On January 9, the U.S. Supreme Court granted certiorari to resolve a circuit split over the FCC’s authority to impose monetary forfeiture penalties through its administrative process.  The outcome could have significant implications for the FCC’s ability to pursue civil penalties in its enforcement cases.  For more information on the issues at stake, including background…

In 2024, the Federal Communications Commission (FCC) issued fines to four major telecommunications carriers—Verizon, AT&T, Sprint, and T-Mobile—for allegedly failing to protect the geolocation data of their subscribers, which the FCC claimed violated its Customer Proprietary Network Information (“CPNI”) rules. To challenge the action, all four carriers had to first pay the fines, which they did.  They then petitioned for review of the FCC’s decision in various U.S. courts of appeals, arguing that the FCC’s procedure for adjudicating monetary fines violated their right to a jury trial as guaranteed by the Seventh Amendment. Verizon sought relief in the Second Circuit, T-Mobile (which had merged with Sprint) sought relief in the D.C. Circuit, and AT&T sought relief in the Fifth Circuit.

The Second Circuit and the D.C. Circuit held in favor of the FCC, rejecting the carriers’ argument that the FCC violated their Seventh Amendment rights. But the Fifth Circuit reached a different conclusion, holding that the FCC’s procedure did in fact violate AT&T’s right to a jury trial. The FCC (which lost in the Fifth Circuit) and Verizon (which lost in the Second Circuit) each has filed a petition for certiorari at the Supreme Court.

With a 2-1 federal circuit split and two certiorari petitions pending, some are predicting that there is a good chance that the Supreme Court will decide to consider the appeals. The dispute raises a fundamental question about the FCC’s authority to impose monetary penalties through its in-house administrative enforcement procedures. If the Supreme Court grants certiorari, it will be called upon to determine whether the Communications Act violates the Seventh Amendment by authorizing the FCC to order the payment of monetary penalties for violations of the Act, without guaranteeing the right to a jury trial. The resolution of this dispute thus could have significant implications for how the FCC enforces the law against telecommunications carriers and other entities subject to its jurisdiction.

Both petitions for certiorari have been distributed for a January 9, 2026 conference.