The Supreme Court upheld the Federal Communications Commission’s authority to fine telecommunications companies for mishandling customer location data, rejecting constitutional challenges from AT&T and Verizon.
The 8-1 decision Tuesday rejected arguments that the FCC’s administrative enforcement process violated the companies’ Seventh Amendment right to a jury trial. AT&T and Verizon faced combined penalties totaling $104 million in 2024 over allegations they improperly secured customers’ real-time location information.
The Constitutional Challenge
The carriers claimed the FCC’s framework allowed them to pay fines and then challenge penalties in federal appeals courts, rather than having cases decided by a jury initially. “Companies retained access to jury trials through an alternative path,” Chief Justice John Roberts wrote for the majority, explaining that FCC penalty orders do not become legally binding until enforced in court.
AT&T and Verizon argued this process deprived them of constitutional protections guaranteed in civil cases involving substantial financial penalties. The dispute originated from privacy breaches discovered in 2018, when unauthorized parties including bounty hunters accessed the carriers’ real-time location data without customer consent.
The Ruling’s Impact
The Supreme Court decision preserves the FCC’s enforcement powers over telecommunications companies regarding consumer protection violations. The ruling clarifies that administrative penalties imposed by federal agencies do not automatically trigger jury trial requirements under the Constitution.
Both carriers challenged the FCC’s enforcement process after paying the penalties, but the court found no constitutional violation in the agency’s administrative approach. The decision affirmed the FCC’s ability to protect consumers through its penalty framework without requiring jury trials at the initial enforcement stage.
