WASHINGTON, D.C. (June 4, 2026) – Small businesses are disappointed in today’s decision from the United States Supreme Court concluding that the FCC’s enforcement and forfeiture proceedings do not violate the Seventh Amendment of the Constitution. The Court affirmed the Second Circuit’s decision in Verizon v. Federal Communications Commission (FCC) and reversed the Fifth Circuit’s opinion in FCC v. AT&T. Unfortunately, this decision will enable the FCC, and possibly other federal agencies, to continue unfairly imposing penalties on those they regulate, including countless small businesses nationwide. NFIB joined an amicus brief in the cases arguing that the FCC does in fact violate the Seventh Amendment by not guaranteeing jury trials for defendants.

“Small businesses across the country are at the mercy of the regulatory bodies whose rules and procedures they must obey,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “Main Street businesses deserve accountability, consistency, and fairness from the administrative agencies who regulate them, not burdensome penalties and bureaucratic processes that underhandedly deny them their constitutional rights.”

The cases considered the legality of the FCC’s assessment and enforcement of monetary penalties under the Communications Act. NFIB’s brief argued two main points: 1) That a federal agency must obtain a court order to enforce its administratively imposed penalties, as was recently affirmed by the U.S. Supreme Court in SEC v. Jarkesy; and 2) A defendant facing an agency penalty enforcement lawsuit does not always get a jury trial, which violates the Seventh Amendment.

NFIB filed the brief with the New Civil Liberties Alliance and the National Association of Wholesaler-Distributors.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.