The ruling resolved conflicting decisions from federal appeals courts about whether the FCC’s administrative enforcement process violated the Seventh Amendment. The high court rejected constitutional challenges from both carriers, which argued that substantial financial penalties required jury protections in civil cases.
The Core Dispute
AT&T and Verizon faced $104 million in combined fines issued in 2024 for improperly handling customers’ real-time location information. The practice came to light in 2018 when investigations revealed the carriers had sold access to precise location data without adequate customer consent.
The telecommunications companies contended that the FCC’s penalty process bypassed jury trial rights guaranteed under the Seventh Amendment. They argued that administrative proceedings should not apply to cases involving such substantial financial consequences.
Conflicting Lower Court Rulings
Federal appeals courts had split on the question, creating legal uncertainty across the industry. The 5th U.S. Circuit Court of Appeals sided with AT&T and struck down its fine, while the 2nd Circuit upheld Verizon’s penalty.
The conflicting decisions prompted the Supreme Court to intervene and establish a uniform standard for how the FCC enforces telecommunications law. Chief Justice John Roberts authored the majority opinion in the case.
What This Means
The decision strengthens the FCC’s ability to enforce regulations against major carriers without facing jury trial challenges in administrative settings. Telecommunications companies now face clearer expectations about how the agency will pursue enforcement actions for violations.
Consumer advocates characterized the ruling as protecting the FCC’s regulatory tools for addressing data privacy breaches. The telecommunications industry did not immediately respond to requests for comment on the decision.
