Supreme Court Backs F.C.C. Power to Levy Fines Against Cellphone Carriers
The New York Times • • business
Key Points:
- The Supreme Court upheld the Federal Communications Commission’s authority to enforce rules protecting consumer privacy, combat robocalls, and regulate broadcasting in an 8-1 ruling.
- Verizon and AT&T were fined millions by the FCC for failing to protect customer data, but the companies argued these fines violated their Seventh Amendment right to a jury trial.
- The Court ruled that the companies’ rights were not violated because they could have refused to pay the fines and pursued a jury trial in federal court, meaning the FCC orders did not create an immediate obligation to pay.
- Chief Justice Roberts emphasized that the companies were not coerced into waiving their trial rights, as the jury would have the final say before any payment was enforced.
- Justice Clarence Thomas dissented, supporting Verizon and AT&T, and the case continues the debate over administrative agencies’ power, following a recent decision limiting the SEC’s ability to impose penalties without jury trials.