AT&T court win over FCC could make it impossible for agency to fine carriers
The Federal Communications Commission is urging two federal appeals courts to disregard a 5th Circuit ruling that guts the agency’s ability to issue financial penalties.
On April 17, the US Court of Appeals for the 5th Circuit granted an AT&T request to wipe out a $57 million fine for selling customer location data without consent. The conservative 5th Circuit court said the FCC “acted as prosecutor, jury, and judge,” violating AT&T’s Seventh Amendment right to a jury trial.
The ruling wasn’t a major surprise. The 5th Circuit said it was guided by the Supreme Court’s June 2024 ruling in Securities and Exchange Commission v. Jarkesy, which held that “when the SEC seeks civil penalties against a defendant for securities fraud, the Seventh Amendment entitles the defendant to a jury trial.” After the Supreme Court’s Jarkesy ruling, FCC Republican Nathan Simington vowed to vote against any fine imposed by the commission until its legal powers are clear.
