The Supreme Court on Tuesday appeared unlikely to significantly alter how federal regulators, including the agency that oversees interstate transmission of electricity and natural gas, issue fines.
During consolidated oral arguments in two cases, several justices appeared skeptical of telecommunications companies’ claims that the way the Federal Communications Commission takes enforcement actions violates their Seventh Amendment right to a jury trial.
AT&T is contesting a $57 million FCC penalty for data breaches and violations of consumer privacy rights, while Verizon is opposing a $47 million fine for failure to safeguard customer data.
Under the FCC’s current system, companies facing a fine can either opt to pay first, then file a challenge in federal appeals court, or they can refuse to pay and wait for the agency to take enforcement action, at which point they could have access to a jury trial.
