FCC Plans Retroactive Ban on Disguised DJI Gadgets

▼ Summary
– The FCC is preparing to retroactively ban gadgets from eight “DJI front companies” that allegedly smuggled DJI tech past a foreign drone ban.
– If the ban takes effect, products like Xtra’s DJI Osmo Pocket 3 clone must be removed from major retailers and US warehouses.
– The ban does not affect already-purchased gadgets and will not happen immediately, with a 30-day public comment period first.
– The FCC has “temporarily deferred the grantee codes” of these companies, a phrase a former FCC official says is unfamiliar.
– The FCC is also cutting ties with Chinese test lab SGS-CSTC Shenzhen, citing US law on foreign control thresholds.
The Federal Communications Commission is preparing to take its first major enforcement action using a newly granted power to retroactively ban electronic devices that had already received approval for import and sale in the United States. The target? So-called DJI front companies that the agency believes are smuggling Chinese drone technology past a federal ban.
Just two weeks ago, we highlighted a deal on Xtra’s version of the DJI Osmo Pocket 3, a product that had already secured FCC approval before the drone prohibition took effect. Today, it’s available on Amazon with next-day shipping. If the FCC’s retroactive ban is enacted, that camera would vanish from major online retailers and Xtra’s own website. The company might even be forced to write off unsold inventory sitting in U. S. warehouses, including Amazon’s.
The ban would not apply to devices already purchased by consumers, nor would it take effect immediately. The FCC is currently accepting public comments for 30 days. Although the agency has “tentatively” concluded that these companies are selling equipment that should be blocked due to national security concerns, it says it will consider “specific evidence” to the contrary.
Skepticism is warranted. The FCC largely ignored public input on net neutrality and was caught lying about a cyberattack. Moreover, the U. S. government has never publicly provided specific evidence that foreign drones pose a national security threat, nor explained why unrelated products like cameras should be swept into the ban. If you still want to weigh in, you can file an “Express Filing” here.
In the meantime, the FCC says it has “temporarily deferred the grantee codes” of the targeted companies, a phrase it has not defined. A former FCC official told The Verge he had never heard that expression before. We’ve asked the FCC whether this means those companies can no longer get future gadgets authorized for import and sale.
The specific companies under scrutiny include Cogito Tech, Fixaxo Technology, Lyno Dynamics, Skyhigh Tech, Spatial Hover, SZ Knowact and WaveGo Tech (both behind the Skyrover brand), and Xtra Technology. None responded to the FCC’s requests for information. Also targeted is agricultural drone maker XAG, which did reply once but failed to provide the information the FCC demanded.
All of these companies except XAG were flagged by Konrad Iturbe, who figured out how to track “FCC front companies” last year. The FCC also cited our earlier story about Xtra.
Today, the FCC is also severing ties with one of the Chinese testing labs that helped some of these products reach the market: SGS-CSTC Shenzhen. The lab argued it is not controlled by the Chinese government, noting that China-owned CSTC holds only a 15 percent stake. But under U. S. law, an entity is considered to have control if it owns 10 percent or more of a company, at least when it comes to authorizing radios for U. S. use.
On July 10th, the FCC warned it might take further action against the eight “DJI front companies” if they did not respond by today, July 20th. We’ll report back on what happens next.
(Source: The Verge)

