INVESTIGATION - CE later alligator

Trading Standards is about to get tough with resellers that flout the law by not ensuring their systems are CE-compliant. And claims of ignorance or expense will not stop prosecution.

It's more than two-and-a-half years since stringent EC regulations on law by not ensuring their systems are CE-compliant. And claims of ignorance or expense will not stop prosecution. CE quality testing came into force, but many systems builders are still flouting the law. By not testing systems to ensure PCs are CE-compliant and don't emit illegal levels of electromagnetic radiation, PC builders face substantial fines and imprisonment.

But many smaller resellers say they are forced to take the risk because the testing process remains prohibitively expensive. Others argue they are buried under a mountain of legal jargon they just don't understand.

But the Trading Standards has pledged to step up its war against systems builders that ignore the law. It has already mounted its offensive. Last year, the Cardiff Trading Standards office prosecuted and fined two PC builders it caught red-handed and it knows this is just the tip of the iceberg. In October, it will kick off a series of checks, beginning in Wales and it's been some time coming. EC legislation on CE marking and PC electromagnetic emissions was introduced at the beginning of January 1996 and many would like to see stricter enforcement of the regulations.

There's still quite a way to go. Last year, distributor Boston Limited, which specialises in the systems builder market, was forced to abandon a testing house it built for a six-figure sum, due to a lack of demand from resellers - most were not carrying out emissions testing.

Dev Tyagi, a director at Boston Limited, says it is an indication of how little testing takes place: 'The legislation was in place and it was good, but it was simply not being enforced, so people were not interested in testing. It wasn't worth it. We were charging a lot less than the traditional testing houses but the lab wasn't popular.' He claims the situation remains unchanged, mainly due to misconceptions and the lack of cases prosecuted or even investigated by Trading Standards.

Misconceptions and confusion surround the CE legislation. According to David Roderick, head officer of product safety at the Institute of Trading Standards Administration (ITSA), the issue is electronic interference caused by PCs, such as the kind found in radio and television. Dr Clive Werrit, lecturer at at Warwick University believes that although electromagnetic radiation has no known detrimental health effects on humans, electronic emissions become dangerous when they interfere with sensitive equipment such as life support machines.

Many PC builders remain ignorant of the technicalities involved. A lot of dealers assemble boxes with CE-marked components, believing the model is CE-compliant. This is not the case. Individually marked components react differently when placed together in a box, emitting differing levels of electromagnetic radiation. What some PC builders do not realise is that the law requires them to test models after they are built.

At the 10 assemblers contacted by PC Dealer, more than half the salespeople did not realise models had to be re-tested once the product was completed, even if all components were CE marked. Three hadn't heard of CE marking and one product manager asked to outline the technical restrictions of the legislation got it wrong.

Keith Warburton, executive director of the Personal Computer Association (PCA), explains: 'There is still a great deal of ignorance about CE marking and a lot of misinformation going through the industry.'

What some builders do not realise, he says, is that even if all the components they buy are CE approved, they will not necessarily comply when they are put in the box. As a British Standards Institute (BSI) representative confirms: 'A lot of manufacturers buy components with CE markings but the components react differently with each other. So the whole box may not be electromagnetic compatibility (EMC) shielded.'

Warburton warns resellers: 'The bottom line is, CE plus CE does not necessarily equal CE.

The EMC profile changes. Quite frankly, if any of the directors of dealers don't realise this, they are in dereliction of their duty. And if they fail to make themselves aware of it, they are breaking the law.'

Trading Standards, which is responsible for chasing negligent dealers, has so far made only a small dent in the line-up. Last November, the Cardiff office bought one computer from four randomly selected PC builders and tested them for electromagnetic emissions. All four failed. Two of the companies were let off with a slap on the wrist - one machine had a minor fault which was corrected, while the other company was given a warning.

