The Supreme Court heard oral arguments today in a case that pits AT&T and Verizon against the Federal Communications Commission (FCC) over the agency’s authority to impose fines without a jury trial. The carriers, collectively fined $104 million for selling users’ real-time location data without consent, argue the FCC’s penalty system violates their constitutional right to a jury trial under the Seventh Amendment.
During today’s arguments, justices expressed skepticism toward the carriers’ position. Multiple justices noted that AT&T and Verizon could have secured a jury trial by refusing to pay the fines and forcing the government to pursue enforcement in court.
Even if the carriers lose this case, they may still achieve a partial victory. Both the FCC and the justices appeared to agree that FCC fine decisions are nonbinding and require a court decision to enforce them. A government lawyer confirmed this stance, stating the FCC may revise its forfeiture orders to explicitly clarify that fines do not take effect until after a jury trial.