Supreme Court Says Quick Jury Trial Not Needed on FCC Fines

The US Supreme Court ruled that telecommunications companies can’t immediately demand a jury trial when hit with a Federal Communications Commission fine, while saying the carriers don’t have to pay penalties right away.

Ruling 8-1 in a clash involving AT&T Inc. and Verizon Communications Inc., the justices said so-called forfeiture orders issued by the FCC don’t amount to a conclusive determination of a case.

“It thus does not offend the Constitution for the commission to issue forfeiture orders without the involvement of a jury,” Chief Justice John Roberts wrote for the court.

The court agreed to hear the case as a test of the constitutional right to a jury trial and a potential extension of a 2024 decision that cut the ability of some agencies to levy fines through in-house proceedings.

Although the court ruled against the companies on that issue, it also memorialized a concession made by the Trump administration during the litigation. Companies have long treated forfeiture orders as demanding immediate payment, but the administration and the FCC now say businesses can await the outcome of additional litigation and won’t suffer any legal consequences in the meantime.

AT&T and Verizon challenged the system after the FCC accused them of illegally sharing access to customers’ location data and failing to adequately protect against unauthorized disclosure. Each company received an order saying that it was “liable for a monetary forfeiture” and that payment “shall be made” within 30 days. AT&T was assessed $57 million and Verizon nearly $47 million.

The cases are Federal Communications Commission v. AT&T, 25-406, and Verizon v. Federal Communications Commission, 25-567.

Photo: The Federal Communications Commission headquarters in Washington. Photographer: Al Drago/Bloomberg