Justia Communications Law Opinion Summaries

The case involves the Federal Communications Commission (FCC) and its universal-service contribution scheme, which requires telecommunications carriers to contribute to a fund that subsidizes communications services for underserved communities. The FCC uses a formula to determine the contribution amount, and the Universal Service Administrative Company, a private entity, assists in managing the fund and projecting financial needs.The Fifth Circuit Court of Appeals reviewed the case and found the contribution scheme unconstitutional due to a "double-layered delegation" of authority. The court expressed skepticism about Congress's delegation of power to the FCC and the FCC's delegation to the Administrator, suggesting that the combination of these delegations violated the Constitution's nondelegation doctrine.The Supreme Court of the United States reviewed the case and reversed the Fifth Circuit's decision. The Court held that the universal-service contribution scheme does not violate the nondelegation doctrine. It found that Congress provided sufficient guidance to the FCC through the Communications Act of 1934 and its amendments, which set clear policies and boundaries for the FCC's actions. The Court also determined that the FCC retained decision-making authority and that the Administrator's role was advisory, not a delegation of governmental power. The Court rejected the Fifth Circuit's combination theory, stating that the separate delegations did not compound to create a constitutional violation. View "FCC v. Consumers' Research" on Justia Law

Radio Communications Corporation (RCC), a telecommunications and media company, petitioned for review of a final order issued by the Federal Communications Commission (FCC) implementing the Low Power Protection Act (LPPA). The LPPA allows low power television (LPTV) stations to apply for an upgrade to a Class A license if they meet certain criteria, including operating in a Designated Market Area (DMA) with not more than 95,000 television households. The FCC's order adopted this limitation and used Nielsen’s Local TV Report to determine a station’s DMA.RCC operates an LPTV station, W24EZ-D, in Connecticut, which is licensed to serve Allingtown, a neighborhood of West Haven with fewer than 15,000 television households. However, the station is part of the Hartford-New Haven DMA, which has approximately one million television households. RCC challenged the FCC's order, arguing that the size limitation should apply to a station’s community of license, not its DMA. RCC also raised other statutory and constitutional arguments, including claims that the order contravenes section 307(b) of the Communications Act, violates the Commerce Clause, improperly delegates legislative authority to Nielsen, and restricts programming content in violation of the First Amendment.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that the FCC's order adheres to the best reading of the LPPA, which clearly limits Class A license eligibility to LPTV stations operating in a DMA with not more than 95,000 television households. The court found that the FCC properly defined DMA according to Nielsen’s data, as authorized by Congress, and that the statute does not reference "community of license." The court also rejected RCC's constitutional arguments, finding that the FCC's interpretation did not violate the Commerce Clause or the nondelegation doctrine. Consequently, the court denied RCC's petition for review. View "Radio Communications Corporation v. FCC" on Justia Law

The Federal Communications Commission (FCC) issued an order requiring most television and radio broadcasters to compile and disclose employment-demographics data to the FCC, which would then post the data on its website. Petitioners, a group of broadcasters and associations, challenged the order, arguing that the FCC lacked statutory authority for such a requirement, and that it violated their First and Fifth Amendment rights, and was arbitrary and capricious under the Administrative Procedure Act.The FCC reinstated the collection of employment-demographics data in February 2024, ending a 22-year hiatus. The data collection, through Form 395-B, was intended to monitor industry trends and report to Congress. The FCC had previously collected this data until 2002, when it was suspended following a court ruling that found certain FCC regulations unconstitutional. The FCC's new order also included amendments to Form 395-B, such as adding non-binary gender categories and expanding job categories.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the FCC lacked statutory authority to require broadcasters to submit Form 395-B. The court explained that the FCC's broad public-interest authority must be linked to a distinct grant of authority from Congress, which was not present in this case. The court also rejected the FCC's argument that the 1992 Cable Act ratified its authority to collect Form 395-B data, noting that the Act tied this authority to equal employment opportunity regulations that were no longer in effect.The Fifth Circuit granted the petition and vacated the FCC's order, concluding that the FCC did not have the statutory authority to mandate the collection and disclosure of employment-demographics data from broadcasters. View "National Religious Broadcasters v. FCC" on Justia Law

