Supreme Court Backs FCC on Telecom Penalties Without Trial

The Supreme Court on Thursday gave federal regulators more breathing room to police phone companies, robocalls, and data privacy. In an 8-1 ruling, the justices upheld the Federal Communications Commission's ability to hit carriers with civil penalties without first going to a jury, so long as companies can later force a jury trial by refusing to pay. Verizon and AT&T had argued that multimillion-dollar fines over alleged failures to safeguard customer location data trampled their Seventh Amendment right to a jury trial, the New York Times reports.

Chief Justice John Roberts, writing for the majority, said that the FCC's orders "did not create an obligation to pay" and that businesses aren't unconstitutionally pressured just because regulators publicly accuse them of wrongdoing. Justice Clarence Thomas dissented. The ruling preserves fines assessed Verizon and AT&T totaling more than $100 million combined, per the Hill. A victory for the carriers might have had widespread effects, per the AP. The court previously curbed the Securities and Exchange Commission's use of immediately enforceable administrative penalties. By distinguishing the FCC's nonbinding fines from the SEC's scheme, per the Times, the court preserved a tool also used by agencies that regulate nuclear safety and wildlife, a result environmental and consumer advocates said is key to keeping federal enforcement intact.