HeadlinesBriefing favicon HeadlinesBriefing.com

Supreme Court Says FCC Fines Are Nonbinding Until Jury Trial

Ars Technica •
×

The Supreme Court heard arguments that FCC fines lack binding force unless a jury affirms them. AT&T and Verizon, fined $104 million for selling real‑time location data without consent, claim the agency’s forfeiture system strips them of a Seventh Amendment jury trial. The carriers paid and then challenged the penalties in court.

Supreme Justices highlighted that carriers could have pursued a jury trial by refusing to pay and waiting for a DOJ enforcement action, a path upheld by appellate courts. A government lawyer suggested the FCC could clarify its orders to make fines payable only after a trial, hinting that the agency’s enforcement tool may become more flexible.

Even if AT&T and Verizon lose, the case could still benefit them. The Court and FCC acknowledge fines are nonbinding until a court decision enforces them, a stance that could preserve the carriers’ rights while keeping the FCC’s authority intact. The ruling may reshape how telecom fines are collected.

The decision underscores the tension between regulatory enforcement and constitutional rights. By affirming that forfeiture orders do not automatically bind carriers, the Court may encourage the FCC to revise its language. For industry stakeholders, the outcome signals that future penalties could only be enforced after a jury trial, tightening the legal process.