A case before the U.S. Supreme Court, Consumers' Research, et al. v. Consumer Product Safety Commission, potentially has major implications for the FCC and FTC, and could permit a president to fire a commissioner at will, industry lawyers said. The U.S. Chamber of Commerce and other conservative groups are asking SCOTUS in amicus filings to grant the writ of certiorari from Consumers' Research.
The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
Communications Daily is tracking the lawsuits below involving appeals of FCC actions.
The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
Communications Litigation Today is tracking the lawsuits below involving appeals of FCC actions.
Communications Daily is tracking the lawsuits below involving appeals of FCC actions.
The FCC asked the 5th U.S. Circuit Court of Appeals to dismiss Consumers' Research's challenge of the agency's USF contributions methodology. Consumers' Research "made the same arguments before the Sixth and Eleventh Circuits," the agency said in a petition filed Monday (docket 22-60008), adding the U.S. Supreme Court declined to review the decisions (see 2406110008). "Those decisions are thus final and not subject to further review," the FCC said, and "petitioners are precluded from raising the same claims here." Also, Consumers' Research filed a motion for the D.C. Circuit for a voluntary dismissal regarding one of its challenges to the USF contribution factor.
Selection of the 6th U.S. Circuit Appeals Court to hear industry challenges to the net neutrality order may bode well for industry. Still, many questions remain, including which judges will hear the case and whether arguments are ultimately held in the Ohio-based court, industry experts said Friday.
Consumers' Research defended its position Tuesday to the U.S. Supreme Court that Congress and the FCC violated the nondelegation doctrine through the Universal Service Fund contributions mechanism (see 2405070042).
The Universal Service Administrative Co's. (USAC) role in administering the FCC's Universal Service Fund programs "is purely administrative," the FCC told the U.S. Supreme Court in response to Consumers' Research's challenge of how the commission determines quarterly contribution factors (see 2401100044). USAC "must comply with detailed regulations issued by the FCC" and "helps the FCC compute the amount of each quarterly payment" carriers must contribute, the agency said in an opposition brief filed in docket 23-456.