The Federal Communications Commission has adopted major rule changes, and proposed additional changes, that affect producers and sellers, including online marketplaces, of wireless equipment. These changes are designed to improve supply chain safety for wireless equipment, and national and economic security.
The FCC is no longer reviewing only complete wireless products. It is also examining component parts, starting with “logic-bearing hardware” components. Moreover, online marketplaces can no longer rely on claims by third-party sellers that devices are compliant with FCC requirements. Instead, marketplaces are now considered sellers (“marketers,” in FCC-terminology) themselves.
The new rules will become effective on September 8, 2026, except that the requirement for online platforms to display FCC IDs will go into effect in approximately six or nine months depending on whether the marketplace takes title to or has physical access to the product.
The FCC is also proposing additional rule changes to further tighten supply chain controls. Comments and Reply Comments on these additional proposals, which are discussed below, are due September 8, 2026 and September 21, 2026 respectively.
The FCC’s order and notice build on recent FCC actions involving the “Covered List”, in which the FCC prohibited the importation or sale of certain new equipment the Executive Branch determined poses a threat to national security. In recent months, the FCC added categories of foreign-produced equipment to the Covered List, such as uncrewed aircraft systems (UAS), critical UAS components, routers, power inverters, and advanced-robotics devices.
KEY DECISIONS
In the Report and Order, the FCC took several actions to tighten the supply chain rules.
Closing the “Component Part Loophole” for Logic-Bearing Hardware
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- Logic-Bearing Hardware. The FCC closed what Chairman Brendan Carr refers to as “the component part loophole.” Before, an entity on the Covered List could not obtain an equipment authorization for a new device, but there was no mechanism to prevent other entities from using component parts from a Covered List entity in the other entities’ finished products. The new rule significantly closes this loophole by prohibiting applicants for wireless equipment authorizations from including in their equipment logic-bearing hardware components produced by Covered List entities. This ban currently applies only to hardware, not software or firmware.
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- What is a logic-bearing hardware component? The FCC defined logic-bearing component parts as physical components, including integrated circuits, modules, or sub-assemblies that utilize digital techniques for data processing functions. This is essentially the same definition used for a “digital device” in FCC rule 15.3. By contrast, “dumb” components, such as purely mechanical or structural parts, or passive electrical parts that do not perform digital logic functions, are outside the scope of the prohibition.
Clarifying Applicability of Equipment Marketing Rules to Online Marketplaces
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- Online Marketplaces Subject to FCC Equipment Marketing Rules. The FCC clarified that its equipment marketing rules reach online marketplaces that list, distribute, or offer non-compliant equipment for sale. The FCC modified its definition of “marketing” to include the listing of regulated equipment on an online platform in combination with fulfillment services provided to third parties, such as warehousing, inventory management, order processing, packaging, or billing.
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- Display FCC ID at Online Point of Sale. The new rules require online marketplaces to prominently display the FCC ID of certified devices at the online point of sale. This only applies to devices authorized under the equipment certification process (intentional transmitters, such as Wi-Fi or Bluetooth devices) and not to devices using the Supplier’s Declaration of Conformity (SDoC) authorization process (devices that do not intentionally transmit to other devices). This is subject to certain exceptions, including for pre-existing listings and small sellers.
KEY PROPOSALS
In the Further Notice of Proposed Rulemaking, the FCC made additional proposals to tighten the supply chain rules.
Curbing “White Labeling”
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- White labeling is when one company manufactures a product or service and another company buys it, adds their own branding, and sells it to customers as its own. To address concerns that Covered List entities could evade the rules by using white-labeling arrangements, the FCC proposes:
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- Requiring equipment applicants to disclose all brand names and model names associated with an FCC ID.
- Codifying a broad definition of “produced by” to include any entity that exercises substantial responsibility for a major stage of a device’s creation, and requiring an applicant to provide a list of all entities that produce the device.
Bill of Materials (BOM) Disclosure Requirements
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- The FCC proposes to require equipment authorization applicants to include a written Hardware Bill of Materials (BOM) and Software BOM. These disclosures would identify the producer and the production location of every component and provide the percentage value assessment attributed to each component. The BOMs function like an “ingredient label” for electronic devices, providing clear visibility into the sourcing of the components in a device.
Software and Other Components Produced by Covered List Entities
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- The FCC proposes prohibiting authorization for any device that incorporates any component, software or hardware, that is produced by a Covered List entity.
Term Limits on Equipment Authorizations
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- Currently, equipment authorizations do not expire. The FCC seeks comments on whether to place an expiration date or otherwise term limit equipment authorizations. The FCC also asks whether different classes of equipment should be subject to different terms.
Registration of SDoC Devices
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- Currently, the FCC maintains a database for identifying certified device models but does not maintain a database of devices authorized via the SDoC process. The FCC proposes to require all SDoC-authorized devices to be registered with the Commission.
Enhanced Enforcement – Establishing a U.S.-Based Liable Party
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- To strengthen enforcement, the FCC proposes to require applicants to identify a U.S.-based liable party for all FCC-certified equipment. A similar requirement currently exists for equipment authorized via the SDoC process.
Submarine Cables
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- The FCC proposes to require initial cable landing license applicants to certify that their submarine cable systems will not use equipment or services identified on the Covered List. The FCC also proposes to prohibit a cable landing licensee from adding to its submarine cable system equipment or services identified on the Covered List.
Preventing Misuse of the FCC Logo
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- Currently, SDoC devices may voluntarily display the FCC logo. The FCC seeks comment on whether certified devices should be similarly permitted to use the FCC logo, and proposes to prohibit use of the FCC logo on any device that has not been properly tested and authorized under the FCC’s rules.
NEXT STEPS
Companies in the technology and wireless equipment ecosystem, and online marketplaces that sell their products, should ensure that their supply chain knowledge and documentation, and FCC compliance practices, are up to date. Companies or platforms that have concerns with the FCC’s proposals should consider filing comments in the proceeding.
For more information about the FCC’s changing equipment authorization requirements, or to file comments, contact Jeremy D. Marcus in our Broadband, Spectrum, and Communications Infrastructure Practice Group.
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