Gary Parsons said the FCC notice on the radio unit was unlikely to result in a product recall, and noted that it was not a health or safety issue.
Also speaking on the call, Hugh Panero, the CEO of XM Satellite Radio, expressed frustration that the notices came so soon before the company's earnings announcement. "I would like to avoid having these kinds of letters show up two days before our earnings call, but that's the journey we're on right now," Panero said. He said he believed the company was already complying with marketing rules.
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