Former FCC General Counsel Calls for Shift to Fair Notice Enforcement
The FCC should shift to a fair-notice enforcement policy or risk having the courts reverse enforcement actions in the wake of the U.S. Supreme Court’s SEC v. Jarkesy (see 2406270063) and Loper Bright Enterprises v. Raimondo (see 2406280043) decisions, former…
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FCC General Counsel and Harris Wiltshire partner Chris Wright wrote in a post on the firm's website Wednesday. Recent FCC enforcement actions –such as an April forfeiture order against major wireless carriers over personal data (see 2404290044) -- have evaded statutory limits on fines by treating single incidents as multiple acts of rule-breaking and penalized companies for actions that weren’t explicitly prohibited under the agency’s rules, Wright wrote. “Now that Chevron has been overruled," Wright anticipates "courts will review interpretations such as that without deference.” As such, “Courts will determine what the best reading of the statute is, and the Commission’s creative interpretations of the statute to generate higher penalty amounts will flunk that test.” To avoid that, FCC should propose forfeitures only when a company has violated a clear FCC rule and limit forfeiture amounts to conform to statutory requirements, Wright argued. This would also ensure the agency “has a sound basis for any forfeiture orders that it ultimately has to defend before a jury,” as it might be required to do in the wake of the Jarkesy decision. Wright was FCC general counsel in 1999 when the Enforcement Bureau was created, and is “disappointed that the Commission’s enforcement efforts have gone so far off-track.” The FCC “should correct itself sooner rather than later to avoid protracted legal challenges and judicially crafted remedies."