According to the filing, "Circuit City made extensive and good faith efforts to comply with this unprecedented regulation despite lack of notice or baseline for compliance." It also goes on to complain that errors were made by regulators in assessing the fines.
Assuming the company's claims are rejected by FCC officials, which seems very likely, the next logical step would be a lawsuit to have the rule invalidated in federal court. This wouldn't be completely unprecedented either. In 2005 a federal appeals court struck down the controversial broadcast flag, saying the FCC overstepped their authority by regulating how a signal could be used after being received by consumers.
Although this case doesn't deal with the signals themselves, it seems legitimate to question whether the FCC has any jurisdiction over retail labelling, an area of law typically associated with the Federal Trade Commision (FTC).
I can't stand Circuit City!
...but that's beside the point ;-)
I'd have to somewhat agree with them on this one. Lately the FCC [or shall I say Kevin Martin] doesn't seem to have his/their head[s] screwed on straight. This is not their jurisdiction. If they wanted things labeled, they should have worked with the FTC to get manufacturers to properly label the packaging. They require labeling about laser safety, interference requirements etc. Why not do it the same?