The other two were successfully prosecuted. DES Limited and Computer Supercentre were taken to the magistrates court and each fined #3,000. And they got off lightly, says Trading Standards officer Christine Hinskirt - resellers can receive a maximum fine of #5,000 and/or maximum imprisonment of three months.

According to David Holland, manager of Cardiff Trading Standards: 'At least it has helped to dispel the myth that you can buy CE components, put them all in one box and it will be compliant.' DES and Computer Supercentre refused to comment.

Many PC builders that do comply with the testing regulations question why there have been only two prosecutions in the UK since the regulations were introduced. People blame Trading Standards, arguing it does not police the market effectively, which means resellers can risk not testing. A BSI representative says: 'Trading Standards is trying to crack down on offenders and there are still a lot of companies that don't test. It problem is it doesn't have much power because it hasn't got enough financial backing.'

Holland admits this is the case, but says it is not down to not having enough power, more to insufficient resources at the government body. He says: 'The powers we have are sufficient, but what we lack is an adequate number of staff to man the checks. We also have to rely on the goodwill of the testing houses to help us with investigations.'

In Holland's experience, of all the industries he deals with at Trading Standards, PC dealers 'are the hardest to crack'. He says: 'They say they cannot afford to test everything and I accept there are problems, but we are beginning to convince the industry that we are taking it seriously.

Our advice is, if you can't afford the whole testing, get one model tested - your most powerful, least likely to comply PC.' Holland will be taking random samples of PCs in the Cardiff area in October to check emissions and those that don't meet the standards will face court proceedings.

Holland says he has warned companies in his area - 50 dealers that assemble computers - and made them aware of the ins and outs of the law. Initially, the CE regulations were introduced in 1992 and delayed for four years because, according to Holland, the industry kicked up a stink. But now the authorities are cracking down and Warburton describes PC builders as 'an easy target' for the legislation. He claims far less than half of the systems builders in the UK could produce a declaration of conformity. It says Standards urges companies to seek advice, either through Trading Standards, nationwide Business Link Clubs set up by the DTI, or the Trading and Enterprise Councils. He stresses: 'Our advice is free, people should take advantage of it.'

Almost everyone PC Dealer contacted for this article admitted they knew of smaller dealers that didn't put their machines through CE testing, although they refused to reveal names. And they agreed that whereas larger organisations can recuperate the costs of testing, their smaller competitors are stuck between a rock and a hard place.

Peter Bickerstaffe, Roldec production and quality manager, admits it isn't easy to comply with the regulations. He says Roldec spends more than #1,000 each month testing about two PCs out of every 1,200 shifted.

He adds he can understand why other PC builders don't stick to the rules.

One reseller, which admitted to not testing models after assembly, says the costs mean testing is out of the question. A representative says: 'It's crazy. We make between five and 10 per cent margin on a box sold for about #600. If we're making #30 profit and never sell more than two or three of the same model, how can we afford to pay #1,000 to test this one?' They say other resellers like them will be forced to stop building PCs if the law is enforced and will have to buy systems from clone manufacturers.

According to the BSI, there are two routes to conformity - self-certification, or certification through a technical construction file (TCF). Self-certification involves companies doing the assembly internally, then putting in their worst case PC - the noisiest, least likely to pass PC - for testing. This costs about #1,000. Testing takes an average of three days and the accompanying reports take an extra couple of weeks.

With a TCF, the BSI or similar body assesses the machine according to the standard. This costs #100 per hour at the BSI, and most cases need an average of three to four hours. The ERA, a testing house used mainly by large manufacturers, says the price depends on the complexity of the machine but will range from #1,500 to several thousands for a thorough test.

A BSI representative defends the cost of testing, arguing: 'We're not the ones who lay down the laws - we're only a testing house.' The ERA blames the high cost of the equipment needed to carry out the tests. IBM estimates its total investment in its EMC testing house at Greenock, Scotland, is at least #2.5 million, with annual running costs of about #500,000.

