Motorola Accused of Selling Phones to Restricted Countries

A mistake on the Motorola website had suggested that the company is selling products to Cuba, Iran, Syria, and Sudan - which are prohibited by US law, and resulted in a letter from the Securities and Exchange Commission (SEC) seeking clarification.

In the letter, the SEC says that "it appears from a pull-down menu in the 'Government and Enterprise' section on your website that nationals in Cuba, Iran, Sudan, and Syria can contact you to request information on your products."

The SEC also said that a March 2008 news report indicating that Cuba sells phones purchased in bulk from Motorola, and a May 2008 news report indicating that Motorola phones are being sold in Iran.

Cuba, Iran, Syria, and Sudan are identified by the US State Department as state sponsors of terrorism, and subject to U.S. economic sanctions and export controls.

Motorola replied saying that it does not maintain direct contacts, or have any agreements or commercial arrangements, with any entities located in or controlled by the referenced countries and would only anticipate doing so if allowed under U.S. regulations.

The sales to Sudan were part of an approved UN humanitarian program, and the company does not sell to the other restricted countries - although naturally third parties may resell Motorola phones if they want to those countries.

Motorola also added that the website has also been fixed to remove the error.

Posted to the site on 24th September 2008