Supreme Court Decision Details
The Supreme Court ruled today that the Federal Communications Commission did not violate the carriers' rights when issuing fines for the unauthorized sale of real-time location data. This decision resolves a split between circuit courts and affirms the FCC's process for financial penalties in such cases.
Background of the Fines and Appeals
AT&T and Verizon were fined a combined total of $104 million by the FCC in 2024 after investigations revealed they had sold users' location information without obtaining proper consent. The violations came to light following reports from 2018 that exposed how carriers shared this sensitive data with third parties. Both companies paid the fines but pursued legal challenges through the appeals process, arguing that the FCC's approach denied them a jury trial under the Seventh Amendment.
Circuit Court Outcomes and Resolution
AT&T succeeded in overturning its fine at the US Court of Appeals for the 5th Circuit last year, while Verizon's similar claim was rejected in the 2nd Circuit. The Supreme Court accepted the case to address this inconsistency across circuits. In an 8-1 decision, the Court reversed the 5th Circuit ruling, with Justice Clarence Thomas as the sole dissenter. This outcome reinforces the FCC's enforcement mechanisms in privacy-related matters involving telecommunications providers.