Siemens Nixdorf does its testing in-house in Germany, which it says cost about #5 million to set up about five years ago. Nick Ford, a product manager at Siemens, says it recoups the expense of testing by hiring out the facilities to other manufacturers.

Whatever the cost, the bottom line is that resellers that say they cannot afford to comply are breaking the law. The lack of prosecutions until now highlights a problem in the industry and many channel figures are calling for a tightening up of standards across the board. Of the companies that do test, many feel a certain level of animosity towards those that don't.

Caroline Worth, marketing manager at Evesham Micros, says: 'A lot of people aren't testing because they can't afford it. It's annoying that we are paying for something others are getting away with. But I can understand it - testing is expensive and it's tempting not to test because the chances of getting caught aren't great.'

Bob Marshall, quality manager at Tiny Computers, takes a tougher line: 'Companies shouldn't be allowed to get away with it. They won't survive long in the industry if they keep refusing to comply.'

Resellers need to improve their testing record and adjust their skills accordingly. But at the same time, believes Marshall, the last thing the channel needs is overkill on EC legislation. Computer Supercentre and DES in Cardiff are now complying with standards, according to Trading Standards. But do we need fines or imprisonment to ensure this happens?

Warburton warns: 'Ignorance is no excuse - as the two traders in Wales found out.'

CE TESTING? EMISSIONS? SORRY, WE HAVE NO IDEA WHAT YOU'RE TALKING ABOUT

Posing as a prospective customer requiring information on emissions testing, PC Dealer called a random sample of 10 assemblers.

Simply Computers 'What do you mean CE testing? I'll put you on hold.

(The music ran out after 10 minutes) The second time we called, we were put through to the technical department. CE markings? I don't know. Emissions?

I'll just double check. OK, all our cases are CE approved, but I didn't realise it was to do with emissions, I thought it was to do with the shape of the case. We don't re-test for emissions because the case stops them.'

DotLink 'CE markings on PCs? I haven't got a clue. I'll pass you onto someone else. Hello? CE markings on PCs? No idea, I'll pass you on. Hello?

Does it refer to a monitor? It regards a standard, I think it has to pass a specification. Like on a lamp, like the British Standards approval.

It might be a part of this, but I haven't seen it on anything. Emissions?

(silence) I don't know.'

Dan Technology 'I don't really know much about it. It's like BSI approved products. No, it doesn't have to be tested again if all the components are CE tested.'

PC Dealer source 'Re-testing for emissions? No, we don't. We didn't know about it, we don't bother. These are stupid regulations - why would a reseller pay for this? We build the system, test it to see it works, then sell it. To us, almost every system we build is different. We can't afford to test every single one. It's common for people not to test. It's crazy, there is no information from the government.'

Evesham Micros 'Is it to do with monitors? I think it's to do with heat and power uses. We build systems to comply with British Standards. Hang on, I'll go and check. Yes, we do have to test the computer again for compatibility between components after assembly.

Mesh 'The components tested have all received CE markings. Test again?

Not that I'm aware of. We do some form of testing, but that's for reliability.'

Roldec 'I'll have to put you through to the person who does the CE testing.

I'll get Peter Bickerstaff, the production manager to call you.

One hour later - Peter Bickerstaff at Roldec. CE marking? It costs over #1,000 per month for us to do the testing. I can understand other resellers not testing as people are under a lot of misapprehension.'

Computer Supercentre 'There is a CE mark on the back or side of the product, but you have to be careful as they could be fakes. We have to re-test and send the PCs off every three months to Trading Standards. If you want to come into the company, I'll show you what a sticker looks like.'

Dabs Direct 'CE markings? You can only get advice if you've already bought a machine. I don't know if Dabs does any testing. I think it's to do with the monitor, not the computer.'

Panrix 'It's like the kite mark in the UK. It's to do with emissions and environmental standards. But if all the parts are tested, then you get the CE badge. You don't have to test the whole box.'