In a decisive 8-1 ruling, the U.S. Supreme Court affirmed that the Federal Communications Commission (FCC) did not violate AT&T and Verizon’s Seventh Amendment right to a jury trial by fining them for selling customers’ real-time location data without consent. The decision resolves a split among appellate courts and supports the FCC’s process for enforcing penalties against carriers.
- Supreme Court reverses 5th Circuit, upholds FCC fine enforcement process
- Court finds no Seventh Amendment violation in FCC’s forfeiture procedure
- Ruling preserves FCC’s ability to enforce penalties protecting consumer privacy
What happened
AT&T and Verizon were fined by the Federal Communications Commission a total of $104 million in 2024 for selling access to their customers’ real-time location data without consent. This conduct raised serious privacy concerns after investigations dating back to 2018. Both carriers paid their fines and subsequently challenged the penalties in federal appellate courts, arguing that the process violated their Seventh Amendment right to a jury trial.
The Supreme Court took up the case to resolve conflicting decisions from different appeals courts. In today’s ruling, the Court sided with the FCC in an 8-1 decision, overturning the Fifth Circuit’s ruling that had favored AT&T. Chief Justice John Roberts wrote the majority opinion, clarifying that the FCC’s internal penalty process does not create a binding obligation to pay the fines without a potential jury trial since the government must prove its claims in court to collect the penalties.
Why it matters
This ruling confirms the FCC’s authority to investigate and propose fines for carriers’ violations of consumer privacy rules without immediately triggering a jury trial, maintaining an important enforcement tool for federal regulators. The decision helps ensure carriers remain accountable for handling sensitive user data, such as location information, which has raised public and legal scrutiny amid growing privacy concerns.
Advocates for consumer protection praised the ruling as reinforcing the FCC's role in policing misuse of personal data by major telecommunications companies. By rejecting arguments that reputational harm alone entitles carriers to jury trials before penalties can be issued, the Court preserved a balanced approach that allows regulatory oversight while preserving constitutional rights through court enforcement if fines are not paid voluntarily.
What to watch next
Moving forward, the FCC’s ability to investigate and impose financial penalties under its existing forfeiture procedures remains intact, signaling likely continued scrutiny of telecommunications companies’ data practices. Carriers are expected to comply with FCC orders or risk prolonged legal battles where a jury trial could ultimately determine liability and penalty amounts.
Industry stakeholders, privacy advocates, and regulators will be closely monitoring how the FCC enforces consumer protection rules related to location data and personal information. The ruling may also influence future legal challenges involving administrative agencies and their enforcement powers, particularly regarding constitutional rights and jury trial demands.