Supreme Court to hear challenges to FCC fines against major wireless carriers

The Supreme Court agreed to hear consolidated cases that challenge the FCC’s authority to impose monetary fines on AT&T and Verizon for selling customer location data without consent.
Supreme Court to hear challenges to FCC fines against major wireless carriers
A What happened
AT&T, Verizon, and T-Mobile challenged FCC fines issued for selling customer location data without users’ consent. The Supreme Court granted petitions from Verizon and from the FCC and Justice Department, consolidated the AT&T and Verizon cases, and will hold oral arguments. The carriers argue the fines violate the Seventh Amendment right to a jury trial, with lower courts splitting on whether a jury trial was available by refusing to pay and forcing a DOJ collection suit. In 2024, the FCC fined the three carriers a total of $196 million for location data sales revealed in 2018.

Key insights

  • 1

    Carriers argue FCC fines deny a guaranteed jury trial path: Verizon argued that paying the fine is required to guarantee judicial review, while obtaining a jury trial requires refusing to pay and waiting for a DOJ collection lawsuit that may never be filed.

  • 2

    Government argues existing Supreme Court precedents allow agency penalties with later jury review: The Trump administration cited Supreme Court rulings from 1899 and 1915 to argue that jury trials can occur at a later stage, including on appeal from an initial agency decision.

  • 3

    Supreme Court ruling is expected to affect T-Mobile’s parallel dispute: The Supreme Court is hearing only the AT&T and Verizon cases, and the outcome is stated to affect T-Mobile’s case, where T-Mobile is seeking rehearing in the District of Columbia Circuit.

Takeaways

The Supreme Court will hear consolidated challenges that could determine whether the FCC can impose monetary fines without guaranteeing a jury trial at the agency stage.

Topics

World & Politics Policy & Regulation Law & Public Safety Courts

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