Supreme Court Backs Trump administration on Telecom Regulation

Recent Cases

The Supreme Court sided with the Trump administration Thursday in upholding the power of federal regulators to enforce data privacy laws on telecommunications companies.

The 8-1 decision preserved one of the Federal Communications Commission's key tools, though the companies also won a concession from the Republican administration that could shift the regulatory landscape.

The appeal from telecommunications giants Verizon and AT&T challenged a combined $100 million in penalties imposed after the agency determined that the companies had failed to safeguard customer location data.

The companies argued that the FCC's process was unconstitutional because it gave them little opportunity to tell their side of the story in front of a jury.

The administration defended the fines as an essential regulatory tool. But the government also said companies did not have to pay the penalties right away, a regulatory shift in the companies' favor.

The Supreme Court agreed, affirming the FCC's power to order fines when challenges are still available.

"The orders at issue did not settle the carriers' legal obligations because, stated simply, they did not create an obligation to pay," Chief Justice John Roberts wrote for the majority.

Justice Clarence Thomas, the lone dissenter, said he would have given the two telecom companies a clearer path to recouping the fines they already paid.

Other agencies use similar enforcement methods, so a sweeping victory for AT&T and Verizon could have had widespread effects, advocates said.

The environmental group Earthjustice applauded the ruling, saying it has direct implications for other agencies and a key energy-efficiency case.

"By rejecting this unsupported attack on agency authority, the Court's decision safeguards the government's ability to enforce laws that protect people, communities, and the environment," said Caroline Flynn, the group's Supreme Court counsel.

The libertarian-leaning New Civil Liberties Alliance was disappointed by the decision, but expected it to help other companies in the future. "In fact, it may even buttress their willingness to challenge future agency orders in federal court before paying any penalties," said the alliance's president, Mark Chenoweth.

A few more carriers may decide to litigate, but the decision leaves the FCC with the power to "publicly announce large fines with much fanfare," said Doug Orvis, a veteran telecom attorney. "It will be interesting to see what happens going forward."

The Supreme Court's conservative majority has sided against federal agencies and limited their power before. That includes overturning a decades-old decision that had given regulators an advantage in court and stripping another agency of a major tool in fighting securities fraud.

Related listings

What Is Meant by ‘No-Fault’ Workers’ Compensation in Illinois?

If you were injured in a work-related accident and have been researching workers’ compensation, you may have seen it described as a “no-fault” system. One of the most important things to understand about the workers’ compensation system in Illinois is that it is based on a “no-fault” system. What does this mean, exactly?

Most employers in Illinois are required by law to have workers’ compensation insurance. And the workers' compensation in Illinois is a “no-fault” system, which means that any worker who has been hurt on the job is entitled to workers' compensation benefits. If you have been hurt on the job, you are entitled to workers’ compensation benefits no matter whose fault the accident was.

A no-fault insurance system, such as workers’ comp, works by paying claims regardless of who is to blame for an accident. This provides an important layer of protection for injured workers, sparing them from having to through additional litigation and the through the additional burden of proving who was at fault before receiving benefits.

In Illinois, even though you don’t have to prove that your injury was your employer’s fault, you do have to prove that your injury happened at work or as a result of work. If you would like help to file your workers' compensation claim, Krol, Bongiorno, & Given’s experienced workers' comp lawyers are here to help. With over 60 years of combined legal experience, the KBG law firm is a leader in the field of workers’ compensation law and we have earned the reputation as aggressive advocates for injured workers before the IWCC.