In 2016, an anonymous user uploaded child pornography images to Chatstep, an internet chatroom service. Chatstep identified and reported the uploads to the National Center for Missing & Exploited Children (NCMEC) using Microsoft’s PhotoDNA. The Bernalillo County Sheriff’s Office (BCSO) in New Mexico traced the IP address to Guy Rosenschein and obtained a warrant to search his home, uncovering approximately 21,000 images and videos of child pornography. Rosenschein was indicted on charges of possession and distribution of child pornography.The United States District Court for the District of New Mexico denied Rosenschein’s pre-trial motions to suppress evidence, dismiss the case, or compel discovery of the computer programs used by Microsoft and NCMEC. Rosenschein pleaded guilty to one count of possession and seven counts of distribution of child pornography, reserving his right to appeal the denial of his motions.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court’s denial of all three motions. The court held that Chatstep and Microsoft were not acting as governmental agents, so the Fourth Amendment did not apply to their conduct. Even if they were considered governmental agents, Rosenschein had no reasonable expectation of privacy in the images he uploaded to a public chatroom. The court also found no abuse of discretion in the district court’s denial of Rosenschein’s motion to compel discovery of NCMEC’s reporting system, since he had the opportunity to access the information through witness examination. Lastly, the court upheld the district court’s refusal to require expert reports for the government’s witnesses before the suppression hearing, since Rule 16(a)(1)(G) does not apply to suppression hearings. View "U.S. v. Rosenschein" on Justia Law

AT&T sought review of a Federal Communications Commission (FCC) forfeiture order, which fined the company $57 million for mishandling customer data in violation of section 222 of the Telecommunications Act. The FCC found that AT&T failed to protect customer proprietary network information (CPNI) and issued the fine after an internal adjudication process. AT&T argued that the FCC's in-house adjudication violated the Constitution by denying it an Article III decisionmaker and a jury trial.The FCC's Enforcement Bureau investigated AT&T following reports of misuse of customer location data by service providers. The Bureau issued a Notice of Apparent Liability for Forfeiture (NAL), proposing the penalty. AT&T responded in writing, contesting the penalty and raising constitutional challenges. The FCC rejected AT&T's arguments and affirmed the penalty, leading AT&T to pay the fine and seek review in the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit, guided by the Supreme Court's decision in SEC v. Jarkesy, agreed with AT&T that the FCC's enforcement procedures violated the Seventh Amendment and Article III. The court found that the FCC's imposition of civil penalties was akin to a common law action for money damages, which traditionally requires a jury trial. The court also determined that the public rights exception did not apply, as the action was closely related to common law negligence and did not fall within the historical categories of non-Article III adjudications.The court concluded that the FCC's process, which allowed for a section 504 trial only after the agency had already adjudicated the matter, did not satisfy the constitutional requirements. As a result, the Fifth Circuit granted AT&T's petition and vacated the FCC's forfeiture order. View "AT&T v. Federal Communications Commission" on Justia Law

A recently enacted Mississippi statute, House Bill 1126, aims to protect minors from harmful online material by requiring digital service providers (DSPs) to verify users' ages, obtain parental consent for minors, limit data collection, and implement strategies to mitigate harmful content exposure. NetChoice, L.L.C., a trade association for internet-focused companies, challenged the statute's constitutionality under the First and Fourteenth Amendments and sought a preliminary injunction to prevent its enforcement.The United States District Court for the Southern District of Mississippi granted the preliminary injunction, finding that NetChoice was likely to succeed on its claims that the statute was unconstitutional. The court determined that NetChoice had associational standing to bring the suit on behalf of its members and that the statute imposed significant regulatory burdens that could cause financial harm. The Attorney General of Mississippi appealed, arguing that the district court erred in its findings and failed to perform the necessary facial analysis as mandated by the Supreme Court in Moody v. NetChoice, LLC.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the district court did not conduct the required two-step analysis outlined in Moody. This analysis involves defining the law's scope and determining which applications violate the First Amendment. The Fifth Circuit noted that the district court did not fully assess the range of activities and actors regulated by the statute or the specific regulatory burdens imposed on different DSPs. Consequently, the court vacated the preliminary injunction and remanded the case to the district court for further factual analysis consistent with the Supreme Court's opinion in Moody and Fifth Circuit precedent. View "NetChoice v. Fitch" on Justia Law

Gray Television, a broadcaster in Alaska, sought review of a final forfeiture order by the Federal Communications Commission (FCC). The FCC had imposed the maximum forfeiture penalty on Gray for violating the prohibition on owning two top-four stations in a single designated market area (DMA). Gray acquired the CBS network affiliation of KTVA-TV for its own station, KYES-TV, which resulted in Gray owning two top-four stations in the Anchorage DMA. Gray did not seek a waiver from the FCC for this transaction.The FCC issued a Notice of Apparent Liability for Forfeiture (NAL) against Gray, proposing a penalty of $518,283, the statutory maximum. Gray responded, arguing that the transaction did not violate the rule because KYES was already a top-four station according to Comscore ratings data. Gray also contended that the FCC failed to provide fair notice of its interpretation of the rule and that the enforcement action violated the First Amendment and the Communications Act.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court affirmed the FCC's determination that Gray violated the rule, finding that the FCC reasonably relied on Nielsen ratings data, which showed that KYES was not a top-four station at the time of the transaction. The court also held that the FCC's interpretation of the rule was reasonable and that Gray had fair notice of the rule's application to its transaction.However, the court vacated the forfeiture penalty and remanded for further proceedings. The court found that the FCC failed to provide adequate notice to Gray that the proposed penalty was based on a finding of egregiousness, which violated due process. Additionally, the court held that the FCC did not adequately explain its consideration of Gray's good faith in determining the penalty amount. View "Gray Television, Inc. v. Federal Communications Commission" on Justia Law

