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The Supreme Court ruled eight to one on Thursday (June 4) in favor of the Federal Communications Commission (FCC) regarding its system for levying fines against telecommunications carriers. The decision comes after Verizon and AT&T challenged the constitutionality of over $100 million in fines imposed by the FCC for sharing customer location data without consent.
The legal battle centered on whether the FCC's in-house proceedings deprived the companies of their right to a jury trial under the Seventh Amendment. Chief Justice John Roberts ruled that the companies are not entitled to a jury trial to contest the fines. According to SCOTUSblog, the court found that the FCC's forfeiture orders are not binding until the Department of Justice (DOJ) files a lawsuit to enforce them, at which point a jury trial is available.
The decision aligns with the government's argument that the FCC's enforcement scheme is constitutional. The Constitutional Accountability Center supported the FCC, explaining that similar enforcement schemes have historically satisfied the Seventh Amendment.
Verizon and AT&T contended that the fines violated their Seventh Amendment rights, as they were imposed without a jury trial. However, The Hill reports that the FCC maintained its orders are non-binding, with the option for a jury trial available if the DOJ pursues enforcement.
The ruling upholds the FCC's authority to impose fines for violations of federal communications laws, reinforcing the agency's role in regulating telecommunications practices.