U.S. Supreme Court Upholds FCC’s Authority to Impose Fines

In an 8-1 decision involving two non-broadcast entities, the U.S. Supreme Court ruled this month in FCC v. AT&T, Inc. that the Federal Communications Commission can administratively impose financial penalties without a jury trial.

The ruling upheld over $100 million in combined fines levied against AT&T and Verizon for unlawfully sharing customer location data with third parties. The court's decision, authored by Chief Justice John Roberts, determined that the FCC's forfeiture orders do not violate the Seventh Amendment right to a jury trial.

Congress gave the FCC the authority to issue forfeitures in 1960.

Importantly, while the Court's decision reaffirmed the FCC's ability to police its rules and issue forfeitures, it does provide a clearer legal pathway to contest such fines in a full jury trial before paying.

"The FCC's factual findings in its forfeiture proceedings are not conclusive," said the decision. "Before a regulated party can be made to pay, the jury gets the last word."

TAB is expecting more analysis in coming weeks of the Court's decision and its practical effect on broadcasters. We will provide links to such in this story online at www.tab.org when they become available.

Questions? Contact TAB's Michael Schneider or call (512) 322-9944.