The case involves the Protecting Americans from Foreign Adversary Controlled Applications Act, which was signed into law on April 24, 2024. The Act identifies certain countries, including China, as foreign adversaries and prohibits the distribution or maintenance of applications controlled by these adversaries, specifically targeting the TikTok platform. TikTok Inc. and ByteDance Ltd., along with other petitioners, challenged the constitutionality of the Act, arguing that it violates the First Amendment, the Fifth Amendment's equal protection and takings clauses, and the Bill of Attainder Clause.The lower courts had not previously reviewed this case, as it was brought directly to the United States Court of Appeals for the District of Columbia Circuit. The petitioners sought a declaratory judgment and an injunction to prevent the Attorney General from enforcing the Act. The court had to determine whether the petitioners had standing and whether their claims were ripe for judicial review.The United States Court of Appeals for the District of Columbia Circuit concluded that TikTok had standing to challenge the Act and that its claims were ripe. The court assumed without deciding that strict scrutiny applied to the First Amendment claims and upheld the Act, finding that it served compelling governmental interests in national security and was narrowly tailored to achieve those interests. The court also rejected the equal protection, bill of attainder, and takings clause claims, concluding that the Act did not constitute a punishment, was not overinclusive or underinclusive, and did not result in a complete deprivation of economic value. The petitions were denied. View "TikTok Inc. v. Garland" on Justia Law

The case involves six plaintiffs who are users of Tornado Cash, a cryptocurrency mixing service that uses immutable smart contracts to anonymize transactions. Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) under the International Emergency Economic Powers Act (IEEPA) for allegedly facilitating money laundering for malicious actors, including North Korea. The plaintiffs argued that OFAC exceeded its statutory authority by designating Tornado Cash as a Specially Designated National (SDN) and blocking its smart contracts.The United States District Court for the Western District of Texas granted summary judgment in favor of the Department of the Treasury, finding that Tornado Cash is an entity that can be sanctioned, that its smart contracts constitute property, and that the Tornado Cash DAO has an interest in these smart contracts. The plaintiffs appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and focused on whether the immutable smart contracts could be considered "property" under IEEPA. The court concluded that these smart contracts are not property because they are not capable of being owned, controlled, or altered by anyone, including their creators. The court emphasized that property, by definition, must be ownable, and the immutable smart contracts do not meet this criterion. Consequently, the court held that OFAC exceeded its statutory authority by sanctioning Tornado Cash's immutable smart contracts.The Fifth Circuit reversed the district court's decision and remanded the case with instructions to grant the plaintiffs' motion for partial summary judgment based on the Administrative Procedure Act. The court did not address whether Tornado Cash qualifies as an entity or whether it has an interest in the smart contracts, as the determination that the smart contracts are not property was dispositive. View "Van Loon v. Department of the Treasury" on Justia Law

The case involves a challenge to Texas House Bill 20 (H.B. 20) by NetChoice, L.L.C. and the Computer & Communications Industry Association (CCIA). The plaintiffs argue that H.B. 20, which regulates content moderation by social media platforms, violates the First Amendment. The Supreme Court previously emphasized that facial challenges to state laws, especially under the First Amendment, require a thorough exploration of both the law's unconstitutional and constitutional applications. The Supreme Court found the record in this case to be underdeveloped, necessitating further factual discovery to determine who and what activities are covered by H.B. 20 and how these activities burden expression.The United States District Court for the Western District of Texas initially reviewed the case. The district court largely agreed with the plaintiffs that the issues were purely legal questions and required the State of Texas to complete discovery in a short period to avoid burdening the plaintiffs. The district court blocked extensive discovery, which the Supreme Court later indicated was necessary for a proper evaluation of the case.The United States Court of Appeals for the Fifth Circuit is currently reviewing the case. The court remanded the case to the district court for further proceedings consistent with the Supreme Court's instructions. The district court must now determine the full range of activities covered by H.B. 20, identify the actors involved, and assess how content moderation decisions burden expression. The district court must also separately consider the individualized-explanation provisions of H.B. 20 and evaluate whether these provisions unduly burden expressive activity. The Fifth Circuit emphasized that plaintiffs bear the burden of developing a factual record to support their facial challenge to H.B. 20. The case is remanded for further factual development and analysis. View "NetChoice v. Paxton" on Justia Law