Supreme Court Signals FCC Fines on Wireless Carriers May Be Nonbinding, Paving Way for Corporate Accountability Evasion

The U.S. Supreme Court signaled on Tuesday that it is likely to uphold the Federal Communications Commission’s authority to levy fines against major wireless carriers for failing to protect customer data, though the justices indicated the fines may not be immediately enforceable without further court action.

During oral arguments in a case brought by AT&T and Verizon challenging FCC enforcement powers, a majority of justices expressed skepticism toward the carriers’ claim that the agency’s penalty process violates their Seventh Amendment right to a jury trial. The justices appeared inclined to preserve the FCC’s current system for assessing financial penalties, known as forfeiture orders, in the matter involving alleged mishandling of sensitive user location and movement data.