Supreme Court upholds FCC process for fining AT&T and Verizon over customer location data
The Facts
- The Supreme Court ruled 8-1 in favor of the FCC in the dispute with AT&T and Verizon over the agency's fine process.
- AT&T and Verizon argued that the FCC's in-house forfeiture process violated their constitutional right to a jury trial.
- The case arose from FCC penalties against AT&T and Verizon over the carriers' handling of customer location data, including findings that they sold or shared access to that data without proper customer consent or protection.
- The FCC penalties at issue were about $57 million for AT&T and about $47 million for Verizon, for a combined total of more than $100 million.
- Chief Justice John Roberts wrote the majority opinion, and Justice Clarence Thomas was the lone dissenter.
- The court said the FCC's forfeiture orders do not themselves create a binding obligation to pay, and that enforcement would require further court action, which was central to the court's conclusion that the process does not violate the jury-trial right.
- The ruling preserves an FCC enforcement mechanism with implications beyond this case, including the agency's ability to enforce rules involving consumer privacy, robocalls, and broadcasting.
- The decision resolves a legal challenge that tested how far recent Supreme Court limits on agency adjudication might extend, but the sources indicate the FCC's process survives here because its orders are not treated as final, self-executing penalties.
How left and right are reading this
- Both agree
- The ruling preserves an FCC enforcement tool in a case over carriers’ handling of customer location data, while resting on the limit that any binding payment still requires further court action rather than an immediately enforceable agency penalty.
- They split on
- Less a disagreement than a question of emphasis: preserving a practical enforcement mechanism for privacy, robocalls, and broadcasting, versus underscoring that the mechanism survives only because courts, not the agency alone, impose any binding payment obligation.
Context
What did the Supreme Court decide?
The court held that the FCC's forfeiture-order process does not violate AT&T's and Verizon's right to a jury trial, because the agency's order is not itself a final, binding command to pay and enforcement would require further court proceedings Reuters,TimesNow,Court House News Se….
What were AT&T and Verizon fined for?
The FCC penalized the carriers over customer location-data practices, saying they failed to properly protect that information and, according to multiple reports, sold or shared access to it with third parties without proper consent NYT,Yahoo! Finance,Ars Technica.
Why does this ruling matter beyond these two companies?
Multiple outlets say the decision preserves a broader FCC enforcement tool, affecting how the agency can police consumer-privacy rules as well as other communications regulations such as robocalls and broadcasting NYT,timesfreepress.com,Roll Call.
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Wire services (3)
Independent coverage (35)
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