FAA: Unregistered Drones Could Soon Mean Jail Time

One of the hottest holiday gifts this year is reportedly drones. However, new FAA rules now mean that drone owners must soon officially register their devices or face the possibility of a steep fine.

The Registration Process

According to a new announcement by the Federal Aviation Administration, all drones flown in the United States weighing between 0.55 lbs and 50 lbs must be registered by February 16, 2016. Registration opens on December 21. While the registration typically involves a $5 fee, the FAA is waiving the fee for the first 30 days in an effort to encourage registration.

Starting February 16, owners operating unregistered drones could face civil fines up to $27,500 and criminal penalties of up to $250,000 and three years in jail.

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The Rise Of Drones

Retailers like Wal-Mart Stores, Inc. WMT are anticipating that drones will be a huge hit this holiday season. Wal-Mart has stocked 15 times as many drones in its stores this holiday season as it did last holiday season, after early search and demand tracking statistics indicated that they would likely be a popular gift this year.

Stock Plays

While the hassle involved in the registration process could potentially deter some drone buyers, the companies behind the drone movement are hoping that the FAA makes the process as quick and easy as possible. Investors that believe the drone age is just getting started should consider stocks such as AeroVironment, Inc. AVAV, GoPro Inc GPRO, NVIDIA Corporation NVDA and Ambarella Inc AMBA.

Disclosure: The author holds no position in the stocks mentioned.